Defining an account group
Account groups are sets of accounts used to create journal entries when you add, transfer, or dispose of assets. When you set up Asset Management, you must define at least one account group. This procedure outlines the process for defining account groups.
Define an account group
- Access Account Group (AM05.1).
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Define the account group. Specify this information:
- Clearing Account
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The asset Clearing Account records initial asset costs incurred when an asset is added in the Asset Management application.
If you plan to interface transactions from Accounts Payable and Project Accounting, you must specify a clearing account for the account group in this field. The clearing account specified must be the same one used in Accounts Payable and Project Accounting when assets are interfaced.
If you use the account group for a leased asset, Asset Management automatically substitutes the lease debt account for the clearing account so that you can use the same account group for a purchased asset or for a leased asset without changing the clearing account.
Note: The clearing subaccount should have a zero balance at the end of each accounting period. - Proceeds Account
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The Proceeds posting account typically is a cash or clearing account; it records cash or other items of value that are received when an asset is sold or traded.
Note: If the asset sales transactions are processed through Accounts Receivable or Cash Management, you should specify a clearing account in this field that matches the clearing account used by Accounts Receivable or Cash Management.To define an account group to be used by asset-class assets, Lawson highly recommends that this account match the accumulated depreciation account specified for the type associated with the asset class.
- Expense Account
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The Expense account is the account the Asset Management application will use to post selling costs, such as the advertising expense of the disposed asset.
To define an account group to be used by asset-class assets, Lawson highly recommends that these accounts match the accumulated depreciation account specified for the type associated with the asset class.
- Gain Account Loss Account
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Asset Management uses the gain and loss accounts to record the system-generated gains or losses when assets are retired.
To define an account group to be used by asset-class assets, Lawson highly recommends that these accounts match the accumulated depreciation account specified for the type associated with the asset class.