Mass Additions lets you add assets and cost adjustments directly into Oracle Assets from invoice information in Payables. The Create Mass Additions for Oracle Assets process sends valid invoice line distributions and associated discounts from Payables to an interface table in Oracle Assets. Then you review them in Oracle Assets and determine whether to create assets from the lines.
You must register the clearing accounts you want to use as Asset accounts in the Segment Values window. The create mass additions process selects Payables invoice line distributions charged to clearing accounts with the type of Asset.
For each asset category in Oracle Assets for which you want to import invoice line distributions from Payables, define valid asset clearing and construction-in-process clearing accounts. These accounts must be of type Asset. The create mass additions process only imports lines charged to accounts that are already set up in your asset categories.
Payables must be tied to the same ledger as the corporate book for which you want to create mass additions in Oracle Assets. If you use the multiple organization feature and have multiple corporate books in Oracle Assets, ensure that you create mass additions for the correct Oracle Assets corporate book. You cannot create mass additions for tax books.
You can define a default asset category for an item in Purchasing or Inventory. Then when you purchase and pay for one of these items using Purchasing and Payables, the mass additions process defaults this asset category. This is the only time Oracle Assets defaults an asset category for a new mass addition line.
If you want mass addition lines for an item to appear in Oracle Assets with an asset category, you must:
Define a default asset category for an item in the Item window in Purchasing or Inventory
Create a purchase order for that item
Receive the item in either Purchasing or Inventory
Enter an invoice in Payables and match it to the outstanding purchase order
Approve the invoice
Post the invoice to General Ledger
After you run create mass additions, the mass addition line appears with the asset category you specified for the item.
When you enter a new invoice in Payables, if you want the invoice line to be imported to Oracle Assets, you must charge the distribution to a clearing account that is already assigned to an asset category. The line amount can be either positive or negative.
Any additional information you enter in the Description field in the Invoices Summary window in Payables appears in the Description field in the Mass Additions window in Oracle Assets.
Discount line distributions brought over to Oracle Assets automatically have a description of DISCOUNT.
If you enter a purchase order in Purchasing with multiple units and match it completely to an invoice in Payables, the Create Mass Additions process uses the number of units specified by the original purchase order for the mass addition line. Mass addition lines created from invoices entered directly into Payables without matching to a purchase order default to one unit. You can update the number of units in the Mass Additions window.
After you approve and post the invoice in Payables, run the Create Mass Additions for Oracle Assets process to send valid invoice line distributions to Oracle Assets.
You can easily process and track returns using mass additions. For example, you receive an invoice, post it, and create an asset using mass additions. You then discover that the asset is defective and you must return it.
First you reverse the invoice in Payables, charging the credit invoice line distribution to the same asset clearing account. Then you run mass additions to bring over the credit line. Add this line to the existing asset to bring the asset cost to zero. Now you can retire the asset. The asset does not affect your balance sheet, but its audit trail remains intact.
For the mass additions create process to import an invoice line distribution to Oracle Assets, these specific conditions must be met:
The line is charged to an account set up as an Asset account
The account is set up for an existing asset category as either the asset clearing account or the CIP clearing account
The Track As Asset check box is checked. (It is automatically checked if the account is an Asset account)
The invoice is approved
The invoice line distribution is posted to Oracle General Ledger from Payables
The general ledger date on the invoice line distribution is on or before the date you specify for the create program
If you use the multiple organization feature, your Payables operating unit must be tied to the same ledger as the corporate book for which you want to create mass additions.
You can create expensed items from expensed invoice line distributions in Oracle Payables. Oracle Assets does not depreciate or create journal entries for expensed items. You cannot change an expensed item to a capitalized or CIP asset.
The create mass additions process imports an expensed line only if:
The invoice line distribution is charged to an Expense account
Track as Asset is checked
The invoice is approved
The invoice line distribution is posted to Oracle General Ledger from Payables
The general ledger date on the invoice line distribution is on or before the date you specify for the create program
Your installation of Payables must be tied to the same ledger as the corporate book for which you want to create mass additions
You can run Create Mass Additions for Oracle Assets as many times as you like during a period. Each time it sends potential asset invoice line distributions and any associated discount lines to Oracle Assets. Payables ensures that it does not bring over the same line twice.
Use the Post Accounting programs in Oracle Subledger Accounting to determine the line types that should be interfaced to Oracle Assets by the Mass Additions Create program. Please refer to the SLA user guide for more information on the Post Accounting programs.
Attention: Verify that you are creating mass additions for the correct corporate book in Oracle Assets, because you cannot undo the process and resend them to a different book.
Payables sends line amounts entered in foreign currencies to Oracle Assets in the converted ledger currency. Since Oracle Assets creates journal entries for the ledger currency amount, you must clear any foreign currency invoices manually in your general ledger. Review the Mass Additions Create Report to see both foreign and ledger currency amounts.
For example, you purchase an asset in euros, and place the asset into service. Oracle Payables creates a journal entry for the purchase in euros, and sends it to Oracle General Ledger. The conversion rate and journal entry created are included below:
Conversion Rate: 1 EUR = 1.25 USD
Dr Asset Clearing EUR 4,000
Cr Accounts Payable Liability EUR 4,000
In Oracle Payables, the amounts are converted to dollars, the ledger currency, and sent to Oracle Assets via the Create Mass Additions process. Oracle Assets creates a journal entry for the asset addition in dollars. The conversion rate and journal entry created are included below:
Conversion Rate: 1 EUR = 1.25 USD
Dr Asset Cost USD 5,000.00
Dr Depreciation Expense USD 312.50
Cr Asset Clearing USD 5,000.00
Cr Accumulated Depreciation USD 312.50
In Oracle General Ledger, the Asset Clearing account becomes unbalanced after posting the debit amount in euros and the credit amount in dollars for the asset purchase. The asset purchase journal entry amounts in the Asset Clearing account are included below:
Dr Asset Clearing EUR 4,000.00
Cr Asset Clearing USD 5,000.00
You must manually clear the unbalanced amounts entered in the Asset Clearing account. You can clear these amounts by creating journal entries to reverse the unbalanced amounts, and bring the Asset Clearing account into balance. The journal entries required to balance the Asset Clearing account are included below:
Journal Entry 1:
Dr Asset Clearing USD 5,000.00
Cr Asset Cost USD 5,000.00
Journal Entry 2:
Dr Asset Cost EUR 4,000.00
Cr Asset Clearing EUR 4,000.00