Setting Up Asset Profiles

Asset Profiles – Definition Page

PROFILE_DEFN

Define asset profiles.

Asset Profiles - Depreciation Page

PROFILE_BK_01

Identify the criteria to use in depreciation calculations.

Depreciation Method Information Page

PROFILE_DEPR_DETL

Set special depreciation terms for an asset profile and select an accounting method for these special terms. These are commonly used to meet depreciation requirements for specific countries.

(ARG, BRA, and MEX) Asset Profiles - Inflation Information page

PROFILE_SEC

Establish an inflation adjustment factor by selecting the market index and rate to apply.

(JPN) Salvage Rounding Options page

SALVAGE_OPTION_SEC

Enter options for rounding depreciation amounts for this book. This is for use in Japan.

Asset Profiles - Tax Page

PROFILE_BK_03

Specify property type and tax depreciation criteria and identify which tax credits will be used by the profile.

Child Asset Inheritance Page

PROFILE_PAR_BK_ECD

Specify child asset attributes that will be used by the profile and inherited from the parent asset for Express Add, Basic Add, and batch-created assets. The inheritance based on the selected items happens upon defaulting the profile in Express Add and capitalizing the asset in Basic Add, and when you are using Default Profile processing in the Transaction Loader if the Business Unit option is selected.

Profile Changes In Mass

RUN_AMPRFCHG

Copy an asset profile from one SetID to another, or update a profile by changing some of its attributes.

Asset Description

Enter a description for this asset profile.

Status

Select a status for the asset profile.

Select Active to make an asset profile available for selection when adding new assets.

Select Inactive when you want to discontinue using an asset profile. When you choose this option the profile will not be available for selection when adding new assets. However, the profile is retained in the asset profile component for your reference.

Asset Class

Select the asset class with which an asset profile will be associated by default. The available options are defined when you establish asset class codes.

Asset Type

Select the asset type.

Oracle delivers these asset types: Hardware, Software, Equipment, Property, Fleet, Machinery, Furniture, Facility, Intangible, Other.

Asset Subtype

Select the asset subtype. Valid values for the selected asset type appear from the drop-down list box.

Acquisition Code

Select the acquisition code from the drop-down list box. Available options are:

• Construct

• Donated

• Leased

• Like Exch (like exchange)

• Purchased

• Trade In

• Transfer

Taggable Asset

Select to indicate that an asset is taggable. Most physical assets can be tagged with a tag number to help keep track of them. Some assets, however, such as buildings or leasehold improvements, cannot be tagged. If an asset is taggable, it probably already has a tag number associated with it, which is recorded when the asset is added. Sometimes, however, an asset may be taggable, but not yet tagged. The Taggable Asset check box can be used to flag this type of asset.

Capitalized Asset

Select to indicate whether this profile will be used for assets with cost and depreciation associated with them. Most assets in the PeopleSoft Asset Management system will be capitalized assets. If you are setting up a profile for non capitalized assets, (assets with no cost or depreciation criteria), deselect Capitalized Asset. Typically these assets are expensed, not actually owned, or fully depreciated, but you still want to track them.

Use As Tool

Select if the asset is sued as a tool in connection with the maintenance or repair of another asset.

Asset Retirement Obligations

Select this option for an asset profile to apply asset retirement obligation (ARO) defaults to the associated asset, thus flagging the asset as eligible for ARO processing. You can select the Asset Retirement Obligation check box for any asset profile to apply ARO defaults when adding an asset. If you decide that the asset is not ARO-eligible, you can deselect the defaults for the asset manually when adding it. Conversely, if you do not use an asset profile, or the selected profile does not carry the ARO defaults, you can manually select the ARO options for the asset when adding it in the Basic Add component. to be used specifically as default profiles for assets requiring ARO treatment when you add new assets. The ARO functionality provides asset retirement obligation measurement and reporting in compliance with Financial Accounting Standards for leased assets, group assets, and asset impairment.

See Understanding Adding and Maintaining Assets

For more information, see Accounting for Asset Retirement Obligations

Index Name

Select the index by which replacement or valuation cost will be calculated. When you run the Calculate Replacement Cost (AMRCCALC) process, it multiplies the asset cost by the amount in the index selected here.

SubIndex Name

Select the subindex category for the index to use to calculate replacement or valuation cost.

Threshold ID

If you want to define capitalization thresholds based on asset, select the Threshold ID to use as the default value for assets within a given profile.

This field appears only when the Capitalized Asset option is selected on this page and the Capitalization Threshold feature is enabled from the Installation Options - Asset Management page.

When the Capitalization Threshold feature is enabled, PeopleSoft Asset Management:

• Automatically catalogues the capitalization status for batch and online asset additions.

• Provides processes to deal with adjustments to the original cost.

• Balances out any potential clearing account with other feeder systems.

• Reassesses the capitalization status of the asset when subsequent transactions occur.

• Provides reports and audit trails to facilitate control of these transactions.

  When adding an asset, the system uses the capitalization definition for the applicable Threshold ID to determine the appropriate capitalization action to take. Upon saving, the system compares the asset cost with the cost established for each bracket, as well as the basis option to decide the appropriate action to take. Alternatively, you can select to have the capitalization analysis performed by unit cost rather than total cost.

See .Pages Used to Set Up and Manage Capitalization Thresholds

Book Name

Enter a book name that defines the rules for the assets entered with this profile. Books are defined during system setup and associated with business units. Only valid books can be assigned.

Effective Date

Enter the date that indicates when the convention and depreciation method take effect. If you want a history of changes made to a profile, be sure to add new rows to the table and use effective dating to update profiles, rather than making changes to the initial row.

Depreciate When in Service

Select to allocate annual depreciation as of the date that you placed the asset in service. If you do not select this option, PeopleSoft Asset Management allocates annual distribution as of the date determined by the depreciation convention. This option is valid only in the year that the asset was acquired.

Category

Defines the category of an asset, such as Furniture & Fixtures or Machinery & Equipment. The available category codes are those you entered on the Category Code table. In general, these will correspond to the General Ledger asset accounts. Asset Category is used in accounting entry generation.

Depr Status

Enter the depreciation status.

Currency Code

Select a currency code.

Adjust Conv (adjustment convention)

Select an adjustment convention.

Convention

Select a depreciation convention.

Retire Conv

Select a retirement convention.

Retire Option

Select the retirement calculation option to be processed for assets within a given profile. These retirement options are available at the profile, book and asset levels.

See Retire Assets Page.

Method

Select a depreciation method. Some depreciation methods require you to enter additional information.

Declining Balance w/SL by Limit %

DB Pct (declining balance percent) and Limit Pct

Declining Balance

Percent, Low Limit, Monthly

Declining Balance w/SL

DB Pct

Depreciation Schedule

Schedule

Flat Rate %

Percent, Low Limit, Avg Option (averaging option)

France Derogatory Balance

DB Pct Percent, Low Limit, Depr Pass Life (depreciate past life)

Germany Staffel Method

DB Pct, Percent, Low Limit, Depr Pass Life

Japan - Changes 200/250 DB to SL

(J9 - Changes 200/250 Declining Balance to Straight Line)

No additional fields display. However, for this method you must select the Special Depreciation option and input the year of change on the Special Terms - Depreciation Method Information page.

Used for assets that were added using the following methods:

• (J6) Japanese - Changes DB (Declining Balance) to SL (Straight Line) 250

• (J8) Japanese - Changes DB (Declining Balance) to SL (Straight Line) 200.

Japan - Changes DB to SL 200

(J8 - Changes Declining Balance to Straight Line 200)

DB Pct, Percent, Low Limit, Depr Pass Life

Used for assets acquired on or after April 1, 2012.

Japan - Changes DB to SL 250

(J6 - Changes Declining Balance to Straight Line 250)

DB Pct, Percent, Low Limit, Depr Pass Life

Used for assets acquired on or after April 1, 2007.

Japan - Extended/Strt Line

(JE - Extended Straight Line)

DB Pct, Percent, Low Limit, Depr Pass Life

Used for fully depreciated assets under the Tangible / Strt Line and Tangible / Declining Balance methods that are subject to an extended depreciation useful life of five years using a Straight Line depreciation method starting from the first period of the following fiscal year.

Japan - Lease Depreciation

(J4 - Lease Depreciation)

No additional fields display.

Japan - Intangible/Strt Line

(J3 - Intangible/Straight Line)

DB Pct, Percent, Low Limit, and Depr Pass Life

Japan - Tangible/Declining Bal

(J1 - Tangible/Declining Balance)

DB Pct, Percent, Low Limit, and Depr Pass Life

Used for assets acquired before April 1, 2007.

Japan - Tangible/Strt Line

(J2 - Tangible/Straight Line)

DB Pct, Percent, Low Limit, and Depr Pass Life

Used for assets acquired before April 1, 2007.

Japan - Changes DB to SL

(J5 - Changes Declining Balance to Straight Line)

DB Pct, Percent, Low Limit, Depr Pass Life

Japan - Tangible/Strt Line Rev

(J7 - Tangible/Straight Line Revenue)

DB Pct, Percent, Low Limit, Depr Pass Life

Used for assets acquired on or after April 1, 2007.

Manual Depreciation

No additional fields appear.

The Manual Depreciation method enables you to adjust depreciation amounts that are generated by some other method. To use manual depreciation, you must therefore first create depreciation entries using another method. When this has been done, you can make your adjustments.

Straight Line

Useful Life

Straight Line Percent

(IND) Percent

Sum of the Years

NA

Units of Production

UOP ID (units of production ID)

User Defined Method

Method ID, DB Pct, Percent, Low Limit, Depr Pass Life

Limit Pct (limit percent)

Enter a limit for depreciation as a percentage of cost.

UOP ID (units of production ID)

Enter the units of production ID, production information, and transaction information that you want to use for this asset.

DB Pct (declining balance percent)

Enter the percentage of declining balance depreciation to be taken each year until the amount calculated by the straight line method is greater.

Percent

Enter the percentage of original basis to be taken in depreciation each year. This is required for straight line percent.

Low Limit

Enter an amount. When the asset basis reaches this limit, the remaining basis will be taken in depreciation and the asset will be fully reserved.

Depr Pass Life (depreciate past life)

Select if you want to continue to depreciate this asset past its useful life end date. This option is used for governmental regulations for certain countries or for utilities industries that may want to continue to depreciate an asset to the end of a depreciation calendar.

Method ID

Select the user-defined method that you want to use.

Schedule

Enter a schedule to use for depreciation.

Avg Option (average option)

Generally used by utility companies to depreciate composite assets. The averaging options are expressly designed to work with the flat rate depreciation method. Select an averaging option if you want to use it:

Monthly: Monthly averaging takes an average monthly asset balance and multiplies it by the annual depreciation rate. The result is then applied against a period allocation (1/12, 2/12, 3/12, and so on) to derive a year-to-date (YTD) depreciation amount. The difference between the newly calculated YTD depreciation and the previous YTD depreciation is the amount booked to the current period.

Yearly: Yearly averaging is similar to monthly averaging except that a yearly average balance is used. Because this amount is not known until the end of the year, it is usually estimated and adjusted periodically as the actual figures become known.

Calculation Type

Select the calculation type.

• Use Remaining Value to deduct any accumulated depreciation from the cost basis and expense the remaining value over the remaining life of the asset. Most assets will be depreciated using this option.

• Use Life-to-Date to calculate the difference between the depreciation allowed and the depreciation taken. Typically, you would use life-to-date calculations when a change occurs in accounting principle, such as depreciation method. Changes of this type require an adjustment for the differences in accumulated depreciation to date.

For example, if you took 20,000 USD depreciation over a two-year period but the amount allowed was $24,000, the difference of $4,000 would be expensed as an adjustment to accumulated depreciation in the current period.

Low Value

Select to identify assets with costs below a certain level for special depreciation processing. This is a requirement for some countries.

Useful Life

Enter the number of periods. This is used to perform the depreciation calculations for the financial books.

End Date (end depreciation date)

Enter an end date that you want depreciation to cease at a particular time. At the end depreciation date, the remaining asset basis will be taken in depreciation and the asset will be fully reserved.

Future Depr Yrs (future depreciation years)

PeopleSoft Asset Management calculates and stores depreciation until the end of the asset life. However, for optimal processing performance and greater table efficiency, you can specify a fixed number of years for which depreciation is calculated and stored.

Special Depreciations

Select if you are working in a global environment and want to use special depreciation terms to meet specific country requirements. Click Special Terms to open the Depreciation Method Information page, where you can select special terms for depreciation.

Depr Limit (depreciation limit code)

Select a depreciation limit code that relates to a specific dollar amount limitation on depreciation for each year of life. Although this can be used for financial depreciation, it is commonly used for U.S. tax purposes, because such depreciation limits exist for items such as luxury automobiles.

Cost Basis Limit

Enter the limit on the depreciable basis of this asset. If the actual cost of an asset is greater than its depreciable basis, the difference will result in a gain when the asset is retired.

Salvage % of Cost and Salvage

Enter the residual value of the asset subtracted from the cost to determine the depreciable basis used in depreciation calculations. You can enter it either as a flat rate or as a salvage percentage (a percentage of the total cost of the asset). If you use a salvage percentage, the system recalculates the salvage value when you add additional costs for the asset.

(DEU) Multi-Shift Code

Enter rates by which depreciation should be increased based on the number of production shifts that an asset is used. This is used in Germany.

Threshold ID

If you want to define capitalization thresholds based on book, select the Threshold ID to use as the default value for assets within a given book.

When you populate this field, the capitalization status of each book is determined according to the capitalization threshold defined for that book.

This field appears only when the Capitalization Threshold feature is enabled from the Installation Options - Asset Management page.

This field is available for editing only when the Threshold ID on the Default page is unpopulated.

When the Capitalization Threshold feature is enabled, PeopleSoft Asset Management:

• Automatically catalogues the capitalization status for batch and online asset additions.

• Provides processes to deal with adjustments to the original cost.

• Balances out any potential clearing account with other feeder systems.

• Reassesses the capitalization status of the asset when subsequent transactions occur.

• Provides reports and audit trails to facilitate control of these transactions.

  When adding an asset, the system uses the capitalization definition for the applicable Threshold ID to determine the appropriate capitalization action to take. Upon saving, the system compares the asset cost with the cost established for each bracket, as well as the basis option to decide the appropriate action to take. Alternatively, you can select to have the capitalization analysis performed by unit cost rather than total cost.

See .Pages Used to Set Up and Manage Capitalization Thresholds

Group BU

Enter the business unit for the group assets.

Group ID

Select the group ID.

Impairment Process

Select to make the asset available for impairment processing.

Allowance

Select to specify that special depreciation amounts are not booked with the standard depreciation amounts. Journal entries are generated that will include only the standard depreciation. PeopleSoft Asset Management does not support automatically generating journal entries for the special depreciation allowance accounting method. You may need to run two reports: Reserve for Special Depreciation and Reversal for Special Depreciation, and then generate the journal entries manually into the PeopleSoft General Ledger system.

Expense

Select to specify that total amounts of special depreciation and standard depreciation are booked and journal entries are generated that will include the total of standard and special depreciation amounts.

Reserve

Select to specify that special depreciation amounts are not booked with the standard depreciation amounts. Journal entries are generated that will include only the standard depreciation. PeopleSoft Asset Management does not support automatically generating journal entries for the special depreciation allowance accounting method. You may need to run two reports: Reserve for Special Depreciation and Reversal for Special Depreciation, and then generate the journal entries manually into the PeopleSoft General Ledger system.

Special

Depreciation × Rate

Accelerated

Depreciation × Rate

Initial

Cost × Rate

Increase

Depreciation × Rate

Market Rate Index

Select the market rate index to be used for inflation processing.

See Defining Market Rates.

Rate Type

Select the market rate type to be used for inflation processing.

Term

Select the term.

Daily Rate Index

Select the daily rate index.

Daily Rate Type

Select the daily rate type.

Daily Term

Select the daily term.

Rounding Rule

The rounding rules that are delivered with PeopleSoft Asset Management are:

Down

NatRnd

Up

Round Type

The rounding types that are delivered with PeopleSoft Asset Management are:

Currency

Generic

Rounding Precision

Enter the number of places to the right or left of the decimal point to which the amount or number will be rounded. If you select Currency as the round type, the system automatically determines the round precision from the currency code.

Rounding Factor

Enter the number to which the amount will be rounded. For example, if you select Nat Rnd as the rounding rule, and enter a rounding factor of 25, amounts will be rounded to the nearest multiple of 25 so that an amount of 130 will be rounded to 125, and an amount of 140 will be rounded to 150. If you select Currency as the round type, the system will automatically determine the rounding factor from the currency code.

Truncation Precision Flag

Works with the round precision value. When you select it, amounts that contain many decimal places will be truncated to one decimal place to the right of the rounding precision position before rounding is performed. If you do not select it, the entire amount will be rounded. This example illustrates truncation precision:

• Amount to be rounded: 10.03439.

• Round precision: 3.

With Truncation Precision Flag selected, the system truncates the fifth decimal place and rounds 10.0343. Without the check box selected, the system rounds the entire amount. Actual rounding results depend on the selected rounding rule and round type.

Property Type and Property Code

Determine the amount of gain treated as ordinary income on the disposition of this asset.

Regulation

Identifies the depreciation system elected for this asset:

• Accelerated Cost Recovery System (ACRS).

• Asset Depreciation Range (ADR).

• Conventional/Facts & Circumstance.

• Asset Class Guideline.

• Modified Accelerated Cost Recovery (MACRS).

Recovery Life and Recovery Subtype

For reporting purposes, you can further classify the asset by specifying the recovery life expressed in years and the recovery subtype, for example, 15-Year Low-Income Housing. You can also specify the asset guideline class. All current classifications are set up in the Tax Class table in the delivered tableset.

(IND) Guideline Class

Processing tax and depreciation in India requires the designation of a tax class rate that is associated with an asset block. To associate the tax class rate with a profile, enter the tax class and associated asset block rate here.

Corporation Sec. 291 (corporation section 291)

Select if this company is a corporation. This check box must be selected if the company is a corporation for the AMTX3210 tax report (Tax Retirement Capital Gains) to accurately reflect the correct Sec. 1231/Ordinary gains.

(FRA) Business Tax

Select if assets using this profile are subject to a business tax. This is required in some countries.

Listed Property

Select to record whether the asset is listed property. Listed property is a certain kind of asset that is conducive to mixed business or personal use, such as:

• Passenger automobiles under a certain weight.

• Any other property used for transportation, such as trucks, buses, boats, airplanes, motorcycles, and any other vehicles for transporting persons or goods.

• Any property of a type generally used for entertainment, recreation, or amusement, such as photographic, phonographic, communication, and video recording equipment.

• Any computer and related peripheral equipment, unless it is used only at a regular business establishment and owned or leased by the person operating the establishment.

• Any cellular telephone (or similar telecommunications equipment) place in service or leased in a tax year beginning after 1989.

Listed Property Type

Select the property type that corresponds to the Listed Property check box.

Business Use % (business use percentage)

Enter the percentage amount of the business use of this listed property asset. Based on the business use percentage that you enter, the basis calculated for depreciation is:

(Basis) = (Cost*Bus_Use_%)

(USA) Depreciation Bonus

Select to indicate the specific depreciation bonus definition if the asset qualifies for depreciation bonus treatment. You can also create your own depreciation bonus definitions for selection in this field using the Depreciation Bonus Info page.

See Defining Depreciation Bonus Information.

PeopleSoft delivers the following values:

• American Recovery: Select if the qualifying asset is placed in service on or after January 1, 2009 and on or before December 31, 2009 (before 2010 for certain transportation property and certain property with a long production period).

• Gulf Opportunity Zone: Select for certain types of assets that are located within the hurricane zone as defined in the Senate Amendment to H. R. 4440 and the acquisition date and in-service date are on or after August 28, 2005 and on or before December 31, 2007 (December 31, 2008 for nonresidential real property or residential rental property).

• New York Liberty Zone: Select if the acquisition date and in-service date are on or after September 11, 2001 and on or before December 31, 2007.

• None: Select if the acquisition date and in-service date of the asset are on or before September 10, 2001, or, if the other options do not apply.

• Section Federal (50%): Select if the acquisition date and in-service date are after May 5, 2003 and on or before December 31, 2005 to apply the 50 percent bonus.

• Section 101- Local: Select if local or state allowance of the bonus depreciation should be applied. Define the parameters of the bonus depreciation as according to applicable local or state law using the Depreciation Bonus Info page.

• Small Business Jobs: Select if the qualifying asset is placed in service on or after January 1, 2010 and on or before December 31, 2010 (before 2011 for certain transportation property and certain property with a long production period).

• Stimulus Act: Select if the qualifying asset is placed in service on or after January 1, 2008 and on or before December 31, 2008 (before 2010 for certain transportation property and property with a long production period).

(USA) Bonus Percent

Supply the amount (percentage) to be applied if the asset qualifies for a depreciation bonus based on the acquisition date and in-service date.