Example of Creating an Inventory Asset at Receipt

This example shows you how to create an asset with a destination of Inventory when the asset is received.

Normally, these tasks are performed by many different people, but for purposes of this example, we'll assume that one person is performing all tasks.

1. In Oracle Product Management, create an item in the Create Item page.
2. Associate the inventory organization with the item on the Associations tab in the Create Item page.
3. On the Specifications tab in the Create Item page, navigate to Item Organization > Service and enter these values:

   Field	Value
   Enable Asset Tracking	Full Lifecycle
   Create Fixed Asset	At Receipt
   Enable Asset Maintenance	Yes

4. On the Specifications tab in the Create Item page, navigate to Item Organization > Purchasing.
5. In the Asset Category field, select the asset category.
6. In Oracle Fusion Cloud Procurement, enter a purchase order with this information:

   Field	Value
   Destination	Inventory
   Sub Inventory	MNTALM-MA
   PO Charge Account	Asset Clearing Account

   Note: The PO charge account can be the asset clearing account or any other charge account. This account is credited as the asset clearing account when the asset accounting entries are posted.
7. Enter these details for the purchase order:

   Item	Quantity	Price	Ordered	Recoverable Taxes	Line Total
   Item 1	1	250.00	1	6.25	256.25

8. Receive the items into the inventory organization defined in the purchase order.
9. Enter the serial number for the quantity received.
10. In Oracle Cost Management, run these processes:
    • Transfer Transactions from Receiving to Costing
    • Transfer Transactions from Inventory to Costing
    • Transfer Costs to Cost Management
    • Create Cost Accounting Distribution
    • Create Accounting
11. In Oracle Supply Chain Execution, navigate to Supply Chain Execution > Receipt Accounting.
12. Click Create Receipt Accounting Distributions in the task pane.
13. Click Submit to run the Create Receipt Accounting Distributions process.
14. Click Create Accounting in the task pane.
15. In the Subledger Application parameter, select Receipt Accounting.
16. Click Submit to run the Create Accounting process.
17. Click Review Receipt Accounting Distributions on the task pane.
18. Search for the receipt accounting distributions you created in step 11.
19. Verify that the transaction status is Final accounted.
20. In the Transaction Details and Distributions section, verify that the journal entries are correct. This table shows how the journal entries appear:

    Accounting Line Type	Cost Source	Debit	Credit
    Receipt into Inspection	Purchase Order	250.00
    Receipt into Inspection	Purchase Order		250.00
    Receiving Inspection	Transaction Taxes	6.25
    Expense Accrual	Transaction Taxes		6.25

21. Verify that your transactions are fully costed and accounted for in the Review Cost Accounting Distributions page in Cost Accounting.
22. Run the Connect Fixed Assets to Operational Asset process from the Scheduled Processes page.
23. On the Fixed Asset tab in the Edit Asset page, you can see the fixed asset associated with your maintenance (installed base) asset.
24. In Oracle Maintenance, run the Transfer Receipts to Mass Additions process.
25. In Oracle Payables, create a receipt matched invoice with Invoice Price Variance.
26. Approve the invoice and run the Create Accounting process. This table shows how the journal entries appear:

    Line Number	Account Details	Debit	Debit
    1	Accrual	250.00
    2	Miscellaneous	50.00
    3	Tax Recoverable	18.75
    4	Invoice Price Variance	30.00
    5	Freight	100.00
    6	Nonrecoverable Tax	6.25
    7	Liability (invoice and invoice price variance)		280.00
    8	Liability (all other lines)		175.00

27. Payables accounts for the Invoice Price Variance, Freight, Miscellaneous, Freight, Recoverable and Nonrecoverable Taxes, and Tax Invoice Price variance.
28. Rerun the processes from steps 9 through 16.
29. In Oracle Maintenance, run the Transfer Receipts to Mass Additions process to transfer the invoice information to Oracle Assets. This process transfers information such as nonrecoverable taxes, invoice price variance, freight, and tax invoice price variance to Assets as a cost adjustment.
30. In Oracle Assets, prepare and post the source lines.
31. Run the Create Accounting process.
32. View your journal entries. This table shows how the journal entries appear.

Note: Recoverable taxes aren't transferred to Assets.

Line Number	Account Details	Debit	Debit
1	Asset Cost	436.25
2	Asset Cost Clearing	100.00
3	Asset Cost Clearing		100.00
4	Asset Cost Clearing (Item)		250.00
5	Asset Cost Clearing (Freight)		100.00
6	Asset Cost Clearing (Miscellaneous)		50.00
7	Asset Cost Clearing (Invoice Price Variance)		30.00
8	Asset Cost Clearing (Nonrecoverable Tax)		6.25