Navigate to the Asset Workbench window.
Select the Additions button to create a new group asset.
In the Asset Number field, optionally enter a unique asset number for the group asset. If no value is entered, the system will automatically assign a numeric number using the asset number sequencing. Group assets use the same automatic number sequencing as individual assets.
In the Description field, enter a description for the group asset. This is a required field.
In the Asset Type field, select Group as the asset type when creating a group asset.
In the Category field, enter a category for the group asset. This is a required field.
In the Units field, accept the default value of 1, or enter the desired value. This is a required field.
Note: You cannot assign group or member assets as parent or child assets.
The Physical Inventory function is not supported for group assets, and you cannot check the Physcial Inventory check box when the asset type is Group.
Select the Continue button to enter information in the Books window for the new group asset.
In the Books window, enter information for the group asset.
Note: For group assets, some financial information, such as current cost, original cost, recoverable cost and net book value cannot be updated.
During the addition period, the group asset year to date depreciation expense and accumulated depreciation can be adjusted after assigning a member asset to the group asset.
In the Book field, enter the corporate book of the new group asset.
Note: You cannot update the Cost field for a group asset.
In the Salvage Value field, there are two options to calculate the salvage value for a group asset. You can select the following:
Percentage: Enter a salvage value percentage for the group asset. The salvage value is calculated as a percentage of group asset cost, as shown in the example below:
Group Asset Salvage Value = Group Asset Cost * Group Asset Salvage Value Percentage.
Sum of Member Assets: The group asset salvage value is the total of all member asset salvage values. You can subsequently change the salvage value type.
In the YTD Depreciation field, enter the year to date depreciation for the group asset. You can only update this field during the addition period of the group asset and if at least one member asset has been assigned to the group asset.
In the Accumulated Depreciation field, enter the accumulated depreciation for the group asset. You can only update this field during the addition period of the group asset and if at least one member asset has been assigned.
Note: You cannot update the Revaluation Ceiling or Revaluation Reserve field for a group asset.
To continue adding your group asset using the Detail Additions process, you must do one of the following:
Choose Continue to continue adding your asset. See: Assigning an Asset (Detail Additions Continued).
Optionally, enter or override depreciation information using the tabbed regions in the Books window. Instructions for adding this information are included in the following tasks.
Select the Depreciation tabbed region
Check the Depreciate check box if this group asset is depreciable. If the Depreciate check box is not checked, depreciation will not be calculated for the group asset.
Check the Disable check box if this group asset is disabled. You can not assign member assets or perform transactions on this group asset after checking this check box. See: Disable Group Assets.
In the Method field, optionally override the default value and enter the depreciation method and associated information.
The Units of Production method is not allowed for group or member assets.
Note: If the Over Depreciate field is set to Allow and Depreciate, you cannot choose the depreciation methods of Calculate, Table, Formula, or Flat-NBV. If the Over Depreciate field is set to Allow, you cannot choose the depreciation methods of Calculate and Table. See: Depreciation Override.
The date placed in service is defaulted to the current period for group assets. For group assets, you can only enter a prior period date placed in service while in the addition period. This date is used to determine the group depreciation start date. This is a required field for group assets. You can only change the group asset date placed in service before the group asset begins depreciating.
The Prorate Convention field displays the defaulted value from the Default Depreciation Rules window.
The Prorate Date will display the depreciation start date of the group asset, which is the same as the date placed in service of the group asset.
The Type field has three options to calculate the depreciation limit for a group asset. These options include the following:
Note: You can use depreciation limits even if you select the Over Depreciate options of Allow or Allow and Depreciate
Null: No depreciation limit is set up for the group asset.
Percentage: Enter a depreciation limit percentage for the group asset.
Sum of Member Assets: The group asset depreciation limit is the total of all member asset depreciation limits.
In the Over Depreciate field, you can specify if the group asset accumulated depreciation can exceed the group asset cost.
The three options available include the following:
Do Not Allow: The group asset accumulated depreciation may not exceed the group asset recoverable cost. The system must check if the accumulated depreciation is greater than the recoverable cost whenever a transaction occurs that affects the group asset cost or accumulated depreciation, such as additions, adjustments, depreciation, retirements, and group reclassifications. Oracle Assets defaults this option.
Allow: The group asset accumulated depreciation can exceed group asset cost, but depreciation will stop for the group asset when the accumulated depreciation is greater than the recoverable cost.
Allow and Depreciate: The group asset accumulated depreciation may exceed the group asset recoverable cost, and depreciation will continue for the group assets until the group asset cost becomes zero.
You may still change the selection in subsequent period if the group asset accumulated depreciation is less than the total group asset recoverable cost at the time of change.
In the Super Group field, optionally enter a super group that you previously defined. See: Transactions: Group Adjustments.
Select the Advanced Rules tabbed region.
Attention: You can only update retirement rules information during the addition period of the group asset, and before assigning a member asset.
Retirement Options Region
In the Recognize Gain and Loss field, there are two options available for member asset retirements, which include the following:
Do Not Recognize: The gain and loss is not recognized. This is the default value.
Immediately When Retired: The gain and loss is recognized at retirement. The retirement treatment for the member asset is defaulted from the group asset setup, found in the Retirement tabbed region.
Check the Recapture Excess Reserve check box if you want to indicate that the accumulated depreciation of a group asset can exceed its recoverable cost (NBV less than 0) without triggering the recognition of a gain.
The Limit Net Proceeds to Cost check box is available if Recognize Gain and Loss is set to Do Not Recognize. If the check box is checked, the amount of proceeds (net of cost of removal) that may be added to accumulated depreciation is limited to the recoverable cost of the retiring member asset.
For the Terminal Gain and Loss field, you can choose from three option. The three options available include the following:
Recognize Immediately (default value)
Defer Recognition to End of Fiscal Year
Do Not Recognize
When the last member asset is retired in a group asset, and no additional assets are added into the group asset, the remaining group accumulated depreciation balance is defined as a terminal gain or loss.
Attention: You can only update member asset tracking options during the addition period of the group asset, and before assigning a member asset.
Tracking Options Region
In the Tracking Method field, select the Allocate Group Amount option if you want the system to allocate the calculated group depreciation amount to its member assets. The allocation is based on the depreciable basis of the member assets.
If you select Allocate to Fully Retired and Reserved Assets, the system will allocate the group depreciation amount to fully reserved or fully retired member assets.
If Reduce Excess is selected, the excess group depreciation amount will be reduced from the calculated group depreciation amount. This field is selected automatically, if the Allocate to Fully Retired and Reserved Assets check box is not checked.
If Distribute Excess is selected, the excess group depreciation amount will be distributed proportionally among other member assets in the group.
When the amount allocated to the member asset is greater than the depreciation limit of the member asset or the recoverable cost, the excess amount is calculated as the allocated amount over the greater of the following:
The depreciation limit of the member asset.
The recoverable cost of the member asset.
Tracking Options Region
In the Tracking Method field, selecting the Calculate Member Asset Amount option allows you to specify if depreciation is calculated at the member asset level. By selecting this option, the system will calculate depreciation for each member asset.
In the Depreciation By field, enter the member asset depreciation select how member asset depreciation will be calculated. The tow rules available include the following:
Group Method
Member Method
If the Sum Member Asset Depreciation to Group check box is checked, group depreciation is calculated as the sum of all member asset calculated depreciation. If this check box is not checked, group depreciation is calculated using the default group asset depreciation rules.
Select the Continue button to enter the group asset distribution information.
Reduction Rules Region
The Reduction Rate field is only available for group assets. Enter the percentage to use as the reduction rate. The reduction rate is applied when calculating the depreciable basis for the group assets, and is used to satisfy the 50 percent rule in Canada and India.
Note: The Reduction Rate field is enabled only if the depreciation method used has the following depreciable basis rules:
Year End Balance with Positive Reduction Amount
Year End Balance with Half Year Rule
Select Addition to apply the reduction rate to member asset addition transactions.
Select Adjustment to apply the reduction rate to member asset adjustment transactions.
Select Retirement to apply the reduction rate to member asset retirement transactions.
The reduction rate is setup as a default rate for the group asset. You may update the default reduction rate for the member asset when you perform a transaction on the member asset.
In the Assignments window, enter distribution information for a group asset.
In the Units field, enter the number of units for the group asset.
In the Depreciation Expense field, enter a valid depreciation expense account for the group asset. This is a required field. No inter-company asset transfer is allowed for a group asset, unless Allow Intercompany Member Asset Assignment is enabled during book controls setup.
Attention: For a group asset with multiple distribution lines, you can only specify different balancing segment values if you checked the Allow Intercompany Member Asset Assignments check box in the Book Controls window.
In the Location field, enter a location for the group asset. This is a required field.
Select the Done button to save the new group asset.