Segregation of Asset Transaction Entry and Transaction Posting Duties Using Spreadsheets

Segregate the duties for users who enter and prepare asset transactions and users who review and post the transactions using spreadsheets. This helps enforce the internal control requirement that users who review and post asset transactions are different from those who create the transactions.

When you segregate duties, two unique users with a custom job role assigned to each user are required for each transaction.

  • Transaction Preparer User can:
    • Create all asset transactions, including Addition, Adjustment, Transfer and Retirement transactions in draft and set the status to Review, but can't post transactions using an ADFdi spreadsheet.
    • Create Impairment and Revaluation transactions and set the posting status to Review after the transactions have been previewed.
  • Transaction Reviewer User can:
    • Review transactions in Edit mode and post all the asset transactions, including Addition, Adjustment, Transfer and Retirement, Impairment and Revaluation transactions, but cannot Create or Edit the transactions.
    • Send a transaction back to the preparer if it requires corrections by changing the queue status to New.
  • Send transaction back to preparer by changing the queue status to New.
  • Reviewer can only update the status column.

Business benefits include:.

  • Enforces the internal control requiring one user to create a transaction and a different user to review and post the transaction.
  • Eliminates errors when recording transactions because they're prepared and reviewed by two different users.
  • Ensures transactions are verified and reviewed before they're posted.
  • Ensures efficiency in recording transactions because the segregation of duties is at the user level and not at the asset book level.
  • Allows easy preparation and review of transactions in volume using an ADFdi spreadsheet.

Steps to Enable

  1. Use the Opt in to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.
    • Offering: Financials
    • Use the opt-in for Segregation of Asset Transaction Entry and Transaction Posting Duties in Fixed Assets to enable this feature.
    • Setup and Maintenance -> Financials -> Change Feature Opt in -> Financials -> Edit Feature -> Segregation of Asset Transaction Entry and Transaction Posting Duties. 

Use Segregation of Asset Transaction Entry and Transaction Posting Duties to enable this feature

  1. Roles for the Transaction Preparer
    1. Create a custom job role by copying the predefined 'Asset Accounting Manager' Job role. (ORA_FA_ASSET_ACCOUNTING_MANAGER_JOB)
    2. Delete the predefined duty role 'Fixed Asset Transaction Management' from the copied custom job role.
    3. Create the 'Custom Asset Transaction Entry Duty' custom duty role by copying the predefined Fixed Asset Transaction Management (ORA_FA_FIXED_ASSET_TRANSACTION_MANAGEMENT_DUTY duty role)
    4. Add the custom duty role ‘Custom Asset Transaction Entry Duty’ to the custom job role.
    5. Remove the following functional privileges for the Transaction Preparer user to disable to post privileges:
      • Post Fixed Asset Online Transactions (FA_POST_FIXED_ASSET_ONLINE_TRANSACTIONS)
      • Post Mass Fixed Asset Financial Transactions (FA_POST_MASS_FIXED_ASSET_FINANCIAL_TRANSACTIONS)
      • Post Mass Fixed Asset Retirement (FA_POST_MASS_FIXED_ASSET_RETIREMENT)
      • Post Mass Additions (FA_POST_MASS_ADDITIONS)
      • Post Mass Fixed Asset Assignment (FA_POST_MASS_FIXED_ASSET_ASSIGNMENT) 
  1. Roles for the Transaction Reviewer
    1. Create a custom job role by copying the predefined 'Asset Accounting Manager' job role. (ORA_FA_ASSET_ACCOUNTING_MANAGER_JOB)
    2. Create a custom duty role called 'Custom Asset Transaction Review Duty'
    3. Add the custom duty role 'Custom Asset Transaction Review Duty' to the custom job role.
    4. Add the following functional privileges for the Transaction Reviewer.
      •  
      • View Fixed Asset Addition (FA_VIEW_FIXED_ASSET_ADDITION_PRIV)
      • View Fixed Asset Adjustment (FA_VIEW_FIXED_ASSET_ADJUSTMENT_PRIV)
      • View Fixed Asset Transfer (FA_VIEW_FIXED_ASSET_TRANSFER_PRIV)
      • View Fixed Asset Retirement (FA_VIEW_FIXED_ASSET_RETIREMENT_PRIV)
  1. To enable the profile option for performing impairment transactions, complete these steps.
    1. In the Setup and Maintenance work area, go to the Manage Profile Options page.
    2. Search for the profile code FA_IMPAIRMENT_PREPARER.
    3.  Enable the: Enabled and Updatable check boxes for the User.
  1. In the Setup and Maintenance work area, go to the Manage Fixed Assets Profile Options task
    1. Search for the Profile Option Code: FA_IMPAIRMENT_PREPARER
    2. Add the transaction preparer user and set the Profile Value to  'Y'.
    3. Click Save and Close

Profile Option Code: FA_IMPAIRMENT_PREPARER and check enabled and updatable check boxes

Add transaction preparer user and set the profile value to Y

Tips And Considerations

For cost adjustments, the transaction reviewer can review and post these transactions only after the preparer changes the posting status to Review. The transaction preparer does this after adding an asset to the existing asset by clicking the Add to Asset button in the Assets landing page or the Prepare Source Lines page.

Segregation of Duties with transaction preparer and reviewer doesn't apply to the following transactions.

  • Transfer Reserve for Group Assets
  • Capitalize CIP Asset
  • Change Descriptive Details
  • Delete Asset

Key Resources