|
By Zaki To use the Asset Category Flexfield to its fullest, its functionality needs to be understood. Using a Major and a Minor segment has become so conventional that it now seems to be accepted very much as the norm if not as a restriction. It should be remembered that the Asset Category Flexfield permits a SEVEN SEGMENT structure. One segment needs to be specified as the MAJOR Segment. In our implementation, we use a three segment structure to meet our BUSINESS NEED. The first segment matches the description of the GL Chart of accounts asset cost account for that category. The second is a dependent segment and codifies the corporate depreciation rate and the third segment is an independent segment codifying the tax rate of depreciation. The primary use of the asset category flexfield is given below (extract from Asset User Guide): QUOTE Oracle Assets uses the category flexfield to group your assets by financial information. You design your category flexfield to record the information you want. Then you group your assets by category and provide default information that is usually the same for assets in that category. Define the category flexfield to fit the way you group your assets. Use the category flexfield to group your assets. Group your assets according to depreciation rules. By standardizing category names, you can more easily track your assets. You can default asset financial information for new assets based on the asset category. You can enter default depreciation rules for each category flexfield combination for each book. When you add an asset to a book, Oracle Assets defaults the depreciation rules from the asset category. If necessary, you can specify different depreciation rule defaults for different date placed in service ranges. Consider the way you group your assets. Determine which assets share depreciation information such as prorate convention and depreciation method. You also need to decide how many levels (segments) your category structure needs. Decide which is the top level (major category segment). You may want to set up your categories to match your chart of accounts. Each chart account defines a major category. You can define at least one subcategory segment to allow for distinctions within a major category. UNQUOTE The important use of the segment qualified as MAJOR is for capital budgeting. You can use Oracle Assets for capital budgeting but the budgeting is done only at the segment level that has been qualified as MAJOR.
Have a Oracle Question
Oracle Books
Oracle Application
Oracle Home
All the site contents are Copyright © www.erpgreat.com
and the content authors. All rights reserved.
|