Creating asset companies

  1. Select Financials > Asset Accounting > Asset System Setup > Companies.
  2. Click Create.
  3. Select a company number.
  4. On the Main tab, specify this information:
    Item Numbering
    Select Tag to inherit the tag number when the item number exists. You can override the default value and specify custom item names on any form where you can add items.
    Select System to automatically generate the item numbers.
    Global Ledger Reference
    Select whether the Global Ledger reference for the company will be an Asset or a Company Asset.
    Balance Transfers
    Select Turn On or Turn Off.
    Note: This field will only be visible if the user selects All Actions > Update Transfer Balancing. See Updating Transfer Balancing.
    Payables Distribution With Tax
    Select Summary to include the landed tax amount in the cost that is sent from Payables. Select Detail to include the landed tax amounts that are sent as separate distribution lines from Payables.
    Hold Asset Interface
    Select this check box to hold the creation of an asset until all of the components of the asset have been invoiced. The asset line is interfaced when the invoice line is released. An asset cannot be created from this distribution until the hold value is deselected.
    Depreciation Expense
    Select this check box to assign the invoice project to the depreciation expense transactions when you create assets from interfaced invoices.
    Calculate Remaining Life
    Select this check box to automatically recalculate the remaining life of an asset. Recalculation occurs when the in-service date or the asset life is adjusted with Compute Option.
    Consolidate Disposal Journal Entry
    Select this check box to show all disposal journal entries. Disposal journal entries can be displayed in summary or in detail.
    Display Journal Entries
    Select this check box to display journal entries before sending them to Global Ledger. This option applies to additions, adjustments, transfers, disposals, reinstate disposals, and revaluations. If you select this check box, then the journal entries are sent to Global Ledger without a verification prompt. If you clear this field, then you can show the entries on the applicable journal entry pages before the entries are released.
    Calculate Depreciation
    Select this check box to calculate the depreciation for an asset. If not selected, then the depreciation is not calculated until the calculate depreciation action is performed.
    Default Posting Date
    Select whether the default posting date for the asset company is the Purchase Date or the Current Period End Date.
    Interface Append Path
    Specify the path the records take prior to being appended to the asset. Select Item Adjustment Interface to use the default setting or select Asset Interface to add the new capitalization records to the Asset Interface business class.
    Allocate Depreciation Expense
    Select this check box if an asset depreciation expense for this company can be allocated to multiple dimension transactions. Asset and accumulated depreciation accounts can be different than the assigned for Transfer or Disposal.
    Allow Distribution Splitting
    Select this check box if distribution splitting of Payables invoice and Project Ledger interface records is allowed.
    Use Event Accounts
    Select this check box if the specified company will use event accounts.
    Click the By Type and Events button on Type (AM06.1) or Types (AM06.2) to use the event accounts.
    Note: The By Type and Events button does not display on Type (AM06.1) and Types (AM06.2) if this field is not selected.
    Copy User Fields
    Select this check box to copy the user fields from the asset interface record to the asset item.
    Approval Required
    If this check box is selected, approval is needed before you can release the assets during addition, adjustment, transfer, disposal, impairment, revalue and reinstatement. The Submit for Approval button will also be enabled for the user. See the Asset Accounting User Guide for more information on the approval process.
    Revalue
    Select this check box to enable revalue depreciation.

    After using revaluation, the revaluation method parameter must also be specified. There are two methods available to address revaluing depreciation:

    • Elimination: This approach offsets the change in an assets value by netting accumulated depreciation and the change in the assets value. The remaining amount is a gain or loss. As this is not a normal gain or loss, the amount is placed in an equity account such as gain on asset revaluation.
    • Proportionate: This approach adjusts both the book value of the asset and its accumulated depreciation proportionately so that the book value reflects the assets current value.
    Impairment
    Select this check box to enable impairment for the asset company.
    Transfer out
    This field can only be used when Balance Transfer is turned on. Specify the account to move the asset value out from.
    Transfer in
    This field can only be used when Balance Transfer is turned on. Specify the account to balance the transfer into.
  5. Click Save.
    The Asset Types, Asset Account Groups, Asset Dimension Groups, and Company Book Calendars tabs are now available.