Many believe that once an asset is placed in service that is the end of the story. However, there is more to the Oracle Project and Oracle Assets relationship after capitalization.
A project can hang around until the asset is retired to capture the retirement costs, resulting in the full cradle-to-grave cost and activity of the asset.
Companies choosing to make new additions to the asset can track them through the same project to the asset. Replacement parts can be tracked as a distinct asset or merged after adjustment in Assets. Frequently, companies build multiple assets tracking to a single budget while having different in-service dates. Projects allows for collecting construction in process (CIP) and expense costs, budget controls, asset in service timing, and other controls while Assets depreciates, amortizes, tracks book value and provides current, accurate financial reporting.
Projects and Assets together give managers accurate and timely access to the complete cost of any project-related asset.
To find out more about the benefits of implementing project accounting, contact us today.
