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1. At the end of each accounting period, run the depreciation program for each of your books. Running the depreciation program closes the current period and opens the next period.

2. Run the Create Journal Entries program to create journal entries to your general ledger. Run it once for each period in each book for which you allow posting to the general ledger. You can create journal entries for any period for which you have run depreciation for which you have not already created journal entries.

Adjusting Journal Entries

Prior Period Transactions

• For a prior period addition, Oracle Assets creates journal entries for the missed depreciation

• For a prior period transfer, Oracle Assets reverses a portion of the depreciation expense posted to the "from" depreciation expense account and posts it to the "to" depreciation expense account

• For prior period retirements, Oracle Assets creates journal entries that reverse the depreciation taken for periods after the retirement prorate date

Depreciation Adjustments

Any General Ledger

Oracle Assets Accounts

• Accumulated Depreciation

• Asset Clearing

• Asset Cost

• CIP Clearing

• CIP Cost

• Cost of Removal Gain, Loss, and Clearing

• Deferred Accumulated Depreciation

• Deferred Depreciation Expense

• Depreciation Adjustment

• Depreciation Expense

• Intercompany Payables

• Intercompany Receivables

• Net Book Value Retired Gain and Loss

• Proceeds of Sale Gain, Loss, and Clearing

• Revaluation Amortization

• Revaluation Reserve

• Revaluation Reserve Retired Gain and Loss

Credit (Cr.) A credit to the accumulated depreciation, cost of removal clearing, or intercompany payables account is an addition to the account. A credit to the asset cost, asset clearing, CIP cost, CIP clearing, depreciation expense, proceeds of sale clearing, or intercompany receivables account is a subtraction from the account. In the journal entry examples, credits are in the right column.

If you integrate Oracle Assets with Oracle General Ledger, use the Enter Journals window in Oracle General Ledger to review, change or correct your entries.

If you use a different general ledger, you can review or change entries in that general ledger.

The journal entries are for the period that the asset transaction was entered into Oracle Assets. Oracle Assets creates these journal entries when you run the Create Journal Entries program.

The asset cost, accumulated depreciation, and year-to-date depreciation numbers in the following tables are end of quarter balances. The depreciation expense numbers are per period.

Journal Entry Transaction Examples:

• Depreciation

• Additions and Capitalizations

• Adjustments

• Transfers and Reclassifications

• Revaluations

• Retirements and Reinstatements

• Tax Accumulated Depreciation Adjustments

See Also

Creating Journal Entries for the General Ledger

Entering Journals

Using the Account Generator to Generate Account Combinations