Asset Details (tffam1600m000)

Use this session to provide detailed information about the selected asset. You associate books with an asset, creating an asset-book relationship. You can enter, edit, or view assets and their related books.

If you create an asset in this session, asset books are also created according to the default books of the Default Books (tffam0510m000) subsession of the FAM Parameters (tffam0100s000) session. You can see and maintain the new asset books in the Asset Books (tffam1510m000) session.

In addition, an asset distribution is created according to the default segment codes of the Location Segment and Segment (tffam5100m000) subsession of the Location Segments (tffam5510m000) session. You can see and maintain the new asset distribution in the Asset Distributions (tffam1520m000) session.

 

General
Asset Number

The asset number and asset extension create a unique identifier for the asset in the selected company.

Asset Extension

The asset number and asset extension create a unique identifier for the asset in the selected company.

Description

The description or name of the asset.

Note

You must enter some text in this field.

Status

Lists the status of the asset. The status of the asset determines the actions you can perform on it.

Related topics

Asset
Transaction Cost

The transaction cost.

LN calculates the depreciation amount as follows:

depreciation amount = transaction costs / asset life

If the costs in relation to the asset life are so low that after rounding off the amount according to the currency definition the depreciation amount approaches zero, a warning message appears.

The cost expressed in the home currency.

Home Currency

One of a company's base currencies in which LN registers and reports amounts.

In a multicurrency system, up to three home currencies can be defined:

Category

When you add an asset, you assign it a predefined category. The category determines the accounts to which LN records the asset's depreciation and transactional data. It also provides default data for the depreciation methods, lives, and description fields to the asset and related books from the Category (tffam2100s000) session.

Subcategory

Subcategories provide additional classification of assets within a category. For each category, you enter one or multiple subcategories.

Default value

The default value is obtained from Categories (tffam2500m000).

You choose a subcategory for the selected category to further classify the asset for reporting and inquiry purposes. This uniquely identifies the subcategory in the selected company.

Group

A broader level of grouping than an asset category. Used to classify your organization's assets for reporting and inquiry.

Default value

Obtained from Categories (tffam2500m000).

Simulated

To create a simulated asset, select this check box.

In Service Date

Date the asset is ready to be placed into service. Assets can begin depreciating on their in-service date. The in-service date can be the same as the purchase date, or it can be later if the asset required preparation before it could be used. An asset can be capitalized before its in-service date.

Purchase Date

The date you purchased the asset.

Accounting Period

The year the accounting period is associated with.

/

The current accounting period.

If the actual accounting period is later than the current period in the FAM Parameters (tffam0100s000) session, LN uses the current period. Otherwise, the current period of the FAM Parameters (tffam0100s000) session is used as the accounting period.

A picture of the asset.

Quantities
Current Quantity

Remaining quantity of the asset. As the asset goes through its life, its quantity might decrease, depending on the type of asset.

Default value

1

Original Quantity

The original quantity of the asset. If you have not capitalized the asset, the original quantity and the current quantity are the same. After you capitalize the asset, you cannot change the original quantity.

Default value

1

Classification
Classification
Owner

Indicates whether the asset is owned by the company, owned by a third-party, or used under a capital or operating lease. A third-party asset is one that is on the company's premises but is not leased or owned by the company.

A capital lease is not a legal purchase, but the lessee does obtain significant property rights. A capital lease asset exists if any one of these conditions is met:

  • The ownership of the asset is transferred to the lessee at the end of the lease term.
  • The lease covers a period of time equal to 75% of the life of the property.
  • The present value of the minimum lease payments equals or exceeds 90% of the property fair value.

In the United States, if the book is Federal Tax or Other Tax and the owner code is Operating Lease, Capital Lease, or Third Party, the asset is not eligible for investment tax credit. LN then sets the ITC Method field to None. For all books, you cannot calculate depreciation or create journals for the Third Party and Operating Lease assets, and they are not eligible for ADR or MACRS group depreciation.

Business Percentage

Indicates the percentage of the asset that is used for business purposes. For Federal Tax and Other Tax books, if the business usage is less than 50%, the asset is not eligible for an investment tax credit or ADR or MACRS group depreciation. LN then sets the ITC Method field to None. No other books modify depreciation according to the business use percentage.

Default value

The default value is 100%.

Automobile

To indicate that the asset is an automobile, select this check box. Some types of automobiles must be identified as such for U.S. federal tax reporting purposes.

Default value

Cleared

Only assets for which you select this check box can be entered in the Record Automobile Mileage (tffam1150m000) session.

Listed

Indicates whether the asset is listed property as defined by the U.S. Internal Revenue Service (IRS). U.S. Federal tax regulations limit the amount of depreciation allowed for listed property. If this check box is selected, the asset is defined as listed property and depreciates as long as it still has cost left to depreciate, regardless of life.

New

If the asset was new when you acquired it, select this check box. If the asset was already used by others when you acquired it, clear this check box.

Default value

Selected

Note

You can only add assets to the vintage or group account that also have the New status as the vintage/group account.

ITC Method

Indicates whether an asset is eligible for an investment tax credit (ITC), and how that credit should be applied.

Default value

The setting in Category (tffam2100s000) for the selected category.

For Federal Tax and Other Tax books, indicates whether the asset is eligible for an investment tax credit, and how that credit must be applied. If the asset is eligible, you can select Reduced Basis to use the credit to reduce your taxable income, or you can select Reduced Credit to reduce your tax due.

If the asset is not eligible to receive an ITC, you can select None as the ITC method. You must set it to None if:

  • The business usage for the asset is less than 50%
  • The owner code is Operating Lease or Third Party
  • The Listed check box is selected
Details
Asset Distribution By

The way in which the asset is distributed: by quantity or by percentage.

Serial Number

Identifying number given to the selected asset by the manufacturer to distinguish it from other products in a similar line.

Vintage/Group Account

A classification of assets used for U.S. tax purposes to apply asset depreciation range (ADR) rules during depreciation.

Account Type

Indicates the type of vintage account.

Activity

An activity selected from the Activity Codes (tffam2180m000) session.

Origin
Source/Destination Detail
Asset Source

Indicates whether the asset was manually entered or imported from another source, for example, the Accounts Payable module.

Transferred

If this check box is selected, the asset was transferred from another company.

Reference Asset

Identifies the company from which the current asset originated, if transferred from another company.

Identifies the asset number from which the current asset originated, if transferred from another company.

Transferred

Identifies the asset extension from which the current asset originated, if transferred from another company

Tag Number

Number assigned to the asset by the owner for further identification. LN checks whether a newly entered tag number is unique. If the number is already in use, LN displays a warning.

For example, if you use the tag number for your inventory number, it is important to ensure that the tag number is unique. In a multicompany structure, LN also checks whether the tag number is unique across the companies.

Project

If you linked the asset to a project in Project (refer to Step 1), this is the asset's project.

To set the asset's status to Acquired:

  1. In the Projects (tppdm6100m000) session, select the Capital Project check box and enter the asset number and asset extension in the corresponding fields.
  2. In the Project Status (tppdm6107s000) session, set Project Status to Finished and Financial Result Status to Determine Result.
  3. Close the project by running the Process Transactions (tpppc4802m000) session with Final Result selected.

    The transaction cost of the asset is now equal to the actual project costs.

Activity

The smallest part of the activity structure used for a time-scaled budget. An entity that is used to represent a part of a project in an activity structure.

LN distinguishes these activity types:

  • WBS Element
  • Control Account
  • Work Package
  • Planning Package
  • Milestone
Element

The smallest part of an element structure. An element is used to define the (structure of the) work of the project, so that you can carry it out.

Purchasing
Business Partner

The business partner or vendor from whom the asset was purchased.

Purchase Invoice

The number of the purchase invoice for the asset.

Purchase Order Part

Purchase order part or catalog number for the asset.

Amounts
Amounts
Salvage Percentage

The estimated amount you expect to receive in cash or trade-in allowance when you dispose of the asset at the end of its useful life, expressed as a percentage of the amount you entered in the Transaction Cost field.

If you enter a salvage value percentage, LN calculates the salvage amount.

If you enter a salvage value amount in the next field, LN calculates the salvage percentage.

Salvage Value

The estimated amount you expect to receive in cash or trade-in allowance upon disposition of the asset at the end of its useful life.

The asset cannot depreciate below this amount, unless you selected the Depreciate Below Salvage check box in the Asset Books (tffam1510m000) session.

If you entered a salvage value percentage in the previous field, LN calculates the salvage amount.

The salvage value amount expressed in the home currency.

Section 179 Value

The Section 179 Value is a deduction available to certain types of property as specified by the IRS in the U.S. This allows taxpayers other than estates, trusts, and certain non-corporate lessors to claim a current deduction for a specified amount of the cost of qualified property placed in service during the tax year.

For Federal Tax-U.S. book depreciation, LN reduces cost by the section 179 value before calculating depreciation.

The Section 179 value amount expressed in the home currency.

Capitalized Interest

Amount of capitalized interest for the asset in the selected book. When you have acted as your own bank in acquiring an asset, this value represents what it would have cost you to borrow from the bank to acquire the asset. Capitalized interest is income to you, even though it is not recognizable as income and there is no deduction.

The capitalized interest amount does not affect how LN calculates depreciation, but it can be useful for reporting purposes.

The capitalized interest amount expressed in the home currency.

Current ITC Amount

Amount of the investment tax credit (ITC) for the asset in the selected book.

This field is not available if one of these conditions is met:

  • The book type is Financial
  • The ITC Method is None
  • The Business Percentage is less than 50
  • The Listed check box is selected

The ITC amount does not affect the way LN calculates depreciation, but it can be useful for reporting purposes.

The ITC amount expressed in the home currency.

Amount Details
Allocated Cost

Allocated costs represent indirect costs incurred in the purchase of an asset. For example, if you buy a car, the price of the car, the license, and the insurance are direct costs. The costs you incurred shopping for the car and taking time off to go and get it are indirect costs. In some cases, the federal government requires you to capitalize these indirect costs for United States federal tax purposes.

The allocated cost amount expressed in the home currency.

Accumulated Maintenance Cost

The accumulated cost amount expressed in the home currency.

Reinvestment Amount

The reinvestment amount for the asset.

You can enter the amount only if you select the Separate Revaluation Accounting check box in the FAM Parameters (tffam0100s000) session.

The reinvestment amount expressed in the home currency.

Transaction Currency

The currency used in the transaction document.

Rate

A charge or payment fixed according to a standard scale, for example, the currency rate of the transaction.

Rate Factor

The factor by which the amount in the transaction currency or the invoice currency is divided before LN converts it to a home currency. A rate factor is often used for currencies that have a relatively low price, for example, Korean Won.

A charge or payment fixed according to a standard scale, for example, the currency rate of the transaction.

Rate Date

The exchange rate used was valid at this date and time.

Shift Factor

The shift factor takes an extra depreciation for an asset that is used beyond a typical 8-hour workday. For example, a machine may be used for two 8-hour shifts per day.

Allowed values

The minimum value is 1.0.

The shift factor depends on tax regulations. For instance, in Germany the shift factor is 1.25 for two shifts, and 1.5 for three shifts.

The shift value is used as default for the generated asset books which can be looked over in the Asset Books (tffam1510m000) session.

The depreciation value is multiplied by the shift factor.

Last Maintenance Date

Displays the last maintenance date for the asset.

Reinvestment Year

The year in which you made reinvestment for the asset.

You can enter the amount only if you select the Separate Revaluation Accounting check box in the FAM Parameters (tffam0100s000) session.

Comments

Enter any comments here.

Associated Notes

Enter additional notes here.

 

View Only Entered Assets

Displays only assets with status Entered.