Oracle Cloud Fixed Assets: Group, Parent, Individual and Member Assets
Asset Group
In many countries, local tax regulations require companies to depreciate assets in a composite or aggregate form, rather than individually, for each asset.
You can use the Group Depreciation feature to set up logical groupings of assets based on regulatory requirements and your own business needs. These logical groupings of assets are called group assets.
Group asset depreciation helps you to:
Reduce data entry requirements because you define depreciation parameters at the group asset level rather than at the individual asset level.
Handle complex transactions for group assets and their member assets.
For example, let's say you work for a major corporate enterprise and your company wants to pool together collections of similar assets to ease financial reporting. You can add many individual assets to the group that were placed in service in different years, but maintain only one depreciation amount for the group. Usually, the Calculate Depreciation process calculates and stores depreciation amounts at the group level.
Group Assets
A group asset is a collection of member assets. Member assets are the individual assets that belong to a group asset.
You can transfer member assets in or out of a group asset, and transfer member assets between group assets. The group asset cost is equal to the sum of all the member asset costs.
Asset Description Asset Type
Group Asset An asset containing a collection of member assets. Group
Member Asset An asset that's part of a group asset. Capitalized or CIP
Individual Asset A standalone asset that doesn't belong to a group asset. Capitalized, CIP or Expensed.
Group Assets
Contain two levels of assets, group and members and calculate depreciation depending on the options selected in the Asset Category
There is no such functionality that exists to create a higher level than Group Assets.
Group asset functionality contains the following:
Group level Depreciation Expense is summarized.
Member level Cost and Cost Clearing activity is granular. This is not summarized and still track individually.
Adding, adjusting, retiring assets within the group may produce undesirable results in the depreciation expense calculation at a Group level since the depreciation is expense is summarized.
Back dated adjustments, retirements, transfers, adding new assets are events that need to be considered and tested thoroughly with group asset implementation.
STL Depreciation method is rare in Group Assets and mostly seen with clients that have TABLE method depreciation calculations.
Parent Child Assets
Parent Child tracks assets is a simpler model and identify as a group with the Parent asset for tracking reporting purposes
STL depreciation calculation will exist individually for each asset. The depreciation expense calculation is more simple to track compared to the group asset depreciation calculation.
Child assets are assigned unique tag number, serial number and warranty information
How to link a child asset to a parent asset
Solution
For child assets that will be created, you can link the parent asset during creation. This could be from creating the asset manually on the UI, ADFDI or FBDI template.
There is a Parent Asset field that you can populate the parent asset, to link to the child asset.
For child assets that already exist in Fixed Assets, there is two options:
OPTION I: use the Update Descriptive Details UI
Navigate to Fixed Asset landing page
Click on Tasks Update Descriptive Details
Search and select the child asset
Click on the Change Descriptive Details button
Under the Descriptive Details section, populate the Parent Asset field with the parent asset number.
OPTION II Use the Post Mass Update Descriptive Details FBDI template
Access the FBDI template from Cloud Cloud Applications Financials your current release version, example 20b Oracle Financials Cloud File-Based Data Import for Financials
Click into Assets Post Mass Update Descriptive Details
Click on the FixedAssetUpdateDescriptiveDetailTemplate.xlsm link to download the FBDI template
Populate the FA DESCRIPTIVE DETAILS INT worksheet with the existing child asset
Populate the Parent Asset Number field with the parent asset number to link to the child asset.
Follow the instructions on the Instructions and CSV Generation worksheet, to upload and process the data.