5Asset Categories

Create an Asset Category

This example demonstrates how to create an asset category in Oracle Assets.

Before You Start

This worked example assumes that the following have been defined:

• Category flexfield segment values

• Depreciation methods

• Prorate conventions

• Natural accounts

Create an Asset Category

1. Navigate to the Manage Asset Category page.

2. Click the Create icon.

3. On the Create Category page, complete the fields, as shown in this table:

   Field	Value
   Major Category	COMPUTER
   Minor Category	PC
   Description	PC
   Category Type	Non-lease
   Ownership	Owned
   Property Type	Personal
   Property Class	1245 property

4. Check the following check boxes:

   • Capitalized

   • Enabled

   • In physical inventory

5. In the Books region, click the Add Row icon.

6. Enter the following in the Book field: INF USA CORP

7. On the Accounts tab, enter the following account information:

   Account	Value
   Asset Cost	101.10.15170.000.000.000
   Asset Clearing	101.10.15910.000.000.000
   Depreciation Expense	101.10.68170.121.000.000
   Depreciation Reserve	101.10.16170.000.000.000
   Bonus Depreciation Expense	101.10.68170.121.000.000
   Bonus Depreciation Reserve	101.10.16170.000.000.000
   CIP Cost	101.10.15400.000.000.000
   CIP Clearing	101.10.15930.000.000.000
   Unplanned Depreciation Expense	101.10.68170.121.000.000
   Impairment Expense	101.10.68170.121.000.000
   Impairment Reserve	101.10.68170.121.000.000

8. On the Default Rules tab, click the Add Row icon and complete the fields, as shown in this table:

   Field	Value
   Method	STL
   Life in Years	5
   Life in Months	0
   Prorate Convention	IF CAL MTH
   Retirement Convention	IF CAL MTH
   Default Salvage Percent	10

9. Click the Save button.

10. Click the Done button.

Create a Lease Category

In this example, you create a lease category in Oracle Assets.

Create a Lease Category

1. Navigate to the Create Category page.

2. On the Create Category page, enter these values:

   Field	Value
   Major Category	VEHICLE
   Minor Category	LEASE
   Category Type	Lease
   Ownership	Leased

3. In the Books section, click the Create icon.

4. Select your lease-enabled book. For example, OPS CORP.

5. Enter the Asset Cost, Depreciation Expense, and Depreciation Reserve accounts.

6. Enter all required lease default accounts:

   Account Name	Account Type	Description
   Lease Liability	Only liability accounts are allowed.	Initial lease liability, periodic interest on lease liability, and periodic lease payments are charged to this account.
   Lease Interest Expense	Only expense accounts are allowed.	For finance lease assets, the interest on lease liability is charged to this account.
   Operating Lease Expense	Only expense accounts are allowed.	For operating lease assets, operating lease expense that is calculated to allocate the cost of the lease over the lease term is charged to this account.
   Gain or Loss on Leased Asset	Only expense and revenue type accounts are allowed.	Gain or loss arising from the termination and scope change are charged to this account.
   Lease Clearing	Only asset accounts are allowed.	Periodic lease payments that reduces the lease liability are credited to this account. The credit is reversed when the lease payment invoice is accounted in your payables system. The excess of cost over the lease liability in a leased asset addition is also charged to this account. For example, initial direct costs incurred to negotiate or arrange a lease are not included in lease liability, but they are included in the leased asset's cost. When you create invoices in Payables to make lease-related payments that need to be included in the leased asset cost but not in the lease liability calculation, use this account as the distribution account for the invoices.
   Lease Currency Rate Gain or Loss	Only expense and revenue type accounts are allowed.	This account is required for asset books with a reporting currency. Gain or loss on lease liability due to change in the currency rate is charged to this account.

7. Enter the impairment and revaluation accounts if these transactions are enabled for this book.

8. Click the Default Rules tab to specify rules that are applied automatically when you create leases on the Manage Leases page. Because payments such as variable lease payments and initial direct costs are normally not included in lease liability and cost calculations, you must specify the lease payments to be excluded from lease liability and cost calculation in these fields:

   • Payment Types Excluded from Liability

   • Payment Types Excluded from Cost