Oracle FA Amortized Vs Expensed Adjustment

[@kasi36]

Clearely explaind, ur videos should help many people. Thanks boss!!

[@OracleEbizandFusionVideos]

Thanks for your feedback

[@anook1970]

Clearly explained the concept. Very helpful for the related audience. Thank you.

[@OracleEbizandFusionVideos]

Glad it was helpful!

[@shaileshverma4354]

Thanks for uploading such useful videos..and the way you have explained is awesome..thanks alot...

[@OracleEbizandFusionVideos]

Thanks

[@gursikh133]

You are the best

[@OracleEbizandFusionVideos]

Thanks for your feedback

[@tonygreg1000]

Excellent job!

[@OracleEbizandFusionVideos]

Thank you very much!

[@ShahRedmi-r9d]

Hi Arvind, Nice video. What accounting entries will be generated after changing cost of asset with and without amortization?

[@canirmalchoudhary8173]

Nice explanation, is there any video explaining accounting 👍

[@OracleEbizandFusionVideos]

Not yet

[@azadsable2527]

Thanks Arvind :) , Can you please upload the video for FA setup.

[@OracleEbizandFusionVideos]

Are you looking for video on FA Book Control setup?

[@arnabiem52]

Thanks for the video and it clearly explain the concept.

[@OracleEbizandFusionVideos]

Thanks

[@diwakerbabu496]

Hi Arvind, really its a fantastic explanation, I have a query please, can we adjust an asset by considering amortization, but amortization start date is in closed period?

[@OracleEbizandFusionVideos]

Yes, you can enter Amortization Start date of a date which falls in closed period... System ultimately create the depreciation entry in current period...

[@monikatharumani2520]

Very clear sir thank you

[@OracleEbizandFusionVideos]

Thanks

[@arunadun7822]

Thanks for your clear explanation.. Could you please lets know on which business scenario Expensed and Amortization adjustments will use?

[@OracleEbizandFusionVideos]

Most of the cost adjustments could be Expensed.... One of the business scenario for Amortized adjustment with prior Amortization date could be:- Expense was incurred in the past but did not record in system for couple of months for some reason

[@Raj-xw1lv]

Great sir👌👍

[@OracleEbizandFusionVideos]

Thanks

[@rokkamsunilkumarreddy88]

Thanks for uploading

[@OracleEbizandFusionVideos]

Thanks

[@sgm8266]

great

[@OracleEbizandFusionVideos]

Thanks

[@SUMITKUMARDIXIT]

Hi, Could you please lets us know any option to rollback the depreciation in current month for prior period? And a question on Override option - once we are done with override of depreciation and in asset Book tab amortize adjustment is ticked. So in that condition will the depreciation will get calculated for remaining NBV / remaining life of asset in the next month? So if we are rolling back the depreciation in current month for prior period using override option and now from next month depreciation should gets calculated on the remaining NBV / remaining life. Will that work in this override option?? And amortize adjustment is already enable in that asset.

[@beginners5799]

HI Arvind...I would like to learn SLA and Ebtax....do you take classes also ???

[@OracleEbizandFusionVideos]

Hi, Please refer the below playlist for SLA videos:- kzbin.info/aero/PLbKu5Q6CEldrl4Z7WL2hZZ3eJebFJoT51 Refer the below playlist for all financial module training videos which includes E-btax... I started uploading 2 weeks every week... So, stay tuned for E-btax in the next couple of weeks:- kzbin.info/aero/PLbKu5Q6CEldqxvnZ1jtEuv2ALORYCNZ63

[@PawanKumar-ez8lt]

Hi Arvind, Thanks for the detailed explanation. When we increase life of asset is depereciation is calculate on current NBV for future periods. If yes how we can acheive this?

[@OracleEbizandFusionVideos]

If you increase the life of the Asset, system recalculates the depreciation for previous periods as well and show the concerned catchup depreciation in the current open period

[@fusionmines8737]

Good Work !

[@OracleEbizandFusionVideos]

Thank you! Cheers!

[@revoltofficial7606]

Hi Sir, While I'm copying corp books to tax books few assets didn't copy and got an error as Amortization adjustment can't copy to tax books is there any rule for not getting copied ( I belive we internally uncheck that box but why ? Any reson behind this

[@OracleEbizandFusionVideos]

Ideally in order for the cost to be copied from corporate book to Tax book, always the cost should be in sync... If there are any additional Cost adjustments in Tax book, then Periodic mass copy will not be able to copy the cost adjustments from Corp book to Tax book

[@KumR]

One last Q - Where do we setup if we want an asset to be depreciated or not ?

[@OracleEbizandFusionVideos]

See my reply to your other question

[@puneetkaur1066]

Hi Arvind Thanks for explaination. I have a query what if we have more cost adjustments during the year on asset in case of depriciation calculted on amortise adjustment? Can system let us do additional adjustment at different periods of year?

[@OracleEbizandFusionVideos]

Yes, you can do multiple cost adjustments on an asset in different periods... But once you make a cost adjustment as amortized adjustment, then all future adjustments should be amortized as well.

[@puneetkaur1066]

@@OracleEbizandFusionVideos but once you tick amortise adjustment you cannot revert back. It means you cannot add any more cost adjustments to asset in future. Is this right?

[@OracleEbizandFusionVideos]

@@puneetkaur1066 Yes, thats correct

[@puneetkaur1066]

@@OracleEbizandFusionVideos So what the best solution for this scenario ?

[@puneetkaur1066]

@@OracleEbizandFusionVideos Then is it correct to say that we shouldnt tick amortise adjustment box. Then whenever we add to existing asset let Oracle do cost adjustment. In case, we have cost adjustment hit asset register should we need any GL journal for depriciation adjustment?

[@kathypotzkee8925]

Hello. What Oracle report will show if Amortize Adjustment was done to an asset? Is there any report to download for the list of all the assets with Amortize Adjustment?

[@OracleEbizandFusionVideos]

Try the report "Form 4562 - Depreciation and Amortization Report"

[@kathypotzkee8925]

@@OracleEbizandFusionVideos thank you. But we do not have that in our Oracle R12. I found one report that has the Amortized Adjustment flag which is the XXFT Asset Report by Asset Book. However, I cannot understand why this report duplicates the asset numbers. And it also does not tie up with our Depreciation Report.

[@OracleEbizandFusionVideos]

I am not sure what version of EBS R12 you are in. I verified in one of our client environment who are on R12.2.4 and this report is available. Probably you need to raise Oracle SR and check if any patch needs to be applied to start seeing this report

[@KumR]

Hi Aravind - Thanks. What u showed is in Corporate Book? Can exact same thing be done in Tax Book too ? Any difference?

[@OracleEbizandFusionVideos]

Yes, you can perform the cost adjustments in Tax book as well. But remember once you perform cost adjustment in tax book, then any future cost adjustments of that asset in corporate book will not be copied to tax book as you have updated the cost directly in tax book

[@KumR]

So in normal scenario, when we make any changes to an asset in corp book, the changes get copied to tax book automatically? or is there a scheduled job?

[@OracleEbizandFusionVideos]

At the end of the month, you run a job called "Periodic Mass Copy" which will copy the data from Corp book into Tax book. Please see below my video on Periodic Mass copy functionality:- kzbin.info/www/bejne/bYS3nHyqmqhra7c

[@khanalimuzammil]

Hi Arvind, I saw your videos, very informative and useful. I was seeking a video in which if we update the salvage value and Life of an asset what impact made on an asset depreciation or how the system will take this change? If you have a relevant document or video pls. share. Appreciate... Regards Mak

[@OracleEbizandFusionVideos]

Hi Mak, any change in Life of an asset or salvage value will impact depreciation.... So, based on change in these values, system will recalculate depreciation from DPIS and any catch up depreication will be reflected in current period

[@khanalimuzammil]

thanks for the update, Have you made any video on it, If yes pls. share the link or documents. Appreciate...

[@ManojKumar-qt8oy]

What would have happened if the Amortize date is given as 01-Oct-2018? This explanation could have been added in this video will give more knowledge to the viewers. I believe, if the date 01-Oct-2018, then the catch up depreciation of 125 must be amortized for the rest of the 11 months.

[@OracleEbizandFusionVideos]

Hi Manoj, if you have given Amortize date as 01-OCt-2018, then it means you want system to calculate depreciation on entire 15000 for 12 months....so this would have resulted in depreciation for all months starting from Nov-2018 as 1250 per month (i.e. 15000/12)... but for the month of Nov-21018, the actual depreication amount would have been 1250+125= 1375.... 125 is the catch up depreciaion of Oct-2018

[@KumR]

Also I saw in second case - both depreciation flag and amortization flag is selected. How can an asset be both depreciated and amortized ? It should be either one right ? I thought only fixed asset is depreciated and current asset is amortized?

[@OracleEbizandFusionVideos]

When you check amortization adjustment flag, you are just indicating from which amortization start date your recent adjustment should be considered.... don't go in depth with regard to difference between Depreciation and Amortization... yes, i know from pure accounting perspective, Depreciation is calculated for Tangible assets and amortization is calculated on intangible assets

[@KumR]

Oracle Ebiz and Fusion Videos - Exactly. So the accounting concept does not apply here? Every asset is marked with depreciate flag YES no matter if its fixed asset or current asset ? And then the amortize flag is only enabled if we need amortize adjustment for that asset ? Is my understanding right ?

[@OracleEbizandFusionVideos]

Depreciate flag will be set under Default rules of Asset Categories. If Depreciate flag is set under this setup, then by default any assets which are created with this asset category will have Depreciate flag checked. For any specific asset, if you do not want system to calculate depreciation, then you can uncheck the same in Asset workbench

[@christianalejandroestrella841]

excuse me, you would give subtitles to the videos or someone who makes these tutorials in Spanish

[@OracleEbizandFusionVideos]

Thanks for your interest in my videos and unfortunately i cannot make these videos in Spanish

[@balakrishnan403]

Hi, Can you please add the explanation on Depreciation methods and how the depreciation is calculating, thanks in advance.

[@OracleEbizandFusionVideos]

In this example, Depreciation method is Straight line and i had already explained the depreciation calculation. Sure, in future, i will create a separate video on different depreciation methods and the calculations based on different depreciation methods

[@balakrishnan403]

@@OracleEbizandFusionVideos if possible pls create custom depreciation method and explain the calculations. thanks in advance.

[@OracleEbizandFusionVideos]

@@balakrishnan403 Sure