If one converts the legacy assets with the accumulated depreciation then the first depreciation will only contain the current period depreciation and so it will only add to the reserve account balance in GL, However, one needs to make sure that the reserve loaded on the asset matches the reserve balances by account in GL. The cost account balances will not be affected when the addition journal containing all the legacy asset additions is posted and then reversed.
Here, the cost added in Assets needs to match the balances in GL by account.
Usually the asset categories are set up where the major category reflects the cost account and the minor category the depreciation method/life.
Thus by converting the legacy assets the balance of the assets should match the cost account balance. But usually, there are slight differences where either an asset was loaded with the wrong category or there was a mistake in the prior system. In the first case you can change the category of the asset and in the second case you can enter an adjusting journal in GL.
As far as the reserve goes, I would expect that it was added correctly based on the depreciation in the legacy system. If that is not the case, then you can still enter an adjusting journal in GL or perform an unplanned depreciation in Assets.
Interface FA_MASS_ADDITIONS
Between Fusion Payables and Fusion Assets there is the interface FA_MASS_ADDITIONS. This interface is not only used to transfer invoice lines from Payables to Assets. One can also use this interface to load legacy assets into Oracle Assets. The distributions for the rows in table FA_MASS_ADDITIONS are stored in table FA_MASSADD_DISTRIBUTIONS.
OER FBDI Templates
In the Oracle Enterprise Repository (OER) one can find File Based Data Import (FBDI) templates which are intended for the use for Cloud/SaaS, but can also be used for On Premise, for the data of the legacy assets to be imported and posted.
ADFdi Template
One can also use the Additions template for the (ADF Desktop Integrator) to enter and upload the legacy assets data. ADFdi is a Desktop Tool using Microsoft Excel to load (mass) transaction data into the application.
SQL*Loader
Note: SQL*Loader cannot be used by Cloud/Software-as-a-Service (SaaS) customers.
Additions API
.Note: APIs cannot be used by Cloud/Software-as-a-Service (SaaS) customers.
How to prepare the setup for legacy data conversion?
Fusion Assets should be set up. Use the Check Setup Diagnostics to verify the setup as explained in Diagnostics, The Diagnostics will check your Assets setup and tell you in the output if there are any issues to be found. Oracle Support can give you advice on how to rectify the issues if there are any found.
As Oracle Assets has it's own calendar, you are not forced to convert your assets legacy data at a certain point in time. As most legacy systems will give you complete data after closing the last period of a fiscal year, the best period to start with in Oracle Assets is therefore the first period of the next fiscal year.
When you add an asset, the system creates a record in tables FA_DEPRN_SUMMARY and FA_DEPRN_DETAIL with the DEPRN_SOURCE_CODE B respective BOOKS with the period prior to the addition, which shows that the record was not created by a depreciation run. So when you convert with accumulated depreciation, you load with the accumulated depreciation taken in the legacy system, which Oracle Assets then saves in the B row with the period counter for the previous period.
Which method should be used to convert legacy data?
The assets can be either added through the FA_MASS_ADDITIONS interface or manually through the Additions pages.
The decision, which route to take, depends on the number of assets to be converted. A handful can easily be entered, but for more assets one needs to look into the options listed above.
There are 3 ways to load assets: you can use the ADFdi (ADF Desktop Integrator) Template/OER Templates and upload assets via the spreadsheet into the interface, one can use the SQL*Loader and load the asset via a flat file into the interface, and one can use the Additions API to create assets. The OER Templates were created for Cloud, but can also be used on premise. The Fusion Assets OER Templates contain a sheet with the Instructions and CSV Generation.
Note: SQL*Loader and API cannot be used on Cloud.
With all methods you have the option to tell the system the accumulated depreciation or let the system calculate the depreciation for you.