Fixed Asset Creating¶
The following chapter will be devoted to the fixed asset creation and the whole fixed asset creating process.
Item Card Extension¶
For the purpose of identifying the loan items and also identifying which loan item is related to the general item card, two fields have been added on the item card:
- Loan Item (this field specifies if the item is used as a loan item, meaning it´s a loan item card created with specific posting setup and usually zero value)
- Loaned Item No (determines which item card is used as the loan item for the current item card)
Loan Item Cards can be either created automatically within the process of transferring items to fixed assets, or they can be created manually, but then the also need to be manually lined to the original item cards.
Creating Fixed Assset From Service Item Card¶
The action "Create Fixed Asset" is available from the service item card.
It is possible to create a fixed asset and perform the item transfer in case following conditions are met:
- an item ledger entry must exist for the original item and it must be open (the item ledger entry must be Positive)
- the item entry must be fully adjusted (the Completely Invoiced flag must be set to Yes)
- Cost Amount (Actual) is higher than zero
After you run the action, the dialogue window is shown for entering parameters for the transfer to fixed asset. The transfer wizard has two steps.
The first step shows details taken from the service item (to switch use the Service Item button bellow).
The second step contains details for the fixed assets (to switch use the Fixed Asset button bellow).
If the user modifies any of the predefined information, the adjusted setup will be used for the movements. After you confirm the dialogue by using OK action, the transfer is done.
After the cretion process is done the system will display a confirmation dialogue showing the number of fixed assets that were created successfully and the number offixed assets that couldn´t be created. If there was an error in the fixed asset creation process, the user can use the "Show FA Creation Log Entries" to view the record in the FA Creation Log Entries.
Creating a Single Fixed Asset From Sales Order¶
The action "Create Fixed Asset" is also available from the sales order lines for creating a single fixed asset for the selected sales order line. In this case it is necessary that service items are already linked with the sales line.
After you run the action, the dialogue window is shown for entering parametrs for the transfer to fixed asset.
The first step shows details taken from the service item (to switch use the Service Item button bellow).
The second step contains details for the fixed assets (to switch use the Fixed Asset button bellow).
After you confirm the dialogue by using OK action, the transfer is done.
After the cretion process is done the system will display a confirmation dialogue showing the number of fixed assets that were created successfully and the number offixed assets that couldn´t be created. If there was an error in the fixed asset creation process, the user can use the "Show FA Creation Log Entries" to view the record in the FA Creation Log Entries.
When starting the process from sales order than appart from the posting results (which are the same for both using the action from service item and sales order), you will recognize following changes:
- if you use different location for the general items and for the loan items, the location will be changed in the sales line
- the reservation on the sales line will be transferred to the new item and new serial number
Bulk Creation of Fixed Assets From Sales Order¶
The user is also able to create fixed assets for a selected sales order in a single batch. In this case the user needs to use the "Mass Creation of Fixed Assets" action from the sales order header. It is necesary that all the sales lines are linked with service items before the fixed asset creation process is started.
The first step after using the action is to set the filters for the sales order lines of the order. If no filters are entered, all sales order lines will be processed.
After confirming the selected sales lines a wizard will be shown to specify the configuration for the creation of the fixed assets. In the wizard you are able to do a confirugation in two separate tabs.
The first tab is related to the fixed assets that have value bellow the specified acquisition cost limit. You can modify all the templates a setups that will be used for the fixed asset creation there. To switch to this tab use the "Under Limit" button.
The second tab is related to the fixed assets that have value higher than the specified acquisition cost limit. You can modify all the templates a setups that will be used for the fixed asset creation there. To switch to this tab use the "Over Limit" button.
To confirm the entered data use the "OK" button. After this confirmation the wizard will try to create fixed assets for all the filtered sales lines. After the process is done, the system will show a dialogue message with a summary of the number of fixed assets that were successfully created and the number of fixed assets that couldn´t be created successfully. To check what went wrong with the records that couldn´t be created use the "Show FA Creation Log Entries" to view the FA Creation Log Entries where you can see the details related to the fixed asset creation.
For each service item for which the fixed asset creation process was supposed to take partn a single log record will be created. In the "Status" field you are able to see which reconrds couldn´t be processed. If the status is set to Processed, there were no errors and the system could fully finish the creation process. If the status is set to Error, then the "Error text" field will be showing the first known error in the fixed asset creation process.
If the error has been fixed by the user, the user can revoke the fixed asset creation process by using the "Create FA for Selected Records" action on the FA Creation Log Entries page.
Fixed Asset Creation Log¶
As the application also supports bulk creation of fixed assets from sales orders, we have also included a log for tracking the status of the creation process of the single items. The link to the log is shown after the creation process has been finished in the confirmation dialogue as described in the chapters with details about the creation function. Alternatively the user can access the log using the BC menu by entering the "FA Creation Log Entries" key words.
The protocol shows entries for the single entries for which the fixed asset creation process has been iniciated. If the fixed asset creation process was started from the Service Item, the "Source Type" of the log entry will be set to "Service Item" and the number of the respective service item is noted in the "Source No." field. If the fixed asset creation process was started from the sales order line the "Source Type" on the log line will be set to "Sales Order" and the "Source No." field will contain the number of the respective sales order. In this case also the sales order line number will be noted in the "Source Line No." field.
For each line the original setup last used for the fixed asset creation process is noted in the Fixed Asset Creation Log. As there might be several Depreciation Books used within the fixed asset creation process, you can view the used depreciation books using the "Depreciation Books" action on the log entry. This will display the list of depreciation books used for the selected records.
If the error when creating the fixed asset was caused by entering wrong parameters when creating the fixed asset, you can modify both the FA Creation Log Entries table and the FA Creation Entry Depr. Books table to correct the data for the next run. After correcting the error you can use the "Create FA for Selected Records fuction to revoke the creation process. You can select several entries for which you want to retry the creation process.
After selecting the "Create FA for Selected Records" action, the system will ask for a confirmation to proceed.
After the process has been finished, the system will display the total counts of the record that it was able to create successfully and the count of error that occured in the fixed asset creation process. If there is still an error in the fixed asset creation process, the log entry for the record will be updated with the most recent error message.
Important Note
Please note that in case the error was related to the valuation of the original item, you need to check the depreciation books for the record manually as the values based on which the books were selected for the record may have changed. This change is not done automatically.
Results of Transfering Service Item Into Fixed Asset¶
After the action is complemetely done, following results can be seen within BC.
Changes on Service Item Card¶
The item number on the service item card is changed to the loan item number and a link to the newly created fixed asset is added. The important thing is that the process doesn´t create a new service item card, but modifies the existing one, so all the history of the service item will stay in one place.
Also the ownership is changed to Rental (if this modification is allowed in the FA Creating Setup).
Changes on the Servic Contract¶
The item number on the service contract is changed to the loan item number (if the usage of loan item cards is enabled).
Newly Created Fixed Asset Card¶
A new fixed asset card is created based on the template and it is linked with the service item. The "Service Item No." field added by the Navertica Contract Billing applicatin is used for creating the link between the service item and fixed asset.
The depreciation books are created based on the configuration templates provided in the FA Creating Setup that can be adjusted in the fixed asset creation wizard. For each template that is included in the setup a separate line is created in the fixed asset depreciation books list.
Newly Created Loan Item Card¶
If your item has a service item group line that has the field "Create Loan Item Card With Zero Value" enabled, a new loan item card is created as a part of the process of transfering the item into fixed assets for items that are not currently linked with an existing one.
The item card is a copy of the original card with all its related data (e.g. item variants, item attributes, ...). The number of the card is generated by the system using the original Item No. and the "Loan Item Prefix" defined for the original service item group.
It is usually necesary to include special setup on the loan item cards - to define fields that differ in value from the original item card you can use the "Loan Item Card Config. Template" that is also defined on the service item group. Typically the configuration template would at least include new posting groups that should be used when posting transactions related to the loan item.
Results of Posting Related To Items¶
In the process of transferring one service item into the fixed asset two item ledger entries can be created based on the setup (one movement is for sure, the other one is optional).
The first item ledger entry is the negative adjustment that posts the "disposal" of the original item from the original warehouse location. This is a part of the core process, ergo you are not able to skip this step.
The second item ledger entry will be created for the loan item (if the original item on the service item card has a service item group with allowed creation of the loan item cards). This line will be a positive adjustment to the new item card and in case you use a specific location for your loan items, the item will be stocked on this location. In case the new loan location uses bins, the system will try to put the item on the same bin it was originally on (the idea behind this is that the transfer to fixed asset only changes the accounting status of the item, but the item physically doesn´t change its location).
The item ledger entries were extended with the new field "FA No." - this field will be filled in for the item ledger entries which lead to posting negative adjustment and can be used for checking the transactions related to the fixed asset.
If you have only set up for the application to create the item journal lines without automatically posting them, you will find this line in the Item Journal. The fields that are automatically filled in on the journal lines are listed bellow.
In the item journal lines for negative adjustments we are filling in these fields:
| Field | Provided Value |
|---|---|
| Posting Date | This field will be filled in by the acquisition date filled in the fixed asset creation wizard (the same date will be used for acquiring the fixed asset). |
| Entry Type | The type will be set to "Negative Adjustment". |
| General Business Posting Group | This field will be filled either by the Gen. Business Posting Group from the FA Creating Setup from the under limit or over limit tab based on the actual cost of the item (if the user doesn´t specify otherwise in the fixed asset creation wizard, then the posting group entered in the wizard will be used). |
| Document No. | The number is defined based on the setup in the FA creating setup. The number can be:
|
| Item No. | The original item from the item ledger entry and service item that is supposed to be disposed. |
| Variant Code | The original item variant code from the item ledger entry and service item that is supposed to be disposed. |
| Description | The description from the service item card. |
| Quantity | This field will always be set to 1. |
| Location Code | This field will contain the original location of the item from the opened item ledger entry. |
| Bin Code | This field will contain the original bin of the item and its serial number in case the original location uses bins. |
| Unit Amount | This field displays the item cost amount actual that will be used for the process of transfer the item into fixed assets. |
| FA No. (custom field) | This is a custom field added by this application and it will be filled in by the FA No. |
| Dimensions | The dimensions will be transfered from the source card based on the FA Creating Setup. |
As this solution only makes sense for items tracked with serial numbers, the item tracking line linked to the negative adjustment item journal line will also be created. The item tracking line will contain the serial number from the service item.
In the item journal lines for positive adjustments we are filling in these fields:
| Field | Provided Value |
|---|---|
| Posting Date | This field will be filled in by the acquisition date filled in the fixed asset creation wizard (the same date will be used for acquiring the fixed asset). |
| Entry Type | The type will be set to "Positive Adjustment". |
| General Business Posting Group | This field will be filled either by the Gen. Business Posting Group from the FA Creating Setup from the under limit or over limit tab based on the actual cost of the item (if the user doesn´t specify otherwise in the fixed asset creation wizard, then the posting group entered in the wizard will be used). |
| Document No. | The number is defined based on the setup in the FA creating setup. The number can be:
|
| Item No. | The item number from the loan item number on the item card (if the item doesn´t exist yet, it can be automatically created throughout the process based on the setup) |
| Variant Code | The original item variant code from the item ledger entry and service item that is supposed to be disposed. |
| Description | The description from the service item card. |
| Quantity | This field will always be set to 1. |
| Location Code | This field will contain the original location of the item from the opened item ledger entry or the location from the "Loan Item Location Code" from the service item group of the original item. |
| Bin Code | This field will contain the original bin of the item and its serial number in case the new location uses bins. In case the original location doesn´t use bins and the new one does, the bin will have to be entered manually by the user before posting the jorunal. If the original location uses bins and the new one doesn´t, the field will remain empty. |
| Unit Cost | This field will be set to 0. The assumption is that the loan item cards are used for items that have zero accounting value and shouldn´t raise the inventory value. |
| Dimensions | The dimensions will be transfered from the source card based on the FA Creating Setup. |
As this solution only makes sense for items tracked with serial numbers, the item tracking line linked to the positive adjustment item journal line will also be created. The item tracking line will contain the serial number from the service item.
Results for Using Depreciation Book Without G/L Integration¶
For all the depreciation books that should be used in the fixed asset creation process (usually it will be just one) that don´t have integration to G/L setup a FA ledger entry will be created with posting the acquisition cost.
For deciding whether the G/L Integration is enabled for your depreciation book see the Depreciation Book Card. If it looks as presented on the screenshot bellow, the integration to G/L is disabled.
If you have only set up for the application to create the journal lines, you will find this line in the Fixed Asset Journal. The fields that are automatically filled in on the journal lines are listed bellow.
| Field | Provided Value |
|---|---|
| FA Posting date | This field will be filled in with the acquisition date filled in the creation wizard (the same date will be used for item disposal/receiving). |
| Document No. | The number is defined based on the setup in the FA creating setup. The number can be:
|
| FA No. | The number of the fixed asset that was created. |
| Depreciation Book Code | The code of the depreciation book for which the line is created. |
| FA Posting Type | The FA posting type will always be set to "Acquisition Cost" for this case. |
| Description | The description that is filled in by the service item description. |
| Amount | This field contains the Cost amount (actual) from the item ledger entry with the same item number and serial number as on the service item. |
| Dimensions | The dimensions are taken from the source card based on the setup in the FA Creating setup or left blank. |
Results For Using Depreciation Book With G/L Integration¶
For all the depreciation books that should be used in the fixed asset creation process (usually it will be just one) that have integration to G/L setup a FA entry will be created with posting the acquisition cost.
For deciding whether the G/L Integration is enabled for your depreciation book see the Depreciation Book Card. If it looks as presented on the screenshot bellow, the integration to G/L is enabled.
In case of using a depreciation book with G/L integration, aside from the fixed asset entry described above also two general ledger entries are created:
If you have only set up for the application to create the journal lines, you will find two lines in the Fixed Asset G/L Journal for each fixed asset that was created. In the Fixed Asset G/L Journal we are specifically filling in these fields:
| Field | Provided Value |
|---|---|
| Posting date | This field will be filled in the with the acquisition date filled in the creation wizard (the same date will be used for item disposal/receiving). |
| Document No. | The number is defined based on the setup in the FA Creating setup. The number can be:
|
| External Document No. | The field will be filled in with the Fixed Asset No. This information can be used later on in the processes that are working with the related entries. |
| FA No. | The number of the fixed asset that was created. |
| Depreciation Book Code | The code of the depreciation book for which the line is created. |
| FA Posting Type | The FA posting type will always be set to "Acquisition Cost" for this case. |
| Description | The description that is filled in by the service item description. |
| Amount | This field contains the Cost amount (actual) from the item ledger entry with the same item number and serial number as on the service item. |
| Dimensions | The dimensions are taken from the source card based on the setup in the FA Creating setup or left blank. |
The first line of the fixed asset G/L journal is created by our fixed asset creation function and the other line is created by using the standard "Insert FA Bal. Account" function.
The first entry is related to the "Acquistion Cost Account" from the Fixed Asset Posting Group for the depreciation book. The balancing account is taken from the "Acuqisition Cost Bal. Acc." from the Fixed Asset Posting Group for the depreciation book.
Results for Activation Posting¶
For the activation of the fixed asset the general journal is used, therefore the outcome after posting is that two general ledger entries are created.
If you have only set up for the application to create the journal lines for activation, you will find the suggested line in the general journal. Following fields are filled in by the application:
| Field | Provided Value |
|---|---|
| Posting date | This field will be filled in with the acquisition date filled in the creation wizard (the same date will be used for item disposal/receiving). |
| Document No. | The number is defined based on the setup in the FA creating setup. The number can be:
|
| External Document No. | This field will be filled in by the Fixed Asset Number. This information will be trasnferred to the G/L entries and can be used for further processing (e.g. G/L entry application). |
| Account Type | This field is filled in with the value "G/L Account". |
| Account No. | This field is filled in with the by the "Acquisition Cost Bal. Acc." from the FA Posting Group. |
| Description | The description that is filled with a text consisting of the: [Fixed Asset Number] - [Service Item Description from the FA creation wizard]. |
| Amount | This field contains the Cost amount (actual) from the item ledger entry with the same item number and serial number as on the service item. |
| Dimensions | The dimensions are taken from the source card based on the setup in the FA Creating setup or left blank. |
The "Account No." value is taken from the "Acquisition Cost Bal. Acc." from the FA Posting Group that is provided on the depreciation book with integration to G/L from the fixed asset card.
The "Balance Account Type" and "Balance Account No" values are taken from the general journal batch from the field "Balancing Account No.".
