Automatically Generate Assets When Capital Costs are Created in Oracle Procurement

This process automatically generates assets when capital costs are created in procurement to an expense or inventory destination. It eliminates the manual effort and processing of data to define and assign project assets.

Automatic creation and assignment of project assets happens when:

• Item costs for receipts to an inventory or expense are accrued at receipt or destination.
• Supplier invoice costs matched to purchase orders having a destination type of expense and not accrued at receipt.
• Supplier invoice costs not matched to purchase orders.

Use the new capitalization option for project types to enable automatic creation of project assets for capital projects. Maintain project assets automatically by having receipt returns, receipt corrections, invoice cancellations, or invoice quantity corrections for the related project asset automatically updated for the project asset units.

Additionally, create a maintenance asset for project purchases that have an inventory or expense, accrued at receipt or destination and automatically establish a relationship between the maintenance asset, project asset, and corresponding fixed asset without any manual intervention. The application creates a single maintenance asset, project asset, and fixed asset for non-serialized items, whereas a unique project asset is created for each serial number associated with the receipt of a serial controlled item. The maintenance assets are created in Oracle Fusion Cloud Maintenance, project assets in Oracle Fusion Cloud Project Management, and the fixed assets in Oracle Fusion Cloud Fixed Assets.

For detailed steps on each business process, see these:

• How You Capitalize Fixed Assets Upon Purchase Receipt to Expense Destination in this guide
• How You Capitalize Fixed Assets Upon Purchase Receipt to Inventory Destination in this guide
• 25C What's New on Capital Project Automatic Asset Generation for Expense and Inventory Destination Costs

Oracle Fusion Asset Tracking

• Use the new opt in under the Manufacturing and Supply Chain Materials Management offering in Functional Setup Manager, to enable this feature to create project assets for project related item receipts.
  • Go to Setup and Maintenance > Manufacturing and Supply Chain Materials Management > Change Feature opt in > Maintenance Management .
  • Click Edit Feature and go to Create Provisional Assets in Projects at Point of Material Receipts.
  • Click the Opt-in task button to submit the process, Capture Cutoff Date to create provisional assets in Projects.
• Only receipts for capital project related purchase orders created on or after the date that this opt-in is enabled, qualifies for this feature.
• The Create Project Asset Automatically checkbox controls the auto creation of project asset. Create a new project based on the project type with this checkbox enabled to propagate changes to projects.

This feature offers:

• Automatic creation, assignment, and update of project assets for capital project related item receipts that have an inventory or expense, accrued at receipt, destination, and supplier invoice costs, with no user intervention.
• Automatic relationship between maintenance assets, project assets and the fixed assets without any manual intervention for capital project related item receipts.
• Complete visibility into the project asset lifecycle, including costs, sourcing, maintenance, and capitalization.