How to Setup Asset Impairments in Oracle R12

Step 1. Setup Cash Generating Unit (CGU):

1.  Navigate to Assets responsibility: (N) Setup > Asset System > Cash Generating Units
2.  Define or maintain Cash Generating Units for each book that needs Impairment functionality.

Step 2. Assign Cash Generating Units to Assets:

There are two possibilities to assign Cash Generating Units:

A. Manually via Asset Workbench:

1. Navigate to Assets responsibility: (N) Assets > Asset Workbench
2. Query for the existing assets that needs to be assigned to Cash Generating Units.
3. Press “Books” and select from LOV the book name.
4. Go to Impairment tab and use the LOV from the Cash Generating Unit field to assign or change CGU assignment.

B. By mass assignment via WEB ADI:

1.  Navigate to Assets responsibility: (N) Assets > Impairment > Assign Cash Generating Units.
2.  Enter Book, Asset Number and CGU.
3.  From the main toolbar go Oracle > Upload for uploading the assignment information to the assets.

Step 3. Setup Impairment Accounts:

Setup Impairment Expense account and Accumulated Impairment  account in the Asset Categories form.

1. Navigate to Assets responsibility: (N) Setup > Asset System > Asset Categories
2. Query for Asset Categories and Books.
3. Enter the accounting information for Impairment Expense account and Accumulated Impairment.