There are some exciting new features and enhancements introduced in release 24C for Assets which Oracle clients can leverage to enhance their return on Oracle Cloud Investment. This blog will cover the amazing updates related to asset exception-based approvals and asset retirement synchronization between SCM and FA, which will all be introduced in this release.
Exception-Based Approvals for Fixed Asset Transactions
Managing fixed assets effectively is essential for maintaining financial health and ensuring regulatory compliance. The introduction of exception-based approvals for fixed asset transactions provides a streamlined approach to control and governance. This feature enables automatic approvals for routine transactions and routes exceptions to managers, optimizing the management of the fixed assets lifecycle.
The exception-based approval process is designed to handle most asset transactions, including additions, transfers, retirements, reclassifications, and cost or method adjustments. By distinguishing between routine transactions and exceptions, businesses can ensure efficient and controlled management of their fixed assets.
Benefits of Exception-Based Approvals
1) Enhanced Control and Governance
The asset capitalization process requires rigorous governance to review and approve capital costs. Similar oversight is necessary for asset movements, retirements, and other cost adjustments. The exception-based approval workflow allows for:
Automatic approvals for routine transactions, reducing the administrative burden.
Managerial oversight for exceptions, ensuring that significant transactions receive proper scrutiny.
This dual approach ensures that all transactions affecting the balance sheet and profit and loss account are appropriately managed.
2) Centralised Information Source
The approval workflow acts as a centralized source of information, enhancing internal controls and providing better accountability. It helps in:
Maintaining a clear audit trail for all asset transactions.
Ensuring compliance with internal policies and regulatory requirements.
3) Improved Accountability and Auditability
When asset transactions are posted, the system sends an approval request notification to the designated approver based on predefined rules. This process:
Ensures that all transactions, whether for a single asset or an entire batch, are properly reviewed and approved.
Provides a detailed record of who approved each transaction, improving accountability and auditability.
4) Elimination of Paperwork
The approval workflow digitizes the approval process, eliminating paperwork and providing a streamlined approach to managing asset transactions. This:
Facilitates Easier Coordination: Within the accounting department, making processes more efficient.
Centralises Transaction Information: For easy access and management.
Synchronization of Asset Retirements between SCM Installed Base and Fixed Asset
Maintaining accurate and synchronized data across various systems is essential for effective asset management and financial reporting. The new feature of synchronizing asset retirements between the Supply Chain Management (SCM) Installed Base and Fixed Assets ensures that updates are consistently reflected across both operational and financial records. This bidirectional integration fosters data integrity, streamlines asset management processes, and supports informed decision-making.
The synchronisation functionality automates the update process between the SCM Installed Base and Oracle Fixed Assets for the retirement of serialised assets. This ensures that the retirement of an asset in one system is immediately reflected in the other, maintaining consistent and accurate asset information.
Benefits of Synchronisation
1) Accurate Operational and Financial Information
Synchronising asset retirements ensures that both operational and financial records are up-to-date and accurate. This is critical for:
Consistent Asset Information: Reflecting the true status of assets across systems.
Reliable Financial Reporting: Ensuring that financial statements accurately represent the company’s asset portfolio.
2) Automated Bidirectional Updates
The feature enables automatic termination and initiation processes between the SCM Installed Base and Oracle Fixed Assets:
Terminate Installed Base Asset on Retirement in Oracle Assets: When a fixed asset is retired in Oracle Assets, the corresponding installed base asset is automatically terminated.
Initiate Fixed Asset Retirement on Termination in Installed Base: Conversely, when an installed base asset is terminated, the corresponding fixed asset retirement is automatically initiated.
This bidirectional integration ensures that both systems are consistently updated without manual intervention.
3) Streamlined Asset Management
By automating the synchronisation of asset retirements, businesses can streamline their asset management processes. This leads to:
Efficiency Gains: Reducing the time and effort required to update asset records manually.
Minimised Errors: Decreasing the likelihood of discrepancies between operational and financial records.
4) Enhanced Data Integrity
Consistent and accurate data across systems enhances overall data integrity. This is crucial for:
Informed Decision-Making: Providing reliable data for strategic planning and operational decisions.
Compliance and Auditability: Ensuring that asset records are accurate and verifiable, supporting compliance with regulatory requirements.
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