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What Is The Period Close Process For Oracle Assets In Release 12 ? [ID 557948.1] Modified 05-MAY-2010 Type REFERENCE Status PUBLISHED

In this Document Purpose Scope What Is The Period Close Process For Oracle Assets In Release 12 ? References

Applies to:
Oracle Assets

Purpose
Please refer to Note 390909.1 for the Recommended Period Close Process for Oracle Assets 11i. The purpose of this Note is to describe the differences introduced in Release 12.

Scope
This article is intended for any user of Oracle Assets in Release 12.

What Is The Period Close Process For Oracle Assets In Release 12 ?

Release 12 introduces Oracle Subledger Accounting (SLA) functionality, which is one of the key new features in the release. SLA is a rule-based accounting engine, toolset and repository supporting the Oracle E-Business Suite. It enables you to account for any transaction from any application (Oracle and external), and centralizes accounting policies and processing. SLA is an intermediate step between the subledger applications and the Oracle General Ledger. The Accounting/Journal Entries are created in SLA and then transferred to the Oracle General Ledger. What will change immediately on the front end is the process flow in which the journals are created and what tables the accounting is generated in and flows to after running the new Create Accounting process. An immediate change in Fixed Assets is we no longer have a Create Journal Entries (FAPOST) process feeding into the GL_INTERFACE table (or as in the older code, FAPOST directly inserted into the GL tables). This has been replaced with the Create Accounting Assets process (FAACCPB). Some of the main benefits with Create Accounting and SLA: - Faster closings: Since there is no requirement of having to close the period, accounting can be created for FA transactions and sent to GL on a continual basis throughout the period. - There is no need to wait until the end of the month to run Create Accounting in order to get the data to GL. For example, if you do a large amount of asset additions on the first day of the month, you can run Create Accounting and get all the Cost and Cost Clearing lines over to GL at the close of business that day. With the ability to run Create Accounting and the new Automatic Rollback Depreciation functionality introduced in R12 (Please see Note 421352.1Release 12: Where is the Option for Rollback Depreciation?), you can go so far as to even send the Depreciation lines over anytime during the month. The process will be as follows : After an asset addition , you can Run Create Accounting Assets for the Addition Process Category to send Cost and Cost Clearing lines to GL. Run Depreciation without closing the period After depreciation runs, you can run the Create Accounting for the Depreciation Process Category to get the Depreciation Expense and Reserve lines sent to GL If needed you can later update the asset and enter whatever transaction is needed. (for example : cost adjustment). For this particular asset, the depreciation data is automatically rolled back. And then run Create Accounting to send to GL the adjustment journal and the reversal journal for Rollback Depreciation (in which the prior depreciation expense is credited and the reserve is debited) Rerunning depreciation will then depreciate again this asset And Create Accounting will send to GL new Depreciation lines Please note that Create Accounting can be run : 1)first in Draft Mode (for a given process category or for all process categories if you leave this parameter blank). After it completes you can view the Draft Accounting (no actual accounting has been created/sent to GL). This mode allows to view and report on the accounting without saving it. Any setup or transaction change can be performed if you are not happy with the accounting. Draft accounting may be used in an unlimited manner for each journal entry allowing iterative corrections before committing the accounting as final. This minimizes the need for correcting journal entries and facilitates a clean audit. 2)After reviewing in Draft mode if everything is satisfactory with the generated account then the Create Accounting can be rerun in Accounting Mode: Final So the Accounting is finalized in SLA. You now have the options: to send the data to GL by setting parameter : Transfer to General Ledger = Yes This will transfer data to GL_INTERFACE and submit Journal Import to create Assets Journals in GL.
to post Journal entries in GL by setting parameter : Post in General Ledger =Yes If you choose not to transfer the journal entries to GL at this time (Transfer to General Ledger = No) then no journal will be sent to GL_INTERFACE and you can run the Transfer Journal Entries to GL - Assets concurrent program to do this at a later time.

Finally, when you decide to close the period in Oracle Assets , you then need to:

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Run Depreciation with closing the period Run Create Accounting in Draft mode and then in Final Mode to create the remaining Journals. Then you can run the Subledger Period Close Exception Report to check for any unprocessed event for the ledger , period and Journal Source= Assets . This report lists all accounting events and journal entries that fail period close validation. Please note that all events from FA should be processed successfully before closing GL period otherwise they cannot be accounted later after GL period closure.
References
NOTE:390909.1 - Recommended Period Close Process for Oracle Assets 11i NOTE:421352.1 - Release 12: Where is the Option for Rolling Back Depreciation?

Related

Products Oracle E-Business Suite > Financial Management > Assets & Real Estate > Oracle Assets Keywords JOURNAL IMPORT; TRANSFER TO GENERAL LEDGER; ROLLBACK DEPRECIATION; CREATE ACCOUNTING; LEDGER; R12; DEPRECIATION

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