Creating a leased asset manually

You can create and add a leased asset by defining all of the required asset data using a series of forms. It begins with leased asset that are found from Leased Asset Addition and Adjustment (AM21.2). After you add a leased asset, you must specify at least one item and one book for the asset.

If you assign a posting book to the asset, then adding an asset automatically generates entries to the General Ledger that are automatically displayed in Asset Accounting. You can accept, change, or delete entries. The General Ledger date is the default from the posting book in-service date. The lease record must exist and must be unreleased before you can add assets.

Note: The lease record must exist and be Unreleased before you can add assets.
Procedure flow: adding leased assets manually
  1. Select Leased Asset Addition and Adjustment (AM21.2)
  2. Click Assets.
  3. Specify this information:
    Company, Lease

    Select the name of the lessor company which the lease is associated.

    Select the lease for which you will create an asset.

    Asset

    If you are adding a new asset, then leave this field blank. A new asset number is generated by the system. Select an asset number to adjust an asset.

    Tag

    Select the tag number to create custom identifiers for reporting purposes.

    Asset Group

    Assign an asset group to group the assets to be processed or reported as a group.

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

    Category

    Select whether the asset is depreciable (D) or non depreciable (N).

  4. On the Main tab, specify this information:
    Asset Company

    Select the name of the company to which the asset is assigned. If this field is blank, then the lease company is the default setting.

    Location

    Select a new or different location for the asset. If you track the asset in physical inventory, then this field is required.

    Division

    Select a new or different division for the asset.

    Type

    Select a type or subtype.

    Note: If the asset is part of an asset class, then the type that you select must only be used for assets that belong to the asset class. The accounts must also only be used for the asset class. The disposal accounts in the account group all match the accumulated depreciation amount in the type.
    Account Group

    Select an account group identifying the general ledger accounts that are used to create journal entries when assets are processed.

    Accounting Unit Group

    Select an accounting unit group for the asset. Accounting unit groups group and identify the accounting units when you create journal entries for adding, adjusting, transferring, or disposing of assets.

    Def Accounting Unit

    Select a default accounting unit for the asset.

    Depr Expense Activity

    Select an activity to post the depreciation expense.

    Select an account category to post depreciation expense.

    Currency

    Select the lease currency. The lease and asset currencies must match.

    Owner

    Select the name of the person responsible for keeping track of the asset in physical inventory.

    Classification

    For a leased asset, you must select a classification of C (Finance) or O (Operating ). The asset classification must match the lease classification. For a non-leased asset, the classification is P (Purchased).

    Inventory

    Select whether the physical inventory must include the asset.

  5. On the Category Options tab, specify this information:
    Work in Process

    Select whether the asset is considered work in process.

    Tax Exempt

    Select whether this asset is tax exempt.

    Simulated

    Select whether this asset is simulated.

    Used

    Select whether this asset is used or previously owned.

  6. When you add leased asset detail, the program generates an asset number for the new asset and automatically navigates to Items (AM21.3).
  7. Perform this step.
    Note: If you have more than five items to specify, then use the More Items form action before you use the Add form action to specify more items. Once you use the Add form action, the form is considered complete and you must use the Change form action after you add more items.
    1. If you are defining multiple items for an asset, then specify control totals for the quantity or cost of the items using the Control Totals form tab.

      If the item totals do not match the control totals, then the application will not allow you to add the items.

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

      UNIX/Windows: If you want to make the asset part of the physical inventory but are not adding through a handheld terminal, then these fields are required:

      IBM i: If you want to make the asset part of the physical inventory, then these fields are required:

      • On the Detail tab, the bar code and condition are required. You can optionally specify the serial number and model, which make up the product category.

      • On the Location Detail tab, you must select or specify the location detail for the item. You can select the entire location detail in the Location Detail Level 1 field but you must edit that entry and specify the level 2 and level 3 fields in their proper fields.

        You can also define tax information for your item on the Detail tab, and associate the item with an invoice, purchase order, or activity on the Invoice, Activity tab. These fields are purely informational and do not feed any information back to the Tax, Accounts payable, Purchase Order, or Activity and Project Accounting applications.

        When you add the items, the system navigates you automatically to Books (AM21.4).

  8. Assign asset books using Books (AM21.4).
    1. Select values for Method and Life for all required books. All required books are displayed.
      Note: For Part 32 (Class Level) books, do not select values for Method, Life, Remaining Life, or Convention. Leave these fields blank.
    2. To assign non-required books, add the books on this form.
    3. Complete the rest of the fields.
      Compute Option

      Because the compute option calculates depreciation in situations when the depreciation needs to 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.

      • If you do not want to update the leased asset's YTD or LTD depreciation to the current period at this time, then set Compute Option to N.

      • If you do want to update leased asset's YTD or LTD depreciation to the current period at this time, then set Compute Option to Y.

      Depr Option detail tab, Bus Pct (Business Use Percentage)

      If the business use for an asset is less than 100 percent, then use the Bus Pct field on the Depr Option detail tab. To arrive at an adjusted annual depreciation, the application multiplies the asset's annual depreciation by the percentage of business use.

      When you add asset book assignments, you may be prompted to verify journal entries for the asset. The program automatically navigates to Journal Entries (AM21.5).

  9. Accept, change, or delete system-prompted journal entries related to the asset addition using AM21.5.
    Note: If you selected the compute option, when assigning books to an asset, and the asset in-service date is in the prior year, you may want to alter the journal entries to include the prior year's depreciation.

    See Assets with previous service dates.

    1. Change any data in the journal entry, if necessary.
    2. To accept a journal entry, click Add to add the asset.

      To delete the journal entry, close the form without using the Add button. The asset is added, but the journal entry is not recorded.

      Note: If you do not accept the journal entries, then this may create and imbalance in the General Ledger and Asset Management applications. If this happens, then you are required to manually adjust journal entries.
  10. 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 No in the Released field to include only unreleased assets in the report.
    2. Select a range of in-service dates to limit the report to the latest assets.
      Note: You can change or delete an asset record anytime before releasing the asset. But once you release an asset, you can only adjust, transfer, or dispose of it.
  11. If any information is incorrect, then return to AM21.2, AM21.3, or AM21.4 to change or delete the asset.
  12. 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: Releasing an asset produces journal entries; depending on the procedure and process you are performing, these entries are transferred to Lawson General Ledger, Strategic Ledger, or Project Accounting.
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