3 Replies Latest reply on Sep 23, 2011 3:18 PM by sarath.mec

    Fixed Asset Item Purchasing

    675812
      Hi,

      I know that there are 3 kinds of Items used in Purchasing:


      *1) Expense Items*
      These items normally have the following attributes...

           INVENTORY_ASSET_FLAG = N
           PURCHASING_ITEM_FLAG = Y
           INVENTORY_ITEM_FLAG = N

      *2) Inventory Expense Items*
      These items normally have the following attributes...

           INVENTORY_ASSET_FLAG = N
           PURCHASING_ITEM_FLAG = Y
           INVENTORY_ITEM_FLAG = Y


      c) Inventory Asset Items
      These items have the following attributes...

           INVENTORY_ASSET_FLAG = Y
           PURCHASING_ITEM_FLAG = Y
           INVENTORY_ITEM_FLAG = Y
      COSTING_ENABLED_FLAG = Y

      But what about fixed asset purchasing " Cars, heavy equipments , .............etc" ?

      When creating a purchase requisition what is the destination type?

      How can i receive them?

      What are the journals created in (receipt - invoicing - payment)?

      Finally, What are the item attributes defined for such items?



      Please advise ..

      Thanks in advance.

      Edited by: user10716706 on Dec 23, 2008 4:29 AM

      Edited by: user10716706 on Dec 23, 2008 4:37 AM
        • 1. Re: Fixed Asset Item Purchasing
          527590
          There is no specific attribute for differentiating 'Fixed Asset' item and a normal item. All the items can be converted as Fixed Assets. This will be done during Payables Invoice creation.

          Usually the FA item will be created as an 'Expense Item (your first kind of item). The destination will be expense as it is an expense item. You will receive the item like receiving a normal item.
          • 2. Re: Fixed Asset Item Purchasing
            sarath.mec
            Thanks, I also had this exact specific doubt. Can you just tell me how does the asset clearing account come into picture for these kind of items.

            I found the following blog which ruptured my understanding and this thread had helped me to understand it better

            http://www.oracleappshub.com/account-payable/procure-to-pay-p2p-accounting-entries/

            So how does Asset clearing account come into picture in payable invoicing.
            • 3. Re: Fixed Asset Item Purchasing
              sarath.mec
              One more doubt, So what is the difference between Inventory Asset Flag and Costing Enabled Flag.

              Why doe we use this case.

              i.e Inventory Asset Flag as Checked and Costing Enabled Flag as No.

              Does this make any sense. Can these two flags be combined to a single one.

              Thanks,
              Sarath