FAM Parameters (tffam0100s000)

Use this session to set the parameters for the Fixed Assets module. In this session you can indicate:

  • The transaction types that will be used to post the results of various types of fixed asset transactions to the General Ledger. In some countries, you must submit a fiscal book that lists all journal entries relevant for fiscal purposes.
  • The depreciation frequencies for each book type in the Asset Details (tffam1600m000) session, which is used to generate asset books.
  • The exchange rate types for acquisition, depreciation, adjustment, disposal, and transfer.
  • The category used in the Asset Details (tffam1600m000) session.
  • Whether to suppress the generation of journal entries for the general ledger.
  • Additional information about depreciation calculation.

From the appropriate menu you can start the Default Books (tffam0510m000) session, in which you can define the default books. These books are then used by the Asset Details (tffam1600m000) session to generate asset books.

Before you set the parameters in the FAM Parameters (tffam0100s000) session, you must complete these steps:

  1. In the Implemented Software Components (tccom0100s000) details session of the Implemented Software Components (tccom0500m000) session, select the Financials check box.
  2. In the Chart of Accounts (tfgld0508m000) session, add the ledger accounts where to post the fixed asset transactions.
  3. In the Fixed Asset Integration field in the Chart of Accounts (tfgld0508m000) session, select one of these options:

    • Investment
    • Maintenance Costs
    • Disposal

    These types of ledger accounts are linked to the Fixed Assets module, and are used to further specify the depreciation cost.

  4. In the Transaction Types (tfgld0511m000) session, define the transaction types for the various fixed asset transactions. The Transaction Category must be Journal Vouchers and the History Update Mode must be Batch Processing.
  5. In the Exchange Rate Types (tcmcs0140m000) session, add the exchange rate types.
  6. In the Depreciation Frequencies (tffam7100m000) session, add the depreciation frequencies.
  7. In the Categories (tffam2500m000) session, add the categories.
  8. In the Books (tffam6500m000) session, add the books.

 

Transaction Detail
Date

The date and time on which the parameters take effect.

Description

A description of the changes.

Transaction Detail
GLD Transaction Type

The default transaction type for journal entries generated during fixed asset processing.

The Transaction Category must be Journal Vouchers and the History Update Mode must be Batch Processing.

LN uses the GLD Transaction Type for fixed asset transactions for which you do not define a specific transaction type.

Current Period

The current period. The first time when you define the FAM parameters, you can enter a value. It then becomes a read-only field.

If you close the financial period for fixed assets in the Period End (tffam8205m000) session, LN sets this field to the new current period.

Current Period

The current year. The first time when you define the FAM parameters, you can enter a value. It then becomes a read-only field.

If you close the last financial period of the year in the Period End (tffam8205m000) session, LN sets this field to the next year.

Memo for Each Distribution Line

Select this check box to display memo fields in the distribution lines for assets. You can then enter data into the memo fields.

Allow Suppress Journal Entry

If this check box is selected, you allow the suppression of journal entries. If you apply Fixed Assets as a stand-alone system, you do not need to post entries to the General Ledger module.

Separate Revaluation Accounting

If this check box is selected, the revaluation costs and revaluation depreciation amounts of the asset are calculated separately, they are not added to the normal costs and depreciation amounts.

The separate ledger transactions are posted to the General Ledger module.

Transaction Types
Transaction Type for Acquisition

The transaction type for acquisition transactions.

The Transaction Category must be Journal Vouchers and the History Update Mode must be Batch Processing.

If you leave this field empty, LN uses the GLD Transaction Type for acquisition transactions.

Transaction Type for Adjustment

The transaction type for adjustment transactions.

The Transaction Category must be Journal Vouchers and the History Update Mode must be Batch Processing.

If you leave this field empty, LN uses the GLD Transaction Type for adjustment transactions.

Transaction Type for Depreciation

The transaction type for depreciation transactions.

The Transaction Category must be Journal Vouchers and the History Update Mode must be Batch Processing.

If you leave this field empty, LN uses the GLD Transaction Type for depreciation transactions.

Transaction Type for Accelerated Depreciation

The transaction type for accelerated depreciation transactions.

The Transaction Category must be Journal Vouchers and the History Update Mode must be Batch Processing.

If you leave this field empty, LN uses the GLD Transaction Type for accelerated depreciation transactions.

Transaction Type for Disposal

The transaction type for disposal transactions.

The Transaction Category must be Journal Vouchers and the History Update Mode must be Batch Processing.

If you leave this field empty, LN uses the GLD Transaction Type for disposal transactions.

Transaction Type for Transfer

The transaction type for asset transfer transactions.

The Transaction Category must be Journal Vouchers and the History Update Mode must be Batch Processing.

If you leave this field empty, LN uses the GLD Transaction Type for asset transfer transactions.

Transaction Type

The transaction type for the fixed asset transaction.

LN uses the GLD Transaction Type for fixed asset transactions for which you do not define a specific transaction type.

Depreciation
Book Depreciation Frequencies/Modes
Financial - U.S.

The financial - U.S. book.

You can specify a default depreciation frequency for each type of book LN supports. When you enter an asset and associate it with a book, LN applies the appropriate default depreciation frequency for that type of book.

Financial - U.S.

You can set up a calculation mode which determines when depreciation is run.

Federal Tax - U.S.

The federal tax - U.S. book.

You can specify a default depreciation frequency for each type of book LN supports. When you enter an asset and associate it with a book, LN applies the appropriate default depreciation frequency for that type of book.

Federal Tax - U.S.

You can set up a calculation mode which determines when depreciation is run.

Other Tax - U.S.

Other tax - U.S. book.

You can specify a default depreciation frequency for each type of book LN supports. When you enter an asset and associate it with a book, LN applies the appropriate default depreciation frequency for that type of book.

Other Tax - U.S.

You can set up a calculation mode which determines whether depreciation is calculated using the daily mode or the periodic mode.

Commercial

You can specify a default depreciation frequency for each type of book LN supports. When you enter an asset and associate it with a book, LN applies the appropriate default depreciation frequency for that type of book.

Commercial

You can set up a calculation mode which determines when depreciation is run.

Statutory

A tax book for non-U.S. countries that permits you to report depreciation for tax reporting purposes for Calculatory, Commercial, and Special book types.

You can specify a default depreciation frequency for each type of book LN supports. When you enter an asset and associate it with a book, LN applies the appropriate default depreciation frequency for that type of book.

Statutory

You can set up a calculation mode which determines when depreciation is run.

Calculatory

The calculatory book.

You can specify a default depreciation frequency for each type of book LN supports. When you enter an asset and associate it with a book, LN applies the appropriate default depreciation frequency for that type of book.

Calculatory

For each book depreciation, you can indicate a calculation mode which determines when depreciation is run.

Special

The special book.

You can specify a default depreciation frequency for each type of book LN supports. When you enter an asset and associate it with a book, LN applies the appropriate default depreciation frequency for that type of book.

Special

You can set up a calculation mode which determines when depreciation is run.

Depreciation Information
SL Switch Criteria

Determines whether the Straight Line calculation with Remaining Life/Remaining value or the normal straight line calculation is applied for declining balance and NBV-oriented depreciations switching to straight line.

MACRS Depreciation By

Select how LN calculates depreciation when using MACRS depreciation methods. LN uses MACRS formulas or a rate table as defined in the Yearly Rates (tffam7165m000) subsession that is reached through the Yearly Rates button of the Depreciation Method (tffam7110s000) session.

Unit Max Value

The highest cost for each quantity unit that an asset is allowed to depreciate using the first period depreciation method.

If the cost of an asset is higher than the amount indicated here, the first period depreciation can only be calculated if you ignore an appropriate warning in the Capitalization (tffam1200m000) subsession of the Assets (tffam1500m000) session.

Assets of lower value can be depreciated in any manner over the first year of the asset. The expense can be applied evenly over the life in the first year or the expense can be applied at different times over the first year.

Unit Max Value

The home currency

From the Tools menu, choose Rotate Currency to switch home currencies.

Units Used Message Prompt

If this check box is selected, LN will prompt you to record units used prior to running depreciation for assets whose lives are measured in units.

Allow Depreciation Boundary

If this check box is selected, you can clear the Depreciate Last Year in Service check box. Depreciation will not continue in the last year the asset is in service, based on asset life.

If this check box is cleared, LN selects the Depreciate Last Year in Service check box and you cannot clear the check box. Depreciation will continue until one of the following occurs:

Depreciation Rates > 100%

If this check box is selected, the total sum of the rates used for Custom Methods can exceed 100 percent.

Round Results Last Period of Year

This field indicates if at the end of each fiscal year, the depreciation amount should be rounded to get the correct yearly depreciation amount without rounding differences.

If this check box is cleared, the summation of the monthly depreciation amounts for the fiscal year can differ from the calculated yearly depreciation amount due to rounding differences. These differences are only corrected in the last month of the asset life.

If this check box is selected, the rounding differences are compensated in every last month of a fiscal year.

Depreciate Last Year in Service

If you select the Allow Depreciation Boundary check box, you can clear the Depreciate Last Year in Service check box. Depreciation will not continue in the last year the asset is in service, based on the asset life.

If this check box is cleared, the Depreciate Last Year in Service check box is selected by default. Depreciation will continue until one of the following occurs:

  • A zero book value is reached.
  • The salvage value is reached.
  • The asset is disposed.
Additional Amount for Economic Recapture

If this check box is selected, and you calculate economic recapture for books of type Calculatory, LN uses the amount specified in the Posting Amount field in the Asset Books (tffam1510m000) session.

Austrian Valuation Reserve 2009/2010

If this check box is selected, the corresponding option in the Mass Accelerated Depreciation (tffam1208m000) session is available.

Exchange Rates
Exchange Rate Types
Acquisition

You can specify an exchange rate type for acquisition transactions.

Depreciation

You can specify an exchange rate type for depreciation transactions.

Adjustment

You can specify an exchange rate type for adjustment transactions.

Disposal

You can specify an exchange rate type for disposal transactions.

Transfer

You can specify an exchange rate type for transfer transactions.

Default
Books
ADR Book

The asset depreciation range book.

Note

If any of the assets is using the vintage/group account, you cannot change the book.

You can specify an ADR book to indicate which book will update the assets'vintage/group accounts for the company. The ADR book must be a Federal Tax book type.

Posting Book

You can specify a GL book as the primary source from which journal entries for all your fixed asset transactions are sent to the General Ledger for the company.

Allowed values

The book must be of book type Financial or Commercial.

Note

You cannot change the book if any of the assets in this book is depreciating.

Besides this global GL book, you can post fixed asset transactions to GLD using other books as well. To use a book for additional posting, select the Additional Posting check box in the Default Book (tffam0110m000) session. The ledger entries from an additional posting book are created on different ledger accounts.

Default Category
Default Category

You can select a category to be used as default. Common will enter this category as default in the Category field in the Asset Details (tffam1600m000) session, or when an asset investment is entered in the Accounts Payable module or the General Ledger module.

Default Reason Codes
Adjustment Reason Code

The reason code to be used when an adjustment to the asset is done from outside the Fixed Assets module, via a journal voucher or purchase invoice.

Disposal Reason Code

The reason code to be used when the asset is disposed from outside the Fixed Assets module, via a journal voucher or sales invoice.

Tag Number
Unique TAG Number

If this check box is selected, and you enter a value in the Tag Number field of the Asset Details (tffam1600m000) session when you define an asset, the value must be unique.

Journal Entry Text
Journal Entry Text

If this check box is selected, LN enables the Text button, in the sessions where you specify a reason code for the FAM transaction. The reason can be the adjustment, transfer or disposal of assets.