Guidelines for Allowing an Expense Type Account as the Asset Clearing Account for GASB 34

You can create expensed transactions as assets by setting up rules to transfer invoices to Oracle Assets.

The expense and asset account values for each major asset category are created to impact:

Expense account, used in the primary ledger
Asset account, used in the secondary ledger

The journal entry for invoice accounting in the Standard Accrual subledger accounting method creates a debit to the expense charge account on the invoice distribution. The charge account for the invoice distribution in the GASB secondary ledger is derived based on the chart of accounts mapping, and this account must be reversed when the asset is added to the tax book of the GASB secondary ledger.

There are two methods you can use to balance the asset clearing account or invoice charge account in the GASB secondary ledger as shown in this table:

Method	Description
Define Subledger Accounting Rules	Define accounting rules for the GASB secondary ledger and derive the invoice expense account as the asset clearing account for the mapped asset category. To set up your accounting rules, you must create a mapping set to map the invoice expense accounts to the asset clearing account for the secondary full accrual ledger.
Allow Invoices in Tax Book	Allow Invoices in Tax Book: You can copy the invoices transferred from Payables from the corporate book to the tax book that's set up for the GASB secondary ledger. While copying the invoices, Assets automatically converts asset invoices from the primary ledger into the secondary ledger using the Chart of Accounts mapping in General Ledger. To use the Allow Invoice in Tax Book method: Enter your tax book name as the look up code for the look up type ORA_FA_ALLOW_TAX_SOURCE_LINES. Enable the Allow source lines option in the Edit Tax Book page. Note: You can enable this option only for a tax book set up for a new corporate book, before you add any assets to the tax book. You must enable this option for both the corporate and tax books at the same time.

Method

Description

Define Subledger Accounting Rules

Define accounting rules for the GASB secondary ledger and derive the invoice expense account as the asset clearing account for the mapped asset category. To set up your accounting rules, you must create a mapping set to map the invoice expense accounts to the asset clearing account for the secondary full accrual ledger.

Allow Invoices in Tax Book

Allow Invoices in Tax Book: You can copy the invoices transferred from Payables from the corporate book to the tax book that's set up for the GASB secondary ledger. While copying the invoices, Assets automatically converts asset invoices from the primary ledger into the secondary ledger using the Chart of Accounts mapping in General Ledger.

To use the Allow Invoice in Tax Book method:

Enter your tax book name as the look up code for the look up type ORA_FA_ALLOW_TAX_SOURCE_LINES.
Enable the Allow source lines option in the Edit Tax Book page.

Note: You can enable this option only for a tax book set up for a new corporate book, before you add any assets to the tax book. You must enable this option for both the corporate and tax books at the same time.