How to Setup Asset Impairments in Oracle R12
Step 1. Setup Cash Generating Unit (CGU):
- Navigate to Assets responsibility: (N) Setup > Asset System > Cash Generating Units
- Define or maintain Cash Generating Units for each book that needs Impairment functionality.
Step 2. Assign Cash Generating Units to Assets:
There are two possibilities to assign Cash Generating Units:
A. Manually via Asset Workbench:
- Navigate to Assets responsibility: (N) Assets > Asset Workbench
- Query for the existing assets that needs to be assigned to Cash Generating Units.
- Press “Books” and select from LOV the book name.
- Go to Impairment tab and use the LOV from the Cash Generating Unit field to assign or change CGU assignment.
B. By mass assignment via WEB ADI:
- Navigate to Assets responsibility: (N) Assets > Impairment > Assign Cash Generating Units.
- Enter Book, Asset Number and CGU.
- From the main toolbar go Oracle > Upload for uploading the assignment information to the assets.
Step 3. Setup Impairment Accounts:
Setup Impairment Expense account and Accumulated Impairment account in the Asset Categories form.
- Navigate to Assets responsibility: (N) Setup > Asset System > Asset Categories
- Query for Asset Categories and Books.
- Enter the accounting information for Impairment Expense account and Accumulated Impairment.