In this article, we will cover
accounting entries made by Oracle Fixed Asset module (FA). First we will
cover some of the natural accounts that are setup and then we will
cover what entries are made.
In the Assets module, following are some of the accounts we setup. Some accounts (like Clearing) are used by other modules as well.
Note: All of these accounts are natural accounts, and are created as flexfield values for the natural account (GL account) segment.
Here are the entries made by FA.
In the Assets module, following are some of the accounts we setup. Some accounts (like Clearing) are used by other modules as well.
Note: All of these accounts are natural accounts, and are created as flexfield values for the natural account (GL account) segment.
|
Account
|
Segment Qualifier
|
|
| 1 | Asset Cost | Asset Account |
| 2 | Asset Clearing | Asset Account |
| 3 | Depreciation Expense | Expense Account |
| 4 | Accumulated Depreciation | Contra-Asset Account |
| 5 | Deferred Depreciation Reserve | Liability Account |
| 6 | Deferred Depreciation Expense | Expense Account |
| 7 | Depreciation Adjustment | Expense Account |
| 8 | Proceeds of Sale Clearing | Asset Account |
| 9 | Cost of removal Clearing | Liability Account |
| 10 | Gain & Loss | Revenue Account |
Here are the entries made by FA.
|
Transaction
|
Natural Account
|
Debit
|
Credit
|
| Asset is added | Asset Cost | $100 | |
| Asset Clearing | $100 | ||
| Asset Depreciation | Depreciation Expense | $100 | |
| Accumulated Depreciation | $100 | ||
| Asset Retirement – W/o proceeds and W/o removal cost |
Accumulated Depreciation | $60 | |
| Gain/Loss | $40 | ||
| Asset Cost | $100 | ||
| Asset Retirement – With Proceeds, W/o Cost of removal |
Accumulated Depreciation | $60 | |
| Gain/Loss | $40 | ||
| Gain/Loss | $10 | ||
| Proceeds from Sale | $10 | ||
| Asset Cost | $100 | ||
| Asset Retirement - With Cost of removal |
Accumulated Depreciation | $60 | |
| Gain/Loss | $40 | ||
| Gain/Loss | $5 | ||
| Cost of removal Clearing | $5 | ||
| Asset Cost | $100 |
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