Automatic Project Asset Creation and Cost Allocation

Automatically create project assets when capital costs are incurred in procurement for a capital project, whether destined for expense or inventory. Supplier invoice costs tracked as project assets also trigger automatic asset creation for capital projects. Asset lines are generated, and costs are accurately allocated to these project assets. This automation removes the need for manual setup, assignment, and management of project assets.

The relationship between maintenance assets, project assets, and assets in Oracle Assets is established automatically without any manual intervention for capital project-related item receipts.

Create assets automatically for:

  • All capital project-related purchase order item receipts, whether for inventory or expense destinations when accrual occurs at receipt.
  • Supplier invoices matched to a capital project purchase order that does not accrue at receipt when the invoice distributions are tracked as assets.
  • Supplier invoices created for a capital project not matched to a purchase order, provided the invoice distributions are tracked as assets.

Project asset units are automatically adjusted for assets that have not yet been capitalized when receipt returns, receipt corrections, invoice cancellations, or invoice quantity corrections occur.

For capital project-related receipts of serial-controlled items, the serial number generated at receipt is assigned to the project asset and is visible on the Manage Capital Assets page.

The Generate Asset Lines process has been enhanced to allocate the project asset cost accurately to the assets created automatically. The project asset cost is allocated in the following ways:

  • Asset associated costs include item receipt costs, supplier invoice costs, prorated charges against the asset tracked invoice distribution line, like freight and miscellaneous costs, purchase price adjustments, nonrecoverable taxes, receipt returns, corrections, invoice cancellations, variances like invoice price, purchase price, tax, exchange rate, and others. Asset associated costs will always be allocated directly to the related automatically created project asset.
  • Costs that cannot be directly associated with an automatically created asset are termed non-asset associated costs. This includes costs like labor, miscellaneous project costs, and any project cost for which a direct relationship cannot be established with the automatically created project asset. These costs are allocated using the asset cost allocation method specified in the project’s capitalization options only if the Allocate only associated costs for automatically created assets option is disabled for a project.

The business benefits include:

  • Automatically create, assign, and update project assets for capital project-related item receipts to inventory or expense destinations, as well as for supplier invoice costs—eliminating manual effort.
  • Automatically establish relationships between the maintenance asset, project asset, and fixed asset for each project asset created.
  • Ensure accurate project asset valuation by precisely allocating costs.

Steps to Enable

You don't need to do anything to enable this feature.

Key Resources