Parent asset functionality is used, to group all the
subcomponent assets of a major (parent) asset for ease of processing and
reporting.
At the time of entering a sub-component of a parent asset,
enter the number of parent asset to which the new asset belongs to.
Based on the rule provided in Asset category and parent
asset life, Oracle Assets defaults the life for a subcomponent asset. User can
select either of;
· Same
End Date (Without specifying a minimum life): Subcomponent asset’s life is
remaining life period of the parent asset
· Same
End Date (Specifying a minimum life): Subcomponent asset’s life is
remaining life period of the parent asset or the minimum life provided,
whichever is more
· Same
Life: Subcomponent asset’s life is actual life period of parent asset. In
this scenario, subcomponent asset will continue the depreciation, even after
the parent asset is fully depreciated
·
None: There is no connection between the life of the subcomponent
asset and the parent asset life. Oracle Assets defaults the subcomponent asset
life from the asset category.
As per the life of the subcomponent assets as defaulted
above, depreciation rates need to be defined in the system.
When a transaction has been
performed on parent asset, the transaction will not be performed automatically
on the subcomponent asset, except mass retirements where in user can select
automatically retire subcomponents along with the parent asset.
User has to manually do the same transactions on the
subcomponent asset, if they are applicable to subcomponent asset as well.
Reports available:
Parent Asset Transactions Report: Lists all the
transactions performed on parent assets in a particular asset book
Parent Asset Report: Extracts all the parent assets
along with its subcomponent assets
Uses of parent assets
· Defaulting
the subcomponent asset’s life
· Reporting
purpose
· Retiring
subcomponent assets at the parent asset retiring through mass retirement
