How do we specify an item as Inventory Asset item?

How do we specify an item as Inventory Asset item?

The best practice to handle fixed asset items and to eliminate the confusion of other types of items is to follow the below procedure:

1. Define a FA item for each asset category you have, for example, let's say we have two asset categories (Computers and Equipment), then we'll define the following items:

          Item Code: FA00001, Item Description: Computers

          Item Code: FA00002, Item Description: Equipment

2. Assign expense item for FA00001 with Asset Clearing Account attached to Computers Asset Category (Purchasing Tab)

3. Assign Asset Category for FA00001 with Computers Asset Category (Purchasing Tab)

Now, let's say we want to purchase a Dell laptop:

1. Create PO and enter Item FA00001, You will notice that Description will be defaulted to "Computers"

2. Change the description to "Dell laptop" (You have to enable the "Allow Description Update" in purchasing tab")

3. You will notice that PO charge account will be picked as the Asset Clearing Account

The rest is to create the invoice and match it to this PO and run create accounting, then run Mass Addition Create

By this you have distinguished FA items from other inventory and expense items

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The following conditions must be met for the mass additions create process to import an invoice line distribution to Oracle Assets:

• The line is charged to an account set up as an Asset account
• The account is set up for an existing asset category as either the asset clearing account or the CIP clearing account
• The Track As Asset check box is checked. (It is automatically checked if the account is an Asset account)
• The invoice is approved
• The invoice line distribution is posted to Oracle General Ledger from Payables
• The general ledger date on the invoice line distribution is on or before the date you specify for the create program
• If you use the multiple organization feature, your Payables operating unit must be tied to the same ledger as the corporate book for which you want to create mass
additions.

If all the above conditions are met and the asset still not transferred to Oracle Assets, Please review the following documents and check whether it is related to the mentioned bugs:Mass: AP Invoice Lines Failed To Be Picked Up By Mass Additions Create APMACR (Doc ID 869755.1)
R12. APMACR: Mass Additions Create Process Does Not Transfer Records From Payables (AP) To Fixed Assets (FA) (Doc ID 1078438.1)