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Fixed Assets User Manual

1. Fixed Assets Product Location Details Product Code Product Description Class Code Class Description Restriction Type Disallowed Allowed Locations 10f1 d 4 7 ORACLE The details of all the locations that you have maintained will be displayed here You can choose to specify the Location Restrictions either by associating the product with a Location Restriction class or by defining these restrictions specifically for the product Product Code This is the code for the product that you are defining here The code is defaulted from the Product Definition screen Product Description This is the description of the product that is being defined This is defaulted from the product definition screen Class Code Enter a unique identifier for the class Also give a brief description of the class in the free format text field positioned next to the class code 4 2 3 1 Restriction Type You can specify asset location restrictions for a fixed asset product either in the form of an Allowed list or in the form of a Disallowed list Choose the appropriate option to indicate the List Type that you would like to maintain You cannot deal in asset locations which do not figure in an Allowed list Alternatively if you maintain a Disallowed list you can deal in asset locations that do not figure in the list 4 2 3 2 Locations Specify the following Location Code This is the code for the particular loc
2. June But if Today s Date were 28 June and the Next Working Date happens to be 3 July the processing will be done only upto the 30 of June since it is the month end The system will post the accounting entries for the first and second of July during the BOD process executed on the 3 of July This is with the assumption that the Accounting Period is Monthly If it were to be Quarterly the processing will be done till the end of the period which is the corresponding quarter 3 5 ORACLE 3 4 1 1 Depreciation Parameters Specify the following Depreciation Period The calculation of depreciation for the year is based on the depreciation period considering the cutoff period and date You can choose the period from the option list positioned next to this field The choices are e Monthly e Quarterly e Half yearly e Yearly Example You have made the following specifications e Depreciation Period Quarterly e Depreciation Rate 10 for the Asset Category and Location combination e Cutoff Date 15 e Cutoff Period 2 February Let us assume that the asset is acquired and capitalized on the 10 of January The Effective Depreciation date is also the 10 of January Since the effective depreciation date is before the cutoff period the Yearly depreciation will be calculated as follows 10000 x 10 100 Based on the Frequency and the Frequency Start Date mentioned in the Rule Mapping this will be apportioned to in
3. Sron The depreciation rate has to be mentioned in percentage Rate Type If you want to have a different depreciation rates for different periods of acquisition in the first year of the asset life then chose Dependent on capitalization In contradiction to this you can choose Independent of capitalization to keep a single rate type through out the life of the asset 3 10 ORACLE 3 7 1 1 Rate over periods 3 8 Specify the following Start Date and End Date lf the rule type is dependent on capitalization and if the effective depreciation date falls between the Start and End date the rates that you specify in this section of the screen will be considered for computing depreciation Else the value that you have specified in the Rate field will be considered This is applicable for the first year only Maintaining Asset Category and Location Rule Mapping Through the asset category location rule mapping screen you can map predefined depreciation rules to a combination of asset category and location You can also define various depreciation parameters such as depreciation method for book and tax purposes frequency of depreciation depreciation rate type etc You can invoke the Asset Category Rule Mapping screen by typing FADRULMP in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Asset Category Rule Mapping la laz Depreciation Type Rule bas
4. Advices contains an event wise list of suggested accounting entries and advices Chapter 7 Glossary defines the important terms list in the module 1 1 4 Glossary of Icons This User Manual may refer to all or some of the following icons ame x owe e fom a f 1 2 ORACLE fe paw Delete row ay Option List e7 Enter Query Fal Execute Query Refer the Procedures User Manual for further details about the icons 2 ORACLE 2 1 2 Fixed Assets An Overview Introduction The Fixed Assets module is a complete front end module of Oracle FLEXCUBE that captures and tracks the characteristics of the fixed asset of your bank Using this module you can clearly identify the various applicable events and manage all the activities during the assets useful lifecycle Fixed asset also known as property plant and equipment PP amp E is a term used in accountancy for assets and property which cannot easily be converted into cash This can be compared with current assets such as cash or bank accounts which are described as liquid assets In most cases only tangible assets are referred to as fixed Fixed assets normally include items such as land and buildings motor vehicles furniture office equipment computers fixtures and fittings and plant and machinery These often receive favorable tax treatment depreciation allowance over short term assets Fixed Assets are items of property plant and equipment
5. Specify the contract number which you are authorizing Event Date Current system date is displayed here Event Code A code for this authorizing event is displayed here Maker On selecting the contract number the Maker ID is displayed Rekey Fields Rekey the following details for authorizing a contract e Asset Currency e Asset Cost 5 15 ORACLE e Capatalization Date e Effective Depreciation Date Change Log Details If there are any values changed in the contract then the followlog details are displayed here e Field Description e Old Value e New Value Overrides The following override details of the contract for all operations is displayed here e Confirmed e Remarks e Authorized By e Authorized Date e Status e Remarks 5 8 Reassigning a Contract to another User A contract can be deleted only by the user who entered it If a contract has to be deleted and the user who input the same is not available to do it you can reassign the contract to another user so that the other user can delete it Typically this situation may arise during EOD operations when a contract that is not authorized has to be deleted and the user who input it has left office for the day 5 16 ORACLE You can invoke the Fixed Assets Contract Reassign screen by typing FADTREAS in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Reassign Reassign User Prior To Au
6. add up to hundred percent for the useful life period However if the depreciation is rule based this will have no effect on the depreciation calculation Useful Life Unit This is where you can mention the unit for measuring the useful life of an asset The useful life unit can be Year or Month and this will determine the useful life mentioned in the previous field Calculation Depreciation On Here you can mention whether you want to calculate the depreciation on the capitalization amount or on capitalization amount minus the residual value You can indicate your preference by clicking against the option Residual Value is the scrap value of the asset which can be realized when the asset is sold after its useful life is complete Residual value is often determined on the basis of judgement Hence Oracle FLEXCUBE allows you to change the Residual Value of the asset during its existence 3 2 ORACLE 3 2 1 Specifying UDF Values You can associate values to all the User Defined fields created and attached to the Asset Category Maintenance screen You can view the list of User Defined fields associated to this screen by clicking Fields button on the Asset Category Maintenance screen User Defined Fields User Defined Fields p You can enter the value for the UDFs listed here in the Value column For more details on how to create user Defined fields refer chapter Creating custom fields in Oracle FLE
7. as implied in the organizational policies The primary objective of a business entity is to make profit and increase the wealth of its owners In the attainment of this objective it is required that the management will exercise due care and diligence in applying the basic accounting concept of Matching Concept Matching concept is simply matching the expenses of a period against the revenues of the same period The use of assets in the generation of revenue is usually more than a year that is long term It is therefore obligatory that in order to accurately determine the net income or profit for a period depreciation is charged on the total value of asset that contributed to the revenue for the period in consideration and charge against the same revenue of the same period This is essential in the prudent reporting of the net revenue for the entity in the period 2 4 ORACLE 2 2 The product definition function the mainstay of Oracle FLEXCUBE s design enables you to create products for specific fixed asset that you set up The module gives you the flexibility to define components charge restrictions branch preferences events and accounting entries into Classes When defining a product you merely need to associate it with the different classes that you have built Features of the Module Definition of classes In Oracle FLEXCUBE a Class embodies a generic set of attributes A class could represent e aset of r
8. depreciation rates for all the years of Useful Life Rate You need to maintain the depreciation rate for the asset across the useful life of the asset The depreciation rate will always be in percentage terms per annum 5 9 ORACLE 5 4 Specifying the Asset Transfer Details Through the Transfer of Fixed Asset screens you can transfer a Fixed Asset to a different branch location All the necessary details such as date of sale transfer write off sale price transfer details etc is captured through these screens You can invoke the Asset Transfer screen by typing FADTRTFR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Transfer Reference Number Asset Details 2 amp AijNV _ o w4_r oqo HH Transaction detail Asset Description Transfer Amount Asset Cost Value Date Asset Currency Officer In Charge Category Remarks Location i Transfer Details Accumulated Depreciation Mew Branch New Location New Reference Input By Authorized By status Authorization Status Date Time Date Time The process of transfer is automated and the transferred asset is automatically created in the branch location on Save of transfer Transfer value of the asset will be the current book value of the asset itself and cannot be modified Book Value is arrived at by subtracting the accumulated depreciation from the asset cost At lea
9. engaged by a business entity in the generation and expansion of revenue According to International Accounting Standard IAS 16 Fixed Assets are assets whose future economic benefit is probable to flow into the entity whose cost can be measured reliably lt is pertinent to note that the cost of a fixed asset is its purchase price including import duties and other deductible trade discounts and rebates In addition cost attributable to bringing and installing the asset in its needed location and the initial estimate of dismantling and removing the item if they are eventually no longer needed on the location Depreciation is simply put to be the expense generated by the use of an asset It is the wear and tear of an asset or diminution in the historical value owing to usage Further to this it is the cost of the asset less any salvage value over its estimated useful life It is an expense because it is matched against the revenue generated through the use of the same asset Depreciation is usually spread over the economic useful life of an asset because it is regarded as the cost of an asset absorbed over its useful life Invariably the depreciation expense is charged against the revenue generated through the use of the asset The method of depreciation to be adopted is best left for the management to decide in consideration to the peculiarity of the business prevailing economic condition of the assets and existing accounting guideline and principles
10. for the asset Choose your preference by clicking on YES or NO accordingly 4 4 ORACLE 4 2 1 4 2 2 If you choose No then the depreciation will not be charged for the assets which come under this product This data is maintained for both books of account as well as tax purposes Accounting entries will be passed only for book type of depreciation Rekey Required Indicate if you require any parameters to be keyed in at the time of authorization for the asset Rekey Parameters All operations on a FA contract have to be authorized by a user other than the one who carried out the operation Authorization is a cross checking mechanism to ensure that the entries made by a user are correct All operations on a FA contract except placing it on hold should be authorized before the beginning of the End of Day operations You have the option of specifying whether certain important details of the FA contract need to be rekeyed at the time of authorization If you enable this option you should also specify the field that will have to be rekeyed at the time of contract authorization You can specify any one of the following rekey fields e Asset Cost e Capitalization Date e Depreciation Effective Date When you invoke a FA contract for authorization the complete details of the contract will be displayed only after the values to the rekey fields are entered Suppose you choose not to define any rekey fields the details of the contrac
11. is defaulted from asset category maintenance however you can choose to change this Depreciation Suspension Specify the following Suspend Depreciation By choosing this preference you can stop the depreciation calculation for an asset If there is a negotiation for sale or change in Residual Value for the asset then choose this option to suspend the depreciation Otherwise you can leave it unchecked Suspension Date If you choose to suspend the depreciation then the system takes the application date as the suspension date You will not be allowed to modify this date 5 4 ORACLE 5 3 2 Depreciation Details Tab You can view the depreciation charged for the asset from this screen Depreciation view screen displays the depreciation details of the asset recorded for book and tax purposes Fixed Assets Asset Capture Product Code Product Description AssetDetails Depreciation Details Asset Reference Depreciation Book Year To Days Depreciation Accumulated Depreciation Year Open Written Down Value Current Written Down Value Depreciation Tax Contract Reference User Reference Source Reference Year To Days Depreciation Accumulated Depreciation Year Open Written Down Value Current Written Down Value Version Number 4 Of L Source Code FLEXCUBE Events Asset Detats J Adhoc Schedule Linkage Deras Settements J Advices charges ms Fede Maker Date Time Status Author
12. license terms and license restrictions applicable to the programs No other rights are granted to the U S Government This software or hardware is developed for general use in a variety of information management applications It is not developed or intended for use in any inherently dangerous applications including applications that may create a risk of personal injury If you use this software or hardware in dangerous applications then you shall be responsible to take all appropriate failsafe backup redundancy and other measures to ensure its safe use Oracle Corporation and its affiliates disclaim any liability for any damages caused by use of this software or hardware in dangerous applications This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protected by intellectual property laws Except as expressly permitted in your license agreement or allowed by law you may not use copy reproduce translate broadcast modify license transmit distribute exhibit perform publish or display any part in any form or by any means Reverse engineering disassembly or decompilation of this software unless required by law for interoperability is prohibited The information contained herein is subject to change without notice and is not warranted to be error free If you find any errors please report them to us in writing This software or hardware and documentation ma
13. screen You can define the attributes specific to a FA product in the FA Product Definition Main screen and the FA Product Preferences screen In these screens you can specify the product type and set the product preferences respectively For further information on the generic attributes that you can define for a product please refer the following Oracle FLEXCUBE User Manuals e Products e Charges e User Defined Fields Product Code You can associate every FA contract that you maintain in Oracle FLEXCUBE with a Product that you have maintained in this screen 4 1 ORACLE When you associate a contract with a product it acquires the attributes defined for the product This means you do not have to define the attributes of the contract transaction deal all over again when maintaining it Identify the product that you are creating with a unique Product Code This code should be unique across all the modules of Oracle FLEXCUBE Product Description In this field briefly describe the product that you are maintaining The description that you enter here will help you identify the product all through the module Product Type An important detail in defining a product is to specify the type of product you are creating The product type identifies the basic nature of a product This helps to classify the product Slogan You can enter a slogan for the product that you are creating In this field enter a slogan that S
14. select location code from option list based on the Restriction Type selected for a class 3 9 ORACLE 3 7 Defining Asset Rules For every asset and category combination you can maintain different rates for depreciation You can record the depreciation rates for the asset category and the location combination You can invoke the Rule Definition Fixed Assets screen by typing FADRULDF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Rule Definition Fixed Assets Rate Type Independent of Capitalization Dependent of Capitalization Rate over periods i E Bf sanose Senaoae eeren OOOO O El sd OL Input By Authorized By Modification Aula Date Time Date Time Number Open Specify the following Rule Code and Description Give a unique code to identify the rule you are going to define This code cannot be modified later You can give a brief description for the code in the description field Rate You have to specify rate for calculating the depreciation for the asset This rate can be specified for time period in case the asset is dependent on capitalization In this case different rates can be maintained for the first year only The Rate over Periods has to be entered in DD MON format If you have selected Independent of capitalization as your rate type then the rate will be set for the whole useful period of the asset
15. 008 Effective depreciation date 17 Jan 2008 Defaulted to Capitalization date Depreciation Period Quarterly Cut off date 20 Cut off period Depreciation Frequency Monthly Frequency start date 15 Depreciation Rate 10 Per Annum Fin year start date 01 Jan 2008 Fin year end date 31 Dec 2008 According to the above parameters the cut off date for depreciation is 20 Jan 2008 Any asset having effective depreciation date on or before 20 Jan 2008 will be depreciated for 4 periods in the first year Any asset having effective depreciation date after 20 Jan 2008 will be depreciated will be depreciated only for the next 3 periods in the first year Since our asset has effective depreciation date as 17 Jan 2008 which is before the cut off date it will be depreciated for the full year Since we are considering the case where transfer is done in the first year itself accumulated depreciation will always be the same as YTD depreciation Depreciation on 15 feb 2008 6 9 ORACLE Total depreciation for the year Asset cost rate Applicable dep Periods No of depreciation periods the year 12000 10 4 4 1200 Total depreciation runs in the year 12 Monthly frequency Future Depreciation runs left 10 march Onwards Future depreciation 1200 10 12 1000 Depreciation to be passed this time 1200 1000 200 Depreciation accounting entries DEPR event on 15 feb 2008 Accounting entries passed on 1
16. 25 Aug 2008 Asset Cost 12000 Depreciation rate 10 Now according to the above parameters If asset is acquired in current year we need to find out the period when depreciation started Depreciation Start period 2 2nd quarter of the year Transfer is happening in the 3 Period So No of previous periods 3 2 1 Total depreciation for the year 12000 10 100 1200 Actual depreciation for the year 1200 Applicable periods No of periods in a year 6 8 ORACLE 1200 3 4 900 Depreciation per period 900 3 300 Let us assume that when the transfer is happening on 25 Aug 2008 YTD depreciation is 475 Since transfer is happening after the cut off date 10 Jul 2008 for the 3 period we need to complete depreciation for this period According to the above formula Depreciation already done for current period 475 300 2 1 175 Extra depreciation to be passed 300 175 125 This is the amount for which depreciation entry is passed on transfer Let us now assume that the cut off date is 27 Aug 2008 Since transfer is happening before the cut off date we need to reverse the depreciation for this period Depreciation already done for current period 475 300 2 1 175 Depreciation to be reversed 175 1 Asset transferred before Cut off date Consider the following parameters for a fixed asset Asset Cost 12000 Acquisition Date 10 Nov 2007 Capitalization date 17 Jan 2
17. 5 Feb 2008 FADEPREXP Dep Expense FA_DEPR_ADD FAACCDEPRLIB Accumulated Dep FA_DEPR_ADD FADEPREXP Dep Expense FA_DEPR_ADD CR FAACCDEPRLIB Accumulated Dep FA_LDEPR_ADD Accounting entries passed on 15 Apr 2008 DR CR Accounting Role Amount Tag FADEPREXP Dep Expense FA_DEPR_ADD FAACCDEPRLIB_ Accumulated Dep FA _DEPR_ADD Now let us assume that the asset Is transferred to another branch location on 17 Apr 2008 Cut off date for asset transfer will be taken from branch parameters For this case it will be 20 Apr 2008 Since the asset is transferred before the cut off date any depreciation done for the asset in the depreciation period will be reverted back on transfer from the transferor branch 6 10 ORACLE YTD depreciation 200 100 100 400 Depreciation already done for current period YTD depreciation Depreciation for all previous periods 400 300 100 Acquired depreciation for the asset in new branch location Accumulated Dep Dep for current period 400 100 300 Accumulated Depreciation also now becomes 300 Accounting entries passed in the transferor branch Event TSFR ole FATSFRACC Transfer Account Transferee FA ASST _ AMT 12000 Branch al FASSTACC Asset Account Transferor FA ASST AMT 12000 Branch nee Accumulated depreciation FA DEPR ACC 300 Account Event DEPR Triggered along with TSFR Accounting entries passed in the transferee branch Event BO
18. Code Maintenance FADPRMNT Fixed Assets Product Definition FADRULDF Fixed Assets Rule Definition FADRULMP Asset Category Rule Mapping FADTRAUT Fixed Assets Authorize Contract FADTREAS Fixed Assets Contract Reassign FADTRONL Fixed Assets Asset Capture FADTRSLE Fixed Assets Sale Details FADTRIFR Fixed Assets Transfer Details FADTRWREF Fixed Assets Write Off Details 8 1 ORACLE ORACLE Fixed Assets April 2014 Version 11 3 83 02 0 Oracle Financial Services Software Limited Oracle Park Off Western Express Highway Goregaon East Mumbai Maharashtra 400 063 India Worldwide Inquiries Phone 91 22 6718 3000 Fax 91 22 6718 3001 www oracle com financialservices Copyright 2005 2014 Oracle and or its affiliates All rights reserved Oracle and Java are registered trademarks of Oracle and or its affiliates Other names may be trademarks of their respective owners U S GOVERNMENT END USERS Oracle programs including any operating system integrated software any programs installed on the hardware and or documentation delivered to U S Government end users are commercial computer software pursuant to the applicable Federal Acquisition Regulation and agency specific supplemental regulations As such use duplication disclosure modification and adaptation of the programs including any operating system integrated software any programs installed on the hardware and or documentation shall be subject to
19. FOR THE PRODUCT csccsceccsceccececcscecscscscscesescusescecescusescesesccacs 3 5 3 5 MAINTAINING LOCATION RESTRICTIONS CLASSEG ccccsceccecceccscescesceccsccscescescecescescescssescescescsscssescesceseucs 3 7 3 6 SPECIFYING ASSET CATEGORY RESTRICTION CLASSES ccccsceccsceccsceccececcececeececescscesescusescesescucescesesccacs 3 8 3 7 DEFINING ASSET RULES acces ste oes ce sess tcc tec ee isc ae px sce Saeco sn oct nee science dae Gok eens A Eiaa 3 10 3 8 MAINTAINING ASSET CATEGORY AND LOCATION RULE MAPPING scceccecceccscescecceccscescescesescescesceses 3 11 4 DEFINING A PRODUCT 0 cccccccccscccccccccccccccccccccccccccccccccccccccccccccccccccccccccccceccccccccccccscccccccscccsccoess 4 1 4 1 Bie By Gk eee nn mY gn AES E eT Pe veer eee ee E 4 4 1 Exchange Rate Variance in Vo ccccccccccccccseescccccceecaeeeeesseeeeeeeeeeeseseeeeeeeeaeeeeeeeeeeeeasaaesseeeeeeesaaaasseeeeeeseeaas 4 3 4 2 SPECIFYING THE PREFERENCES OF THE PRODUCT ccceccsceccsceccececcececcecsceececescscescscesescesescesescusescesesencass 4 4 4 2 1 Specific Product Maintenance cc ssecccccccceenneeseeeeee eens nesses eeee eee eeeeeeeeeeeaaeeeeeeeeeeeaaaaaeeeeeesesaaaaaaeseeeeeeeaas 4 5 4 2 2 Specifying Asset Category REStIICTIONS cccccccccccccneesececeeeeee ae eeeeeeeeeeeaaeeeeeeeeeeeaaaaeeeeeeeeesaaaaaeeeeeeeeeags 4 5 4 2 3 Maintaining Location Restrictions cccccccscccccccseeecccee cen eeeeee e
20. Fixed Assets Oracle FLEXCUBE Universal Banking Release 11 3 83 02 0 April 2014 Oracle Part Number E53607 01 ORACLE FINANCIAL SERVICES Fixed Assets Table of Contents L FRO TTS IV IN Dencio AEAEE Erai 1 1 1 1 jel DO T a tne ne on ocd oder oe ee 1 1 1 1 1 PRUNE CICS eects eserves eee his etd ee nls ccs Cees eden a tengo E A l 1 Liz PUD DV EVLA OS cacrisinrscrries nari AENEAN ENEE ANEAN EAEN AEAN EEEE I 1 1 3 D A O ERE IEI AAE ENAS E I E en E NE A E E E E ss l 2 1 1 4 GOSSA O TOONS aa p E R a E ET E 1 2 2 FIXED ASSETS AN OVERVIEW sesessesesecsesccoscseccccccccsececsesecccsesececsesecsesesccsesesccseseosesesecsesesecsesecsesessosesesees 2 1 2 1 INTRODUCTION nunesenne nerne TEE TEE EET EEEE IEEE 2 1 Via FEATURES OF THE MODULE cccceccsceccececcececcsceccsceceecscscecsscscesescuceecsceecscscscscscusescecesceseecscescsceeesceseeces 2 2 3 MAINTENANCES FOR FIXED ASSET MODULE 2 cccccccccccccccccccccccccccccccccccccccccccccccccccccccceess 3 1 3 1 DI ON cn sess sore cnt a cts secon tise Soto AAIE asennad Soto eae a ue otek Sasa diana NEA PAN eas cent emesenn ee 3 1 3 2 MAINTAINING ASSET CATEGORY DETAILS ccccscscescscescsceccsceccscuccsceccscsccscscsescusescesescesescscescscescscsesees 3 1 Jd Dee E L V a E E E EA TT 3 3 3 3 MAINTAINING CODES FOR ASSET LOCATIONS ccccsceccsceccececcsceccscuccececcecececscscscesescecescecescecscecusescesences 3 4 3 4 SETTING THE BRANCH PARAMETERS
21. In Oracle FLEXCUBE all Credit and Debit entries have to be paired up So the entries will be as follows Accounting Role Amount Tag FACUSTACC FA_SALE_AMT 6 4 ORACLE Loss on Sale Dr Loss on Sale Cr Loss on Sale Dr Loss on Sale Cr Profit on Sale Cr Profit on Sale Dr Profit on Sale Cr Profit on Sale Dr Advices A Payment message would be generated for the customer to whom the asset is sold 6 5 1 6 WRTO FA Write off Since all debit and credit entries have to paired up in Oracle FLEXCUBE the entries will be reflected as follows Condition Accounting Role Amount Tag None FAWRTOEXP FA_CAPT_AMT FAASSETACC FA_CAPT_AMT FAACCDEPRLIB FA_DEPR_ACC FAWRTOEXP FA_DEPR_ACC 6 5 ORACLE 6 5 1 7 TSFR Transfer of asset from one branch location to another The Transfer event is automated and the transferred asset will be automatically created in the branch location on save of transfer This event will be triggered when the asset Is transferred from one branch location to another The Accounting entry setup for the asset in Transferor and Transferee branch will be as described below 1 Asset still in WIP stage Transferor branch Event TSFR FATSFRACC Transfer Account FA_ASST_AMT Original Asset Transferee cost Branch CR FAWIPACC Work in Progress FA_ASST_AMT Original Asset Account cost Transferor Branch Transferee Branch Event BOOK FAWIPACC Work in Progress Account FA_LASST
22. Input By Authorized By Woadification Aad Date Time Date Time Number vo Specify the following 3 1 ORACLE Category Code You have to specify the unique code to identify the category for the asset You will not be able to modify the category code once it is authorized You can restrict usage of any asset category by disallowing the category in Asset category restriction screen accessed through the product maintenance screen Category Description You have to capture a brief description about the asset category that you are defining For example you could create a category called Land and categorize all immovable assets under this category You could assign a description called Lands and Buildings to this category Main Category You can choose the main category code for the asset from the drop down list For example for an asset like car you can have Vehicle as your main category This is meant for information purposes only Useful Life Mention the useful life of the asset in this field If you select the Year as your useful life unit in the next field then you have to mention the number of years the asset will be active If your preference is Month then mention the number of months for which the asset is useful The significance of capturing this information is that if the depreciation is adhoc the rates captured at the contract level should cover the useful life of the asset Also the sum of the depreciation rates should
23. OK Accountin ae Descriptio ea Work in Progress Account FA_TSFR_AM 11700 Transferee Branch T 6 11 ORACLE Accountin Descriptio g Role Description Amount Tag a FATSFRA Transfer Account Transferor FA_TSFR_AM 11700 Branch T Accounting Role Description Amount Tag oe FAWIPACC Work in Progress Account FA_DEPR_AC 300 Transferee Branch Q FAACCDEP Accumulated depreciation FA _DEPR_AC 300 RLIB Account Q From here onwards the depreciation of the asset will be done in the new branch location with the rule defined for the new category location combination 2 Asset transferred after Cut off date Assume that everything remains the same as the previous asset but the asset is transferred on 10 May 2008 i e after the cut off date In this case the system will depreciate the asset for the current period fully on transfer and depreciation in the new branch location will start from the next period onwards only Since we are considering the case where transfer is done in the first year itself accumulated depreciation will always be the same as YTD depreciation YTD depreciation after depreciation on 15 Apr 200 100 100 400 Total depreciation for current period Dep for the year No of dep Periods 900 3 300 Depreciation already done for current period YTD depreciation Depreciation for all previous periods 400 100 100 Remaining dep For current period 300 100 200 Acquired dep
24. RWREF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Whrte off Reference Number Asset Details O OoO DDAHAYHAYY_oH Transaction detail Asset Description Write off Amount Asset Cost Value Date Asset Currency Officer In Charge Category Remarks Location _ Transfer Details Accumulated Depreciation New Branch New Location Input By Authorized By status Authorization Status Date Time Date Time Write Off value value date details of the officer authorizing the write off and internal remarks are captured through this screen For more details on the screen refer section Specifying the Asset Transfer Details in this chapter 5 14 ORACLE Authorizing Fixed Asset Contracts You can use the Fixed Assets Authorize Contract screen to authorize asset capture sale write off and transfer operations performed on any fixed asset contract You can invoke this screen by typing FADTRAUT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button The screen is displayed below Fixed Assets Authorization Contract Reference Maker Event Date Event Code Rekey Fields Asset Currency Capitalization Date Asset Cost Effective Depreciation date Change Log Details 10f1 d Overrides 10f1 LI Specify the following details Contract Reference
25. Receiver PAYMENT MESSAGE Payment Message Counterparty This advice is generated on Book Event If PO required is N at product level and on Sale Event On transfer of an asset a transfer advice called FA_TRANSFER will be generated Following details will be available in the transfer advice e Original asset reference e Transferor Branch e Transferee Branch e Accumulated depreciation e Asset Cost e Current Book Value e Date of Transfer The receiver of the advice will be the Walk in Customer for the Transferor Branch 6 14 ORACLE 7 1 7 Glossary Important Terms The following terms are used in this module Ad Hoc Depreciation rates Depreciation rates that do not default from the Product but are defined at the contract level at the time of input of the asset Book Value This indicates the value at which an asset Is carried on a balance sheet In other words the cost of an asset minus accumulated depreciation Capitalisation When a business purchases assets like furniture machinery equipment etc they get posted to the balance sheet as fixed assets For financial statement purposes these assets have lives and usually last for years For this reason they are not expensed Instead they are capitalized shown as assets on the balance sheet and depreciated Each year the company records depreciation on these assets to show that it is using them over time Depreciation Depreciation is th
26. XCUBE in the User Defined Fields User Manual under Modularity 3 3 ORACLE 3 3 Maintaining Codes for Asset Locations Through the Location Code Maintenance screen you can assign a unique location code to identify different locations where the asset physically exists You can invoke this screen by typing FADLOCN in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Location Code Maintenance Location Code oo e Input By Authorized By Modification Authorized Date Time Date Time Number Open Specify the following Location Code You have to capture a code to identify the particular location You will not be able to modify it once it is authorized You can pick this code from the Asset Capture screen and the system will default the description for the location You can restrict usage of any location by disallowing the location in Locations Restriction screen accessed through the Product Maintenance screen Description In this field you can specify any general information of the location such as the name of the city pin code etc 3 4 ORACLE 3 4 Setting the Branch Parameters for the Product You can define parameters at the branch level for functions such as depreciation period residual value for writing off an asset the cut off date for an asset to be included for depreciation for the particular period etc You can invoke the Branc
27. _AMT Original Asset Transferee Branch cost CR FACUSTACC Customer Account FA_ASST_AMT Original Asset cost FAWIPACC Work in Progress Account FA_TSFR_AMT Original Asset Transferee Branch cost CR FATSFRACC Transfer Account FA_TSFR_AMT Original Asset Transferor Branch cost Only the second set of entries will be passed in case of an asset transfer 2 Capitalized Asset Transferor branch Event TSFR Role iii FATSFRACC Transfer Account A_ASST_AMT Original Asset cost Transferee Branch 6 6 ORACLE DR Accounting ma mN CR FASSTACC Asset Account FA_ASST_AMT Original Asset cost Transferor Branch Account Transfer Account FATSFRACC Transferee Branch FA_DEPR_ACC Accumulated Dep Transferor Branch Event DEPR Along with TSFR DR Accounting de a FADEPREXP Dep Expense FA_DEPR_ADD Depreciation Addition CR FAACCDEPRLIB Accumulated FA_DEPR_ADD Depreciation depreciation Account Addition FAACCDEPRLIB Accumulated FA_DEPR_RED Depreciation depreciation Account Reduction CR FADEPREXP Dep Expense FA_DEPR_RED Depreciation Reduction Transferee Branch Event BOOK FAWIPACC Work in Progress FA_ASST_AMT Original Asset Account Transferee Branch FACUSTACC Customer Account FA_ASST_AMT Original Asset cost Accumulated FAACCDEPRLIB depreciation FA_DEPR_ACC Accumulated Dep FAWIPACC Work in Progress FA_TSFR_AMT Original Asset Account Transferee cost Acquire
28. al year e Ifthe asset is being transferred on or before the cut off date any depreciation which might have happened in the current period will be reversed out for the transferor branch Further depreciation from the current period onwards will happen in the transferor branch according to the category location rule maintenance for the new location in case the location has changed The original reference number for the transferred asset will be the original reference number of the asset in the old branch location All other details of the asset will be the same as they were before transfer except for the following e Acquired depreciation This will be updated with the total depreciation amount Accumulated depreciation for the asset in the previous branch location 5 12 ORACLE 5 5 e Ad hoc Schedules The new asset created will not have ad hoc depreciation schedules if the asset is transferred to a new location as the new category location combination must allow for rule based depreciation If the location is the same then the original ad hoc schedules will be replicated to the new asset e Asset Acquisition date will be the transfer date e Incase a capitalized asset is transferred capitalization date will be the transfer date else it will not be updated if asset is transferred in WIP stage e Incase a capitalized asset is transferred effective depreciation date will be the transfer date else it will not be upd
29. ated if asset is transferred in WIP stage The new asset created will be automatically authorized once the transfer of the asset is authorized Till such time the new asset cannot be modified independently After authorization of the transfer the new asset created will be independent of the original transferred asset On deletion of the transfer the new asset created will also be deleted Refer the examples in the accounting entry process in the Appendix manual for the above two scenarios Specifying Asset Sale Details You can specify the asset sale details in the Fixed Assets Sale Details screen You can invoke this screen by typing FADTRSLE in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Reference Number Asset Details AA Transaction detail Asset Description Sale Value Asset Cost Value Date Asset Currency Officer In Charge Category Remarks Location f ae Transfer Details Accumulated Depreciation New Branch New Location Events Settements emise charges mis hats Input By Authorized By Status Authorization Status Date Time Date Time 5 13 ORACLE For more details on the screen refer section Specifying the Asset Transfer Details in this chapter 5 6 Specifying Asset Write Off Details You can specify the asset write off details in the Asset Write Off screen You can invoke this screen by typing FADT
30. ation You can pick this code from the Asset Capture screen and the system will default the description for the location This description can be modified Description In this field you can specify the general information of the location such as the name of the city pin code etc 4 8 ORACLE 5 1 5 2 5 3 5 Processing Fixed Assets Introduction In Fixed assets module of Oracle FLEXCUBE you can capture static details such as Asset Code Asset Cost Date of Acquisition Date of capitalization Location Asset category code etc You cannot change the FA product associated with the contract during the entire life cycle of the asset Fixed Assets purchase acquisition online processing function enables you to perform the following functions e Amendment change in FA details e Copy existing FA details for recording details of new FA e Delete Undo of a FA record from one user to another e Recording of individual items for an Asset e Recording of FA XP contract linkages e Any other fields may be captured using UDF This chapter explains the processing of purchase or acquisition of an FA Invoking the Asset Input Screen You can invoke the Fixed Assets Asset Capture screen by typing FADTRONL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button The Asset capture screen consists of the following screens e FA Main details e FA Items e Depreciation details
31. ation of asset category and the location where the asset is placed Separate rates can be maintained for computing depreciation for tax and book purpose 2 2 ORACLE 3 Maintenances for Fixed Asset Module 3 1 Introduction You need to maintain certain details before you start entering the details of the assets Therefore you need to maintain the following information as part of processing fixed assets Asset category maintenance Locations maintenance Branch Parameters Class es for locations restrictions Class es for category restrictions Asset category restrictions Rule definition This chapter enumerates the maintenance of the above mentioned parameters used by the Fixed Assets module in Oracle FLEXCUBE 3 2 Maintaining Asset Category Details In the Asset Category Maintenance screen you can group all the assets that are similar under one category This will be useful for charging a common depreciation rate generating MIS reports etc You can also define the useful life for different categories of assets You can invoke this screen by typing FADACAT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Asset Category Maintenance Category Code e Category Description f Main Category UsefulLite O E Useful Life Unit Year Month Calculation Depreciation On Capitalization Amount Capitalization Amount Residual Value
32. ation of the asset However you must ensure to enable the Asset Cost Residual Value option in the Asset Category screen The total depreciation for the asset will not exceed the residual value 5 3 ORACLE Original Reference Number This field is updated only during Fixed Asset Transfers Transferred asset is automatically created in the branch location on Save of transfer This field displays the original reference number of the asset in the old branch location You cannot modify this number All other details of the transferred asset will remain the same as before except for a few conditions Please refer the section Asset Transfer Process for more details Capitalization Date If you have selected the status of the asset as Capitalized then you have to specify the date on which the asset was capitalized Effective Depreciation Date In this field you have to mention the date from which the depreciation should be charged for the asset The capitalization date will be taken as the default date if you do not mention the date You can choose to change this but this date cannot be less than the capitalization date Also this date cannot be a future date Useful Life Specify the following Useful Life This is the unit to measure the useful life of asset months years The data is defaulted from asset category maintenance You can choose to change this unit Useful Life Units This is the useful life of the asset The data
33. book of accounts and tax purpose Rule Select the rule to be used for depreciation from the option list This data is recorded for both book of accounts and tax purpose Refer the section on Depreciation Maintenance for details on maintaining depreciation percentage for each period 3 13 ORACLE 4 1 4 Defining a Product Introduction In this chapter we shall discuss the manner in which you can define attributes specific to a Fixed Assets FA product You can access the Fixed Asset Product Maintenance screen by typing FADPRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button In this screen you can enter basic information relating to a FA product such as the Product Code Product type the Description etc Fixed Assets Product Definition Product Code Exchange Rate Variancetin Product Description Override Limit Product Type Stop Limit Description Rate Code Slogan Product Group Rate Type Preferred Product Group Description Start Date End Date Remarks Accounting Roles Branch amp Currency Category Restrictions Instrument Restrictions Maker Date Time Mad No Checker Date Time Record Status Authorization Status For any product you create in Oracle FLEXCUBE you can define generic attributes such as branch location and category etc by clicking on the appropriate button in the horizontal array of buttons in this
34. d Branch Depreciation CR FATSFRACC Transfer Account FA_TSFR_AMT Original Asset Transferor Branch cost Acquired Depreciation Only the second set of entries will be passed in case of an asset transfer Transferee Branch Event DEPR Along with BOOK 6 7 ORACLE oe Description Amount Tag Description FAWIPACC Work in FA_DEPR_ACQ Acquired Depreciation Progress Account Transferee Branch CR FAACCDEPR Accumulated FA_DEPR_ACQ Acquired Depreciation LIB depreciation Account Capitalization entries will be passed as usual for the new asset Examples Formula for calculating depreciation to be passed reversed Depreciation already done for current period YTD depreciation Depreciation per period No of previous periods Depreciation to be reversed If Dep Effective date lt Cut Off date Depreciation already done for the current period Depreciation to be passed If Dep Effective date gt Cut Off date Depreciation per period Depreciation already done for current period The above formula will be valid for WDV method of depreciation also since the depreciation process considers the Written Down Value of the asset only as of the beginning of the current financial year Consider the following parameters Financial Year 01 Jan 2008 to 31 Dec 2008 Depreciation period Quarterly Cut off Month 1 Cut off Date 20 Depreciation effective date 17 Apr 2008 Transfer Date
35. dividual periods Therefore if the Frequency is Monthly and the Frequency Start Date is January 31 during the EOD processes executed on 31 January the system will pass the depreciation entry of 1000 12 Similarly other entries will be passed during the subsequent month ends 1000 If the asset is capitalized on the 20 of February which is after the cutoff period the yearly depreciation will be calculated for the remaining 3 quarters and not for 4 quarters Thus the depreciation will be calculated as follows 1000 x 3 _ 750 This in turn will be apportioned to each period as 750 9 Cut off date and Cut Off period You need to mention the cut off date and cut off month for calculating the depreciation for the asset If the asset is acquired before the mentioned cutoff date and cut off month the depreciation is calculated for the full period If the depreciation period chosen in the previous field is Quarterly Half Yearly or Yearly you have to specify the cut off date and cut off month If the depreciation frequency chosen in the previous field is Monthly then you need to mention only the cut off date The depreciation is calculated from the next period if the asset is acquired after the cut off period 3 6 ORACLE 3 5 Amortize over full Period Specify if you want to amortize over the full period by checking the box When an asset Is acquired after the specified cut off date and month the depreciation will be calcu
36. e FA XP contract linkage e FA depreciation view Each of the above mentioned screens and the data captured in each screen are explained in detail in this chapter Capturing the Details of the Fixed Asset You can capture the various details of the asset such as asset code asset cost date of acquisition date of capitalization location asset category code etc Through this screen you can associate the asset to a product code and the all the restrictions maintained at the Product level will be enforced while you record the new asset You are not allowed to change the product associated with the asset during the life cycle of the asset once you have associated the product to the asset You can invoke Fixed Assets Asset Capture screen by typing FADTRONL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button A ORACLE 5 3 1 Fixed Assets Asset Capture Product Code e Contract Reference Version Number 4 Of gt Ise erence Product Description Vuar Roumanie Source Code FLEXCUBE Source Reference Asset Details Depreciation Details Category Location Location Description Asset Currency Acquired Depreciation Asset Cost Residual Value Description Original Reference Status Capitalization date Book Date Effective Depreciation REN date Acquisition Date Useful Life Depreciation Suspension Useful Life Suspended Depreciation Year Year Sus
37. e Preferences screen You can invoke Fixed Asset Product Preferences screen from the Product Maintenance screen by clicking Preferences button Fixed Assets Product Preferences Product Code Description Purchase Order Required Rekey Required Yes Mo Depreciation Processing Asset Cost Required For Book Capitalization Date Depreciation Processing Depreciation Effective Date Required For Tax Specify the following Product Code This is the code for the product that you are defining here The code is defaulted from the Product Definition screen Product Description This is the description of the product that is being defined This is defaulted from the product definition screen Purchase Order Required You have to indicate whether a purchase order is required or not for procuring a new FA Choose Yes if you need the PO Purchase Order or choose No to indicate otherwise sor your preference for PO is Yes then you will have to link an XP Expense Processing contract in the FA Capture screen for the asset FA and XP modules are closely linked to each other Payments for the asset purchased are done through XP module and the XP contract reference number would be internally linked to FA module for the purpose of capitalizing the asset and calculating depreciation Depreciation Processing Required for TAX and BOOK You have to mention if you want the depreciation process to be carried out
38. e and a brief description 3 7 ORACLE You can follow your own convention for devising the code The description that you specify is for information purposes only and will not be printed on any customer correspondence Restriction Type You can specify Location restrictions either in the form of an Allowed type or in the form of a Disallowed type When you associate a restriction class with a product those locations that do not figure in the list cannot offer the service If you have maintained a disallowed type for a class locations that do not figure in it can offer the service 3 5 1 1 Location Restriction Specify the following Code and Description You can select location code from option list based on the Restriction Type selected for a class 3 6 Specifying Asset Category Restriction Classes An asset category restriction class identifies a unique list of allowed or disallowed categories At your head office you can associate a product that you propose to offer with any Asset Category Restriction Class that you have maintained The asset category restrictions defined for the class will apply to the service Sron Please note that any product that your bank offers is available to all asset categories by default unless you specifically restrict its availability You will be able to define Asset category restriction classes through the Asset Category Restriction Class Maintenance screen You can invo
39. e eeee cece eee e cece nese ee EGA AEE EE EEA GAAS EE EEE G AAS EEE EE BEES 4 7 SB PROCESSING FIXED ASSETS oiie dnr E EDISE 5 1 5 1 TNTRODUCTION scronercectiececteutaceuctncstnsaautandvesoceautacescuceunsaestesusaeineyecaesseaneaawessnceaesatsweacivetoceautadessseceumuaeanesesaeinezerte 5 1 5 2 INVOKING THE ASSET INPUT SCREEN cccsccsccscscesceccscescesceccscescescescesescescescsecesescescescssessescescssensescesceseecs 5 1 5 3 CAPTURING THE DETAILS OF THE FIXED ASSET ccccecceceececcececccecscscceececeececesceseececescsctscscesescesesceseecs 5 1 5 3 1 ASS t Details TAD 2 cc cccccccccccccuccccuccccuccccecscccscecccscucusceuscucuecucuecscuecscascseuscucuecucescucescscuseecascecascscusescuees 5 2 JIZ Depiecidlon Details TaD asneves EN EE OEN EEEE EE EEE EE EE 5 5 5 3 3 Recording the XP Contract Reference Linkage cccccccccccseesssesecccceseneeesseeceeeeeaaeeseeeeeeeeaaaaseeeeeeesaaaaess 5 6 5 3 4 Capturing the details of the tis ccccccccccccccsesscccccceeeenaesesseceeeeeaeeeeeeeeeeeeaaaeeeeeeeeeeeesaaaesseeeeeeeaeaaaaaees 5 7 5 3 5 Maintaining the Depreciation Table cccccccccccssseccccccceee ne eeeseeceeeee ne eeeseeeeeeeaaaeseeeeceeeesaaaaaseeseeesseaaasssees 5 9 5 4 SPECIFYING THE ASSET TRANSFER DETAILS cccscceccscescescecceccscescescscescescscesescesceccesescescescescscescescescess 5 10 5 4 1 Asset I ransJer TOCCO Sussi a N A S 5 12 5 5 SPECIFYING ASSET SALE DETAILS asic dasccacsctadsancdesasacenoiecod
40. e reduction in the value of an asset due to usage passage of time wear and tear technological outdating or obsolescence depletion or other such factors Purchase Order A purchase order PO is a commercial document issued by a buyer to a seller indicating the type quantities and agreed prices for products or services the seller will provide to the buyer Sending a PO to a supplier constitutes a legal offer to buy products or services Rate over Period For calculating depreciation for the first year the company can mention a depreciation rate that is different from the depreciation rule that has been specified This is mentioned as a part of the Rule definition Residual Value Residual Value is the scrap value of the asset which can be realized when the asset is sold after its useful life is complete SLM The simplest and most commonly used straight line depreciation is calculated by taking the purchase or acquisition price of an asset subtracted by the salvage value divided by the total productive years the asset can be reasonably expected to benefit the company called useful life in accounting jargon Purchase price of asset approximate salvage value Estimated useful life of asset 7 1 ORACLE Under straight line method a fixed percentage is applied on the original cost of the asset thereby ensuring that the depreciation per annum over the useful life is constant Transfer Value This indicates the value o
41. ed Ad hoc Asset Category Location Code Depreciation Parameters Book Method Straight Line Method O Written Down Value Frequency Frequency Start Date Frequency Start Month Rue C Jas Input By Authorized By Date Time Date Time Specify the following Asset Category Depreciation Parameters Tax Method Straight Line Method O Written Down Value Frequency Frequency Start Date Frequency Start Month Rue Ia Modification Number Authorized Open Choose the category code for the asset from the list available Once you choose the asset category code the description for the category will be displayed in the next field Location Code You can select the location code for the asset from the given option list 3 11 ORACLE 3 8 1 1 Depreciation Type You have to mention the type of depreciation required for the asset The two options available are Rule based and Ad hoc If you select Rule based type of depreciation then a fixed percentage is depreciated every year If you chose ad hoc as the depreciation type then you have to maintain depreciation rates in the Depreciation Maintenance screen at the Asset Capture level In such a scenario the fields for rule are not applicable Depreciation Parameters Book and Tax Specify the following Method Here you have to indicate if you want SLM Straight Line Method or WDV Written Down Value Method as your depreciation method Choo
42. edscaseneeaisensdenesonsude veledoasideaunanseeccedasaandecsaesedests 5 13 5 6 SPECIFYING ASSET WRITE OFF DETAILS sessscssssacecsssaacccnaneoncdneaaetecdaseceadeeeaodiaeanreraddasiadaunndavseaeaaaacgacaaawsedors 5 14 5 7 AUTHORIZING FIXED ASSET CONTRACTS vocaceasasacansssosccssorosedsaseacencascnsedecsaoccunnavencdseshosadansesaedianaaeicetaueeedeate 5 15 5 8 REASSIGNING A CONTRACT TO ANOTHER USER sisscsicsicsescoccdsansaccavaguasadcsndanounenssncdsesnosadnnseededbeabodscseaeoeadoens 5 16 6 ANNEXURE A ACCOUNTING ENTRIES AND ADVICES eseseesesecsesesecsesecccseseocesesecsecesccsesecsecessosesesees 6 1 6 1 ACCOUNTING ENTRIES FOR FIXED ASSETS nuirir ia N NAA AAEE ENEN 6 1 6 2 PATNE a A S 6 1 6 3 ANOO RS E E A 6 1 6 3 1 Amount Tags and their usage during various events cccccccccsssseeseeceeeceansessececeeececaaeseeceeeeeaaaaeeeeeesens 6 2 6 4 AC COO ING BOS secs cases TE A A nonedeana ts 6 3 6 5 EVENT WISE ACCOUNTING ENTRIES AND ADVICEG ccccscsccsceccsceccececcscscscscscscasescesescscescesescssescecaseees 6 3 6 5 2 PACU OS chase sch Gada RAT EAE 6 14 De CLO SARI o A 7 1 7 1 PPO A ITE a A E euibnsenmaaeausaiuamiceoeetatnacs 7 1 S SCREEN GLOSSARY soiin REA EEN 8 1 8 1 PEN TON IB 2 EB een eo Fn PF oP ee 8 1 ORACLE 1 About this Manual 1 1 Introduction This user manual is designed to help you quickly get acquainted with the Fixed Assets FA module of Oracle FLEXCUBE The manual gives you an overview of the Fixed Assets
43. estrictions branch locations asset category e asetof events and the corresponding accounting roles and heads e a component charge As part of your one time set up you can define several sets of classes of a particular type In Oracle FLEXCUBE therefore you do not have to specify restrictions preferences and components every time you create a product You only need to associate the different set of classes that you have already maintained This feature eliminates redundancy and saves processing time Sron The process to create a class is discussed in the Procedures User Manual of Oracle FLEXCUBE Creating Products When setting up the module you can define the various parameters for the assets For each product you can also define attributes or in other words the terms and conditions When a user at the bank actually processes a fixed asset it can be associated with a product The asset acquires the terms defined for the product that it involves However you can allow a user to change the inherited attributes of an asset for specific transactions Processing Depreciation The depreciation charge processing will be done as part of the End of Day and Beginning of Day processing This will process all the assets for depreciation depending on frequency of the depreciation that you specify in the Asset Category Rule mapping maintenance screen The Depreciation rate can be maintained in Oracle FLEXCUBE for a combin
44. f the asset when transferred from one branch to another Useful Life This indicates the life of the asset i e the period for which the asset would be useful for the organization WDV Under written down value method a fixed percentage is applied on the written down value original cost less depreciation charged till the end of the previous year of the asset This results in higher depreciation in the earlier years and lesser depreciation in the later years Normally the depreciation rate under written down value is higher than the rate under straight line method This ensures creation of depreciation provision over the useful life of the asset WIP Work that has not been completed but has already incurred a capital investment from the company This is usually recorded as an asset on the balance sheet Work in progress indicates any good that is not considered to be a final product but must still be accounted for because funds have been invested toward its production Write Off This indicates a reduction in the value of an asset or earnings by the amount of an expense or loss 72 ORACLE 8 Screen Glossary 8 1 Function ID List The following table lists the function id and the function description of the screens covered as part of this User Manual Faetono Function FADACAT Asset Category Maintenance FADBRMNT Fixed Assets Branch Parameters FADCATCL Fixed Assets Category Restriction Class Maintenance FADLOCN Location
45. h Parameters Fixed Assets screen by typing FADBRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button gt Fixed Assets Branch Parameters Branch Code az Branch Description Process Depreciation till System Date Next Working Day 1 Depreciation Parameters Depreciation Period Cutoff Date Cutoff period e Amortize over full Period Input By Authorized By Modification Authorized Date Time Date Time Number Open Specify the following Branch Code and Branch Description Select the code for the branch for which you want to define the parameters from the option list Once you select the branch code the description of the branch is defaulted in the next field Process Depreciation Till Here you have to mention the date on which the depreciation has to be processed It can be either the System date or the Next Working Day 1 If you select the System date the depreciation will be processed only till the day on which EOD is run If your choice is Next Working Day 1 then the depreciation will be processed till the last day before the next working day when the batch process is run during EOD This is applicable only for working days within a month For instance if Today s Date is 10 June and the Next Working Date is 15 June the system will pass accounting entries for contracts falling due up to 14 June during the EOD processes executed on 10
46. hange this date For a Writeoff this date will always be the system date and you will not be allowed to modify this date Officer Incharge For both Sale and Write off you have to mention the name of the officer in charge of the sale or transfer of the asset This data is recorded for general information purpose Remarks You can enter general remarks for the asset in this free format text field for information purposes Sron Any sale transfer write off has to be authorized before the end of day Transfer Details Specify the following details New Branch This is the branch where the asset is to be transferred This field is mandatory for asset transfer Select the branch from the option list New Location This is the location to which the asset is to be transferred This field is mandatory for asset transfer Select the branch from the option list 5 11 ORACLE 5 4 1 New Reference This is the asset reference number of the asset created in the new branch location and you will not be allowed to modify the number This number is automatically generated by the system when you save the asset transfer Asset Transfer Process The following conditions are mandatory for asset transfer e The category location rule mapping for the new location should be rule based e f only the branch is being changed and not the location the existing category location depreciation type can be ad hoc In this case ad hoc sched
47. in the Asset Capture Online screen under Asset Capture Fixed Assets from the Application Browser Linkage Details Asset Reference Asset Description 10f1 ry Expense Processing Contract Reference Contract Amount Linked Amount Total Linked Amount This screen enables you to add or delete a record Asset Reference Number The reference number of the asset is defaulted from the asset capture screen You will not be able to change this number 5 3 3 1 Specifying the Expense Block Expense Processing Contract Reference Number Here you have to mention the reference number of the contract in the XP module You can pick the reference number from the option list available or you can mention the number which will be validated against the XP contract Vendor Code Once you choose the XP contract the code for the vendor will be defaulted automatically 5 6 ORACLE 5 3 4 Contract Amount Once you choose the XP contract the contract amount will be defaulted automatically in this field The XP contract amount is displayed in asset currency Linked Amount You have to specify the amount of the XP contract that has been used for the purchase of the asset Make sure that the sum of the linked amounts for all the linked contracts is less than or equal to the actual cost of the asset Capturing the details of the Items This screen is used to record individual item details under a single asset code in cases where
48. ing is an exhaustive list of events that can take place during the lifecycle of an FA contract In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below is pe o o Code e e ems Ae epe pm at DPTX Depreciation for Tax purposes no accounting entries are All Types passed for this event REVC Reversal of a contract All Types so TSFR Transfer of Asset a Amount Tags The amount tags listed below are hard coded in Oracle FLEXCUBE FA CAPT_AMT Asset Cost Capitalized FA_DEPR_ACC Accumulated depreciation FA _DEPR_ADD Additional depreciation to be charged FA _DEPR_RED Reduction in depreciation amount already charged 6 1 ORACLE FA SALE AMT Net Sale Value FA SALE LOS Loss on account of sale Book Value Sale Value FA SALE PFT _ Profit on account of Sale FA_WRTO_AMT Amount Written Off Book Value FA_TSFR_AMT Transfer Amount Asset Amount Accumulated Depreciation In addition to these you can define amount tags as per your requirements for charges that will be attached to the product 6 3 1 Amount Tags and their usage during various events Listed below are the various Events along with the Amount Tags that would be used during the respective events Event Amount Tag Explanation of the Amount Tags BOOK FA_CAPT_AMT Asset Cost DEPR FA_DEPR_ADD Additional depreciation to be charged on account of increase in depreciation rate o
49. ized Checker Date Time Specify the following Asset Reference Number The system will generate the asset reference number based on the branch product Julian date and a running sequence of 4 bytes You cannot change this reference number Depreciation Book and Tax Capture the following details Year To Days Depreciation This field displays the depreciation charged on an asset from the start of the current financial year till the last depreciation date This data is recorded for book and tax purpose No modification is allowed in this field Accumulated Depreciation This field displays the depreciation charged on an asset for account book and tax purpose The depreciation is calculated from the effective date of depreciation till the system date No modification is allowed in this field Year open Written Down Value The field displays the value of the asset that was written down at the beginning of the financial year for book and tax purpose 5 5 ORACLE No modification is allowed in this field Current Written Down Value This field displays the value of the asset that was written down on the system date for book and tax purpose No modification is allowed in this field 5 3 3 Recording the XP Contract Reference Linkage When an asset is purchased against a purchase order you can link the asset to the contracts in Expense Processing module To access this screen click Linkage Details button
50. ke this screen by typing FADCATCL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button The asset category restriction classes that you define and authorize in this screen are the ones which can be used while creating the Fixed Assets products 3 8 ORACLE Fixed Assets Category Restriction Class Maintenance Module Restriction Type Allowed Disallowed Restricted Categories E jco pesonn OL a Input By Authorized By Wodification Authorized Date Time Date Time Number cece An Asset Category Restriction Class is identified by a unique Code and a Description The asset category classes that you maintain have to be specific to a module in Oracle FLEXCUBE This is because a class maintained for one module would be unsuitable for another Class Code and Description You can identify a Category Restriction class that you build with a unique ten character Class Code and a brief description Restriction Type You can specify Category restrictions either in the form of an Allowed type or in the form of a Disallowed type When you associate a restriction class with a product those categories that do not figure in the list cannot offer the service If you have maintained a disallowed type for a class categories that do not figure in it can offer the service 3 6 1 1 Restricted Categories Specify the following Code and Description You can
51. lated from the next period and it will amortize the depreciation over the period of acquisition also If you leave this box unchecked then the amortization will be done from the next period Example Continued In the example mentioned above lets assume that we have enabled the Amortize over Full Period option In such as case the depreciation for the year i e 750 will be amortized over 12 months and during the while executing the first EOD process the entries for the first two months will also be posted Therefore on February 29 the system will post entries in the following manner 750x2 12 From the 31 of March onwards the entries will be posted for 750 12 Maintaining Location Restrictions Classes You can define restrictions for certain locations that can be defaulted at the product level SIZ You can invoke the Fixed Assets Location Restriction Class Maintenance screen by typing FADLOCCL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Fixed Assets Location Restriction Class Maintenance ClassCode Module FA Restriction Type Allowed Disallowed Location Restriction 58 T al Input By Authorized By Modification Authorized Date Time Date Time Number Open Exit Specify the following Class Code and Description You can identify a Location Restriction class that you build with a unique ten character Class Cod
52. many similar assets are grouped under one category To access this screen click Asset Details button in the Asset Capture Online screen under Asset Capture Fixed Assets from the Application Browser Asset Details Asset Reference Description Asset Items 1071 Li Total tem Cost In this screen you are allowed to add or delete a asset from the asset group Asset Reference Number The reference number of the asset is defaulted from the asset capture screen You will not be able to change this number 5 3 4 1 Asset Item Block Item Number You need to enter a unique number for the asset to identify the particular asset 5 7 ORACLE Description You can record the general information regarding the asset in the Description field Item Cost You need to specify the cost of the individual item wy Take care that the sum of all item costs does not exceed the asset cost Expected Delivery Date Mention the date on which the item is scheduled for delivery Ensure that the delivery date is not less than the capitalization date Delivered Check the box if the delivery of the asset has been carried out Keep the box unchecked to indicate that the asset has not been delivered Inspected If the asset has been inspected then check the box Leave it unchecked to indicate that the asset has not undergone inspection You will also be able to perform queries about assets delivered but not inspected and a
53. module and takes you through the various steps involved in setting up and maintaining a fixed asset You can obtain information specific to a particular field by placing the cursor on the relevant field and striking lt F1 gt on the keyboard 1 1 1 Audience This manual is intended for the following User User Roles Back office clerk Input functions for contracts Back office Authorization functions managers officers Product Managers Product definition and authorization End of Day operators Processing during End of Day Beginning of Day Financial Generation of reports Controller Product Managers 1 1 2 Abbreviations Abbreviation Oracle FLEXCUBE Oracle FLEXCUBE FA Fixed Assets Beginning of Day Management Information System Straight Line Method End of Day 1 1 ORACLE Written Down Value method 1 1 3 Organization This manual is organized into the following chapters Chapter 1 About this Manual gives information on the intended audience It also lists the various chapters covered in this User Manual Chapter 2 Fixed Assets An Overview is a snapshot of the features that the module provides Chapter 3 Maintenances for Fixed Assets Module details the maintenances required for fixed assets Chapter 4 Defining a Product details the procedure to set up FA products Chapter 5 Processing Fixed Assets discusses the processing of the fixed asset Chapter 6 Annexure A Accounting Entries and
54. pension Date Months Maker Date Time Status Authorized Checker Date Time Specify the following details Product Code Choose a product code from the option list All the preferences defined at the product level will be defaulted Once you specify the product code the system will create the reference number in the next field for the asset Contract Reference Number The system automatically creates the reference number for the asset The reference number generated is a combination of branch code product code the Julian date of transaction input and a running serial number Product Description Once you have selected the product code the product description is displayed User Reference Number You can enter any reference number for a FA contract that you process The FA contract will be identified through this number in addition to the Contract Reference Number generated by the system Two FA contracts cannot have the same User Reference Number By default the Contract Reference Number generated by the system will be taken as the User Reference Number You can use this number to retrieve information relating to an FA contract Asset Details Tab Capture the following details Category You can link the asset to an existing asset category that is not restricted for the branch Choose the category of the asset from the option list 5 2 ORACLE Location Identify the location at which the asset is currently stationed The o
55. ption list will display the list of locations based on the restrictions maintained at the product definition screen Location Description On selecting the location the description of the location is displayed Asset Currency This is the local currency of the branch You will not be allowed to modify this data Asset Cost Enter the value of the asset in this field Asset Description In this field you can enter the description of the asset stating whether the asset is an office building or computers etc Status Here you have to mention the status of the asset your branch is holding The available options are e Capitalized e Work in progress Booking Date The system date is defaulted as the booking date of the asset You will not be allowed to modify this date Acquisition Date Mention the date on which the asset is acquired in the date month year format Acquired Depreciation You can specify the acquired depreciation in case of the asset being transferred from a previous branch The system arrives at the accumulated depreciation based on the acquired depreciation that you specify as well as the depreciation calculated The acquired depreciation is considered to track depreciation on books and not for tax purposes You will not be allowed to specify the acquired depreciation once you save and authorize a contract Residual Value The Residual Value is taken into account for the purpose of computing the depreci
56. r change in depreciation method or change in capitalization date DEPR FA_DEPR_RED Reduction in cumulative depreciation on account of reduction in rate change in capitalization date or change in depreciation method SALE Loss on Account of Sale Book Value Net Sale Value SALE Profit on Account of Sale Net Sale Value Book Value 6 2 ORACLE 6 4 Accounting Roles In this section we have provided a list of sample accounting roles that can be used for all types of products in the FA module 6 5 Event wise Accounting Entries and Advices In the subsequent sections we have defined suggested accounting entries and advices for each of the events in the life cycle of an FA contract 6 5 1 1 BOOK Booking Accounting Entries Condition Accounting Role Amount Tag Dr Cr Indicator No PO required FAWIPACC FA_ASST_AMT for Purchase FACUSTACC FA_ASST_AMT 6 5 1 2 CAPT Capitalization of Asset Accounting Entries Condition Amount Tag Dr Cr Indicator Role None FRASSETAGG FA_OAPT AMT EAWIPRCG FA CAPT AMT 6 5 1 3 DEPR Depreciation processing Accounting Role Amount Tag Increase in FADEPREXP FA_DEPR_ADD depreciation FAACCDEPRLIB FA_DEPR_ADD depreciation depreciation is 6 5 1 4 AMND Amendment of the contract No Accounting Entries need to be captured at this stage since all the adjustments to be done will be taken care of by the depreciation processing event 6 5 1 5 SALE Sale of Asset
57. racts associated with the product Override Limit In this field you can enter an Override limit The implication of your entry in this field is discussed below lf the variance between the default rate and the rate input varies by a percentage that is between the Override Limit and the Rate Stop Limit that you specify in the Stop Limit field you can save the transaction by providing an Override Stop Limit For a special customer or in special cases you may want to use an exchange rate a special rate that is greater than the exchange rate maintained for a currency pair The variance is referred to as the Exchange Rate Variance When creating a product you can express an Exchange Rate Variance Limit in terms of a percentage This variance limit would apply to all FA contracts associated with the product In this field you can enter the Stop Limit The implication of your entry in this field is discussed below Rate Code If the Charge Currency is different from the Contract Currency the rate associated with the Rate Code will be picked up Select the appropriate from the drop down list Rate Type Preferred If the Charge Currency is different from the Contract Currency the rate associated with the Rate Code will be picked up Select the appropriate rate type from the drop down list 4 3 ORACLE 4 2 Specifying the Preferences of the Product The attributes specific to an asset are defined in th
58. reciation for the asset in new branch location Accumulated Depreciation Current Accumulated Dep Remaining Dep for current period 400 200 600 6 12 ORACLE Accounting entries passed in the transferor branch Event TSFR DR C Accounting R Role Description Amount Tag FATSFRACC Transfer Account FA_ASST_AMT 12000 Transferee Branch CR FASSTACC Asset Account FA_ASST AMT 12000 Transferor Branch FAACCDEPRL Accumulated depreciation Account ene CR FATSFRACC FA_DEPR_ACC Transferee Branch a Transfer Account wo FADEPREXP Dep Expense FA DEPR_ADD CR FAACCDEPRLIB Accumulated Dep FA_DEPR_ADD Accounting entries passed in the transferee branch Event BOOK DR CR Accounting Description Amount Tag Role FAWIPACC Work in Progress Account FA_TSFR_AMT 11400 Transferee Branch CR FATSFRAC Transfer Account FA_TSFR_AMT 11400 C Transferor Branch Event DEPR Triggered along with BOOK DR C Accounting n FAWIPACC Work in Progress FA _DEPR_AC Account Transferee Q Branch CR FAACCDEPRLI Accumulated FA _DEPR_AC B depreciation Account Q From here onwards the depreciation of the asset will be done in the new branch location with the rule defined for the new category location combination 6 13 ORACLE 6 5 2 Advices The following details the possible advices and the stage at which the advices are generated for the Accounting entries Advice Code Advice Description
59. se the method of depreciation by clicking on the appropriate option This data is maintained for both book of accounts and tax purposes An example for SLM depreciation Cost USD 12000 Useful life is 10 years Per year depreciation is USD 1200 At the end of the useful life of the asset i e 10 years the value of the asset would be reduced to zero An example for WDV depreciation Cost USD 12000 Useful life is 10 years depreciation rate is 10 p a Cost 12000 1 year depreciation 10 1200 WDV 10800 2 year depreciation 10 1080 WDV 9720 3 year depreciation 10 972 WDV 8748 andsoon At the end of 10 years the value of the asset would not be reduced to zero The amount that remains in the books would be written off to the P L of the Bank Frequency You need to mention the start date and the start month to determine when the first cycle of the depreciation accounting entries are to be posted Select the frequency for calculating of depreciation from the option list This data is recorded for both book of accounts and tax purposes Frequency Start Date Mention the start date to determine when the first cycle of the depreciation accounting entries are to be posted 3 12 ORACLE This data is recorded for both book of accounts and tax purpose Frequency Start Month Mention the start month to determine when the first cycle of the depreciation accounting entries are to be posted This data is recorded for both
60. ssets inspected but not capitalized based on the Delivery Date and Status Remarks In this field you can enter general remarks for the asset for future reference 5 8 ORACLE 9 3 9 5 3 5 1 Maintaining the Depreciation Table You will be able to define different rates for depreciation This is exclusively done for adhoc type of depreciation To access this screen click Adhoc Schedule button in the Asset Capture Online Ad hoc Schedule Asset Reference Description Schedule For Book Schedule For Tax 10f1 10f1 COE O LI a Asset Reference Number The reference number of the asset and its description is defaulted from the contract input screen You will not be able to modify this number Specifying the Schedule For Book and Tax Year You have to maintain the depreciation schedule for the asset if you have chosen Ad hoc as the depreciation type in the Asset Category location rule mapping screen If the useful life is in months then also the adhoc depreciation schedule needs to be recorded in terms of years For Example If the useful life is 60 months then depreciation schedule is entered for 60 12 5 years You can also round it up to the next year i e if the useful life is 65 months then the depreciation schedule will be for 6 years o The sum of the depreciation rate across the useful life of the asset should be add up to 100 Additionally you have to ensure that you have maintained
61. st one of the two new location and branch must be different than current location and branch of the asset Oracle FLEXCUBE will display an error message if this condition is not met The reference number of the asset is defaulted from the contract input screen You will not be able to modify this number To move to the next asset or previous asset use the Up and Down arrow keys in the keyboard Asset Details Click New button in the toolbar or select New from the Actions menu to make a new entry for sale write off Depending on the reference number you choose the details for the asset will be defaulted in the following fields 5 10 ORACLE e Asset Description the general information regarding the asset in this free format text field e Asset Cost the cost of the individual item e Category the code of the category under which the asset is placed e Location the location code where the asset is currently stationed e Accumulated Depreciation the accumulated depreciation from previous branch in case of transfer Transaction Details Specify the following details Transfer Amount This is the net sale value of the asset This field is mandatory if the asset is being sold For a Write off this value will be the current book value and is not modifiable Value Date This is the date on which the asset Is sold or written off In case of a Sale the default date will be the system date and you can choose to c
62. t will be displayed immediately once the authorizer calls the FA contract for authorization The re key option also serves as a means of ensuring the accuracy of inputs Specific Product Maintenance You can define specific restrictions for an asset at the product level They are e Asset category restrictions e Locations restrictions Specifying Asset Category Restrictions You have already categorized assets that share similar attributes in the Asset Category Maintenance screen The categorization of assets is useful for charging a common depreciation rate generating MIS reports etc You can also define the useful life for different categories of assets While creating an FA product you may want to establish certain controls by restricting the usage of the product to select asset categories only You can achieve this control by maintaining restriction lists when creating a product ie ORACLE Click Category Restrictions button to display the Asset Category Restriction screen Fixed Assets Product Category Details Product Code Product Description Class Code Class Description Restriction Type Disallowed Allowed Category Restrictions 10f1 E Category Code Desorption e O O OOOO OOOO OO E You can choose to specify Asset Category Restrictions either by e Associating the product with a Asset Category Restriction class e By defining these restrictions specifically for the product Product Code This is
63. the category code Description Enter any information regarding the asset category This information can be the type of the category and the assets it will hold under this category etc If you would like to associate a restrictions class to a product that you are defining choose the Default From Class button in the Fixed Assets Category Restriction screen A list of the restrictions classes that you have defined specifically for the Fixed Assets module will be displayed Choose a suitable Restrictions class Alternatively you can choose to define asset category restrictions specifically for the product In this case you would choose not to associate restriction classes with the product You would define restrictions for the product by e Specifying the List type wherein you restrict the usage of an asset category or asset categories as the case may be to the product by maintaining an Allowed or Disallowed list e Move a Category to the Allowed Disallowed column depending on the list type that you choose to maintain 4 2 3 Maintaining Location Restrictions Through the Location Code maintenance you have assigned unique location codes to identify different locations where the asset physically exists Using the Fixed Assets Location Restrictions screen you can restrict the usage of a product to specific locations Click Instrument Restrictions button to invoke the Fixed Assets Product Location Details screen
64. the code for the product that you are defining here The code is defaulted from the Product Definition screen Product Description This is the description of the product that is being defined This is defaulted from the product definition screen Class Code This is the unique identifier for the class You can default the asset category restrictions from the previous defined class by clicking on the Default From Class button Class Description A brief description of the class code is displayed here For more details refer section titled Maintaining Location Restrictions Classes in the chapter Maintenance for Fixed Asset 4 2 2 1 Restriction Type You have categorized assets that share similarities under one category through the Asset Category Maintenance screen You can specify asset category restrictions for a fixed asset product either in the form of an Allowed list or in the form of a Disallowed list Choose the appropriate option to indicate the List Type that you would like to maintain 4 6 ORACLE You cannot deal in asset categories which do not figure in an Allowed list Alternatively if you maintain a Disallowed list you can deal in asset categories that do not figure in the list 4 2 2 2 Fixed Assets Category Restrictions Specify the following Category Code You have to specify the unique code to identify the category for the asset You will not be able to modify
65. thorization Product Code Contract Reference Current User Identity New User Identity Maker Date Time status Authorized Checker Date Time To reassign a contract to another user the following steps are required Product Code Indicate the product associated with the contract You can select a product code from the option list which contains a list of the authorized products that you have created Contract Reference Indicate the contract reference number of the fixed asset you wish to reassign to another user You can select a reference number from the option list which contains a list of all the active fixed asset contracts New User Identity Select the User ID of the user to whom you are assigning the contract gt This user to whom you reassign a contract should have access rights to enter fixed asset contracts Your User ID will be defaulted from the login screen Select Save from the Actions menu in the Application toolbar or click save icon to save the specifications you have made Click Exit or Cancel button if you do not want to save the details that you entered 5 17 ORACLE 6 Annexure A Accounting Entries and Advices 6 1 Accounting Entries for Fixed Assets This section contains details of the suggested accounting entries that can be set up for the FA module of Oracle FLEXCUBE The details of the suggested accounting entries are listed event wise 6 2 FA Events The follow
66. uitably announces the product to your customers Product Group Grouping products according to the common features they share helps you organize information relating to the services you provide Product Groups also help you retrieve information easily In this field you can invoke a list of the product groups that you have maintained in your bank Choose the product group to which the product that you are creating belongs Start Date When you create a product you must specify a date from which it can be offered Enter this date in the Start Date field End Date You can choose to specify the date up to which a product is open Enter this date in this field You cannot enter a date that is earlier than the current system date You cannot offer a product beyond the specified end date If you do not specify an end date for a product you can offer it for an indefinite period Remarks If you would like to enter any remarks relating to the product do so in this field This information is for your reference 4 2 ORACLE 4 1 1 Exchange Rate Variance in For a special customer or in special cases you may want to use an exchange rate a special rate that is greater than the exchange rate maintained for a currency pair The variance is referred to as the Exchange Rate Variance When creating a product you can express an Exchange Rate Variance Limit in terms of a percentage This variance limit would apply to all FA cont
67. ules will be copied from the old asset to the new asset e lf the location is being changed then the new category location combination should have depreciation type as rule based Old category location combination can have ad hoc depreciation Transfer is possible only if the new category location rule mapping has the same rule type as the old category Example Assume category a location x y rule r1 adhoc r2 rule based Mapping is a x r1 and a y r2 branch s are b1 b2 asset 0001 has category a location x Asset cannot be transferred from b1 b2 y b1 b1 y e In branch parameters depreciation period cut off date and cut off period fields should have the same value in both the old and the new branches e lf the asset is being transferred to a new branch the new branch should have exactly the same definition of financial year and financial periods If not it might result in erroneous depreciation calculation While doing an asset transfer system will check the preferences maintained at the branch parameters level to complete or reverse depreciation for the period in which the asset is being transferred to a new branch location e fthe asset is being transferred after the cut off date then depreciation will be completed for the current period in the transferor branch Further depreciation will happen in the transferee branch for rest of the depreciation period in the current financi
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