For each step, we include a Context section that indicates whether you need to repeat the step for each set of tasks, ledger, inventory organization, HR organization, or other operating unit under Multiple Organizations.
You need to define at least one ledger before you can implement and use Oracle Assets.
A ledger includes an accounting calendar, a ledger currency, and an account structure. The account defines the structure of your general ledger accounts. If you have not defined your account while setting up a ledger, you need to set the account to match your accounting structure and provide valid values for expense, cash, and accounts payable liability accounts.
If you previously defined your ledger while setting up a different Oracle Financials product, proceed to the next step.
You can use Oracle Assets with multiple ledgers within a single installation. See: Oracle Assets with Multiple Ledgers.
Default - This is a required step. If you skip this step, you will not be able to use Oracle Assets.
Context: You need to perform this step only once per installation.
See: Defining Ledgers.
Define Your Unit of Measure Classes (optional)
If you do not install Oracle Inventory or Oracle Purchasing, use the Unit of Measure Classes window in Oracle Assets to define your unit of measure classes. You can define classes for the units you use to measure production for your units of production assets.
If you previously defined your unit of measure classes while setting up a different Oracle Applications product, proceed to the next step.
Attention: You must set up an organization before you can define units of measure classes. See: Creating an Organization.
Attention: You must define the profile option HR:User Type before you can set up an organization. See: Setting User Profile Options
Default - If you skip this step, Oracle Assets will use the defaults set up in Oracle Inventory or Oracle Purchasing. If neither Oracle Inventory nor Oracle Purchasing are installed, you will not be able to use unit of measure classes.
Context: Perform this step once for each Inventory organization.
Define Your Units of Measure (optional)
If you do not install Oracle Inventory or Oracle Purchasing, use the Units of Measure window in Oracle Assets to define your units of measure. You can define the units you use to measure production for your units of production assets.
Attention: You must set up an organization before you can define units of measure. See: Creating an Organization
Attention: You must define the profile option HR:User Type before you can set up an organization. See: Setting User Profile Options.
If you previously defined your units of measure while setting up a different Oracle Applications product, proceed to the next step.
Default - If you skip this step, Oracle Assets will use the defaults set up in Oracle Inventory or Oracle Purchasing. If neither Oracle Inventory nor Oracle Purchasing are installed, you will not be able to use units of measure.
Context: Perform this step once for each Inventory organization.
Define Your Employees (optional)
If you do not install Oracle Personnel, Oracle Payroll, Oracle Purchasing, or Oracle Payables, use the Enter Person window in Oracle Assets to define employees. You must enter an employee before you can assign an asset to the employee. Oracle Assets only uses the employee name, number, and termination date.
If you previously defined your employees while setting up a different Oracle Applications product, proceed to the next step.
Default - If you skip this step, you will not be able to track assets by employee name.
Context: Perform this step once for each business group.
Define Your Descriptive Flexfields (optional)
You can set up descriptive flexfields to track additional information. For example, you can set up a descriptive flexfield for each asset category to collect information relevant to your business. For example, you might want to track the license number for cars, but the square footage for buildings. Then, when you assign a new asset to a category, you can enter the additional information.
There are many other descriptive flexfields in Oracle Assets. For example, you can set up a descriptive flexfield to store additional information about your transactions.
Note: To set up the Leases GUI descriptive flexfield or the Retirements GUI descriptive flexfield, see: Defining Descriptive Flexfield Structures.
Default - If you skip this step, you will not be able to enter additional descriptive information to track assets.
Context: You need to perform this step only once per installation.
Set Up Oracle Subledger Accounting (conditionally required)
Note: This step is required if the FA: Use Workflow Account Generation profile option is set to No.
Oracle Assets uses Oracle Subledger Accounting to create journal entries.
Default - If you skip this step, Oracle Assets will use the default value of No for the FA Use Workflow Account Generation and will use Subledger Accounting to create journal entries.
Context: Perform this step once for each ledger.
Decide How to Use the Account Generator (conditionally required)
Oracle Assets uses the Account Generator to generate accounting flexfield combinations for journal entries. You must review the default process that Oracle Assets uses to see if it meets your accounting requirements. You can optionally customize the Account Generator for each ledger that you have defined. Note that you must set up Oracle Workflow in order to use the Account Generator.
Default - If you skip this step, Oracle Assets will use the default Account Generator settings to build accounting flexfield code combinations.
Context: Perform this step once for each (entity) i.e. organization operating unit, business group, or legal entity.
Define Additional Journal Entry Sources (required with defaults)
If you do not install Oracle General Ledger, use the Journal Entry Sources window in Oracle Assets to define additional journal entry sources. Journal entry sources are used to identify the origin of your journal entry transactions.
If you previously defined your journal entry sources while setting up Oracle General Ledger, proceed to the next step.
Default - If you skip this step, Oracle Assets will use the journal entry sources set up in Oracle General Ledger.
Context: Perform this step once for each operating unit.
Define Additional Journal Entry Categories (required with defaults)
If you do not install Oracle General Ledger, use the Journal Entry Categories window in Oracle Assets to define additional journal entry categories. Journal entry categories describe the purpose or type of your journal entries.
If you previously defined your journal entry categories while setting up Oracle General Ledger, proceed to the next step.
Default - If you skip this step, Oracle Assets will use the journal entry categories set up in Oracle General Ledger.
Context: Perform this step once for each operating unit.
Define Your Supplier and Employee Numbering Schemes (optional)
If you do not install Oracle Purchasing or Oracle Payables, use the Financials Options window in Oracle Assets to define your supplier and employee numbering schemes. You need to specify how to number your suppliers and employees before you can enter suppliers or employees.
If you previously defined your supplier and employee numbering schemes while setting up a different Oracle Applications product, proceed to the next step.
Default - If you skip this step, you will not be able to track asset assignments against employees and assignments.
Context: Perform this step once for each operating unit.
Define Your Suppliers (optional)
If you do not install Oracle iSupplier, use Setup > Assets System > Financials > Suppliers in Oracle Assets to define your suppliers. You must enter a supplier before you can enter assets or bring over mass additions purchased from that supplier. Oracle Assets only uses the supplier name, number, and inactive date.
If you previously defined your suppliers while setting up a different Oracle Applications product, proceed to the next step.
Default - If you skip this step, you will not be able to track assets assigned to specific suppliers.
Context: Perform this step once for each operating unit.
See: Entering Suppliers.
Define Your Asset Key Flexfield
The asset key flexfield allows you to define asset keys that let you name and group your assets so you do not need an asset number to find them. The asset key is similar to the asset category in that it allows you to group assets. However, the asset key has no financial impact.
This flexfield lets you assign the same name to many assets so you can find similar assets. You can provide additional descriptive data to group assets by project or other functional group. You can use this flexfield to track your CIP assets. You use the same setup windows to create your asset key flexfield as you do for your other key flexfields.
Default - This is a required step. If you skip this step, you will not be able to use Oracle Assets.
Context: You need to perform this step only once per installation.
See: Asset Key Flexfield.
Define Your Asset Category Flexfield
The asset category flexfield allows you to define asset categories and subcategories. For example, you can create an asset category for your computer equipment. You can then create subcategories for personal computers, terminals, printers, and software. You must assign the major category segment qualifier to one segment of your category flexfield. The major category segment facilitates capital budgeting. You must assign the minor category segment qualifier to one segment of your category flexfield. This is needed as some variable format report use it as a parameter. All other segments are optional. You use the same setup windows to create your asset category flexfield as you do for your other key flexfields.
Default - This is a required step. If you skip this step, you will not be able to use Oracle Assets.
Context: You need to perform this step only once per installation.
See: Category Flexfield
Define Your Location Flexfield
The location flexfield allows you to specify and track the exact location of your assets. You must assign the state segment qualifier to one segment of your location flexfield. The state segment facilitates property tax reporting. All other segments are optional. You use the same setup windows to create your location flexfield as you do for your other key flexfields.
Default - This is a required step. If you skip this step, you will not be able to use Oracle Assets.
Context: You need to perform this step only once per installation.
See: Location Flexfield
Set up your system controls. You specify your enterprise name, asset numbering scheme, and key flexfield structures in the System Controls window. You also specify the oldest date placed in service of your assets.
Default - This is a required step. If you skip this step, you will not be able to use Oracle Assets.
Context: You need to perform this step only once per installation.
Define Your Locations (optional)
Define valid locations. Your location flexfield combinations tell Oracle Assets what locations are valid for your company. Oracle Assets uses location for tracking assets and for property tax reporting.
If your location flexfield has dynamic insertion turned off, this is the only place you can define valid combinations. If dynamic insertion is turned on, Oracle Assets automatically updates the Locations window with the values you enter in the Assignments window.
Default - This is a required step. If you skip this step, you will not be able to use Oracle Assets.
Context: Perform this step once per ledger.
See: Defining Locations.
Define Your Asset Keys (optional)
Define valid asset keys. You can use the list of values to choose these combinations for your assets when you enter them.
If dynamic insertion is disabled for your asset key flexfield, Asset Keys is the only window where you can define valid combinations. If dynamic insertion is enabled, Oracle Assets automatically updates the Define Asset Keys window with the values you enter when you add assets.
Default - This is a required step. If you skip this step, you will not be able to use Oracle Assets.
Context: Perform this step once per ledger.
See: Defining Asset Keys.
Define Your Standard Asset Descriptions and Other QuickCode Values (required with defaults)
QuickCode values are values that you can choose from a list of values when you enter and maintain assets. You can define the QuickCode values that you want for the following items:
Standard Asset Descriptions
Journal Entries
Mass Additions Queue Names
Property Type
Retirement
Asset Category
Asset Subcategory
Default - If you skip this step, the list of values you receive for maintaining assets will be the seeded defaults.
Context: Perform this step once per ledger.
See: Entering QuickCodes.
Use the Fiscal Years window to define the beginning and end of each fiscal year since the start of your company.
Your fiscal year groups your accounting periods. You must define the start and end date of each fiscal year since the oldest date placed in service. If you are using a 4-4-5 calendar, your start and end dates change every year. Create fiscal years from the oldest date placed in service through at least one fiscal year beyond the current fiscal year. Depreciation will fail if the current fiscal year is the last fiscal year.
Default - This is a required step. If you skip this step, you will not be able to use Oracle Assets.
Context: Perform this step once per ledger.
Use the Calendars window to set up as many depreciation and prorate calendars as you need. Calendars break down your fiscal year into accounting periods. Define your calendars with as many periods as you need.
Define a prorate calendar and a depreciation calendar for each depreciation book. Depreciation books can share a calendar, and you can use the same calendar for your depreciation calendar and prorate calendar if appropriate.
Depreciation Calendar: Determines, with the divide depreciation flag, what fraction of the annual depreciation amount to take each period.
Prorate Calendar: Determines, with the date placed in service, which depreciation rate to select from the rate table.
You can set up different calendars for each depreciation book. For example, you might set up a monthly calendar for financial reporting and a quarterly calendar for tax reporting.
Default - This is a required step. If you skip this step, you will not be able to use Oracle Assets.
Context: Perform this step once per ledger.
Set Up Security by Book (optional)
If you have multiple depreciation books, you may need to set up security for each book. For example, you may have operations in the U.S., Europe, and Asia, and may have ledgers and associated depreciation books set up for each country, according to that country's currency and tax laws. For a variety of reasons, you may prefer that the staff at the different sites are unable to view depreciation information for another site.
Oracle Assets allows you to limit access to each book so that only certain individuals can view the information. You do this by creating asset organizations and organization hierarchies that determine which organizations have access to a specific depreciation book.
Default - If you skip this step, all asset depreciation books will be accessible to all users.
Context: Perform this step once per ledger.
Use the Book Controls window to set up your depreciation books. You can set up an unlimited number of independent depreciation books. Each book has its own set of accounting rules and accounts so you can organize and implement your fixed assets accounting policies.
When you define a tax book, you must specify an associated corporate book. You can mass copy assets and transactions from the source book into your tax book. You specify the current open period, and Initial Mass Copy copies each asset into the tax book from the corporate book as of the end of that fiscal year in the corporate book.
Default - This is a required step. If you skip this step, you will not be able to use Oracle Assets.
Context: Perform this step once per ledger.
To set up security for your ledgers, you need to complete the following steps:
Define organizations. See: Asset Organizations Overview
Define organizations hierarchies. See: Organization Hierarchies in Oracle Assets
Define security profiles. See: Security Profiles
Run the Security List Maintenance process. See: Security List Maintenance Process
Define responsibilities. See: Defining Responsibilities. See: Defining Responsibilities
Assign responsibilities to users. See: Assigning Responsibilities to Users
Set up the FA: Security Profile profile option. See: Setting Up FA: Security Profile
Define Additional Depreciation Methods and Rates (required with defaults)
Depreciation methods specify how to spread the asset cost. Oracle Assets includes many standard depreciation methods, and you can define additional methods in the Methods window, if necessary.
Life_Based Depreciation Method: Oracle Assets includes standard life-based depreciation methods and rates. However, you can define additional life-based methods.
Flat-Rate Depreciation Method: You can define additional flat-rate methods, such as Diminishing Value. You can define your methods to calculate depreciation using either the net book value or the cost of the asset.
Bonus Depreciation Rules: Use the Bonus Depreciation Rules window to enter bonus rates for your flat-rate depreciation methods. Bonus rules allow you to take additional depreciation in the early years of an asset's life.
Units of Production: You can define a units of production method so you can calculate depreciation for an asset based on actual production or use for the period.
Formula-Based Depreciation: You can define specific formulas to derive annual depreciation rates for your assets. You can use these user-defined depreciation formulas in lieu of table-based, flat rate, calculated, or units of measure depreciation methods.
Default - If you skip this step, you will be able to use only the standard depreciation methods included in Oracle Assets.
Context: Perform this step once per ledger.
See: Defining Additional Depreciation Methods, Defining Formula-Based Depreciation Methods and Defining Bonus Depreciation Rules.
Define Your Depreciation Ceilings (optional)
Depreciation ceilings limit the depreciation expense you can take for an asset. Set up depreciation expense ceilings to limit the annual amount of depreciation expense you can take on an asset. Or set up depreciation cost ceilings to limit the recoverable cost of an asset.
Depreciation Expense Ceilings: Use the Ceilings window to define your depreciation expense ceilings. If you are subject to United States tax law, you must set up depreciation ceilings for luxury automobiles.
Depreciation Cost Ceilings: If you do business in a country which requires cost ceilings, such as Australia, you can limit the cost Oracle Assets uses to calculate depreciation. When you use a cost ceiling, Oracle Assets bases depreciation expense on the lesser of the cost ceiling and the asset cost.
Default - If you skip this step, depreciation expense will not be limited by depreciation ceilings.
Context: Perform this step once per ledger.
Define Your Investment Tax Credits (optional)
Set up your Investment Tax Credit (ITC) rates, recapture rates, and ceilings. Investment tax credits (ITC) allow you to reduce the recoverable cost of an asset.
ITC Rates: Oracle Assets allows you to set up ITC rates for assets that are eligible for Investment Tax Credit. ITC rates determine the amount of ITC for an asset.
ITC Recapture Rates: Oracle Assets allows you to set up ITC recapture rates for assets with Investment Tax Credits. ITC recapture rates determine the portion of the investment tax credit that must be recaptured if you retire the asset prematurely.
ITC Ceilings: Oracle Assets allows you to define Investment Tax Credit (ITC) ceilings. ITC ceilings limit the amount of ITC for an asset. If you are subject to United States tax law, you must set up ITC ceilings for luxury automobiles.
Default - If you skip this step, you will not be able to use investment tax credits.
Context: Perform this step once per ledger.
Define Your Prorate and Retirement Conventions
Use the Prorate Conventions window to set up your prorate and retirement conventions. Prorate and retirement conventions determine how much depreciation expense to take in the first and last year of life, based on when you place the asset in service. Oracle Assets lets you set up as many prorate and retirement conventions as you need.
Prorate Conventions: Determines how much depreciation expense to take in the first year of life.
Retirement Conventions: If you do business in a country that requires you to use a different prorate convention for retirements than for additions, set up retirement conventions to determine how much depreciation to take in the last year of life, based on the retirement date.
You must set up your prorate conventions for the entire year. When you run the depreciation program for the last period in your fiscal year, Oracle Assets automatically generates the dates for your next fiscal year.
Default - This is a required step. If you skip this step, you will not be able to use Oracle Assets.
Context: Perform this step once per ledger.
Define Your Price Indexes (optional)
A price index lets you calculate gains and losses for retirements using current value rather than historical cost. If you do business in a country that requires you to base gains and losses on current value rather than historical cost, Oracle Assets lets you set up price indexes to calculate the gains and losses for your asset upon retirement. When you retire an asset assigned to a category and book for which you have defined a price index, you can run the Revalued Asset Retirements Report which uses the revalued asset cost in calculating gains and losses.
You can use a different index for each asset category or the same index for all categories. You associate an index with an asset category by entering the name of the price index in the Price Index field on the Asset Categories window.
Default - If you skip this step, you will not be able to use price indexes with features such as retirements and insurance.
Context: Perform this step once per ledger.
Asset categories let you define information that is common to all assets in a category, such as depreciation method and prorate convention. Oracle Assets uses this information to provide default values to help speed asset entry.
Default - This is a required step. If you skip this step, you will not be able to use Oracle Assets.
Context: Perform this step once per ledger.
Define Distribution Sets (optional)
Distribution sets let you automatically assign distributions to a new asset or mass addition quickly and accurately by using a predefined distribution set. Default distribution sets appear in the Distribution Set poplist in the Assignments window.
Default - If you skip this step, you will not be able to use distribution sets to automatically assign distributions to new asset additions.
Context: Perform this step once per ledger.
Define leases in the Lease Details window. You can assign leases to one or more assets in the Asset Details window. You can also test your leases in accordance with generally accepted accounting principles in the Lease Details window, and you can analyze alternate leasing strategies using the Lease Payments window.
Default - If you skip this step, you will not be able to assign a lease to an asset.
Context: Perform this step once per ledger.
See: Entering Leases and Lease Analysis.
Define and track descriptive information on manufacturer and vendor warranties. You define the warranty information in the Asset Warranties window. You can then assign assets to these previously defined warranties in the Asset Details window. You can assign any number of assets to the same warranty.
Default - If you skip this step, you will not be able to track descriptive information on manufacturer and vendor warranties.
Context: Perform this step once per ledger.
Set Profile Options (optional)
Profile options specify how Oracle Assets controls access to and processes data. In general, profile options can be set at one or more of the following levels: site, application, responsibility, and user.
Oracle Assets users use the Personal Profile Values window to set profile options only at the user level. System administrators use the Update System Profile Options window to set profile options at the site, application, responsibility, and user levels.
You can set or view the following profile options in Oracle Assets. The table also includes profile options from other applications that are used by Oracle Assets.
Default - If you skip this step, you will not be able to control access to and process data optimally in Oracle Assets.
Context: Perform this step once per ledger.
See: Overview of User Profiles and Setting User Profile Options.
Define Asset Insurance (optional)
You can use the Fixed Asset Insurance window to define insurance information for your assets, such as insurance policy information and calculation methods. You can enter multiple insurance policies for an asset for different categories of insurance. Oracle Assets uses the insurance information that you enter here to calculate the current insurance value of the asset.
Default - If you skip this step, you will not be able to track insurance information for assets.
Context: Perform this step once per ledger.