Oracle Assets 12.1.3 Period Closing Procedure

1. Period Closing Procedure
Oracle Assets 12.1.3
Overview
In Oracle Assets, at period end, we require to run depreciation for each set of
depreciation books set up for the organisation, and to create journal entries for
Oracle General Ledger. Oracle Assets has only a single open depreciation period in
each depreciation book.
Complete All Transactions for the Period Being Closed
Ensure that all transactions have been entered for the period being closed. Once a
depreciation period in Oracle Assets has been closed, it cannot be re-opened. Check
that no-one is entering transactions as Oracle Assets prevents transaction data entry
while the Depreciation Run Process is running.
Completing all transactions for Oracle Assets:
Prepare and Post Mass Additions
Complete Manual Additions
Complete Adjustments
Complete Retirements
Complete Transfers
Complete Reinstatements
Assign All Assets to Distribution Lines
If an asset has not been assigned to a distribution line, the period end Depreciation
Process will not complete, and will not close the period. Determine which assets
have not been assigned to a distribution line by running the following report:
Assets Not Assigned to Any Cost Centers Listing

2. Run Calculate Gains and Losses (Optional)
The Calculate Gains and Losses program for retirements can be submitted prior to
running depreciation. The Calculate Gains and Losses process is performed
independently for each depreciation book. The book and depreciation period are
nominated on the Submit Request window.
For books with a large volume of assets, the retirements process can be run several
times during the period to reduce the time for the depreciation process.
Alternatively, the Calculate Gains and Losses program will be submitted as part of
the Run Depreciation process.
Run Depreciation
When you Run Depreciation, Oracle Assets gives you the option of closing the
current period if you check the Close Period check box on the Run Depreciation
window. If all of your assets depreciate successfully, Oracle Assets automatically
closes the period and opens the next period for the book. If you do not check the
Close Period check box when you run depreciation, Oracle Assets does not close the
period.
Once depreciation has been processed for an asset in the current open period, you
cannot perform any transactions on those assets unless depreciation is rolled back or
the current period is closed.
Attention: Ensure that you have entered all transactions for the period before you
run depreciation. Once the program closes the period, you cannot reopen it.
The Run Depreciation process is performed independently for each depreciation
book. The book and depreciation period are nominated on the Run Depreciation
window.
When the process is run, Oracle Assets automatically calculates depreciation for all
assets, calculates gains and losses for all retirements, and then runs the appropriate
Reserve Ledger Report.

3. If an asset has not been assigned to a distribution line, the Run Depreciation process
will end with an error status. By using the depreciation log file, you can determine
which assets were unassigned, or you can review the Depreciation Program Report
via the Requests window. The unassigned assets can then be assigned to distribution
lines and the Depreciation process resubmitted. The Depreciation process only
processes assets that have not already been processed.
The Run Depreciation process will close the current depreciation period and open
the next only if the Close Period checkbox is selected.
This process submits concurrent requests to run the calculate gains and losses,
depreciation, and reporting programs off-line.
When the depreciation program is run for a Corporate Book, the Journal Entry
Reserve Ledger Report will be generated. However, if the depreciation program is
run for a Tax book, then the Tax Reserve Ledger Report is generated. Both Reserve
Ledger Reports can also be run at any time, using the Submit Requests window.
Create Journal Entries
Select Journal Entries > Standard to submit the Create Journal Entries process for a
nominated book and depreciation period.
The depreciation expense journal entries can be created from a Corporate or Tax
book and transferred to the General Ledger.
Before using this form, ensure that the Run Depreciation program for the specified
depreciation book and depreciation period has completed successfully. For every
transaction entered, Oracle Assets automatically creates adjusting journal entries for
the General Ledger, if the journal entry category has been set up for that transaction
type for that book.
Warning: Journal entries cannot be created from budgeting books.
Journal entries can be created for any period in the current fiscal year for which
journal entries have not already been created. The General Ledger period for which
journal entries are to be created must be open.

4. Oracle Assets uses the default FA Account Generator Workflow to derive Accounting
Flexfield combinations for the different classes of asset transactions. These
Accounting Flexfield combinations are then utilised when creating journal entries in
the General Ledger.
For example, the default FA Account Generator Workflow for Oracle Assets creates
full detail journal entries for depreciation expense. Oracle Assets creates journal
entries for depreciation expense using all the segments from the distribution line
nominated for the asset in the Transfers form.
Attention: The FA Account Generator Workflow can be modified for a specific
customer site to derived Accounting Flexfield combinations for the different classes
of asset transactions based on specific business rules.
The modified FA Account Generator Workflow is then called if it is nominated in the
Account Generator Process window.
Rollback Depreciation and / or Rollback Journal Entries (Optional)
If depreciation has been run for a particular period, the Rollback Depreciation
functionality can be used to restore assets to their state prior to running
depreciation. For example, if there are outstanding adjustments or transactions that
need to be processed for the current period.
Roll back depreciation reverses the depreciation calculation for the current period,
only if the Close Period check box was not checked when depreciation was initially
run. It does not reverse any transactions performed in the period.
Depreciation must be run with the Close Period check box checked to open the next
period.
Upon completion of the additional transactions, the Run Depreciation process needs
to be re-done.
If the Create Journal Entries process had also been run for a particular period, then
the Rollback Journal Entries process will also need to actioned.
Create Deferred Depreciation Journal Entries (Optional)

5. Deferred depreciation is the difference in depreciation expense taken for an asset
between a tax book and its associated corporate book. This difference results from
the use of accelerated depreciation methods in the tax book.
Choose Journal Entries > Deferred from the Navigator window.
Depreciation Projections (Optional)
You can project depreciation expense for any number of future periods, on as many
as five depreciation books at once. Results can be summarised by year, quarter,
month, or any specified interval. The results can be summarised also by cost centre
or depreciation expense account.
Review and Post Journal Entries
Review the unposted journal entries in the Enter Journals window, in Oracle General
Ledger. Post each journal entry batch using the Post Journals window in Oracle
General Ledger to update the account balances.
Optionally, use the More Actions button to Post each Journal individually or in the
source of Assets has been included in the AutoPost options, the Assets Journals will
be posted automatically in the next scheduled posting run.
Reconcile Oracle Assets to the General Ledger Using Reports
Reserve Ledger Reports
Journal Entry Reserve Ledger - reconcile with the Account Analysis with Payables
Details Report.
Tax Reserve Ledger Report
Additionally, the Account Reconciliation Reserve Ledger Report can be run.
Balances Reports
Cost Detail and Cost Summary Reports
CIP Detail and CIP Summary Reports

6. Reserve Detail and Reserve Summary Reports
Revaluation Reserve Detail and Revaluation Reserve Summary Reports
Transaction Reports
Asset Additions Report
Cost Adjustments Report
Asset Reclassification Report
Asset Transfers Report
Asset Retirements Report
Reinstated Assets Report
Cost Clearing Reconciliation Report
Drill Down Reports
Drill Down Report - Reconcile the batch totals from this report with those of the
General Journals Report in Oracle General Ledger run for posting status =
‘Unposted’.
Account Drill Down Report - Reconcile journal entries to the General Ledger. The
report enables detailed review of the account activity on a specific general ledger
account. The report gives detailed information of the asset transactions represents
by a journal entry line.
General Ledger Reports
Unposted Journals Report - run the General Journals Report for Posting Status =
Unposted to reconcile with the Drill Down reports.
Posted Journals Report - run the General Journals Report for Posting Status = Posted.

7. Account Analysis Report with Payables Detail - The ending balance of this report
reconciles with the Reserve Summary Report ending balance.
Financial Statements Generator - It is recommended that you create a detailed FSG
for all asset accounts. This can be done at cost centre level for direct comparison
with the Asset Cost Summary and Reserve Summary reports.
Run Responsibility Reports (Optional)
It is also important to ensure that your asset inventory is accurate. If the asset
inventory is inaccurate, then your financial statements will also be inaccurate. The
following reports can be reviewed when assessing the accuracy of the asset
inventory:
Asset Additions By Cost Centre Report
Asset Additions Responsibility Report
Asset Disposals Responsibility Report
Asset Inventory Report
Asset Retirements by Cost Centre Report
Responsibility Reserve Ledger Report
Archive and Purge Transactions (Optional)
If you no longer need to run reports for previous fiscal years, you can archive and
purge historical data to free hardware resources. You can only restore the most
recently purged fiscal year, so you must restore fiscal years in reverse chronological
order. Prerequisites
If necessary, update the FA:Archive Table Sizing Factor profile option. See:
FA:Archive Table Sizing Factor.
Allow Purge for the book in the Book Controls window before you perform the
purge. See: Defining Depreciation Books.

8. To archive and purge transaction and depreciation data:
Change Responsibilities to Fixed Assets Administrator.
Open the Archive and Purge window.
Enter the Book and Fiscal Year you want to archive. You must archive and purge in
chronological order.
Choose Archive to submit a concurrent request that changes the status from New to
Archived and creates temporary archive tables with the data to be purged.
Oracle Assets automatically assigns an Archive Number when you save your work.
Note: The temporary table name includes a five-digit archive number.
Export the archive tables to a storage device.
Return to the Archive and Purge window and use the Archive Number to find the
archive you want to purge.
Choose Purge to submit a concurrent request that changes the status from Archived
to Purged and removes the archived data from Oracle Assets tables. Now your
database administrator can drop the temporary archive tables.
You can only purge definitions with a status of Archived or Restored.