Rental product as an asset

You can link rental products to a fixed asset, to determine the book value for journal entries created for fixed asset transactions and integration transactions. When the inventory of a product is transferred to a rental product using a warehousing order, cycle counting order, or adjustment order, received assets are created in the Received Assets (tffam0160m000) session. Integration transactions are generated based on the book value of the asset.
Note: The received assets are created only if the Integrates with Fixed Asset Management check box is selected in the Item - Warehousing (whwmd4600m000) session for the rental product.
In the Received Asset (tffam0660m000) session, the Action on Processing is defaulted based on the Transaction Cost of the asset and the Capitalization Threshold:
  • When the value of the asset is above the threshold, the Action on Processingfield is set to Capitalize by default.
  • When the value is below the threshold, the Action on Processing field is set to Expense by default.

The threshold value for an asset is defaulted from the Capitalization Threshold field in the Categories (tffam2500m000) session, if defined. Else, this value is defaulted from the FAM Parameters (tffam0100s000) session. You can modify Action on Processing for a received asset as long as the received asset is not processed.

When the Action on Processing field in the Received Asset (tffam0660m000) is set to:
  • Capitalize, you must specify the fixed asset related details like asset number, extension and category in the Fixed Asset Details section. When the received asset is processed, the transaction value is reversed from the interim account and posted to a fixed asset account in the balance sheet.
  • Expense, the transaction value is reversed from the interim account and posted to a cost account in the profit and loss statement.

You can use the Received option in the Received Assets (tffam0160m000) session to view only the newly received assets. To view all changes made to an asset, you can use the Received Asset History (tffam0165m000) session.