Creating asset companies

  1. Select Application Administration > Financials > Assets > Setup.
  2. On the Process Controls panel, click Companies.
  3. Click Create.
  4. Select a company number.
  5. 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 in which items can be added.
    Select System to automatically generate the item numbers.
    Global Ledger Reference
    Select whether the Global Ledger reference for the company is an Asset or a Company Asset. This field specifies which asset identifier will populate the Reference field in the General Ledger transaction created for an asset.
    Balance Transfers
    Select Turn On or Turn Off. This field indicates whether transfer balancing is enabled or not for the company. Transfer balancing is a control feature used to create offsetting accounting entries when assets are transferred between accounting entities.
    Note: This option is only available when the finance enterprise group has fund accounting turned on and you select 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.
    Adjustment Post History
    Specify whether Transactions are created for depreciation catchup amounts for the previous year in addition to the catchup amounts for the current year. Users can select Yes Without Transactions, Yes With Transactions, or No Prior Year Adjustment. When selected, Asset Book becomes the default.
    Approval Required
    Select to require approval for Asset Addition, Adjustment, Transfer and Disposal actions.
    Asset Review
    Select this check box to set up and asset review for assets in the company. When this option is selected, the Review Setup button is available to identify options to control the asset review, and the Review Detail tab is displayed on the company form.
    Approval level
    Select Company to display an approval field on the asset company, or select Asset Dimension Group to show it on the asset dimension group.
    Interface Hold
    When this option is selected, Asset Interface records created from other systems are created in a held status. This is a control option and the hold must be removed before these records can be used to create assets.
    Depreciation Expense Project
    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 are shown in summary or in detail.
    Display Journal Entries
    Select this check box to display assets transactions on the Asset prior to them being posted to Global Ledger. Displaying them allows you to review and perform limited maintenance on them before pushing to them to Global Ledger using the release action.
    Calculate Depreciation
    Select this check box to calculate the catch up depreciation for an asset added using the Quick Addition option. When adding assets using other approached the Compute Option is required to trigger the calculation of catch up depreciation.
    Default Posting Date
    Select whether the default posting date for the asset company is the Purchase Date, Current Period End Date or the Current 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 option to set up a depreciation expense allocation on the companies asset types. This will split the monthly depreciation expense amount calculated at period close, and prorate the amount to the allocation lines. Each allocation line identifies a transaction code block and the percent of the depreciation expense to be posted to it.
    Revalue
    Select this option to perform the revaluation of assets. Revaluation can be used to mass adjust asset basis or value either up or down due to natural disasters or change in economic variables impacting the assets value. When this is selected additional edits will be applied to ensure accounts are provided for transactions created by these processes.
    Impairment
    Select this option to record a reduction in an asset value due to an impairment. Impairment can only decrease an asset’s value and does not affect the asset basis, asset account value, or ongoing depreciation. Instead, the system establishes an impairment amount and amortizes it separately from depreciation over the remaining life of the asset. When you select this option, additional edits require accounts to be defined in the asset type, account, and dimension groups to support the resulting impairment transactions.
    Allow Distribution Splitting
    Select this check box if Asset Interface records interfacing from procurement or other systems can be split. This allows bulk purchases of assets represented by a single invoice to be split into multiple assets to better represent their physical location or their accounting activity.
    Use Event Accounts
    Select this check box if the specified company will use event accounts.
    Copy User Fields
    Select this check box to copy the user fields from the asset interface record to the asset item.
    Depreciation Approval
    If this check box is selected, approval is needed for the depreciation before the period is closed.
    Depreciation Approval Code
    If you selected the Depreciation Approval check box, you must specify the approval code. If this is not specified, an error message will be displayed.
    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 is also be enabled.

    See the Asset Accounting User Guide.

    Revalue
    Select this check box to enable revalue depreciation.

    After using revaluation, the revaluation method parameter must also be specified. These methods are 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 enabled. Specify the account to move the asset value from.
    Transfer in
    This field can only be used when Balance Transfer is enabled. Specify the account to transfer the balance into.
  6. Click Save.
    The Asset Types, Asset Account Groups, Asset Dimension Groups, and Company Book Calendars tabs are now available.