Asset Accounting fund accounting

When a finance enterprise group implements fund accounting, a Fund Override check box will be displayed on the asset form. When selected, the Funds tab is displayed. You can create a record for each fund contributing to the assets purchase by specifying the contribution percentage for each fund. These percentages are used to allocate transactions created for the asset to each fund.

If Fund Override is not selected, the fund allocation can be specified at the asset item level. You can specify the contribution percentage of multiple funds for each item in the Funds panel.

These item level specifications are aggregated up to the asset level. Upon release, the contribution percentage of each fund is used to allocate the related transactions to each fund of the asset. The entire asset cost must be allocated prior to release whether allocating at the asset or asset item level.

The existing asset account and dimension group definitions are used to create the transactions. When an asset is subject to fund allocations these transactions are allocated using a calculation as it is released. The calculation multiplies the transaction amount of each transaction by the contribution percentage of each fund to identify the portion of the transaction to be posted to that fund. This amount is then assigned to a copy of the original transaction with that fund appended to the transactions code block.

If neither asset nor item allocations are assigned, the transactions will be processed without additional allocations. When fund accounting is enabled, the fund dimension is required by the default code block so the resulting transactions will post 100% to the fund specified in the default dimension group.

The interface processes from project and procurement systems create and update the fund allocations based on the fund assigned to the transaction. The transaction is then pushed into the asset system. Project capitalization is driven by selecting GLTransactionDetail records and using them to identify the value of a resulting asset. Each transaction may contain a different fund. The transactions related to each fund are grouped to identify the contribution percentage. The asset level allocation is automatically created as the asset and asset item are created.

You can enable fund accounting by running the Turn On Fund Accounting action for the finance enterprise group.