Reclassify assets to update information, correct data entry errors, or when consolidating categories. You cannot reclassify fully retired assets.
Note: When you reclassify an asset in a period after the period you entered it, Oracle Assets creates journal entries to transfer the cost and accumulated depreciation to the asset cost and accumulated depreciation accounts of the new asset category. This occurs when you create journal entries for your general ledger. Oracle Assets also changes the depreciation expense account to the default depreciation expense account for the new category, but does not adjust for prior period expenses.
Choose Asset > Asset Workbench from the Navigator window.
Find the asset you want to reclassify.
Suggestion: For best performance, find by asset number or tag number since they are unique values.
Choose Open.
Enter the new category.
Save your changes.
Note: Reclassification does not redefault the depreciation rules to the default rules from the new category. Manually change the depreciation rules in the Books or Mass Change windows if necessary.
You can reclassify a group of assets using the Mass Reclassifications window. In addition to reclassifying assets to a new category, when you run the Mass Reclassification process, you have the option to have assets inherit the depreciation rules of the new category. If you choose to have the reclassified assets inherit depreciation rules, you can also choose to either amortize or expense the resulting depreciation adjustments. See: Depreciation Rules (Books).
If you want only fully reserved assets to be reclassified, check the Fully Reserved - Yes check box. If you want only assets that are not fully reserved to be reclassified, check the Fully Reserved - No check box. If you do not check either check box, both fully reserved assets and assets that are not fully reserved will be reclassified.
When you run the Mass Reclassification process, Oracle Assets first reclassifies the assets (changes the assets from one category to another), then changes the depreciation rules, if you have chosen to have the reclassified assets inherit the depreciation rules of the new category. Oracle Assets reclassifies assets to a new category, even if inheriting depreciation rules fails. However, if reclassification fails (assets are not changed to the new category), assets will not inherit the depreciation rules of the new category.
Reclassification is done at the asset level. If an asset cannot be reclassified in one book, the asset will not be reclassified in any of the books to which it belongs.
If you attempt to reclassify assets to the same category (for example, you have a group of assets assigned to category PC, and you run the Mass Reclassification process to reclassify the assets to category PC), the assets will not be reclassified and will not inherit depreciation rules.
You cannot reclassify an asset in a prior period.
Inheriting depreciation rules is performed at the book level, meaning that if assets do not inherit depreciation rules in one book to which the assets belong, it will not prevent assets from successfully inheriting depreciation rules in other books to which they belong.
When you choose to have assets inherit the depreciation rules of the new category, you can choose to have all rules inherited by checking the Inherit Depreciation Rules of New Category check box on the Mass Reclassifications window, or no rules by ensuring that the check box is not checked. You cannot choose to have assets inherit only specified depreciation rules. When an asset with a salvage value is reclassified to a category that does not have a default salvage value, the asset will retain the salvage value even after the reclassification.
When you choose to have assets inherit depreciation rules, you can also choose to amortize the resulting adjustments by checking the Amortize Adjustments check box on the Mass Reclassifications window. If you do not check the Amortize Adjustments check box, adjustments will be expensed. Note that if you choose to expense adjustments on the Mass Reclassifications window (the Amortize Adjustments check box is not checked), reclassification will fail for any assets for which you have previously amortized an adjustment.
Note: Depreciation rules are inherited in both the corporate and tax books. The rules set up for the category in the corporate book are inherited in the corporate book and the rules set up for the category in the tax book are inherited in the tax book. Depreciation rules are not copied from the corporate book to the tax book. Therefore, you do not need to check the Allow Mass Copy - Copy Adjustments check box in the Accounting Rules tabbed region of the Books Controls window.
If the Depreciate check box on the Books window is checked for an asset before the asset is reclassified, the check box will remain checked after reclassification. If the Depreciate check box is not checked for an asset before the asset is reclassified, that asset will inherit the depreciation rules of the new category, but the Depreciate check box will remain unchecked.
See: Entering Financial Information
If you check the Inherit Depreciation Rules of New Category check box, you must also ensure you have checked the Allow Mass Changes check box in the Accounting Rules region of the Book Controls window, for any assets that you want to inherit depreciation rules. If the Allow Mass Changes check box is not checked, reclassified assets will not inherit depreciation rules, even though you checked the Inherit Depreciation Rules of New Category check box on the Mass Reclassifications window.
Note: You cannot perform a mass change on the depreciation method on assets with unplanned depreciation.
See: Entering Accounting Rules for a Book
You can choose to copy descriptive flexfield information to the new category by checking the Copy Category Descriptive Flexfield to New Category check box on the Mass Reclassifications window. Descriptive flexfield information will be copied only if assets are being reclassified within the same major category. The descriptive flexfields should be set up with the same segments in both the old and the new category. Otherwise, descriptive flexfield information in the old category may be copied incorrectly into an incorrect segment in the new category. If a segment in the old category and a corresponding segment in the new category have different formats (for example, segment 1 in the old category is alphanumeric and segment 1 in the new category is in date format), the information will be copied, but you will need to correct the descriptive information in that segment.
Note: If you do not choose to copy category descriptive flexfield information to the new category, the category descriptive flexfield information from the old category will be deleted.
You can run the Mass Reclassification Preview Report before submitting the Mass Reclassifications process. The report allows you to preview the changes before actually submitting them. The report lists all the assets that the mass reclassification process will reclassify.
See: Mass Reclassification Preview and Review Reports
After reviewing the Mass Reclassification Preview Report, run the mass reclassification process. If reclassification fails for any of the assets, the mass reclassification process completes with a warning. You need to review the log file to determine the reasons the assets were not reclassified.
To review the changes to category and depreciation rules, run the Mass Reclassification Review Report.
See: Mass Reclassification Preview and Review Reports
Note: You can run the Mass Reclassification Review Report from either Oracle Assets or the ADI Request Center.
Choose Mass Transactions > Reclassifications from the Navigator window.
Find the assets you want to reclassify.
Specify the corporate book on which you want to run reclassification.
Optionally specify other asset selection criteria in the following fields:
Asset Type
Expense Accounts
Location
Group Asset
Employee Name
Employee Number
Category
Asset Key
Cost Range
Asset Numbers
Dates In Service
Enter the new category.
Specify if you want the current category descriptive flexfield information copied to the new category.
If you do not choose to copy the flexfield information, the current category descriptive flexfield information will be deleted.
Specify whether to inherit the depreciation rules of the new category.
Specify whether to inherit the group asset of the new category.
If you choose to inherit the depreciation rules of the new category, specify whether to amortize the changes.
Choose Preview to run the Mass Reclassification Preview report.
Query the Mass Transaction number and choose Run to submit the Mass Reclassification concurrent process.
If you wish to simultaneously run this program in more than one process to reduce processing time, Oracle Assets can be set up to run this program in parallel. For more information on setting up parallel processing and the FA: Number of Parallel Requests profile option, see: Profile Options and Profile Options Categories Overview.
Note: If Oracle Assets encounters assets with invalid employee names and numbers during the Mass Reclassification concurrent process, it will set the employee name and number to null (blank) and will process the reclassification for those assets. The process completes with a warning status, and the log file displays the affected asset numbers and the invalid employee names and numbers assigned at the time of the reclassification.