2 Replies Latest reply on Jun 24, 2019 12:04 PM by J Reinhart

    Down Payments on Projects/Assets

    3767997

      Currently we are using Oracle R12. We don't have the projects module. We are utilizing part of the gl string to track projects/assets. If a down payment for a project is required; we enter it in as a prepayment. When the project is fulfilled or the asset is received; we match the standard invoice and apply the prepayment.

       

      Current Process:

           1.     PO is created with gl string that contains the fixed asset gl code plus project gl code.

                          Example: Fixed Asset GL Code = 1501 and Project GL Code = 3456789

           2.     Prepayment in AP is created with prepaid asset gl code. This gl string doesn't contain the project code.

                          Example: Prepaid Asset GL Code = 1193. No Project GL Code

           3.     When project is complete or asset is received; standard invoice is entered; matched to PO and applied to prepayment.

       

      Our reporting team is missing the down payments in their reports due to the fact that the prepayment invoice doesn't include the project number.

       

      Are there any other options to look at regarding down payments besides adding the project number as part of the prepayment gl string.

       

      I do know the project module won't be purchased within the next 5 years.

       

      Thanks,

       

      Kathy

        • 1. Re: Down Payments on Projects/Assets
          Leo R-Oracle

          I am not sure if I am understanding the functional reasoning behind not having the project included in the pre-payment.

           

          Would it be feasible to create an invoice WITH the project for the pre-payment, and sent to the FA to be entered as a CIP Asset? Then, once the asset is received, it could be capitalized in FA. Would this provide the reporting that your site is seeking?

          • 2. Re: Down Payments on Projects/Assets
            J Reinhart

            Hi Kathy,

             

            If there is a reason the prepayment account shouldn't include the project, then an alternative would be to create a descriptive flex field on the AP distribution to hold the project code and have the reports identify the project using the flex field.  When the prepaid asset code 1193 is used, then the descriptive flex field should be mandatory, to make sure it is always there.  You can do that by making the flex field segment itself mandatory and then setting a default like    select 000000 from dual where asset_code <> 1193.   Then when a distribution is entered with 1193, the default is blank and the user must enter a project code in the flex field.  When a distribution is created with any other account, then the default is 000000 and the user doesn't need to touch the flex field unless they want to select a real project code.

             

            If this is useful or answers your question , please take a moment to mark this reply Hepful.

             

            Regards,

             

            J