In this article, i will explain the steps involved in the interface of Capital Projects Assets to Fixed Assets.
1. Enter the cost that you want to capitalize either in the Pre-approved expenditure entry or through transaction import or from Payables or other modules.
2. Run the distribute process for the type of cost that you are dealing with. (i.e labor, usage, and miscellaneous cost. )
3. If the item is from Payables, you need to run the ‘PRC: Interface Supplier Costs’ process.
4. Interface Raw Cost and Burden Cost to GL. You may need to run the suitable process from the list below:
PRC: Interface Labor cost to GL
PRC: Interface Total Burdened Cost to GL
PRC: Interface Usage and Miscellaneous Cost to GL
PRC: Interface Supplier Invoice Adjustments to AP(if item is from payables).
5. Define Assets under Projects 6. Assign Assets to a Task/Project in Oracle Projects.
7. Place the Assets in service.
8. Run the ‘PRC: Update Project Summary Amounts‘ to update the Cost buckets.
9. Run the ‘PRC:Generate Asset Lines’ process to generate Asset Lines in PA.
10. Run ‘PRC: Interface Assets’ process to interface Asset Lines to FA.
11. In Fixed Assets post the Asset Lines you have interfaced from PA to FA.
Things you may have to check before generating asset lines:
1. Check all the costs have been cost distributed( You need to run the appropriate cost distribution process
labor, expense, miscellaneous etc depending upon your expenditure type).
2. Check the project type for the project. In the capitalization information, alternate region it indicates whether raw or burden costs are being capitalized. If burden costs are used, then nothing will get picked up unless Distribute total Burden costs has been run.
3. Make sure that the assets have an in-service date and that the report parameter Date Placed In Service Through includes this date.
4. Check the PA Date Through parameter used. Note that this must be at least the last day of the period which includes the PA Date of the cost distribution lines of the expenditure.
If this date is not the last day of a period, the process will select the first date which is a last day of a period prior to the date entered.
Lets say your PA periods are like below:
JAN-09 01-JAN-09 to 31-JAN-09 FEB-09 01-FEB-09 to 28-FEB-09
If you have CDL’s with a PA date of 15-FEB-09, and you enter a PA date through 25-FEB-09, these CDL’s will not be picked up because the process will not actually use the date 25-FEB-09, but rather the first period ending date prior to that date, or 31-JAN-09.
5. Check the project status. In Setup-Projects-Status, make sure that the project’s current status has the Capitalize Assets action allowed.