Automatically Create Project Assets for Supplier Invoices

Automatically create a project asset for capital project related supplier invoice costs. This applies to invoices matched to a purchase order to an expense (not accrued at receipt) destination, and for unmatched invoices having distributions that are tracked as assets.

Note: This feature will be available starting with the 25C release.

Automatic Project Asset Creation for Non-Accrued Expenses and Unmatched Invoices

To automatically create project assets for items or services that are non-accrued expenses, and unmatched invoices:

Note: If entering a project-referenced unmatched Payables invoice for which you would like to create project assets, follow directions from Step 4.

1. Create a purchase order in Oracle Fusion Cloud Procurement. Select mandatory parameters, including Business Unit, Supplier, and Supplier Site.
2. When adding purchase order line items, in addition to providing the details required for creating a purchase order with a receipt destination type of expense, non-accrual, select a capital project that is enabled for automatic project asset creation.
3. Submit the purchase order for approval.
4. Ensure an accounts payable role is assigned to your user.
   1. Create a new invoice and match it to the purchase order if creating a matched invoice. For unmatched invoices, start with an invoice for the capital project.
   2. Ensure that the invoice distribution for the matched or unmatched invoice line has the Track as Asset flag enabled. This flag will be automatically enabled if the distribution account provided is an asset account. If it isn't and you would like to create a project asset for this invoice distribution, select the Track as Asset flag.
   3. Validate and account the invoice.
5. Import the accounted invoice cost and the asset details to Project Costing using the Import Costs process.
6. To create the project asset for the imported invoice costs, run the Import Asset and Assignments process.
7. When this process completes, you can view the automatically created project assets in the Manage Capital Assets page.
8. Project assets that have been created automatically can be identified by viewing the Asset Creation Source column value in the Additional Asset Details section. They should have a value of Automatic. Manually created project assets have this value as Manual.
9. If your project type has the Require Complete Asset Definition option selected, review your project asset for any missing details and update them as appropriate.
10. Account the project cost transactions for the concerned project and run the following processes to capitalize these costs, as usual:
    1. Generate Asset Lines
    2. Transfer Assets to Oracle Fusion Assets, from the Project Assets work area
    3. Post Mass Additions scheduled job, in Fusion Assets
    4. Update Asset Details from Oracle Fusion Assets, in Project Costing
11. Review the fixed asset details transferred from Fusion Assets for the project asset in the Manage Capital Assets page for the relevant project assets. Use the Asset Number column to ensure that each project asset now has an associated fixed asset.
12. Ensure that an installed base asset role is assigned to your user: Run the Connect and Synchronize Fixed Asset to Operational Asset scheduled process. The asset book on the project asset, fixed asset, and the maintenance asset must match for the synchronization process to be successful.
13. Once this is done, you can see the fixed asset associated with your installed base asset on the Fixed Asset tab of the Edit Asset user interface in Fusion Assets.

Automatic Updates to Project Asset Units for an Automatically Created Project Asset

Updates to project asset units of an automatically created project asset that is based on a capital project related invoice can happen in two scenarios: Cancellation of the project asset origin invoice, and quantity corrections.

Quantity corrections can be made to invoices that are matched to purchase orders having a line type of Quantity, by using an invoice type of a credit or debit memo. Such quantity corrections will result in updates to the project asset units of the project assets that were created automatically, for matched invoices that are being corrected for quantity.

Updates to project asset units depend on the status of the project asset. The details are as follows.

When a project asset was created for the original invoice

• When capital project related invoice cancellations, or quantity corrections to an original invoice, are imported in Project Costing after a project asset was created for the original invoice, the project asset units for such automatically created project assets will reflect the net result of the original quantity and corrected quantity.
• The project asset will be marked on HOLD if the net result of the project asset units after cancellations or corrections equals to or is less than 0 after rounding to the nearest integer. You can review and take the necessary action required on such automatically created project assets in the Manage Capital Assets page. No asset lines will be generated for the assets on hold.

When a project asset is yet to be created for the original invoice

• When capital project related invoices eligible for automatic project asset creation are canceled even before import (into Project Costing) and automatic project asset creation, no project assets are created in Project Costing for the canceled invoices.
• When capital project related invoices eligible for automatic project asset creation are imported in Project Costing along with quantity corrections on the matched invoice, the project asset units for such assets will reflect the net result of the original and corrected quantity.
• The project asset will be marked on HOLD if the net result of the project asset units after quantity corrections equals or is less than 0 after rounding to the nearest integer. You can review and take the necessary action on such automatically created project assets in the Manage Capital Assets page. No asset lines will be generated for the assets on hold.

When a project asset was created for the original invoice and transferred to Oracle Fusion Fixed Assets

When invoice cancellations or quantity corrections are imported in Project Costing for an automatically created project asset after it has been transferred to Oracle Fusion Assets, there will be no update made to the project asset units associated with the related project assets. Users are expected to make the necessary updates directly in Oracle Fusion Assets for the fixed asset. The completion text output of the Import Asset and Assignments process will indicate as to when updates to project asset units are not successful and list out associated project details for such scenarios. Users can make use of this information to review and make the necessary changes in Oracle Fusion Assets.