grants accounting

1. Asset Capitalization: Assets

2. Objectives
– Describe the purpose of asset capitalization
– Explain the processing flow for asset capitalization
– Perform asset capitalization implementation steps

3. Agenda
– Overview of Asset Capitalization
– Project Types for Asset Capitalization
– Process Asset Capitalization
– Adjustments
– Implementing Asset Capitalization

4. Sponsored vs. Non-sponsored Projects
Capital Project
Capital
Assets
Award
Example: A capital project which is a sponsored project

5. Overview of Asset Capitalization
Construction of
a new building
Installation of a
wireless
network
Capture construction-in-process (CIP) costs for assets you
are creating. Capture cost of removal and proceeds of sale
amounts (RWIP) for assets you are retiring.
Retirement of
an asset

6. Overview of Asset Capitalization
Retirement
Adjustment
Assets
Capital
Assets
Capital Project
Capture CIP
Costs
Capture RWIP
Costs
You can set up capital projects to capture capital asset
costs, retirement costs, or both.

7. Award and Project-Related Asset
Processing Flow
Oracle
Purchasing
Oracle
Payables
Oracle
Grants
Accounting
Oracle
Assets
Oracle
Subledger
Accounting
Oracle
General Ledger
Receipt Accrual Costs
Purchasing
Details
Supplier
Costs
CIP and RWIP
Assets and Cost
Post Cost
Post
Cost
Non-CIP Assets*
Transfer to GL
Post Cost
*If a non-CIP asset is associated
with a capital project, then
Oracle Grants Accounting
interfaces the asset and costs
from Oracle Payables and sends
them to Oracle Assets.

8. Accounting ExampleProject X is set up to collect costs for installing street lights in city
A. Several street lights are being removed from existing streets and
retired.
Description Amounts
Supplier Invoice – Road maps/satellite pictures 2,000.00
Supplier Invoice – City civic contractor 5,500.00
Supplier Invoice – Installation trucks 1,300.00
Supplier Invoice – Installing street lights 2,500.00
Employee labor for project management 1,400.00
Usage for use of company car 55.00
Employee labor for removing old street lights 500.00
Total Cost 13,255.00

9. Accounting Example
You create subledger accounting entries for the supplier invoice
transactions from Oracle Payables. Oracle Subledger Accounting
transfers the accounting to Oracle General Ledger.
Accounts Debit
Amount
Credit
Amount
CIP – Street lighting 11,300.00
Accounts Payable Trade 11,300.00
Accounts for Supplier Invoice Transactions

10. Accounting Example
You account for the employee labor and usage transactions you
enter in Oracle Grants Accounting.
Accounts Debit
Amount
Credit
Amount
CIP – Street Lighting 1,455.00
RWIP - Street lights - Cost of Removal 500.00
Payroll Liability 1900.00
Usage Clearing 55.00
Accounts for Expenditure Items in Oracle Grants
Accounting

11. Accounting Example
Define Billing implementation options to control
contract project setup and processing.
After reviewing the costs, you determine that you cannot capitalize
the installation trucks, and change the transaction from
capitalizable to non- capitalizable. In Oracle Grants Accounting,
you distribute the supplier cost adjustment, generate cost
accounting events, and create subledger accounting entries for the
accounting events. Oracle Subledger Accounting transfers the
accounting entries to Oracle General Ledger.
Accounts Debit
Amount
Credit
Amount
Supplier Invoice Expense 1,300.00
CIP – Street Lighting 1,300.00
Accounts for a Capital Cost Adjustment

12. Accounting Example
You place the assets in service and interface the CIP asset lines to Oracle
Assets. After you post the assets in Oracle Assets, you create accounting
entries.
Accounts Debit
Amount
Credit
Amount
Assets – Street lights 11,455.00
CIP – Street Lighting 11,455.00
Accounts for Capital Assets

13. Accounting Example
After the existing street lights are removed, you specify a
retirement date for the retirement asset and interface the RWIP
asset lines to Oracle Assets. After you post the retirement
adjustment asset in Oracle Assets, you create subledger
accounting entries.
Accounts Debit
Amount
Credit
Amount
Accumulated Depreciation – Street
Lights - Cost of Removal
500.00
RWIP – Street Lights - Cost of
Removal
500.00
Accounts for Retirement Adjustment Assets

14. Agenda
– Overview of Asset Capitalization
– Project Types for Asset Capitalization
– Process Asset Capitalization
– Adjustments
– Implementing Asset Capitalization

15. Project Types for Asset
Capitalization
Project Types for
Capital Projects
Project Class = Capital
CIP
Interface Supplier Invoices
Capitalized Interest
Capitalization Information Tab
Define capitalization information on the Capitalization
Information tab for capital class project types.

16. Agenda
– Overview of Asset Capitalization
– Project Types for Asset Capitalization
– Process Asset Capitalization
– Adjustments
– Implementing Asset Capitalization

17. Asset Capitalization Flow: CIP Costs
Create project Define assets
Specify actual
date in service or
retirement date
Collect costs
Review costs
and make
adjustments
Generate asset
lines
Review asset cost
lines and make
adjustments
Interface assets
to Oracle Assets
Tieback asset
lines

18. Specifying Costs
Specify how to classify costs
Capital Assets
Specify whether to capitalize
or expense each transaction
Retirement Adjustment Assets
Classify retirement costs as
costs of removal or proceeds
of sale amounts

19. Defining Assets for Capital Projects
OK!
Project 1 Project 2
Capital
Asset A
Capital
Asset B
Capital
Asset C
Retirement
Adjustment
Asset D
Capital
Asset A
Project 1
Project 2
NO!
You can define multiple assets on a single capital project. A single
asset cannot be created for multiple projects.

20. Streamlining Asset Creation
Asset BAsset A
Copy
Assets
Copy assets within a project
Project
Asset
APIs
Assets (external source)
Create, update, and delete
assets and asset assignments
Streamline the creation of assets on projects

21. Asset Grouping Levels
Grouping levels control how Oracle Grants Accounting summarizes
expenditure items into asset lines.
Grouping Levels:
– Project
– Top Task Only
– Lowest Task Only
– Mixed Task Level
Grouping Level
Types:
– Specific Assets
– Common Costs
Assets
Assign assets

22. Asset Cost Allocation Methods
Capital Project
Actual Units
Client Extension
Current Cost
Estimated Cost
Standard Unit Cost
Spread Evenly
Asset Cost Allocation
Methods
Specify a default asset
allocation method for a capital
project type and override it at
the project level.

23. Specifying an Actual Date in
Service or Retirement Date
Record an Actual Date in Service to place each capital asset in
service as it is completed. Specify a retirement date for to
signify the retirement of a retirement adjustment asset.
Capital Asset A
Actual Date in
Service: None
Capital Asset B
Actual Date in
Service: 18-APR-
2007
Retirement
Adjustment Asset C
Retirement Date:
01-JUN-2007
Meadow Office Park Project

24. Capital Events
Optionally, use capital events to group assets and costs on a
project before generating asset lines for capitalization and
retirement cost processing.
Capital Event
– Event Number: 1
– Event Name: JUL-07
– Asset Cost Allocation
Method: Standard Cost
Event Assets
– Elevators
– Roof
Event Costs
– Task 2.1
Professional Labor
– Task 3.2
Materials

25. Generating Summary Asset Lines
Run costing and funds check
processes
Interface supplier
costs to Oracle
Grants Accounting
Run programs to generate cost
accounting events and create
subledger accounting
Generate asset lines
Update project summary amounts
Processing flow to generate summary asset lines

26. Assigning Asset Lines
Asset Name Description Task Amount
Asset A ADMINISTRATIVE 1.1 1552.15
Asset A AIRFARE 1.1 565.23
Asset B COMPUTERS 1.2 899.23
Asset B PROFESSIONAL 1.2 2566.25
Unassigned ADMINISTRATIVE 2.0 8753.87
Unassigned DUPLICATION 2.0 42.50
Example: The administrative and duplication
asset lines on task 2.0 are unassigned.

27. Sending Asset Lines to Oracle
Assets
Oracle
Grants
Accounting
Oracle
Assets
Interface Assets
Tieback asset lines
Interface capital asset lines and retirement adjustment asset
lines to Oracle Assets and tieback asset lines.

28. Agenda
– Overview of Asset Capitalization
– Project Types for Asset Capitalization
– Process Asset Capitalization
– Adjustments
– Implementing Asset Capitalization

29. Adjusting Capital Project Costs
You can continue to adjust costs for an asset even after
you interface the asset to Oracle Assets.
Oracle
Grants
Accounting
Oracle
Assets
Interface Assets
Create Adjustments
Interface positive and
negative cost
adjustments to Oracle
Assets
Tieback asset lines

30. Reversing Capitalization of Assets
in Oracle Grants Accounting
Reverse capitalization in
Oracle Grants
Accounting and send
reversing lines to Oracle
Assets
Do not reverse capitalization
of a project asset in Oracle
Assets

31. Abandoning a Capital Asset in
Oracle Grants Accounting
Accounting example: the CIP account is credited and
expense accounts debited after processing the
abandonment
Accounts Debit
Amount
Credit
Amount
Supplier Invoice Expense 10,000.00
Payroll Expense 1400.00
Usage Expense 55.00
CIP – Street Lighting 11,455.00

32. Agenda
– Overview of Asset Capitalization
– Project Types for Asset Capitalization
– Process Asset Capitalization
– Adjustments
– Implementing Asset Capitalization

33. Asset Capitalization
Implementation Steps
Steps for Implementing Asset
Capitalization
Required or Optional
Implement Asset Extensions Optional
Define Standard Unit Costs for Asset
Cost Allocations
Optional
Enable Retirement Cost Processing Optional
Define Proceeds of Sale Expenditure
Types
Optional
Asset Capitalization Implementation Steps

34. Implement Asset Extensions
Client Extensions for Asset Processing
Asset Assignment Extension
Asset Cost Allocation Basis Extension
Asset Lines Processing Extension
Capital Event Processing Extension
CIP Account Override Extension
CIP Grouping Extension
Depreciation Account Override Extension
Client extensions you can implement for asset
processing in Oracle Grants Accounting

35. Define Standard Unit Costs for
Asset Cost Allocations
Asset Book Asset Category Cost Per Unit
PROGRESS, S&L BUILDING-ARENA 25,000.00
PROGRESS, S&L FURNITURE-DESKS 1,500.00
PROGRESS, S&L AUTO-TRUCK 20,000.00
PROGRESS, S&L EQUIPMENT-MOVABLE 15,000.00
Example: Project Asset Standard Unit Costs
Define a standard unit cost for each asset book and asset
category combination for which you want to allocate costs.

36. Enable Retirement Cost Processing
No (Default Value)
You cannot access
retirement cost processing
windows and features
Yes
You can access retirement
cost processing windows
and features
Profile Option
PA: Retirement Cost Processing Enabled
Enable retirement cost processing at the site-level

37. Define Proceeds of Sale Expenditure
Types
Transaction
– Project:
Construction
– Task:
1.1 Retirement Costs
– Expenditure Type:
Proceeds of Sales
– Expenditure Organization:
Services-East
Define expenditure types to classify and account for proceeds of
sale amounts for retirement cost processing.

38. Summary
– Describe the purpose of asset capitalization
– Explain the processing flow for asset capitalization
– Perform asset capitalization implementation steps