Asset Conditioning

This chapter covers the following topics:

• Overview
• Asset Conditioning

Overview

The Asset Return to Disposal process covers record keeping of returned assets, handling amortization and writedowns, evaluating the condition of an asset, determining what you want to do with the asset, and deploying your end-of-term strategies.

Asset Conditioning

During the asset return process, inspectors examine the asset and produce a condition report. If the asset is in need of repairs, then the inspector determines what the needed repairs are and estimates their costs.

The following topics cover how to record the condition of a returned, off-lease asset. When you record the condition of a returned asset, you record the overall condition of the asset, and then you can record detailed condition lines. Detailed condition lines include specifying the actual costs of conditioning the asset. When you are ready to bill either the vendor or the lessee for the repairs, you can issue an invoice.

The main topics in this section include:

• Maintain an Asset's Condition

• Generate Repair Invoice

Maintain an Asset's Condition

The topics in Asset Condition are:

• Create Asset Condition

• Create Condition Line

• Update Condition Line

  Note: To record the condition of a returned asset, you must put it into context. See Search for a Return Asset Request.

Create Asset Condition

When you receive a returned asset, you can evaluate and record the asset's overall condition. After you create the overall asset condition, you can add detailed line items to describe the condition. To record the condition of a returned asset, you must put it into context. See Search for a Returned Asset Request.

Prerequisites

You have created the asset return and placed the asset into context.

You have evaluated the returned asset's condition.

Steps

Perform the following steps:

1. In the Asset Return and Asset Number fields, verify that the correct asset is in context by clicking the hypertext links.

2. If you need to select another returned asset, see Search for a Returned Asset Request.

3. Click the Inspection subtab in the applicable Asset Return Request details page.

4. Click Create to create an inspection report for the asset. The Create Inspection page opens.

5. In the Asset Condition field, choose a condition, such as Good, Fair, Poor, or Not Applicable.

6. Select the applicable inspector.

7. In the Reported On field, click the Calendar icon and choose a date.

8. Click Apply.

Guidelines

You can add specific condition lines and detailed information for each line. See Create Condition Line and Update Condition Line.

Create Condition Line

After you create a record of the asset's overall condition, you can add detailed line items to describe specific areas. Detailed line information can include recommended repairs, repair descriptions and codes, and estimated and actual costs of repairs.

Prerequisites

• You have created the asset return and placed the asset into context.

• You have evaluated the returned asset's condition.

• You have created a record of the asset's overall condition. See Create Asset Condition.

Steps

Perform the following steps:

1. In the Asset Return and Asset Number fields, verify that the correct asset is in context by clicking the hypertext links.

2. On the Asset Condition Details page, click the Create Line button.

   The Create Asset Condition Line page appears.

3. Complete the following fields:

   • Part: Enter free-form text.

   • Status: Choose Pending, Repaired, Waiting for Approval.

   • Condition Type: Choose Fair, Good, Not Applicable, Poor.

   • Reported On: Click the Calendar icon, and click a date.

   • Approved On: Click the Calendar icon, and click a date, if applicable.

   • Approved: Select the check box upon approval for the repair to take place.

4. In the Damage Details area, provide specific damage information:

   • Damage Type: Choose types such as Broken, Dented, Missing Parts, Non Repairable, Not Applicable, or Scratched.

   • Damage Description: Enter free-form text to provide more information.

5. In the Repair Details area, complete the following fields:

   • Repair Code: Enter full or partial search criteria, click Go, and click a repair code.

   • Repair Description: Displayed text based on repair code.

   • Estimated Repair Cost: Based on the selected repair code. See the Oracle Lease and Finance Management Implementation Guide.

   • Actual Repair Cost: The amount billed if you use the generate bill option.

   • Recommended Repair: A description of recommended repair.

     Note: All costs are in the ledger currency.

6. Click the Create button.

Update Condition Line

After you create a record of the asset's overall condition and have added detailed line items to describe specific areas, you can update existing line items, such as to change the status, approval, damage details, or repair information.

Prerequisites

• Create the asset return request. See Create a Manual Asset Return Request.

• Place the asset into context. See Search for a Returned Asset Request.

• Evaluate the returned asset's condition.

• Create a record of the asset's overall condition. See Create Asset Condition.

• Create asset condition lines. See Create Condition Line.

Steps

Perform the following steps:

1. In the Asset Return and Asset Number fields, verify that the correct asset is in context by clicking the hypertext links.

   If you need to locate the asset to put it into context, see Section 20.2.3, "Search for a Returned Asset Request".

2. On the Asset Condition Details page on the row that shows the item you want to edit, click the Details icon.

   The Asset Condition Line Detail page appears.

3. Edit any of the available fields:

   • Part: Enter free-form text.

   • Status: Choose Pending, Repaired, Waiting for Approval.

   • Condition Type: Choose Fair, Good, Not Applicable, Poor.

   • Damage Type: Choose types such as Broken, Dented, Missing Parts, Non Repairable, Not Applicable, or Scratched.

   • Damage Description: Enter free-form text to provide more information.

   • Repair Code: Enter full or partial search criteria, click Go, and click a repair code.

   • Repair Description: Displayed text based on repair code.

   • Estimated Repair Cost: Cost based on selected repair code.

   • Actual Repair Cost: Enter the actual cost of repairing the item.

     Note: All costs are in the ledger currency.

   • Recommended Repair: Enter free-form text to offer recommended repairs.

4. Click the Update button.

Generate Repair Invoice

After you create a record of the asset's overall condition, you have added detailed line items to describe specific areas of damage and repair, you may bill either the vendor or the lessee for the repairs. To bill either the vendor or the lessee, the status must be Approved.

The setup of billing items happens during implementation. For more information, see the Oracle Lease and Finance Management Implementation Guide.

Prerequisites

• Create the asset return. See Create a Manual Asset Return Request.

• Place the asset into context. See Search for a Returned Asset Request.

• Create a record of the asset's overall condition. See Create Asset Condition.

• Enter the specific line item details that you want to bill the lessee or the vendor. See Create Condition Line.

Steps

Perform the following steps:

1. In the Asset Return and Asset Number fields, verify that the correct asset is in context by clicking the hypertext links.

   If you need to locate the asset to put it into context, see Search for a Returned Asset Request.

2. Select the line items that you want to bill either the vendor or the lessee.

3. Click the respective Bill Vendor or Bill Lessee button.

   A confirmation message indicates that the billing was successfully processed.