Reversing Capitalization of an Asset in Oracle Projects
If you placed an asset in service in error or sent inappropriate asset costs to Oracle Assets, you can reverse capitalization of the asset in Oracle Projects, and send the reversing line to Oracle Assets as an adjustment.
When you reverse a capitalized asset in Oracle Projects, Oracle Projects creates reversing (negative) asset lines to offset the asset lines previously interfaced to Oracle Assets. The asset remains in Oracle Assets with a value of zero. Oracle Projects does not delete or dispose of the asset in Oracle Assets. You can use functionality within Oracle Assets to retire the asset if you do not ever plan to re-capitalize the reversed asset.
See Also
Retiring an Asset
Note: If you reverse capitalize an asset in Oracle Assets that was created from Oracle Projects, this transaction is recorded in Oracle Assets only, and not in Oracle Projects. If this happens, you cannot manually update the corresponding asset in Oracle Projects.
Note: You cannot send a reversing line to Oracle Assets until you have posted the original asset using the Post Mass Additions process. You cannot make a negative cost adjustment (reversal) to a mass addition not yet posted to Oracle Assets.
Reverse Capitalize an Asset after Depreciation
Oracle Assets processes reversal transactions from Oracle Projects as negative cost adjustments to the original asset. If you have begun depreciating this asset, Oracle Assets must reverse the depreciation expense in the period you reverse capitalize the asset.
Attention: Before you reverse an asset, ensure that the Amortize Adjustment check box is unchecked for the asset. If you reverse capitalize an asset for which you specify to amortize adjustments, the monthly depreciation on the original cost will not equal the monthly backout depreciation generated to account for the asset cost reversal in Oracle Assets. Oracle Assets will amortize the catch up depreciation on the negative cost adjustment over the remaining life of the asset.
Recapitalize Reverse Capitalized Assets
If you need to recapitalize the asset, put the new Date Placed in Service in the Assets form in Oracle Projects so new asset lines will be created.
Attention: You must also manually change the Date Placed in Service for the asset in the Asset Workbench in Oracle Assets, as the Date Placed in Service cannot be updated through the Mass Additions process.
To reverse capitalization of an asset:
1. Navigate to the Capital Projects window.
2. Find the project you want and choose Assets to open the Assets window.
3. Choose the asset you want to reverse capitalize.
4. Ensure that you do not amortize adjustments for the asset you want to reverse capitalize or recapitalize. You can specify whether to amortize adjustments in the asset definition. See: Defining Assets.
5. Choose the Reverse button.
Oracle Projects automatically enables the Reverse check box for the asset you want to reverse capitalize.
If you reversed the wrong asset, or you want to unreverse an asset before you run the Generate Asset Lines process, choose the asset and the Reverse button again to deselect the asset for reversal.
7. Run the Generate Asset Lines process to remove the Actual Date In Service from the asset and create reversing entries you can send to Oracle Assets. See: Generating Summary Asset Lines.
To recapitalize a reverse capitalized asset:
1. Navigate to the Capital Projects window.
2. Find the project you want and choose Assets to open the Assets window.
3. Enter the Actual Date In Service for the reverse capitalized asset.
5. In Oracle Assets, change the date placed in service to match the Actual Date In Service you just entered. See: Changing Asset Details Oracle Assets User's Guide.
See Also
Generating Summary Asset Lines
Generate Asset Lines Process
