Adding a leased asset manually

You can define and add a leased asset by specifying all of the necessary asset information on a series of forms, beginning with Leased Asset Addition and Adjustment (AM21.2). When you add a leased asset, you must define at least one item and one book for the asset.

If you assign a posting book to the asset, adding an asset automatically generates entries to the General Ledger application 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.

The lease record must exist and be Unreleased before you can add assets.

Procedure flow: Adding leased assets manually

Add a leased asset manually

Access Leased Asset Addition and Adjustment (AM21.2).
Define leased asset header and detail information using these guidelines:

Company, Lease

A leased asset is associated with a lease and lease company. The lease company and the asset company can be different companies.

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 Asset field.

Asset Group

You can assign an asset group to the asset to make it part of a group of assets to be processed or reported on as a group.

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.

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 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.

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 leased asset detail, the program generates an asset number for the new asset and automatically navigates to Items (AM21.3).
Define asset item information on AM21.3.

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.
1. To ensure that multiple item amounts add up to the cost of the entire amount, specify control totals for the quantity or cost of the items on the Control Totals tab.
  
  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. 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.
  
  You can also add tax information in the Tax field. This field is 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.
  
  Invoice, Activity tab
  
  You can associate an item with an invoice, purchase order, or activity. These fields are 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).
Assign asset books on Books (AM21.4).
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.
2. To assign a nonrequired book, specify or select a book in the Book field, and specify or select all required information.
3. Complete the rest of the fields using these guidelines:
  
  Compute Option
  
  Because the compute option calculates depreciation when the depreciation must be brought up-to-date with the current period, this setting is important when you add a leased asset that has an in-service date that is before the current, open period.
  
  To update leased 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 leased asset's YTD or LTD depreciation to the current period at this time, set Compute Option to N (No).
  
  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 assigned to the asset is a posting book, you are prompted to verify journal entries for the asset. The program automatically navigates to Journal Entries (AM21.5).
  
  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 (AM21.5) to see what journal entries were added and to modify them at any time before you release the asset.
Accept, change, or delete system-prompted journal entries related to the asset addition on Journal Entries (AM21.5).

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.
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 must add manual adjusting journal entries.
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.
If any information is incorrect, return to AM21.2, AM21.3, or AM21.4 to change or delete the asset.

Note: You can change or delete an asset record anytime before you release the asset. However, after you release an asset, you can only adjust, transfer, or dispose of it.

Release the leased assets:


Release Method	Options
Mass/Batch	Run Processing Release (AM170). This will also transfer journal entries to General Ledger.
Online	Use the Release form action on AM21.2, AM21.3, or AM21.4

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.

Note: You must release all assets associated with a lease before you can release the lease.

Return to Lease Management and release the lease:


Release Method	Options
Mass/Batch	Run Mass Lease Release (LM121).
Online	Use the Release form action on LM21.2

Capital leases will release only if the assets associated with them have been released and if the total book value for all the assets associated with the lease match the lesser of the two amounts displayed in these fields of the FAS13 tab of LM21.2:

Net Present Value

Lease Obligation

Operating assets have a zero book value.

Related reports and inquiries

Details about Asset Management reports are found elsewhere in this user guide. 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)
Generate a report of reconciled leased asset information by book.	Leased Asset Report (AM278)
Inquire on leased asset books	Leased Asset Book Analysis (AM91.1)