JD Edwards EnterpriseOne Fixed Assets Accounting Part-2

Description

What is Fixed Asset?

Fixed assets, also known as long-lived assets or property, plant and equipment (PP&E), are a term used in accounting for assets and property that cannot easily be converted into cash. Fixed assets are different from current assets, such as cash or bank accounts, because the latter are liquid assets. In most cases, only tangible assets are referred to as fixed.

While IAS 16 (International Accounting Standard) does not define the term "Fixed Asset", it is often colloquially considered a synonym for property, plant and equipment. According to IAS 16.6, property, plant and equipment are tangible items that:

(a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes and

(b) are expected to be used during more than one period."

Fixed assets are one of two types:

"Freehold Assets" – assets which are purchased with legal right of ownership and used, and

"Leasehold Assets" – assets used by owner without legal right for a particular period of time.

A fixed asset can also be defined as an asset not directly sold to a firm's consumers or end-users.

JD Edwards EnterpriseOne Fixed Asset Accounting Overview

JD Edwards EnterpriseOne Fixed Assets provides an effective way to track assets for your critical financial and reporting needs, enabling you to produce fixed asset reports, maintain purchase requests for assets, reconcile assets, and maintain tax information. With the JD Edwards EnterpriseOne Fixed Assets system from Oracle, you can control the fixed asset accounting lifecycle, from acquisition and depreciation to revaluation and eventual disposal. For example, you can:

• Add, depreciate, split, revalue, and dispose of fixed assets.

• Ensure compliance with tax and accounting requirements.

• Configure and maintain an unlimited number of depreciation methods.

• Use predefined or custom depreciation methods.

• Use the most advantageous depreciation method for each asset.

• Value assets by using an unlimited number of currencies.

• Maintain insurance and tax information by asset.

• Automate asset definition and configuration.

• Update asset information daily, monthly, quarterly, or annually.

This course is part 2 of 3-part course and covers following topics:

1. Managing Fixed Asset Accounting Data

2. Unit of Production for Assets

3. Asset Depreciation

4. Journal Entries of Fixed Assets

5. Fixed Assets Transactions

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