Run the Create Accounting process to create accounting entries.
Run the Create Accounting process to create accounting entries.
Note: You do not need to run Depreciation before creating accounting transactions. You can run the Create Accounting process as many times as necessary within a period.
The Create Accounting process creates journal entries for the appropriate ledger. You can review these journal entries in the general ledger and post them.
Oracle Assets creates adjusting journal entries to depreciation expense, bonus expense, accumulated depreciation accounts, and bonus reserve accounts when you enter prior period additions, transfers, or retirements:
For a prior period addition, Oracle Assets creates journal entries for the missed depreciation
For a prior period transfer, Oracle Assets reverses a portion of the depreciation expense posted to the "from" depreciation expense account and posts it to the "to" depreciation expense account
For prior period retirements, Oracle Assets creates journal entries that reverse the depreciation taken for periods after the retirement prorate date
Oracle Assets creates separate journal entries for adjustments to depreciation expense and current period depreciation. You can review the effect of your adjustment transaction and your current period depreciation expense separately in the general ledger.
You can create journal entries for any general ledger. If you do not use Oracle General Ledger, you can copy the journal entry information from the GL tables.
Oracle Assets creates journal entries for the following general ledger accounts:
Accumulated Depreciation
Asset Clearing
Asset Cost
Bonus Expense
Bonus Reserve
CIP Clearing
CIP Cost
Cost of Removal Gain, Loss, and Clearing
Deferred Accumulated Depreciation
Deferred Depreciation Expense
Depreciation Adjustment
Depreciation Expense
Intercompany Payables
Intercompany Receivables
Net Book Value Retired Gain and Loss
Proceeds of Sale Gain, Loss, and Clearing
Revaluation Amortization
Revaluation Reserve
Revaluation Reserve Retired Gain and Loss
Debit (Dr.) A debit to the asset cost, asset clearing, bonus expense, CIP cost, CIP clearing, depreciation expense, proceeds of sale clearing, or intercompany receivables account is an addition to the account. A debit to the accumulated depreciation, bonus reserve, cost of removal clearing, or intercompany payables account is a subtraction from the account. In the journal entry examples, debits are in the left column.
Credit (Cr.) A credit to the accumulated depreciation, bonus reserve, cost of removal clearing, or intercompany payables account is an addition to the account. A credit to the asset cost, asset clearing, bonus expense, CIP cost, CIP clearing, depreciation expense, proceeds of sale clearing, or intercompany receivables account is a subtraction from the account. In the journal entry examples, credits are in the right column.
After sending journal entries from Oracle Assets to your general ledger, you can review or modify journal entries in your general ledger before posting them.
If you integrate Oracle Assets with Oracle General Ledger, use the Enter Journals window in Oracle General Ledger to review, change or correct your entries.
If you use a different general ledger, you can review or change entries in that general ledger.
This guide contains examples of asset transactions you can perform and the journal entries that Oracle Assets creates.
The journal entries are for the period that the asset transaction was entered into Oracle Assets. Oracle Assets creates these journal entries when you run the Create Accounting - Assets program.
The asset cost, accumulated depreciation, bonus reserve, and year-to-date depreciation numbers in the following tables are end of quarter balances. The depreciation expense numbers are per period.
Note: In the following examples, if you have set up specific bonus expense and bonus reserve accounts, they behave like depreciation and accumulated depreciation accounts. However, bonus expense and bonus reserve are treated separately in certain cases.