Setting up activities for capitalization

Use this procedure to define and maintain asset information in activities. These parameters are used to capitalize activities to create assets in the Asset Management application.

Define an asset template prior to setting up activities for capitalization. See the Asset Management User Guide for details.

  1. Access Override Account Categories (AC06.1).
  2. Select a posting activity and define account categories eligible for capitalization. Use these guidelines to specify the field values:
    Cap (Capitalize)

    Set this field to Yes for account categories that are eligible for capitalization. If you do not want to capitalize costs collected in a specific account category, then set this field to No.

    Asset (button)

    Select an asset template to use for the account category. If you define asset information for all account categories associated with an activity on Activity Asset (AC10.3), then this lets you specify a different asset template for an account category. You do not need to set up asset information by activity and account category. The default setting is No.

  3. On Activity Asset (AC10.3), use the Main tab to define and maintain required asset parameters for activities. These parameters are used when you transfer information to the Lawson Asset Management application. Use these guidelines to specify the field values:
    Activity

    Select the posting activity for which you want to define asset parameters.

    Note: You cannot define asset parameters for summary or contract activities.
    Account Category

    To define one set of asset information applicable to all account categories associated with the posting activity, leave this field blank.

    To define specific asset information for an account category associated with the posting activity, select the account category you want. The account category must be flagged for capitalization on Override Account Categories (AC06).

    Note: If you define asset information for all account categories associated with an activity, then you can select a different template for an account category on Override Account Categories (AC06).
    Template

    Select an asset template. Templates are defined in Asset Management using Addition Template (AM12.1).

    Quantity

    Specify the number of total items that make up the asset.

    Note: Every asset must have at least one item.
    Asset Description

    Specify a description to use for the asset. If you leave this field blank, then the activity description will default.

    Combine

    Specify or select a combine code to capitalize multiple activities into one asset. Combine codes are not defined on a separate form. After you enter a combine code for an asset, you can select it for other assets.

    Note: All the activities that you want to include in the asset must have this combine code assigned. In addition, each activity must have the same asset template, asset description, tag, asset group, and hold code.
    Tag

    Specify or select a tag number to identify each asset. A tag is a user-defined identifier assigned to an asset.

    Asset Group

    Specify or select an asset group. Assets assigned to the same asset group can be processed together. Asset groups are defined on Asset Group (AM13.1).

    Hold

    This field determines whether activities are eligible for Asset Management Interface (AC160). The default setting is No. To place the capitalization process on hold for an activity, select Yes. If you place an activity on hold, then you must change this parameter manually when the activity becomes eligible for capitalization.

    Location

    Select a location to identify where the asset is located. Locations can be used for asset reporting, and are defined on Location (AM07.1).

    The location from Activity (AC10.1) will default. If you leave this field blank, then the location defined in the asset template will be used.

    Division

    Select a division. Divisions represent smaller groups than locations, and are subordinate to locations in the asset reporting structure. Divisions are defined on Division (AM08.1).

    The division from Activity (AC10.1) is set as default. If you leave this field blank, then the division defined in the asset template will be used.

    To create one asset with multiple items from multiple activities/account categories, assign the same combine code and different item numbers on Activity Asset (AC10.3).

  4. On the Item tab, define item information. Every asset requires at least one item, but an asset can be comprised of multiple items. If you leave the item fields on Activity Asset (AC10.3) blank, then a single item for the asset will be created automatically. Use these guidelines to specify the field values:
    Item

    Select the item number and description that you want to create from the activity or activity or account category.

    Purchase Date and In-Service Date

    Specify a purchase date and an in-service date. The purchase date can be different from the in-service date used for the depreciation books. The in-service date cannot be earlier than the purchase date.

    Tax

    Specify the tax amount for an item. The item tax amount is excluded from the item cost calculated by Asset Management Interface (AC160).

    Model

    Specify the model number of the item.

    Serial

    Specify the serial number of the item.

    PO

    Specify the purchase order number used for the acquisition of the item.

    Grant

    If you are using the Lawson Grant Billing application, then you can type a grant or non-grant fund code or identifier.

  5. On the Adjust tab, define and maintain asset information for the activity. Select whether or not to append the information for this activity and account category combination to an existing asset in Asset Management. Use these guidelines to specify the field values:
    Append Option

    Select whether or not to append the information for this activity or account category combination to an existing asset when Asset Management Interface (AC160) is run.

    If you select Yes, then the information will be appended to the asset created the first time Asset Management Interface (AC160) was run for this activity or account category combination.

    If you select No, then a new asset is created each time Asset Management Interface (AC160) is run for this activity or account category combination.

    Append to Asset

    Select the asset to which you want to append the information.

    Add To Basis

    Select whether or not to add the item cost to the asset's basis amount when Item Update Adjustment Interface (AM551) is run for these records in Asset Management.

    If you select Yes, Project Accounting creates a General Ledger transaction for the adjustment. Asset Management will also create a General Ledger transaction if you choose to post to General Ledger when Processing Release (AM170) is run.

    If you select No, then Project Accounting does not create a General Ledger transaction for the adjustment.

    Compute Depreciation

    Select whether or not to compute depreciation for the adjustment when Item Update Adjustment Interface (AM551) is run for these records in Asset Management.

  6. On the Repair tab, define and maintain asset repair information. You can track repair information collected in activities for assets that have been defined in the Lawson Asset Management application. Use these guidelines to specify the field values:
    Asset

    Specify or select the asset number associated with the repair costs for the activity.

    Tax

    Specify the tax amount for the repair.

  7. On the Transaction tab, define the GL codes to use for transactions created during the capitalization process. GL codes provide a shorthand way to identify General Ledger companies, accounting units, and accounts. Use these guidelines to specify the field values:
    Asset Clearing

    Select the GL code that identifies the asset clearing account. When you transfer activity information to Asset Management, this account is debited. When you process the asset in Asset Management, this account is credited.

    If a GL code for Asset Clearing does not exist, then you need to define it using GL Code (GL04.1).

    WIP

    Select the GL code that identifies the WIP (work in process) account. When you transfer activity information to Asset Management, this account is credited.

    Note: If you leave this field blank, the company, accounting unit, account, and subaccount identified in each cost transaction posted to the activity is credited during Asset Management Interface (AC160). Use a WIP code only when you can control the account edits for the activity during transaction entry.

Related reports and inquiries

To Use
List all GL Codes and the company, accounting unit, account, and subaccount defined for each code GL Code Listing (AC204)
Related topics