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Oracle grants accounting 16
This document discusses asset capitalization in Oracle Grants Accounting. It provides an overview of asset capitalization, describes project types for capitalizing assets, explains the process for capitalizing asset costs, and outlines steps for implementing asset capitalization such as defining standard unit costs and enabling retirement cost processing.
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Oracle grants accounting 16
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- 2. Objectives – Describe thepurpose of asset capitalization – Explain the processing flow for asset capitalization – Perform asset capitalization implementation steps
- 3. Agenda – Overview ofAsset Capitalization – Project Types for Asset Capitalization – Process Asset Capitalization – Adjustments – Implementing Asset Capitalization
- 4. Sponsored vs. Non-sponsoredProjects Capital Project Capital Assets Award Example: A capital project which is a sponsored project
- 5. Overview of AssetCapitalization 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 AssetCapitalization 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-RelatedAsset 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 Xis 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 createsubledger 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 accountfor 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 Billingimplementation 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 placethe 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 theexisting 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 ofAsset Capitalization – Project Types for Asset Capitalization – Process Asset Capitalization – Adjustments – Implementing Asset Capitalization
- 15. Project Types forAsset 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 ofAsset 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 howto 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 forCapital 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 AssetBAsset 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 Groupinglevels 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 AllocationMethods 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 ActualDate 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, usecapital 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 AssetLines 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 AssetName 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 Linesto 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 ofAsset Capitalization – Project Types for Asset Capitalization – Process Asset Capitalization – Adjustments – Implementing Asset Capitalization
- 29. Adjusting Capital ProjectCosts 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 ofAssets 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 CapitalAsset 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 ofAsset Capitalization – Project Types for Asset Capitalization – Process Asset Capitalization – Adjustments – Implementing Asset Capitalization
- 33. Asset Capitalization Implementation Steps Stepsfor 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 ClientExtensions 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 UnitCosts 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 CostProcessing 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 ofSale 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 thepurpose of asset capitalization – Explain the processing flow for asset capitalization – Perform asset capitalization implementation steps