oracle assets release 12 construction in process (cip) assets

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Oracle Assets Release 12Construction in Process (CIP) Assets

Presented by

Instructor: Brian Bouchard

Date Recorded: June, 2009

Copyright © 2009 Chi-Star TechnologySM

Oracle AssetsCopyright © 2009 Chi-Star Technology SM 2 CST Education Network

Table of Contents

Table of Contents ............................................................................................................................... 2INTRODUCTION.................................................................................................................................3

Objectives ........................................................................................................................................... 4New Functionality ..............................................................................................................................4Fixed Assets Application Overview ...................................................................................................9

CONSTRUCTION IN PROCESS (CIP) ASSETS ............................................................................ 12

Construction in Process (CIP) Overview ........................................................................................ 13Create CIP Assets ............................................................................................................................ 14

QuickAdditions ......................................................................................................................................................................... 14Additions ...................................................................................................................................................................................15Mass Additions..........................................................................................................................................................................16WebADI.....................................................................................................................................................................................17

Build CIP Assets .............................................................................................................................. 18Build CIP Assets .............................................................................................................................. 18

Add an Invoice Line to a CIP Asset – Mass Additions ..........................................................................................................18Manually Add a Source Line....................................................................................................................................................19Transfer Source Line Information............................................................................................................................................20

Capitalize CIP Assets ....................................................................................................................... 24Reverse Capitalization of CIP Assets .............................................................................................. 25Construction in Process (CIP) Reports ........................................................................................... 26

CONSTRUCTION IN PROCESS (CIP) LABS................................................................................. 27Exercise 24.0 CIP Assets .................................................................................................................. 28Exercise 24.1 CIP Assets.................................................................................................................. 32

CONSTRUCTION IN PROCESS (CIP) ASSESSMENT ................................................................. 36CONSTRUCTION IN PROCESS (CIP) ASSESSMENT KEY ........................................................ 40


Introduction


ObjectivesAt the end of this course, you should be able to demonstrate knowledge of:

o CIP Assets

o Create CIP Assets

QuickAditions

New / Detail Additions

Mass Additions

ADI

o Build CIP Assets

Mass Additions

Manual Source Line Addition

Transfer Source Lines

o Capitalize CIP Assets

Capitalize

Reverse Capitalization

New FunctionalityRelease 10.6.0.8 Smart Client:

o View Source Lines – View source line information in the View Source Line window bychoosing the Source Lines button from the View Assets inquiry window.

Release 10.6.0.11 Smart Client:

o Attachments – Attach text, images, or OLE objects such as spreadsheets and word-processingdocuments, to Oracle Assets data.


o View Assignments – View assignment information in the View Assignments window bychoosing the Assignments button from the View Assets inquiry window.


o Unplanned Depreciation – Use this feature to adjust the net book value and accumulateddepreciation amounts of an asset without affecting the cost of an asset.



o Asset Salvage Value as a Percentage of Cost – Default the salvage value of assets as apercentage of cost, according to percentages defined for each category and book.

o Depreciate Assets Beyond the Useful Life – Depreciated an asset in the years following itsuseful life if the asset uses a straight-line or flat rate depreciation method.

o Integration with Oracle projects – Create capitalized assets from capital asset lines in OracleProjects. When Interface Assets process is ran, Oracle Projects sends valid asset lines to aninterface table in Oracle Assets. Review these mass addition lines in Oracle Assets anddetermine whether to create assets from any of the mass additions. View project informationassociated with a mass addition by choosing the Project Details button from the Mass Additionswindow.

o Mass Retirements – Retire a group of assets at one time. Oracle Assets will allow an undoretirement or reinstatement of a group of assets.

o Lease Analysis – Define and analyze leases in Oracle Assets using the Lease Details and LeasePayments forms.

o Lease Details form – Define a lease and test to determine whether to capitalize ordepreciate assets assigned.

o Lease Payment form – Define a payment schedule for a lease, and calculate the presentvalue of the lease payments (manually maintained).

o Distribution Sets – Automatically assign distributions to a new asset or mass addition quicklyand accurately by using a predefined distribution set.

o Mass Additions –o Two methods to enter distributions enter distributions at the header of the form (one

distribution for the line) or enter multiple distribution lines through the Assignmentbutton on the form.

o Assign multiple distributions, or change existing distributions before posting the massaddition lines.

o Oracle Assets allows to combine features during the prepare mass additions process,Merging invoice lines and then splitting them to create multiple assets.

Release 11 NCA:

o Physical Inventory – Enter physical inventory information, such as data from a bar code readerinto Assets through an open interface. Run comparison reports and reconcile discrepancies.Transfer asset that are recorded at the wrong distribution, retire assets that could not be found,and reinstate asset that were retired incorrectly.

o What-if Depreciation Analysis – Perform analysis to optimize the management of depreciationstrategies for your assets. Simulate multiple depreciation scenarios using different combinationsof depreciation methods, asset lives, and prorate conventions. Analyze the financial impact ofexpensing versus amortizing depreciation adjustments.

o Report eXchange (RX) – Use this feature to download standard reports into a desktopspreadsheet application. Prior to downloading the report, specify and sort the columns to appearin the report. Select the format of the report: ASCII Text, Excel, HTML, or Tab Delimited.

o Application Desktop Integrator (ADI) – Provides an easy upload interface facilitating the flowof data from the desktop to the Oracle Asset system. ADI supports the uploading of MicrosoftExcel files into the interface. Includes a Mass Additions, Physical Inventory, and capital BudgetWizards.

o Mass Additions Upload – Load asset data into the FA_MASS_ADDITIONS interfacetable.


o Physical Inventory Upload – Load raw physical inventory data into theFA_INV_INTERFACE table.

o Capital Budget Upload – Load capital spending information into theFA_BUDGET_INTERFACE table.

o Multiple Reporting Currencies (MRC) – Maintain and Report assets at the transaction level inmore than one functional currency.

o Dated Adjustments (Enhancement) – Perform backdated amortized adjustments.o Lease Amortization Schedule (Enhancement) – View principal and interest portions of the

minimum lease payments in the lease amortization schedule.o Asset Warranties – Define and track descriptive information on manufacturer and vendor

warranties.o Depreciate Assets Beyond Useful Life – Depreciate the salvage value of an asset following the

asset’s useful life, which was specified when the asset was added. Set up salvage valuedepreciation for the asset over a specified number of years.

o Mass Retirement (Enhancement) – Expanded selection criteria (Asset Cost, Asset Net BookValue, and Asset Type now includes Expensed Assets).

o Financial Inquiry (Enhancement) – Additional viewing capabilities (Remaining Life of anasset)

o Assignment Window (Enhancement) – Additional viewing capabilities (Unit of Measure).o Mass Change (Enhancement) – Allows amortized adjustments for a group of assets.o Account Generator – Replaces Flexbuilder. Graphical tool used to define rules to create valid

account combinations for Assets.o Viewing Concurrent Manager – Different navigation paths, but all paths can perform the same

functions. New button to refresh data and submit a new request. Reprint option under theSpecial pull down menu.

Release 11i:

o Asset Maintenance – Record maintenance history of assets and schedule future maintenanceevents.

o Security by Book – Secure data access by depreciation book and create hierarchy of assetsecurity. Assign a depreciation book to responsibilities to limit access to viewing and transactingon assets in a secured book.

o Support for Short Tax Year – When a merger or acquisition takes place and the companiesmaintained their tax records on different fiscal years, a short tax year scenario is created. Usingformula-based depreciation methods, this feature can handle the depreciation reportingrequirements of a short tax fiscal year.

o Depreciation (Enhancement) – This enhancement will now allow depreciation to be runmultiple times during a given period.

o Run Depreciation Multiple Times before Closing the Period – When runningdepreciation choose to close the period or to leave it open. Once you choose to close theperiod it cannot be reopened. This enhancement will allow for last minute adjustmentsof additions prior to closing the period.

o Formula-based Depreciation – Customize depreciation calculations using a flexibleformula. Define formulas using an intuitive calculator-like window. Use combinationsfor constant and variables such as life of the assets and remaining life of the asset.

o Rollback Depreciation – With the enhancement to allow running depreciation multipletimes, a new feature to rollback the depreciation calculation was created. Prior to re-running depreciation in a given month, this feature would be run to rollback thedepreciation in order to allow for another calculation of depreciation.


o Journal Entries (Enhancement) – With the enhancement to allow running depreciation multipletimes and creating journal entries multiple times during a given period, a new feature to rollbackthe prior journal entries to allow creating new journal entries for the same given period.

o Mass Reclassification – Reclassify a group of assets using flexible criteria. During this function,choose to have the assets inherit the depreciation rules of the new category.

o Maintain CIP Assets in Tax Books – This feature allows for CIP asset to be maintained on taxbooks. This is primarily used in Europe and Latin America.

o Maintain Asset Insurance Values – Manage the risk of loss and damage to your capital assetsby tracking their insurance values, thus enabling you to file timely and accurate insurance claims.

o Value as New – Asset acquisition cost is used to determine its insurance value.o Current Market – Net book value of the asset can be used to determine the asset

insurance value.o Manual Value –Manually enter an insurance value for the asset.

o View Accounting Lines – Oracle allows you to view the accounting behind transactionsperformed in the Asset system.

o View Accounting Lines window – View detail accounting lines on transactions. Viewthe accounts (debit account and credit account), amounts (debit amount and creditamount), transaction reference and other relevant accounting information generatedbehind-the-scenes by AutoAccounting.

o T-Account window – View accounting entries in a graphical T-account format.o Drilldown from General Ledger – Drilldown from Oracle General Ledger into Oracle

Assets to view the individual assets that made up the particular journal entry that wascreated by Oracle Assets in Oracle General Ledger.

o MRC Transaction Upgrade Utilities – Use this utility to convert open transactions from yourprimary functional currency to your reporting functional currencies. Run other upgrade utilitiesto perform the same conversion in other Oracle subledgers that support MRC and to initializeGeneral Ledger account balances in your reporting sets of books.

o Multiple Language Support – View data in client’s language, other than English. EnterQuickCodes values in client’s language, other than English.

o Improved Exception-handling During Depreciation – This feature will streamline thedepreciation process during execution of the process. The program will process all valid assetsin one operation and flags any exceptions in the log file. View the log and systematically correctexceptions before re-running the depreciation program to process the remaining assets.

o Mass Transfers (Enhancement) – Expanded selection criteria (high-low range capability on thedepreciation expense account, cost center, company, and other segments of the accountingflexfield). Also specify a transfer date in a prior period and Assets will adjust the resultingdepreciation expense appropriately.

o What-if Depreciation Analysis on Hypothetical Assets – Analyze what-if scenarios for futureassets, making it possible to select the optimal depreciation strategy for your capital assets evenbefore you add them to the system.

Release 12:

o Subledger Accounting – Oracle Subledger Accounting provides tools that allow users to meetmulli-GAAP, corporate, and fiscal accounting requirements. With this flexible tool, users candetermine the accounts, lines, descriptions, summarizations, and dates of their journal entries.

o Enhanced Mass Additions Interface for Legacy Conversions – Additional attributes areavailable in the Mass Additions interface table to ease the legacy data conversion process. (Forexample):

o Asset life


o Depreciation Methodo Prorate Conventiono Bonus Rule Ceiling Nameo Depreciation Limit

o Automatic Preparation of Mass Additions – A set of extensible public API’s is available toautomatically prepare a mass addition line for all required attributes such as depreciation expenseaccount, asset category, location, etc. with the goal of minimizing manual intervention by theuser in the mass additions workbench.

o Enhanced Functionality for Energy Industry –o Asset Impairment – Impairment is used to reduce the carrying value of a producing

asset. Basically this is unplanned depreciation.o Energy Units of Production Method – In the oil & gas industry, asset properties may

include fields, leases, and wells. These assets are typically associated with units ofproduction (UOP) and are depreciated using a special UOP depreciation method. Unitsof production are entered on the group asset for calculating depreciation and thenallocated down to the member assets.

o Energy Straight Line Method –In the oil & gas industry, non-producing assets aredepreciated using the energy straight-line method based on the asset’s net book value.

o Flexible Reporting Using XML Publisher – Oracle Assets leverages the Oracle XML Publishertechnology to support major asset transaction reports. With XML Publisher, you can displayreports in variable formats by creating your own templates using familiar tools such as Acrobat,Word, and Excel.

o Automatic Depreciation Rollbacks – Since 11i, users have been able to run depreciation for anasset book without closing the period. If additional adjustments are required in the currentperiod, then the user submits a process to roll back depreciation for the entire book. In R12 theintermediate manual step of rolling back depreciation for the entire book in order to processfurther adjustments on selected assets is no longer necessary. The system will automaticallyrollback depreciation on the impacted assets to allow for adjustments in the current period.

o Enhanced Logging for Asset Transactions and Programs – Through the common loggingarchitecture, Oracle Assets ensures a common repository for all log messages within and outsidethe product. This reduces usage on the file system for excessively large log files.


Fixed Assets Application OverviewUnderstanding the process flow of data in Oracle Assets is key to understanding the functionality used toprocess data. The figure below displays the process flow of your Oracle Assets application.

When adding an asset to the system, there are three required types of information. The requiredinformation is entered in one of three forms. See the chart below to view the required information, formsand tables that the data is housed.


Interfaces

Oracle Assets have 5 open interface tables to allow you to upload data directly into Oracle:

1. Mass Additions – upload converted assets and used by Payables and Projects

2. Tax – upload tax details to update tax assets

3. ACE – upload ACE tax details

4. Production – upload units of production details used for depreciation

5. Budget – upload budget details

Key Flexfields

To have a better understanding of where information is coming from in the system, an understanding ofthe Key Flexfield is in order and an understanding of what other information is attached to key flexfielddata.

o Asset Category

o Required to be setup and used

o 7 segments / each having 30 characters

o One segment must be qualified as ‘Major’

o Used for accounting to account for the following:

Asset Cost Account

Asset Clearing Account

Depreciation Expense Account

Accumulated Depreciation Account

CIP Cost Account

CIP Clearing Account

o Defaults the following depreciation rules

Depreciable

Depreciation Method

Depreciable Life

Prorate Convention


o Location

o Required to be setup and used


o One segment must be qualified as ‘State’

o Used to identify the physical location of your assets

o Used for property tax reporting

o Asset Key

o Required to be setup, but not used


o Used to group assets together without having financial impact

Project Number


Construction in Process (CIP)Assets


Construction in Process (CIP) Overview

3 Steps to the CIP Process:

o Create CIP Assets – (Assets are created typically at zero dollars, you are creating an asset shell)

QuickAdditions

New / Detail Additions

ADI

Mass Additions

o Build CIP Assets

Mass Additions – Cost Adjustment

Manually Add a Source Line

Transfer Source Line information

o Capitalize CIP Assets

For heavy CIP companies, a better solution might be Oracle Projects. Assets CIP feature was create priorto Oracle Projects and Assets can manage CIP assets, however, it is not as easy to perform some tasks, inorder to get the end results Oracle Assets features are at time very manual and time consuming.

NOTE: Even though this is construction in process, when adding the CIP asset into Oracle, Oraclerequires all of the same attributes to be populated as if it was a capitalized, depreciating asset.


Create CIP AssetsThe purpose of CIP assets, create a zero dollar asset shell and accumulate cost towards this asset shell,when completed capitalize the asset. The process of adding an asset and adding a CIP asset is the sameexcept when adding a CIP asset the Asset Type must be equal to “CIP”. There are multiple ways to addthe CIP shell.

QuickAdditions

Navigation Path: Navigator, Assets, Asset Workbench, (Button) QuickAdditions

o Method is the most recommended way to create CIP Assets. You are creating a zero dollar shellto accumulate future cost.


Additions

Navigation Path: Navigator, Assets, Asset Workbench, (Button) Additions

o Method not recommended, creating a zero dollar shell to accumulate cost, but you have to use 3screens in order to capitalize this CIP asset.


Mass Additions

Navigation Path: Navigator, Mass Additions, Prepare Mass Additions

o Method can be used to create CIP assets, but be careful, if you change the invoice description toreflect the CIP description, then you will lose your audit trail of the true invoice description.


WebADIo Method can be used to create CIP assets, enter the data into a spreadsheet and upload the data

through Mass Additions. NOTE: The asset type must be “CIP”.

Navigation Path: Navigator, Mass Additions, Additions Integrator


Build CIP AssetsAccumulate cost towards this asset shell.

Add an Invoice Line to a CIP Asset – Mass Additions

Navigation Path: Navigator, Mass Additions, Prepare Mass Additions, [Query Invoice],(Button) Add to Asset

o Use the Add to Asset functionality in Mass Additions. As invoices are being paid and created inthe Mass Additions Interface Table, perform the Add to Asset to add this cost to the CIP Assetshell.


Manually Add a Source Line

Navigation Path: Navigator, Assets, Asset Workbench, [Query CIP Asset], (Button) Source Lines

o Manually Add Invoice Lines – Add a new line and manually add invoice number, line number,description, and cost to an asset. NOTE: if you manually add invoice lines to an asset, you willneed to manually create the Journal Entry at month end.


Transfer Source Line Information

Navigation Path: Navigator, Assets, Asset Workbench, [Query CIP Asset]

(Button) Source Lines

o Transfer Invoice lines – You can transfer all or partial invoice lines from one asset to another.

o Full Invoice Transfer – check the box on the left hand side for the invoice you wish totransfer

o Partial Invoice Transfer – enter a value less than the Line Amount in the TransferAmount field


o You can transfer between:

o Capitalized and Capitalized

o Capitalized and CIP

o CIP and Capitalized

o CIP and CIP

o Enter the amounts to transfer

Full Invoice Transfer – place a check in the box at the far left

Partial Invoice Transfer – enter amount in the Transfer Amount field

o Select the (Button) Transfer to...


o Query the asset that will receive the transferred cost.

o Place Oracle into QUERY MODE – View pull down menu > Query By Example >Enteror F11

o Enter the asset to transfer

o Execute the query - View pull down menu > Query By Example > Run or ‘CTRL + F11’


o Click (Button) Done to complete the transfer

o See the results of the transfer

o query the asset that the source was transferred to

o select the source line button

Transferring Source Lines Between Assets (FINANCIAL IMPACTS):

o Capitalized and Capitalized – Oracle will either reverse or catch up depreciationdepending upon the two assets involved in this transfer.

Based On:

Date Placed in Service

Depreciation Method

Depreciation Life

etc.

o Capitalized and CIP - Oracle will reverse out depreciation for the transferred amount

o CIP and Capitalized - Oracle will book a depreciation expense adjustment to catch updepreciation

o CIP and CIP – No impact non-depreciable.

o RESTRICTIONS:

In R12 the prior restrictions of Prior to Prior and Current to Current are no longerrestrictions. Transfers can occur between a current asset and a prior period assetand vice versa.


Capitalize CIP AssetsNavigation Path: Navigator, Assets, Capitalize CIP Assets

Enter Book name (minimum)

Find (Button)

o In this screen you can capitalize as many CIP Assets at one time, the only command criteria isthat they must all have the same Date Placed In Service.

o Simply query the CIP assets and check the box (far left side of form) and click on theCapitalize button.


Reverse Capitalization of CIP AssetsPrior to running Depreciation for the month, you can reverse the capitalization of a CIP Asset(s).

Navigation Path: Navigator, Assets, Capitalize CIP Assets

Enter Book name (minimum)

Change Asset Type to Capitalize

Find (Button)

o In this screen you can also reverse capitalized CIP Assets as long as the period has not beenclosed.

o Simply query the Capitalized assets and check the box (far left side of form) and click onthe Reverse button.


Construction in Process (CIP) Reports

o Capitalizations Reporto CIP Asset Report

o CIP Capitalizations Report

o Cost and CIP Detail Report

o Cost and CIP Summary Report

*** See Appendix A for a full listing of Oracle Standard Reports ***


Construction in Process (CIP)Labs


Exercise 24.0 CIP Assets

Lab Description

Create, Accumulated and Capitalize CIP Assets.

Scenario

Life of a CIP asset from creation to capitalization.

Field Data

Responsibility: Individual User Responsibility

Scenario 1 (Create CIP Assets)1. Using QuickAdditions, add an Office Building to the OPS CORP Book with the following

information:

Let the system assign the asset number. Use the standard description: Office Building Tag number: <Terminal #>CIP1 Category is BUILDING.OFFICE Square Footage = 100,000 (Descriptive Flexfield)

No Insurer yet (Descriptive Flexfield)

Asset Type = CIP Leave serial number and asset key blank Building is still in the construction phase and is considered a CIP Asset Add to the OPS CORP Book Assign the Asset to Employee #102, Depreciation Expense Account

01.110.7320.0000.000, and Location USA.CA.SAN FRANCISCO.100 Save your work.

Note the Asset # Assigned ______________________________

2. Using QuickAdditions, add another CIP Office Building to the OPS CORP Book with thefollowing information:

Let that system assign the asset number. Use the description “Corp Rec Facility” Tag number: <Terminal #>CIP2. Category is BUILDING.OFFICE Square Footage = 25,000 (Descriptive Flexfield)


Insurer = Fidelity (Descriptive Flexfield)

Asset Type = CIP Leave the serial number, asset key, and PO number fields blank. Add to the OPS CORP Book Assign the Asset to Employee Brian Adams, Depreciation Expense Account

01.110.7320.0000.000, and Location USA.NY.NEW YORK.200 Save your work.

Note the Asset # Assigned ________________________________

3. Find invoice INV2XX in the Prepare Mass Additions Form

From the Mass Additions Summary Window, click on “Add to Existing Asset”button.

Add to the Asset you created in Step (1) above by keying in that asset number in theFind Window.

Save your work. From the Mass Additions Summary Window, choose the Line for invoice INV2XX,

open the line and change the queue to POST (the system should save the line as aCOST ADJUSTMENT).

Save your work.

4. Run the Post Mass Additions process for the OPS CORP Book. Monitor theConcurrent process to ensure it’s completion.

5. From the Asset Workbench, query the asset created in Step (1) above and review theSource Lines for the asset. Stay in the Source Lines Window.

Scenario 2 (Manually add source line)Navigation: Assets > Asset Workbench

Find CIP Asset 1 Find (Button)

Select Source Line (Button)

Enter the following information:

Invoice Number: 123456

Line: 1

Description: Contract labor

Supplier: Leave Blank

Line Amount: $175,000 USD

Save by clicking the Done (Button)


Scenario 3 (Through Mass Additions Add to Asset)Navigation: Mass Additions > Prepare mass Additions

Find Mass Additions

Invoice Number: INV2XX

Find (Button)

Prepare the following invoice in Mass Additions.

From the Mass Additions Summary Window, click on “Add to Asset” button. Add to the Asset you created in Step (1) above by keying in that asset number in the

Find Window.Save by clicking the Done (Button)

From the Mass Additions Summary Window, choose the Line for invoice INV2XX,open the line and change the queue to POST (the system should save the line as aCOST ADJUSTMENT).


RUN POST MASS ADDITIONS

Scenario 4 (Review Source Line information)Navigation: Assets > Asset Workbench

Find CIP Asset 1 & 2 Find (Button)


Review source line information

Scenario 5 (Transfer Source Line Information)Navigation: Assets > Asset Workbench



Click on the Transfer Amount column for the Source Line showing the Design Fees. Enter $50,000 then TAB ONCE. Click on the “Transfer To” button. Query the asset # for the asset you created in Step (2) above.


Review source lines on both CIP assets


Scenario 6 (Capitalize CIP Asset)Navigation: [???????] KNOWN [Screen Name = Capitalize CIP Assets]

Find Assets

Book: Enter OPS CORP book name

Asset Number: Enter the asset number for CIP1

Find (Button)

Select for capitalization

Select Capitalize (Button)

Scenario 7 (Reverse Capitalization)Navigation: [????????] KNOWN [Screen Name = Capitalize CIP Assets]

OOPS! You should not have done the capitalization of CIP1. Reverse this capitalization.

Find Assets



Find (Button)

Select for reverse

Select Reverse (Button)

Scenario 8 (Capitalize CIP Asset)Navigation: [????????] KNOWN [Screen Name = Capitalize CIP Assets]

Find Assets



Find (Button)




Exercise 24.1 CIP Assets

Lab Description

Create, Accumulated and Capitalize CIP Assets.

Scenario

Life of a CIP asset from creation to capitalization.

Field Data

Responsibility: Individual User Responsibility

Scenario 1 (Create CIP Assets)

1. Using QuickAdditions, add an Storage Building to the OPS CORP Book with thefollowing information:

Let the system assign the asset number. Use the standard description “Lake Shore Drive Storage Facility” Leave the Tag number blank Category is BUILDING.OFFICE Square Footage = 500,000 (Descriptive Flexfield)


Asset Type = CIP Leave serial number and asset key blank Building is still in the construction phase and is considered a CIP Asset Add to the OPS CORP Book Assign the Asset to Employee #49, Depreciation Expense Account

01.850.7320.0000.000, and Location USA.NY.NEW YORK.200 Save your work.

Note the Asset # Assigned ______________________________

2. Using QuickAdditions, add another CIP Storage Building to the OPS CORP Book withthe following information:

Let that system assign the asset number. Use the description “Inventory Storage Facility” Leave the Tag number blank. Category is BUILDING.OFFICE Square Footage = 250,000 (Descriptive Flexfield)



Asset Type = CIP Leave the serial number, asset key, and PO number fields blank. Add to the OPS CORP Book Assign the Asset to Employee #97, Depreciation Expense Account

01.850.7320.0000.000, and Location USA.CA.SAN FRANCISCO.100 Save your work.

Note the Asset # Assigned ________________________________

Scenario 2 (Manually add source line)Navigation: Assets > Asset Workbench



Enter the following information:

Invoice Number: Leave Blank

Line:

Description: Interest

Supplier: Leave Blank

Line Amount: $68,000 USD


Scenario 3 (Through Mass Additions Add to Asset)Navigation: Mass Additions > Prepare mass Additions

Find Mass Additions

Invoice Number: INVXX

Find (Button)

Prepare the following invoice in Mass Additions.

From the Mass Additions Summary Window, click on “Add to Asset” button. Add to the Asset you created in Step (2) above by keying in that asset number in the

Find Window.Save by clicking the Done (Button)

From the Mass Additions Summary Window, choose the Line for invoice INVXX,open the line and change the queue to POST (the system should save the line as aCOST ADJUSTMENT).



Run the Post Mass Additions process for the OPS CORP Book. Monitor theConcurrent process to ensure its completion.

Scenario 4 (Review Source Line information)Navigation: Assets > Asset Workbench

Find CIP Asset 1 & 2 Find (Button)


Review source line information

Scenario 5 (Transfer Source Line Information)Navigation: Assets > Asset Workbench



Click on the Transfer Amount column for the Source Line showing the Design Fees. Enter $150,000 of the Chi Place Machine then TAB ONCE. Click on the “Transfer To” button. Query the asset # for the asset you created in Step (2) above.


Review source lines on both CIP assets

Scenario 6 (Capitalize CIP Asset)Navigation: [???????] KNOWN [Screen Name = Capitalize CIP Assets]

Find Assets



Find (Button)



Scenario 7 (Reverse Capitalization)Navigation: [????????] KNOWN [Screen Name = Capitalize CIP Assets]

OOPS! You should not have done the capitalization of CIP2. Reverse this capitalization.


Find Assets



Find (Button)

Select for reverse

Select Reverse (Button)

Scenario 8 (Capitalize CIP Asset)Navigation: [????????] KNOWN [Screen Name = Capitalize CIP Assets]

Find Assets



Find (Button)




Construction in Process (CIP)Assessment


1. What is a CIP asset?

a. Calculating In Progress

b. Construction In Process

c. Construction In Pending

d. Construction In Progress

2. What are the 3 steps in the CIP process?

a. Create, Add to, Depreciate

b. Create, Mass Additions, Capitalize

c. Create, Build, Capitalize

d. Create, Build, Depreciate

3. Adding a mass addition line or a new invoice line to a CIP asset is called a?

a. Line Adjustment

b. Distribution Adjustment

c. Source Adjustment

d. Cost Adjustment

4. When construction of an asset is complete, what must be done to begin depreciation process?

a. Add the asset

b. Build the asset

c. Capitalize the asset

d. All of the above

e. None of the above

5. QuickAdditions is the recommended way to create a CIP asset shell.

a. True

b. False


6. The capitalization of a CIP asset can be reversed.

a. True

b. False

7. What key piece of data is entered at the time of capitalization?

a. Asset Description

b. Date Placed In Service

c. Location

d. Depreciation Expense Combination

8. What feature in Mass Additions is used in the Building the CIP asset.

a. Split

b. Merge

c. Add to Asset

d. Post

9. When can a reversal of a capitalized CIP asset take place?

a. At any time during the current fiscal year

b. Prior to running depreciation

c. It cannot be reversed

d. Only on the weekends

10. Oracle allows you to manually add a source line to a CIP asset.

a. True

b. False

11. What asset types can you transfer source line information from and to?

a. Capitalized to Capitalized

b. Capitalized to CIP

c. CIP to CIP

d. CIP to Capitalized

e. All of the above


12. What are the restrictions when transferring source line information? (Select all that apply)

a. Only transfer from a prior asset to another prior asset

b. Only transfer in March and June

c. Only transfer to the same asset category

d. Only transfer from a current asset to another current asset

13. CIP asset are non-depreciating.

a. True

b. False

14. Oracle Projects can also be used to maintain Construction in Process.

a. True

b. False

15. When creating a CIP asset shell via QuickAdditions or New / Detail Additions, what is the cost ofthe asset?

a. Cost equal to invoice amount

b. Zero

c. What ever you enter

d. All of the above


Construction in Process (CIP)Assessment Key


1. What is a CIP asset?

a. Calculating In Progress

b. Construction In Process

c. Construction In Pending

d. Construction In Progress

2. What are the 3 steps in the CIP process?

a. Create, Add to, Depreciate

b. Create, Mass Additions, Capitalize

c. Create, Build, Capitalize

d. Create, Build, Depreciate

3. Adding a mass addition line or a new invoice line to a CIP asset is called a?

a. Line Adjustment

b. Distribution Adjustment

c. Source Adjustment

d. Cost Adjustment

4. When construction of an asset is complete, what must be done to begin depreciation process?

a. Add the asset

b. Build the asset

c. Capitalize the asset

d. All of the above

e. None of the above

5. QuickAdditions is the recommended way to create a CIP asset shell.

a. True

b. False


6. The capitalization of a CIP asset can be reversed.

a. True

b. False

7. What key piece of data is entered at the time of capitalization?

a. Asset Description

b. Date Placed In Service

c. Location

d. Depreciation Expense Combination

8. What feature in Mass Additions is used in the Building the CIP asset.

a. Split

b. Merge

c. Add to Asset

d. Post

9. When can a reversal of a capitalized CIP asset take place?

a. At any time during the current fiscal year

b. Prior to running depreciation

c. It cannot be reversed

d. Only on the weekends

10. Oracle allows you to manually add a source line to a CIP asset.

a. True

b. False

11. What asset types can you transfer source line information from and to?

a. Capitalized to Capitalized

b. Capitalized to CIP

c. CIP to CIP

d. CIP to Capitalized

e. All of the above


12. What are the restrictions when transferring source line information? (Select all that apply)

a. Only transfer from a prior asset to another prior asset

b. Only transfer in March and June

c. Only transfer to the same asset category

d. Only transfer from a current asset to another current asset

13. CIP asset are non-depreciating.

a. True

b. False

14. Oracle Projects can also be used to maintain Construction in Process.

a. True

b. False

15. When creating a CIP asset shell via QuickAdditions or New / Detail Additions, what is the cost ofthe asset?

a. Cost equal to invoice amount

b. Zero

c. What ever you enter

d. All of the above

oracle assets release 12 construction in process (cip) assets

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