Accounting Entries – Fixed Assets

In this article, we will cover accounting entries made by Oracle Fixed Asset module (FA). First we will cover some of the natural accounts that are setup and then we will cover what entries are made.

In the Assets module, following are some of the accounts we setup. Some accounts (like Clearing) are used by other modules as well.

Note: All of these accounts are natural accounts, and are created as flexfield values for the natural account (GL account) segment.

	Account	Segment Qualifier
1	Asset Cost	Asset Account
2	Asset Clearing	Asset Account
3	Depreciation Expense	Expense Account
4	Accumulated Depreciation	Contra-Asset Account
5	Deferred Depreciation Reserve	Liability Account
6	Deferred Depreciation Expense	Expense Account
7	Depreciation Adjustment	Expense Account
8	Proceeds of Sale Clearing	Asset Account
9	Cost of removal Clearing	Liability Account
10	Gain & Loss	Revenue Account

Here are the entries made by FA.

Transaction	Natural Account	Debit	Credit
Asset is added	Asset Cost	$100
	Asset Clearing		$100
Asset Depreciation	Depreciation Expense	$100
	Accumulated Depreciation		$100
Asset Retirement – W/o proceeds and W/o removal cost	Accumulated Depreciation	$60
	Gain/Loss	$40
	Asset Cost		$100
Asset Retirement – With Proceeds, W/o Cost of removal	Accumulated Depreciation	$60
	Gain/Loss	$40
	Gain/Loss		$10
	Proceeds from Sale	$10
	Asset Cost		$100
Asset Retirement -  With Cost of removal	Accumulated Depreciation	$60
	Gain/Loss	$40
	Gain/Loss	$5
	Cost of removal Clearing		$5
	Asset Cost		$100