4 Replies Latest reply: Sep 17, 2013 8:43 AM by 1014028 RSS

    Define existing FA Asset in capital projects window

    1014028

      We have "Projects" in Oracle Projects for which "CIP Assets" already exists in Fixed Assets. Project number is not tied to Fixed Assets and CIP cost is calculated manually.

      We want to turn on Project Costing and use Asset Capitalization feature in Projects to transfer assets to FA. Capital Projects window only allows to define NEW asset and transfer IN-SERVICE assets to FA.

      The issue is it won't allow us to define existing CIP assets in project. Any suggested approach to deal with this?

        • 1. Re: Define existing FA Asset in capital projects window
          Dina Rotem

          Hi

          In Oracle Projects define new assets.

          In FA when assel lines are interfaced to mass addition table, you may select any of the new assets and add its costs to existing asset in FA, then post.
          Dina

          • 2. Re: Define existing FA Asset in capital projects window
            1014028

            Thanks. Is any way I can bring opening CIP Balances from FA?

             

            Thanks

             

            r

            • 3. Re: Define existing FA Asset in capital projects window
              Dina Rotem


              Hi

               

              Solutions may depend on the specific scenario.

              Please elaborate on your exact situation.

              What is the source of the CIP asset in FA?

              Do you have costs in projects that match to those CIP assets? Are the coston indirect or capital project?

              If not, waht is the strategy for cost conversion into PA?

               

              Dina

              • 4. Re: Define existing FA Asset in capital projects window
                1014028

                Currently

                 

                ·         OTL timecards interfaced to PA and expenditure items information pulled from PA in excel

                ·         We have Capital and Indirect internal Project. Capital Project Cost being capitalized,

                ·         Capital Project Cost is calculated manually in excel - Project Costing is not turned on.

                ·         AP invoices for CIP assets are interfaced directly to FA

                ·         CIP assets are manually created and cost (PA+AP Clearing) are added by mass additions.

                ·         CIP has balances in FA – capitalized when in service.

                 

                 

                Option (1) - We want to turn on Project Costing and use asset capitalization functionality

                 

                 

                ·         Calculate and Cost Distribute Labor and Burden Cost in Projects .

                ·         Summarized CIP cost for Capital project

                ·         Define a dummy assets and put in service (won’t allow to transfer to FA otherwise)

                ·         Transfer to FA and Add to existing CIP asset

                ·         New CIP assets remain in Projects and transferred to FA when ‘actually’ put in service

                ·         AP invoices for CIP assets continue to interface with FA directly (out of scope to bring thru PA)

                 

                Issue here is CIP assets are at two places – existing CIP assets are in FA and new CIP assets remains in Projects.

                Reporting would be a challenges and difficult from user perspective. Another issue is AP invoices for CIP assets booked in FA

                 

                Option (2) – Possibility to bring CIP balances in PA -

                 

                ·         Use standard project costing and asset capitalization functionality

                ·         We can rename existing CIP assets in FA and retire - so we can use same asset number in PA

                ·         Bring (? –not sure how) opening CIP balances from FA to projects (Capital Projects window)

                ·         Onwards accumulate labor CIP cost for existing and new assets in PA

                ·         Add (? –not sure how) AP clearing invoices to CIP 

                ·         Put in service in PA and transfer to capitalize to FA

                 

                Issue here is –

                 

                Can we bring opening balance from PA? can expenditure batch used for this?

                Can we add AP cost directly to CIP?