To set up asset transactions
Transactions are actions you can perform on an asset or asset book to record data about different stages in the asset's life. Transactions are a record of the processing an asset undergoes after you enter it into LN. The transactions you can perform on an asset are:
- Capitalization
- Adjustment
- Depreciation
- Disposal
- Restate depreciation
- Transfer
- Remove capitalization
The transactions you can perform at the asset-book level are:
- Depreciation
- Adjustment
- Disposal
- Depreciation
- Revaluation
For Example, after you enter an asset, you capitalize it to record that it is in use and to make it eligible for depreciation. You then depreciate the asset on a regular basis until it is time to remove it from service. When you remove the asset from service, you dispose of it.
There are several types of transactions you can record on the asset. They are as follows:
- Capitalizing Assets, to indicate that an asset has been placed into service and can begin depreciating in LN.
- Asset adjustment, to modify information that is no longer directly editable.
- Depreciating Assets, to calculate and record the periodic decrease in expense due to wear and tear over time.
- Restating Depreciation for Assets, to recalculate depreciation due to an error in data input.
- Disposing Assets, to remove all or part of an asset from service.
- Transferring Assets, to move all or part of an asset to another location.
There are several types of transactions you can record on the asset book. They are as follows:
- Adjusting Asset Books, to modify information that is no longer directly editable.
- Depreciating Asset Books, to calculate and record the periodic decrease in expense due to wear and tear over time.
- Restating Depreciation for Asset Books, to recalculate depreciation due to an error in data input.
- Disposing Asset Books, to remove all parts of an asset from service.
- Asset Book Revaluation, to revaluate the current asset cost by using the defined revaluation index.
When you enter a transaction, LN records information about the transaction on the asset and/or asset book. It also saves a record of the original values. This allows you to track the changes that have been made throughout an asset's life.
In addition to these transactions, there are other tasks you can perform on an asset. You may need to record the business mileage on an automobile asset or record the units used on an asset whose life is tracked in units instead of in months and years. You can also record mass transactions to make changes to a large number of assets at once. For more information, see the topic Using Mass Transactions. You can also perform certain transactions on a vintage or on a MACRS group account to make transactions on all the assets the account contains. For more information, see the Using Vintage/Group Account Transactions topic.