Fixed Assets - Oracle Financials - Interview Q&A – Part 4
71. Is it possible to create a asset with the previous date?
Ans: Yes, you can create an asset with a previous date during creation.
72. Is it possible to upload the Asset categories through rapid implementation?
Ans: Yes, asset categories can be uploaded using rapid implementation templates.
73, Is it possible to implement the project without fixed assets?
Ans: Yes, fixed assets are not mandatory for project implementation. However, it
depends on the organization’s needs.
74. Is it possible to add the Asset directly in the tax book without copying from the Asset
book?
Ans: Yes, assets can be added directly to the tax book.
75. Can we retire the assets within the same period?
Ans: No
76. What is the purpose of the PRO rate of calendar?
Ans: The pro rate calendar determines the proration of asset depreciation or allocation
when assets are added or removed during a specific period. It ensures depreciation is
calculated accurately based on partial usage.
77. What is the purpose of the depreciation calendar?
Ans: The depreciation calendar defines periods for calculating and recording
depreciation expenses for fixed assets. It ensures accurate allocation of asset costs
over their useful lives.
78. Is there any difference between the fiscal calendar and the financial calendar?
Ans:
Fiscal Calendar---- Represents the organization’s fiscal year for accounting purposes,
which may not align with the calendar year.
Financial Calendar: Often used interchangeably but may specifically refer to periods for
budgeting and financial planning.
79. How many types of primary depreciation methods in fixed assets?
Ans: The primary depreciation methods in Oracle Fusion are>>Straight-Line, Declining
Balance, Sum-of-the-Years’ Digits, Units of Production.
80. Is it possible to create multiple assets in fixed for a single asset invoice line in AP?
Ans: Yes
81. Is it possible to create a single asset in fixed assets for the multiple assets lines in
AP?
Ans: Yes
82. When do we use the reinstate of the asset?
Ans: We can use the reinstate functionality to reverse previous asset retirement and
restore an asset to the Fixed Assets module.
83. When we retire the assets in fixed assets?
Ans: Disposal, sale, scrap or write-off.
84. What is the period close process for the FA?
Ans: FA Period Close Process==>>>©-Perform all asset additions, retirements, and
adjustments. ©-Run depreciation and ensure it is accounted for in GL.©-Transfer
depreciation and other asset transactions to GL.©-Close the FA period.
85. Why should we consider the prepaid expenses as Asset?
Ans: Prepaid expenses are considered an asset because they represent future
economic benefits for the company. The payment is made in advance for goods or
services that will be consumed in future periods. For instance, insurance premiums or
advance rent paid are recorded as assets until the benefit is realized.
86. Can you please explain on the Track as an Asset check box?
Ans: The "Track as an Asset" checkbox in Oracle Fusion AP is used to indicate that an
invoice line pertains to an asset. When this box is selected, the system tags the line for
transfer to the Fixed Assets module. This ensures that the invoice line is treated as an
asset rather than an expense.
87. How will the system recognize the invoice line as an asset in AP?
Ans: The system recognizes an invoice line as an asset when----->>>--The "Track as an
Asset" checkbox is selected.--The distribution account is mapped to an asset-clearing
or asset-related account.--The line meets the threshold for capitalization defined in the
setup.--The invoice is validated and accounted.
88. Is it necessary for Asset clearing Account code combination and Invoice asset line
code combination should be the same, transferring asset invoice lines from AP to FA?
Ans: Yes, it is crucial for the Asset Clearing Account and the Invoice Asset Line
distribution account to be aligned for successful transfer. Any mismatch in
configurations may lead to errors or prevent the line from being recognized as an asset.
89. Is it possible to create a manual asset manually in FA based on PO invoice if periods
are closed in AP?
Ans: Yes, it is possible to create a manual asset in FA based on a PO invoice even if AP
periods are closed. You can use the asset creation process in FA to manually enter the
asset details, referencing the PO invoice for record-keeping purposes.
90. What is meant by unplanned depreciation?
Ans: Unplanned depreciation refers to a depreciation adjustment outside the regular depreciation
schedule. It may occur due to---Asset impairments., Sudden changes in asset usage or life
expectancy.,Regulatory or management-driven write-downs. This is recorded as an adjustment to
reflect the true value of the asset.
