33 Most Important Important Oracle Fusion fixed assets interview questions

33 Most Important Oracle Fusion fixed assets interview questions

In this post , we will be discuss about Oracle Fusion fixed assets interview questions. We are sharing the most important oracle fusion fixed asset questions which commonly asks in the interviews for fixed asset module. These  interview questions are more related to Fixed Assets Setup and Process flow in oracle fusion. You can learn more about oracle fusion fixed assets using these interview questions. Fusion fixed assets interview questions providing the overview of the fixed asset module. This asset interview question set help to prepare the Oracle Fusion Financials interview. Here below is the complete detail about Fusion fixed assets interview questions.

33 Most Important Oracle Fusion fixed assets interview questions

1.     What is Net Book Value Retired Gain Account in Fusion fixed assets?

This Account help to determine the one book asset value net of depreciation. If the retirement result in gain, Oracle Assets creates journal entries to the gain account. (Cr) in P&L Statement

2.     What is Net Book Value Retired Loss in Fusion fixed assets?

This Account help to determine the book asset value net of depreciation. If the retirement result in loss, Oracle Assets creates journal entries to the Loss account. (Dr) in P&L Statement

3.What is Cost of Removal Gain Account in Fusion fixed assets?

      This Account reflects the cost of removing the asset. If the retirement results in gain, Oracle Assets creates journal entries to this Cost of Removal Gain Account.

4.What is Cost of Removal Loss Account in Fusion fixed assets?

       This Account reflects the cost of removing the asset. If the retirement results     in loss, Oracle Assets creates journal entries to this Cost of Removal Loss Account.

5. What is Deferred Depreciation Expense/Deferred Depreciation Reserve account in Fusion fixed assets?

Deferred depreciation is basically the difference between the depreciation expenses between the tax book and the corporate book.

Hence for such difference in depreciation between books - the entry will be deferred expense Dr to deferred reserve Cr.

6. what is date placed in service in Fusion fixed asset?

Date placed in service is the actual start date, when this asset started using in the company. Date placed in service is the Financial date from which all the financial calculation for the Fixed asset will be start calculating. From Date placed in service , system starts calculating the Depreciation and the age of the Fixed Asset depend from the Date placed in service in fusion fixed assets.

7. How to Add Assets with Future Date Placed in Service in Fixed Assets?

Adding assets in the future FA periods is not possible in the Asset Workbench.

 WORKAROUND

We can use the 'Prepare Mass Additions' screen to create Future Additions using the following steps:

  1- Enter the 'Prepare Mass Additions' screen with future DPIS (date placed in service), ensure to place the queue = POST
     For example, the current open period is APR-XX and the DPIS = 01-AUG-XX
  2- You run depreciation every month, then when running the JUL-XX period with close option you'll find:
      Upon the running of depreciation of JUL-XX, JUL-XX is closed and AUG-XX is open and the program 'Process Pending Transactions' will be submitted and it will process the 'future add' line from FA mass addition and create the asset in AUG-XX period.

8. What is mass additions process in Oracle Fusion Fixed Assets ?

The mass additions process lets you add new assets or cost adjustments from other systems to your system automatically without reentering the data. For example, you can add new assets from invoice lines brought over to Oracle Assets from Oracle Payables, or from CIP asset lines sent from Oracle Projects

9.What is Create Mass Additions Program ?

Create Mass Additions program creates mass additions from invoice information in Oracle Payables and places them in the FA_MASS_ADDITIONS table. This table is separate from the main Oracle Assets tables so that you can review and approve the mass additions before they become actual asset additions. You run this program often to transfer potential asset invoice lines. The same line is never transferred twice. To integrate Oracle Assets with another payables system, develop a program to load the FA_MASS_ADDITIONS table, and then use the Prepare and Post functions to add assets to Oracle Assets.

10. Which Conditions for Asset Invoice Line Distributions To Be Imported in Fixed Asset module.

For the mass additions create process to import an invoice line distribution to Oracle Assets, these specific conditions must be met:

The line is charged to an account set up as an Asset account

The account is set up for an existing asset category as either the asset clearing account or the CIP clearing account

This Track as Asset check box is checked. (It is automatically checked if the account is an Asset account)

The invoice is approved

The invoice line distribution is posted to Oracle General Ledger from Payables

The general ledger date on the invoice line distribution is on or before the date you specify for the create program

Your installation of Payables must be tied to the same general ledger set of books as the corporate book for which you want to create mass additions

11. How many times we can run the depreciation for the period.

We can run depreciation any number of times until the depreciation with close period checkbox checked. We must need to run depreciation for EACH corporate and tax book; Oracle Assets does not run depreciation automatically for a tax book when you run depreciation for the associated corporate book. Run Mass Copy to update your tax book prior to running depreciation for the tax book.

12. How to setup the secondary ledger for corporate FA book journals.

a. Go to Accounting Setup Manager form from FA responsibility:
(N) Setup > Financials > General Ledger > Accounting Setup Manager > Accounting
Setups

b. Query for your ledger.

c. Press Update button for your Secondary Ledger.

d. In the ledgers form, press Update button for Subledger Accounting Options of your secondary ledger.

e. For Assets application press Update Accounting Options button.

f. Ensure that Subledger Accounting Enabled and Use Primary Ledger Amounts options are set to Yes. If they are not set to Yes then please set them and press Apply button.

g).Go to the Assets application and submit again Create Accounting request for the corporate book as Draft and with
Detail level. You should be able to see now in the Create Accounting output the secondary ledger journals associated with the corporate book.

13. What are the types of Key Flexfields available in Oracle Fusion Fixed Assets module?

In Fixed Assets, we do create three types of Key Flexfield

Asset Key Flexfield

Asset Category Flexfield

Asset Location Flexfield

14. What is Asset Key in Fixed Asset?

The asset key allows you to group assets or identify groups of assets quickly. It does not have financial impact; rather it can be used to track a group of assets in a different way than the asset category. For example, use an asset key to group assets by project.

15. Which are the Asset Types in Oracle Fusion Fixed Asset?

Valid asset types are:

Capitalized: Assets included on the company balance sheet. Capitalized assets usually depreciate. Charged to an asset cost clearing account.

CIP (Construction-In-Process): Unfinished assets being built, not yet in use and not yet depreciating. Once you capitalize a CIP asset, Oracle Assets begins depreciating it. Charged to a construction-in-process clearing account.

Expensed: Items that do NOT depreciate; the entire cost is charged in a single period to an expense account. Oracle Assets tracks expensed items but does not create journal entries for them. Oracle Assets does not depreciate expensed assets, even if the Depreciate check box in the Books and Mass Additions Prepare windows is checked for that asset.

Group: A group asset is a collection of member assets. You can add member assets to a group asset, transfer assets out, or between groups assets. Group asset cost is the sum of all the associated member assets costs. A group may contain many individual assets that were placed into service in different years but share one depreciation account maintained for the group. Group asset depreciation, known as group depreciation, is computed and stored at the group level.

16. What is Accumulated Depreciation in Oracle Fusion Fixed Assets?

You normally enter zero accumulated depreciation for new capitalized assets. If you are adding an asset that you have already depreciated, you can enter the accumulated depreciation as of the last depreciation run date for this book or let Oracle Assets calculate it for you. If you enter a value other than zero, Oracle Assets uses that amount as the accumulated depreciation as of the last depreciation run date. If you have bonus reserve, the amount should be added to the accumulated depreciation and is no longer tracked as bonus reserve.

If you enter too little accumulated depreciation, Oracle Assets adjusts depreciation to the correct amount for the current fiscal year. If you enter too much accumulated depreciation, the asset becomes fully reserved before the end of its life.

If you enter zero accumulated depreciation, Oracle Assets calculates the accumulated depreciation and the bonus reserve, if any, based on the date placed in service. You can have a different accumulated depreciation for each depreciation book.

33 Most Important Important Oracle Fusion fixed assets interview questions

17. What is depreciation method in Oracle Fusion Fixed Assets?

The depreciation method you choose determines the way in which Oracle Assets spreads the cost of the asset over the time it is in use. You specify default depreciation rules for a category and book in the Asset Categories window. You can use predefined Calculated, Table, Units of Production, Flat-Rate, or Formula type methods, or define your own in the Methods window.

33 Most Important Important Oracle Fusion fixed assets interview questions

18. What is Construction-in-Process (CIP) Assets in Oracle Fusion Fixed Assets?

A construction-in-process (CIP) asset is an asset you construct over a period. You create and maintain your CIP assets as you spend money for raw materials and labor to construct them Since a CIP asset is not yet in use, it does not depreciate. When you finish building the CIP asset, you can place it in service and begin depreciating it.

19. Can we delete assets from the system?

If you incorrectly added an asset, you can delete it from the system. You can only delete assets added in the current period.

Note: Do not add assets with reserve for current period addition. In Period of Addition, you cannot do YTD and Accumulated Depreciation adjustments.

20. Can we add a New mass addition line to an existing asset as a cost adjustment?

You can add a mass addition line to an existing asset as a cost adjustment. These mass additions lines can include future assets that have not yet been capitalized. Choose whether to change the category and description of the existing asset to those of the mass addition. Oracle Assets reclassifies the destination asset to the category and updates its description to that of the mass addition when you Post Mass Additions to Oracle Assets. Also choose whether to amortize or expense the cost adjustment.

21. How to Merge Mass Additions in Oracle Fusion Fixed Assets?.

You can merge separate mass addition lines into a single mass addition line with a single cost. The mass addition line becomes a single asset when you Post Mass Additions to Oracle Assets.

For example, merge tax lines into the main invoice line distribution to maintain proper asset descriptions; merge a discount line with its appropriate mass addition line; or combine individual mass additions from different invoices into a single line and amount.

22. How to Split Mass Addition lines into multiple assets lines?

You can split a mass addition line with multiple units into several single unit lines. You can split a previously merged mass addition line.

If you split a mass addition, the original line is put in the SPLIT queue as an audit trail of the split. The resulting split mass additions appear with one unit each, and with the same existing information from the source system. Each split child is now in the ON HOLD queue. You can review each line to become a separate asset.

23. How to Delete unwanted mass addition lines in Oracle Fusion Fixed Assets ?.

The Delete Mass Additions program removes mass addition lines in the following queues:

Mass additions in the SPLIT queue for which you have already posted the child mass addition lines created by the split

Mass additions in the POSTED queue that have already become assets

Mass additions in the DELETE queue. Note that Oracle Assets does not create a journal entry to clear the clearing account, since the line does not become an asset

24. Fixed Assets Data Conversion Post Validation Steps in Oracle fusion?

1. Verify your assets.

Before you run depreciation, you should run the Asset Additions Report. Use this report to verify that each asset has the correct depreciation method, life, and date placed in service. Also verify that each asset has the correct cost and accumulated depreciation and that the totals for each asset account are correct.

2.Run Depreciation.

When you are satisfied that your assets are correct, run depreciation for the conversion period. After depreciation completes, Oracle Assets automatically runs the Journal Entry Reserve Ledger report.

3.Reconcile depreciation amounts.

Use the Journal Entry Reserve Ledger Report from Step 2 to verify that the depreciation amounts are correct. If Oracle Assets calculated depreciation for you, verify that the calculated amount is correct. If you find any errors, make adjustments using the Books window and reclassifications using the Asset Details window.

4.Run Mass Additions for post-dated assets.

If necessary, run Mass Additions to add assets into the periods following your import period. Add any other new assets and perform any transactions that you made during the period. Verify all these transactions and run depreciation again. Repeat this procedure until you have caught up to the current period.

5.Copy assets to your tax books using Mass Copy.

When you are satisfied that your corporate book is correct, use Mass Copy to copy your assets into your tax books. You should set up your tax books so that the first period starts at the same time as the associated corporate book. If your import period is the last period of the previous fiscal year, use Initial Mass Copy.

6. Reconcile your tax books.

Reconcile your tax books the same way you did your corporate book but use the Tax Reserve Ledger Report in place of the Journal Entry Reserve Ledger Report.

Run Periodic Mass Copy each period to bring over any new assets, cost adjustments, retirements, and reinstatements from the corporate book.

7. Clean up the Mass Additions holding area.

After you have successfully imported a group of assets, you should remove them from the mass additions holding area. First, run the Unposted Mass Additions Report and verify the status of any unposted mass additions. Afterward, use the Delete Mass Additions window.