Cost Adjustments to Capitalized and CIP Source Lines

When you transfer source lines you adjust the recoverable cost of an asset. Depreciation is calculated based on the asset type.

Transfer Source Lines Between Capitalized Assets

Oracle Assets creates the following journal entries for a source line transfer between capitalized assets.

Account Description Debit Credit
Asset Cost (from destination asset category) 400.00  
Asset Cost (from source asset category)   400.00
Account Description Debit Credit
Accumulated Depreciation (from source asset category) 70.00  
Depreciation Expense   70.00
Account Description Debit Credit
Depreciation Expense 55.00  
Depreciation Expense (adjustment) 70.00  
Accumulated Depreciation (from source asset category)   125.00

Transfer Source Lines From Capitalized Assets to CIP Assets

When you transfer source lines from capitalized to CIP assets, Oracle Assets must back out some of the depreciation from the capitalized asset, because CIP assets do not depreciate.

Oracle Assets creates the following journal entries for a source line transfer between capitalized assets and CIP assets:

Account Description Debit Credit
CIP Asset Cost (from destination asset category) 400.00  
Asset Cost (from source asset category)   400.00
Account Description Debit Credit
Accumulated Depreciation (from source asset category) 70.00  
Depreciation Expense   70.00

Transfer Source Lines from CIP Assets to Capitalized Assets

When you transfer source lines from CIP to capitalized assets, Oracle Assets takes catchup depreciation as for any cost adjustment transaction.

Oracle Assets creates the following journal entries for a source line transfer between CIP assets and capitalized assets:

Account Description Debit Credit
Asset Cost (from destination asset category) 400.00  
CIP Asset Cost (from source asset category)   400.00
Account Description Debit Credit
Depreciation Expense (from source asset category) 125.00  
Accumulated Depreciation Expense (from destination asset category)   125.00

Transfer Source Lines Between CIP Assets

Oracle Assets does not need to reverse depreciation expense when you transfer invoice lines between CIP assets Because CIP assets do not depreciate.

Oracle Assets creates the following journal entries for a source line transfer between CIP assets:

Account Description Debit Credit
CIP Asset Cost (from destination asset category) 400.00  
CIP Asset Cost (from source asset category)   400.00

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