From Additions to Retirements: A complete guide to managing assets in Oracle ERP.
The Oracle Fixed Assets module tracks your organization's physical assets from the moment they are acquired (Additions) through their useful life (Depreciation & Transfers) until they are disposed of (Retirement). This guide covers the complete end-to-end lifecycle of an asset.
Categories define the default depreciation rules and GL accounts for groups of assets.
You need at least one Corporate Book (and potentially Tax Books) to hold the assets.
Rules like Straight-Line or MACRS must be defined before assigning them to assets.
Fixed Assets Accountant
Fixed Assets Accountant
Fixed Assets Accountant
Fixed Assets Manager
Actor: Fixed Assets Accountant | Module: Oracle Fixed Assets / Payables
An asset is brought into the system. This can be done manually, or via "Mass Additions" where invoice lines from Accounts Payable are sent directly to FA to be capitalized.
Example: AP enters an invoice for a $50,000 server. The "Mass Additions Create" program sends this to FA. The FA accountant reviews the line, assigns a Category (e.g., IT Equipment), and posts it.
Navigation Path:
Fixed Assets > Assets > Prepare Source Lines
Key Actions:
Select the line, click Prepare, assign category, and submit.
Actor: Fixed Assets Accountant | Module: Oracle Fixed Assets
After an asset is added, you might need to adjust its cost, salvage value, life, or reclassify it to a different category.
Example: The useful life of the server is extended from 3 years to 5 years. An adjustment is entered to change the life, which recalculates future depreciation.
Navigation Path:
Fixed Assets > Assets > Adjust Assets
Key Actions:
Search for the asset, choose Adjust, update the relevant fields, and submit.
Actor: Fixed Assets Accountant | Module: Oracle Fixed Assets
Physical assets move. A transfer involves moving an asset from one location, employee, or expense account (cost center) to another.
Example: The server is moved from the New York office (Cost Center 100) to the London office (Cost Center 200).
Navigation Path:
Fixed Assets > Assets > Transfer Assets
Key Actions:
Select the asset, choose Transfer, and enter the new location/expense account details.
Actor: Fixed Assets Manager | Module: Oracle Fixed Assets
The depreciation program calculates the wear and tear (expense) of all capitalized assets for the current period based on their assigned methods (e.g., Straight-Line). Running depreciation also permanently closes the FA period.
Example: At month-end, the manager runs the "Run Depreciation" program for the Corporate Book. The system calculates $1,000 of depreciation expense for the server.
Navigation Path:
Fixed Assets > Depreciation > Calculate Depreciation
Key Actions:
Calculate Depreciation is run. The period must be closed separately in the Period Close workspace.
Actor: Fixed Assets Accountant | Module: Oracle Fixed Assets
When an asset is sold, scrapped, or lost, it must be retired from the system. This removes the asset's cost and accumulated depreciation from the balance sheet and recognizes any Gain or Loss on the sale.
Example: The server breaks down and is scrapped. A full retirement is entered. Cost and Accumulated Depreciation are cleared, and a Loss is recorded in the GL.
Navigation Path:
Fixed Assets > Assets > Retire Assets
Key Actions:
Select the asset, enter retirement details, submit. The "Calculate Gains and Losses" process is usually scheduled.
Actor: General Ledger Accountant | Module: Subledger Accounting (SLA)
All FA activities (Additions, Adjustments, Transfers, Depreciation, Retirements) generate accounting events. These must be processed by SLA and transferred to the General Ledger.
Example: Run "Create Accounting" for Fixed Assets in Final mode, which sends the journal batches (Debit Depreciation Expense, Credit Accumulated Depreciation) to GL.
Navigation Path:
Scheduled Processes > Create Accounting (Application: Assets)
Key Actions:
Submit the process and review the Create Accounting Execution Report for any errors.
Learn how POs and AP Invoices feed into the Mass Additions process.
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