Note

When you join Zoom, your computer will automatically connect to the Audio Stream

Live QandA:
There will be a live Question and Answer (QandA) time following the live presentation. If you have any
questions you would like addressed during the session, you can ask them during the session using the
Q&A functionality in Zoom. Your questions will be answered in the order received

The replay and the slide deck will be available within 1 business day from the event post.

2
Safe harbor statement

The following is intended to outline our general product direction. It is intended for information
purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any
material, code, or functionality, and should not be relied upon in making purchasing decisions. The
development, release, timing, and pricing of any features or functionality described for Oracle’s
products may change and remains at the sole discretion of Oracle Corporation.
 Oracle Assets Implementation
Considerations

Anshu Malhotra
Oracle Fusion Assets Cloud Service Support
June 17, 2020
Program agenda

1 Introduction
2 Key setups and Implementation Considerations
3 Pre-Requisites & Checklists
4 Best Practices for Data Conversion from Legacy system
5 Top Articles & Community Links
6 Q&A

Copyright 2020, Oracle and/or affiliates. All rights reserved

Program agenda

1 Introduction
2

3
4

5
6

Copyright 2020, Oracle and/or affiliates. All rights reserved

Introduction

 Oracle Applications Cloud basic functional implementation steps:

Maintain
Deploy
Setup
Configure
Plan

 Oracle Assets Configurations

 Legacy data conversion recommendations.

Copyright 2020, Oracle and/or affiliates. All rights reserved

Program agenda

2 Key setups and Implementation Considerations

3
4

5
6

Copyright 2020, Oracle and/or affiliates. All rights reserved

Key setups and Implementation Considerations
Assets setup steps.
Key Asset Flexfields

System Options

Fiscal Years

Depreciation and Prorate Calendar

Prorate Conventions

Depreciation Methods

Asset Books

Category assignment to Books

Copyright 2020, Oracle and/or affiliates. All rights reserved
Key setups and Implementation Considerations

Key Asset Flexfields

 There are three Key Asset Flexfield that are a mandatory set up in Assets
 Category Flexfield
 Location Flexfield
 Key Flexfield
 There is only one structure allowed for each KFF.
The Flexfield structure provides a great deal of flexibility to enable you to address a variety of
business requirement for all your asset books in one structure.
 Once these structures are in use they cannot be updated. Amending any of the structure once in use
can cause errors for existing assets, in failing validations when validated against the updated
structures.
Any changes here would require starting the Asset book setup from scratch.
Key setups and Implementation Considerations

System Controls
 The system controls parameters are system-wide settings.
The Flexfield Structures defined before are chosen. They are valid for the whole application.
 There is only one structure allowed for each KFF.
 Once the system options are saved they cannot be changed.
 The oldest Date Placed in service marks the earliest DPIS allowed. This is the earliest DPIS allowed
for all books.
Key setups and Implementation Considerations
Fiscal Year

 Fiscal year represent Financial year used to prepare annual Financial statements for reporting and tax
purposes.

 It is recommended to start the fiscal year from the oldest date places in service.

 Multiple fiscal years can be set and assigned to different Books to fulfill different reporting and Tax
requirements like one book can have a January to December fiscal year while another book can have
April to March

 Fiscal year works at the outer boundaries for calendar and convention setups, So once used in calendar
and conventions they cannot be updated.

Calendar Fiscal year Convention

Key setups and Implementation Considerations

Calendar and conventions

 Depreciation is a yearly concept thus for reporting purposes the fiscal year is divided into periods
via calendars. It can have minimum one period (Yearly) and maximum of 365 (Daily).
Thus For Leap Years In a daily calendar one period covers two days.

 Multiple calendars can be defined and each calendars assigned to different asset books to fulfil
different reporting and tax requirements. For instance, you can define a monthly depreciation
calendar for a fiscal year for financial statement purposes and assign it to an asset corporate book
but define a bi-annual calendar for tax purposes and assign it to an asset tax book.
Key setups and Implementation Considerations

Calendar and conventions

 Naming convention for periods is derived by ‘Period Suffix’.

This for a Fiscal year Jun to May.
Calendar is 2020 while fiscal year is 2021
For example: Jun-2020 would show up as follows
CalendarJun-2020
Fiscal Jun-2021
If any of the above do not suffice then to define the suffix manually pick ‘None’.

 Prorate Convention determines when you start and end the depreciation for the asset. Most
common used example are 'Current Month' or 'Following Month'
e.g. if asset DPIS is 15-Mar-2020, a 'Current Month' prorate convention would depreciation starts on
01-Mar-2020, where as a Following Month prorate convention would mean depreciation starts on
01-Apr-2020.
It is used Only in the period of addition and retirement.

 It is recommended to start these setups from the oldest date places in service as well.
Key setups and Implementation Considerations

Depreciation methods

 The method by which deprecation is charged is usually governed by the reporting or tax
authority. Thus interpretation of the act and understanding how to set the depreciation
method based on that is crucial.

 For Flat Rate methods with COST or NBV basis one needs to be careful of the depreciation
basis used.
Depreciable Basis Rules (Doc ID 276453.1)

 Several rounds of testing are recommended to ensure that the expected depreciation
results match the business requirements for all use cases.
Asset Book setup

 Key Setups used in Asset books set up.

Ledger Fiscal year

Asset Book

Depreciation
Prorate Calendar
Calendar

Reference data sets FA Lookups which enable Functionality

Copyright 2020, Oracle and/or affiliates. All rights reserved

Key setups and Implementation Considerations
Asset Books
 At minimum define one corporate book for each primary ledger in GL in which you need to reflect the
accounting for fixed asset data. Multiple books may be assigned to one ledger, while different ledger
associations are possible between the Crop and tax books. For more details refer DOC ID 1605031.1.
 Corporate books and their associated tax book can have different fiscal years, thus different calendars.
 There are two calendars that need to be set for a book-Depreciation and Prorate calendar. They can be
different but should have the same fiscal year.
For example:
Depreciation calendar = Monthly
Prorate calendar =Daily
Allocation is by days
This would result in 31 days depreciation in Jan while 28 days depreciation in Feb.
 Depreciation allocation is updatable but it is not recommended to update it after asset are added, as it will
cause calculation anomalies between periods.
Category assignment to Books setup

 Key Setups used in Category Assignment to Books set up.

Category Level
Asset Book
Account

Category
assignment to
Book
Depreciation
Prorate convention
Method

Copyright 2020, Oracle and/or affiliates. All rights reserved

Key setups and Implementation Considerations

Category Assignment to a books

 Category is a defaulting mechanism when adding asset. The methods, conventions set in the
category defaults, are used in the asset addition process.

 The default rules can be set any time and updated anytime. More so can also be set for a date range
based on the DPIS of the asset.
Program agenda

3 Pre-Requisites & Checklists

4

5
6

Copyright 2020, Oracle and/or affiliates. All rights reserved

Currency Precision
• Currency Precision is a one time setup and
Ensure Currency Precision is set correctly any changes to it will cause the book to be
before assets is added to the book. unusable. A new book would need to be
added in its place.
• If Precision is changed after assets are added,
any transaction performed that creates new
distributions (such as transfer) will leave some
amount in decimals in an inactive distribution.

This leads to errors in the depreciation run

Error: An inactive distribution cannot have a balance

other than zero for the account DEPRN_RESERVE.
The inactive distribution has the balance 1031 -.11.
Reference Data Sets

A Prorate Convention does not show up in LOV

for Prorate Convention When Creating asset
Category assignments for the Book.  Prorate Conventions that are available for
the Book are based on Reference data set
entered for the book under Prorate
conventions.
 The Book is set with ‘Enterprise’ while the
Convention is set with ‘Vision city SET’.

Recommendation: To set a new Prorate

Convention under ‘Enterprise’ Or update
the Reference Data set in the book to
‘Vision city SET’.

Copyright 2020, Oracle and/or affiliates. All rights reserved

Key Asset Flexfields

Segment values must not use the

Delimiter.
 Delimiters Separate the different
segments in a code combination.
 If a delimiter, that is a Dash (-) is used in
a segment value the code combination
would not be recognized while using it
and will end in

Error: The location is invalid. Enter a valid

location

Copyright 2020, Oracle and/or affiliates. All rights reserved

Key Asset Flexfield

Avoid Trailing Spaces in Segment

values.
 While the system will allowed to save the
select
segments with blank trailing spaces, the
val.value,length(val.value),length(trim(val.value)) , List of Values in the key asset flexfields
enabled_flag from FND_VS_VALUE_SETS set1, definition will display only absolute
FND_VS_VALUES_VL val value, hence it will causing an error.
where set1.value_set_id = val.value_set_id and
value_set_code = 'XXKE_FA_MINOR_CATEGORY'
and length(val.value)<>length(trim(val.value)) ;
Error: Value XXX is not in the list. (FND-3132)
Key Asset Flexfield – Location Flexfield
Location Flexfields can use only
Independent or Dependent validation
type value sets  While setting up the location Flexfield
you will see only values sets with
validation type as Independent or
Dependent in LOV.
 The State label CANNOT be attached to a
dependent segment as the master
segment cannot be picked up in this case
 The Property Tax Report will sort the
data by state segment. In order to use
this functionality, you must define which
segment in the location flexfield is the
‘State’.
Key Asset Flexfield – Category Flexfield
Maximum length for a value set to be  30 char is the Max length for segments
used by the category FF setup is 30 char. in FA_CATEGORIES_B table
 The following error is shown when trying
to select a value set with more that 30
char set.

Error: The value set <VALUE SET> cannot be assigned to

this segment <SEGMENT NAME> (FND-2654).
In application 140, key flexfield CAT# and structure
<STRUCTURE NAME>, default value set cannot be
assigned
to segment <SEGMENT NAME> which uses <COLUMN
NAME>. The assigned value set must have a data type
that is compatible with the
column data type and its maximum length must be no
longer than the column length.
Key Asset Flexfield – Asset Key Flexfield

Maintain minimum one value for Asset  Asset Key Flexfield is not mandatory to
be used in the asset additions process.
Key Flexfield.
 Even if it is decided not to track assets
select code_combination_id from fa_asset_keywords using the asset key, you must define at
where enabled_flag = 'Y' and end_date_active is null least one Asset Key FF segment without
and rownum = 1; validation because the Asset Key flexfield
structure is required to set up the system
--Should give an output, is one record is maintained. controls.
 One value can be set as say Default or
None
Else you will get
Error: fa_mass_transactions_pkg.init_flex
ORA-01403: no data found
System Controls-Oldest Date Placed in Service
All Fiscal year and Calendar setup
must start from The oldest Date
Placed in Service.  In this case the oldest DPIS is 1/1/50
while the calendar starts from 1993.
 If DPIS between 1950 and 1993 is used or
it will result in the error displayed below.
And entering periods between 1950 and
1993 after calendar is set from 1993
ahead is not feasible.

Error: You must set up the prorate calendar

and prorate convention for this date

Copyright 2020, Oracle and/or affiliates. All rights reserved

 System Controls-Key Flexfield Structures
Key structure Flexfield setup is done but
select enterprise_id, application_id, structures do not appear in the drop down
key_flexfield_code, structure_instance_code,
structure_instance_number, list in system controls.
structure_instance_identifier,
structure_instance_id, structure_id, enabled_flag
From FND_KF_STR_INSTANCES_B There are two setups that can cause the
where application_id = 140;
--No data found
this
 Structure instances are not maintained.
 No flexfield description was provided
when setting up the flexfields.

Recommendation: Maintain Key flexfields structure

instance and make sure the structures have a
description

Copyright 2020, Oracle and/or affiliates. All rights reserved

Fiscal Year
If Fiscal year is defined for more than 100 years
then the year should be in the format YYYY.
For example, after maintaining year 1800-
1899,and after 100 years entering Year 1900.

Both 1800 and 1900 will be recognized as ‘00’

format being YY.

Thus fiscal year entry would error with

Error: The from date must be earlier than or

equal to the to date (FA-645056)

Copyright 2020, Oracle and/or affiliates. All rights reserved

Calendar
Calendars need to be setup until the end of Depreciation is an yearly concept, thus in
the current fiscal year for the book all calculations a yearly amount is
calculated and then allocated to each
fazgtff: EXCEPTION depreciation period.
faxecf: There is an error calling function:: faxcfyf
faxecf: which is called from:: fazcff
faxecf: There is an error calling function:: faxcde If the calendar is only partially set for the
faxecf: which is called from:: faxcfyf fiscal year then depreciation process will
faxecf: There is an error calling function:: fadmlp error
faxecf: which is called from:: faxcde
faxecf: There is an error calling function:: faddep
faxecf: which is called from:: fadmlp Recommendation: To always set Fiscal year,
fadais: 4: 1 calendars and convention a year ahead.
Asset number X (X) failed.

Copyright 2020, Oracle and/or affiliates. All rights reserved

Calendar
Once the calendar period is in use it cannot be
deleted. Once the period is in use it cannot be
updated or deleted as that period is now in
the fa_deprn_periods table.

Error: You can't delete this record because

it's already in use. (FA-645229).

Recommendation: The period in use cannot be

Deleted but the periods that are not in use can be
deleted and added again. Deletion will work from the
last row and backward until the period in use.

Copyright 2020, Oracle and/or affiliates. All rights reserved

Prorate Conventions
Use only prorate conventions that match the same  Fiscal year is the setup with in which a
fiscal year as the one defined for the asset book. calendar and prorate convention are set
 Only the prorate convention that share
the fiscal year with the book can be used
while performing transaction in that
book.
 If a prorate convention is picked which
has a different fiscal year it would lead to
the following error
Error: Retrieving rows from the
FA_CONVENTION_TYPES table for the convention
XXXXX and the fiscal year name XXXXX failed..

Copyright 2020, Oracle and/or affiliates. All rights reserved

Prorate Conventions
 Depreciate When Placed in Service
checkbox determines whether
‘Depreciate When Placed in Service’ check box depreciation starts from the period of
decides which date to use to start depreciation the date placed in service (DPIS) or from
calculation. the period defined by prorate
convention.
 Default value is checked.
 And this check box is ignored for STL
methods as depreciation starts from the
prorate date by default.
 Now for example the check box is not
checked.
DPIS 1st Jan and Prorate date 1st Mar
Depreciation calculation will start from
1st Jan.

Copyright 2020, Oracle and/or affiliates. All rights reserved

Depreciation Methods
 The Prorate periods per year set for the
Depreciation methods are not available in the Method are different than the periods in
methods LOV when using the Methods in category the prorate calendar for the book.
setup or Assets.
 They need to be the same for
depreciation allocation between prorate
periods.
 Thus if the book has 24 periods in
prorate calendar and the method has
prorate periods per year set to 12,
 It would not show up for the book
Recommendation: Prorate period per year fields
should be set keeping in mind which book is going
to use it.

Copyright 2020, Oracle and/or affiliates. All rights reserved

Asset Books
 The fa_deprn_periods starts from the period
as the current period minus one period. This
Calendar should start one period before the is done to facilitate bringing reserve and
designated first period of the book. YTD balances from legacy system.

 Thus if the first period of the book Jan-2019

then the calendar at best should start from
Dec-2018
 Else while picking the Current open period
the first period would not be coming in LOV
in this case Jan-2019, Feb-2019 would be
the first period available.

Recommendation: Start the Calendar set up at least

one period before the first period of the book.
 Asset Books
 Once the Asset book is saved the calendars
are greyed out.
Calendars are greyed out in the Manage Asset
books UI.
 Calendar setup guides initiation of tables
like fa_deprn_periods etc on saving of the
book. Thus update is not allowed post
saving.

Recommendation: To add a new Book and migrate

assets from the original book to the new book
where the calendar is defined correctly.
Category Assignment to Books
The Category once assigned to the Corp Book also
needs to be assigned and maintained for all  Category maintenance needs to be done in
associated Tax books. parallel between Corp and Tax book.
As the asset would be copied between the
books to the same category.

 In case CIP assets are allowed for the book

and category but not maintained for the Tax
book, error like

ERROR: The asset category is not yet assigned

to the selected book. You must first assign this
category to the selected books (FA-645072)
Category Assignment to Books
Accounts are Greyed out in the category
assignment to book UI.
 The accounts are not updatable once an asset
is added to that category.
 All assets in a category need to go to one set of
accounts.
As every transaction use these accounts,
and if allowed to change would cause imbalances
in the asset reporting.

Recommendation: Reclass the asset to a New

category created with correct accounts.
Program agenda

3
4 Best Practices for Data Conversion from Legacy system
5
6

Copyright 2020, Oracle and/or affiliates. All rights reserved

Best Practices for Data Migration from Legacy system
Pre-Requisites
.
Key Asset Flexfields
Need
to do
System Options all the
setup
Fiscal Years steps
listed
Depreciation and Prorate Calendar here
Before
Prorate Conventions an
Asset
can be
Depreciation Methods
added
to the
Asset Books Book

Category assignment to Books

Copyright 2020, Oracle and/or affiliates. All rights reserved
Best Practices for Data Conversion from Legacy system
Considerations before starting Migration
 Year-end conversions are typically simpler though not mandated, especially for the NBV based
methods. Remember to populate the year-to-date depreciation reserve for any non-year-end
conversions.
 Use Additions FBDI to add assets into the Corporate Book. Please note that the reporting currency
balances can only be converted via FBDI.
 Consider loading the legacy Asset identifier for reconciliation with the source system. Use Oracle
Asset number, Tag number and/or a part of the descriptive flexfield.
 Add assets with correct prorate convention to ensure that the system calculates the correct
remaining life.
Note: Balances reports will not have opening balance for the conversion period. If opening balance
are important for the conversion period, then the first open period should be one before conversion
period.
Best Practices for Data Conversion from Legacy system

Balances For Key attributes

COST
 Cost is the original purchase price of the asset along with any subsequent adjustments,
retirements, and/or other changes to the asset’s cost
 It is not to be confused with the depreciation basis on which depreciation is calculated ( That
is the Net Book Value)
 This amount can be Converted as is from the legacy system
 This works in conjunction with the Date Placed in Service; this should also be converted as
is, no matter how old the asset. Please note that the oldest date placed in service should be
set with this in mind.
Best Practices for Data Conversion from Legacy system

Balances for Key attributes

Accumulated Reserve
 Reserve is the total depreciation charged to the asset as of a date. For a January conversion period, the reserve
balances are calculated as of 31st Dec. January depreciation will be calculated by Oracle ERP Cloud during the
depreciation run.
 Cost less Reserve less bonus depreciation reserve is the Net Book value (NBV) of the asset
 When adding the asset with reserve, the following should be kept in mind
 No Journal entry will be created for the reserve entered while adding the Assets
 No catch up will happen
 No validation of the reserve amount that is entered.
 Journal will be created only for periodic depreciation calculated for say Jan.
 If the business requirement is to calculate depreciation on NBV then Amortize flag need to checked on addition.
Else it can be left unchecked.
Best Practices for Data Conversion from Legacy system

Balances for Key attributes

YTD Reserve
 YTD represent the depreciation charged in the current fiscal year.
 YTD amount should be zero for the assets converted in the first period of the fiscal year
 Mid-year conversions: Correctly upload the depreciation amount for the current fiscal year till
before the conversion period. As an example, aggregate of January through June depreciation
amounts should be uploaded for July conversion into the ERP Cloud.

Other considerations
In addition, please upload the impairment reserve, revaluation reserve, and/or bonus depreciation
reserve, as and when required.
Best Practices for Data Conversion from Legacy system

Migration of Tax Book

Two options:
 Directly load your assets into the tax book via FBDI using the balances from your legacy
application (Doc ID 2186382.1). Please note that you will have to add your assets to the Corporate
Book first; so that you can use the same asset number while adding the assets into the tax book.
OR
 Copy assets/transactions from your corporate to the tax book using Initial/Periodic Mass Copy
Process. Subsequently, use FBDI/ADFDI to update the Cost, depreciation reserve, YTD Reserve,
and/or other balances in the Tax book.
Best Practices for Data Conversion from Legacy system

Reports that aid reconciliation with GL

 Asset addition report.

This report shows only the amount the asset was added with and no adjustment in the period of
addition is covered by the report.
Initial cost and initial Depreciation reserve are attributes of interest here.

 Cost and CIP Detail and Summary Reports, Reserve Detail and Summary Reports
These reports are most useful if you need reconcile balances via cost center/Account balances.

 Revaluation Summary and detail report can also be run incase assets are converted with those
Balances as well.
Best Practices for Data Conversion from Legacy system

Reconcile balances in GL

 All balances especially the depreciation reserve balance should tally in GL and FA subledger.
 Ensure that the fixed assets balances are not double-booked; This is likely to occur because the
assets subledger accounts are included in both the GL and FA data conversion.
 To ensure this, you can deploy either of the following two options:
• Reverse the assets subledger conversion journals.
OR
• Reverse the GL conversion balances of the asset related accounts. Do not reverse the assets
subledger conversion journals, these would provide an audit trail between FA and GL.
Though this would require manual clearing of the cost clearing account.
Program agenda

3
4

5 Top Articles & Community Links

6

Copyright 2020, Oracle and/or affiliates. All rights reserved

Top Articles and Community Links

 White Paper: Setup of Oracle Fusion Assets (Doc ID 1588239.1)

 Fusion Assets Data Conversion Suggestions (Doc ID 2052502.1)

 How to Set Up Fusion Assets with the Minimum Steps? (Doc ID 1382395.1)

 Primary, Secondary and ALC Ledger Architecture and the Effects on the
Assets Setup (Doc ID 1605031.1)

 Primary, Secondary and ALC Ledger Architecture and the Effects on the
Assets Setup (Doc ID 1605031.1)

Copyright 2020, Oracle and/or affiliates. All rights reserved

Summary
What we covered today

 Pre-requisites that needs to be considered while implementing Assets.

 The critical setups involved.

 Do’s and Don’ts

 And Best Practices for Data Conversion from legacy system.

Copyright 2020, Oracle and/or affiliates. All rights reserved

Program agenda

3
4

6 Q&A

Copyright 2020, Oracle and/or affiliates. All rights reserved

 Q&A
 To ask a question use the Q&A panel

 Follow up questions can be added to the

event post on Customer Connect.

Copyright 2020, Oracle and/or affiliates. All rights reserved

 Thank you

Anshu Malhotra
Oracle Fusion Assets Cloud Service Support

Copyright 2020, Oracle and/or affiliates. All rights reserved