Adding an asset manually

You can define and add an asset by specifying all of the necessary asset information on a series of forms, beginning with Additions and Adjustments (AM20.2). When you add an asset, you must define at least one item.

If you assign a posting book to the asset, adding an asset automatically generates entries to the General Ledger that the Asset Management application automatically displays and prompts you to accept, change, or delete. The General Ledger date defaults from the posting book in-service date.

Procedure flow: Adding assets manually

Add an asset manually

  1. Access Additions and Adjustments (AM20.2).
  2. Define asset header and detail information using these guidelines:
    Asset

    Leave this field blank. The application will generate an asset number when you add this form.

    Note: You can attach a comment or URL to the Asset field.
    Tag

    Use the Tag number to create custom identifiers for reporting purposes.

    Note: You can attach a comment or URL to the Tag field.
    Asset Group

    You can assign an asset group to the asset for processing or reporting.

    You can select an existing asset group or specify a new asset group in this field. After you add the asset, you can view the asset group on Asset Groups (AM13.2).

    Company, Type, Account Group

    These fields are required. Optionally, you can associate an asset and subtype to an asset.

    If the asset is part of an asset class, the type (or type, subtype) you select must be used only for assets that belong to the asset class, and the accounts the type (or type, subtype) is associated with must also be used only for that asset class. Lawson strongly recommends that the disposal accounts in the account group all match the accumulated depreciation amount in the type.

    Accounting Unit Group, Default Accounting Unit

    If you do not select an accounting unit group, you must select a default accounting unit.

    If you select an accounting unit group, but the accounting unit group does not provide accounting units for all the required accounts, you are prompted to also specify a default accounting unit to be used for those accounts not included in the accounting unit group.

    1) If the asset is part of an asset class, you must use the same accounting unit for the asset, accumulated depreciation, and depreciation expense accounts. You should therefore use either the default accounting unit alone or an accounting unit group that has the same accounting unit specified for the asset, accumulated depreciation, and depreciation accounts. 2) If the asset type is associated with a depreciation allocation, the accounting unit associated with the depreciation expense account must be one of the accounting units on the depreciation allocation.

    Location, Owner, Inventory

    If you want the asset to be part of physical inventory, you must select a location for the asset, and you must select Y (Yes) in the Inventory field. You can also specify the name or ID of the "Owner" of the asset, that is the person responsible for tracking the asset in inventory.

    Note: You will add the bar code and location detail at the item level.
    Currency

    This field is used for reporting purposes only. This code does not affect book currency.

    Category Option tab

    To add a work-in-process, tax-exempt, simulated, or used asset, select Y (Yes) in the appropriate category.

    Note: A work-in-process asset is an asset that is real but incomplete, on which work or activity continues.

    When you add asset detail, the program generates an asset number for the new asset and automatically navigates to Items (AM20.3).

  3. Use the GEO Location tab to define a location's longitude, latitude, and altitude.
  4. Define asset item information on AM20.3.
    1. To ensure that multiple item amounts add up to the cost of the entire amount, type control totals for the quantity or cost of the items on the Control Totals tab.

      Do not specify the control total until you are on the last page of items. If you input control totals and then click More Items, the control total is cleared.

      Note: If you have more than five items to specify, use the More Items form action before you use the Add form action to specify more items. After you use the Add form action, the form is considered complete and you must use the Change form action to add more items. You must complete all five item lines before clicking the More Items form action.

      If the item totals do not match the control totals, the application will not let you add the items.

    2. Define at least one item on the Items tab. At a minimum, specify the description, purchase date, quantity, and cost.

      To make the asset part of the physical inventory, these fields are required:

      Detail tab

      The bar code and condition are required. You can optionally specify the serial number and model, which make up the product category, and select the condition of the item (good, fair, or damaged).

      You can also add tax information in the Tax field. This field is purely informational and does not send information back to the Lawson® Tax application.

      Location Detail tab

      You must select or specify the location detail for the item.

      This information is optional and applicable to all items.

      Invoice, Activity tab

      You can associate an item an invoice, purchase order, or activity. These fields are purely informational and do not send any information back to the Accounts Payable, Purchase Order, or Activity and Project Accounting applications.

      When you add the items, the system navigates you automatically to Books (AM20.4).

  5. Assign asset books using Books (AM20.4).
    1. Specify or select values for Method and Life for all required books. All required books are displayed.

      For Part 32 (Class Level) books, do not select values for Method, Life, Remaining Life, or Convention. These fields must be blank. If you use more than one Part 32 book, all the assets referencing the same asset class accounts should be assigned the same Part 32 book.

    2. To assign a non required book, specify or select a book in the Book field, and specify or select all required information.
    3. Complete the rest of the form using these guidelines:
      Compute Option

      Because the compute option calculates depreciation when the depreciation needs to be brought up-to-date with the current period, this setting is important when you add an asset that has an in-service date that is before the current, open period.

      To update the asset's YTD or LTD depreciation to the current period at this time, set Compute Option to Y (Yes).

      If you do not want to update the asset's YTD or LTD depreciation to the current period at this time, set Compute Option to N (No).

      Note: You can set the Compute Option at the asset level or at the book level (Depreciation detail tab). The book level option overrides the asset level option.

      Adding assets with previous in-service dates

      Depreciation detail tab

      At the book level, you can specify a year-to-date and life-to-date value if you are not starting at zero. These values are updated automatically as the asset matures.

      You can also override the asset Compute Option at the book level, so that different books may use different compute options.

      Depr Option detail tab

      On this tab, you can specify a salvage amount for the asset (the value the asset will have at the end of its life).

      If the business use for an asset is less than 100 percent, specify the business use percentage in the Business Pct field. To arrive at an adjusted annual depreciation, the application multiplies the asset's annual depreciation by the percentage of business use.

      If you use the asset for personal use, select a Personal Use code. Use Personal Use (AM04.1) to define a personal use code.

      Insurance detail tab

      On this tab, you can specify the insured value of the asset and the select the insurance method used. The application will display the computed insurance value based on the insurance method used.

      Use Methods (AM02.1) with the Type field set to I (Insurance) to define a method to calculate the insurance value.

      Replacement detail tab

      Use the Replacement detail tab to define replacement value information for the asset.

      Select a replacement method. The application will display the computed replacement value based on the method used.

      Use Methods (AM02.1) with the Type field set to R (Replacement) to define a method to calculate the replacement value.

      Tax Option detail tab

      Use the Tax Option detail tab to define tax option information for the asset. Different books can have different tax options.

      You can select a tax credit table that defines tax credit percentages and annual tax credit recapture percentages the book can use for the asset. Use Tax Credit Table (AM03.1) to set up a tax credit table.

      Alternatively, you can specify a total tax credit amount to be applied to the asset and the tax credit amount to be applied the first year.

      If one of the books added is a posting book, you are prompted to verify journal entries for the asset. The program automatically navigates to Journal Entries (AM20.5).

      If the Display Journal Entries system option is set to N (No) on System Options (AM16.1), journal entries are added without being displayed. You can still open Journal Entries (AM20.5) to see what journal entries were added and to modify them at any time before you release the asset.

  6. Accept, change, or delete system-prompted journal entries related to the asset addition on Journal Entries (AM20.5).
    Note: If you select the compute option when you assign books to an asset and the asset in-service date is in the prior year, you might want to alter the record to include the prior year's depreciation.

    Adding assets with previous in-service dates

    1. Change any data in the journal entry, if necessary.
    2. To accept a journal entry, select Add. The asset is added.

      or

      To delete the journal entry, close the form without choosing Add. The asset is added, but the journal entry is not recorded in the General Ledger application. It becomes a memo in the history file.

      Caution: 
      If you do not accept the journal entries, the General Ledger and Asset Management applications are out of balance and you will have to add manual adjusting journal entries.
  7. Verify the accuracy of added assets by running Addition Report (AM220) for an edit listing of the new assets added to the Asset Management application.
    1. Select N (No) in the Released field to include only unreleased assets in the report.
    2. Select a range of in-service or purchase dates to limit the report to the latest assets.
    3. Use the Transfers field to specify how inter-company transfers are displayed in the report. If you leave this field blank, inter-company transfers are included in the Addition report, for the selected company. You can also select 'E' to exclude the transfers or 'O' to only display assets that are inter-company transfers.
      Note: If you leave the Transfers field blank or select 'O', any assets that are set up and transferred in the same year will display on both the Transfer report and the Addition report.
    4. Select the Additional Options tab to filter the report by creator and/or creation date range. When you run the report, only criteria matching the Creator ID and Creation Date range values is displayed.
  8. If any information is incorrect, return to AM20.2, AM20.3, or AM20.4 to change or delete the asset.
    Note: You can change or delete an asset record anytime before you release the asset. After you release an asset, you can only adjust, transfer, or dispose of it.
  9. Release the asset.
    Release Method Options
    Batch Run Processing Release (AM170). You can populate the Creator ID field to filter results by the ID of the creator of the asset. This will also transfer journal entries to General Ledger.
    Online Use the Release form action on: AM20.2, AM20.3, or AM20.4
    Note: This procedure produces journal entries. Depending on the procedure and process you want to perform, these entries are transferred to Lawson General Ledger, Strategic Ledger, or Project Accounting.

Related reports and inquiries

Reports

To Use
List new assets and their tags Asset, Tag Listing (AM221)
List asset books Asset Book Listing (AM222)
List items Item Listing (AM223)
List repairs Repair Report (AM224)
Related topics