Registering Preliminary Fixed Asset at Invoice Entry

Outcome

A preliminary asset is registered with status 5 (Preliminary) in 'Fixed Assets. Open' (FAS001).

Activate the preliminary asset by selecting a fixed asset type in (FAS001). A depreciation plan is then automatically created based on the acquisition cost and the depreciation types selected for the fixed asset type.

The preliminary asset is saved in the Fixed Asset master table, FFASMA. The amounts are stored for each value type in the FFASVL table.

Before you start

• The Fixed Assets module must be set up. See Defining Components for Fixed Asset Management.
• Basic settings for the processing of purchased assets must be defined in 'Settings – Fixed Asset Acquisition' (FAS900). The settings define:

• The start number to use as the numeric ID of preliminary assets. The number is automatically updated by one for each new preliminary asset.
• The value types, that is, the "containers" in which to store and display different kinds of amounts related to the acquisition such as purchase price, cash discount, additional cost, residual value (see below) and acquisition cost. The amounts in these value types will be displayed for the asset in 'Fixed Asset. Connect Value Types' (FAS003), which is accessed from (FAS001/B).

• The accounts used at recording or recoding invoices must be fixed asset accounts, that is, alternative 1 = 'Fixed assets' must be selected in the 'Fixed assets account' field for the account in 'Accounting Identity. Open' (CRS630/E).

Follow these steps

1. Register supplier invoice or specify the journal voucher

   You can trigger the automatic registration of a preliminary asset in the following ways:

   • Record supplier invoice

     Specify an approved invoice for the purchase of the asset in 'Supplier Invoice. Record' (APS100) and record the cost on a fixed asset account. 'Fixed Asset. Open Preliminary' (FAS180) is automatically displayed, either directly or after 'Supplier Invoice. Match GR Line' (APS1360), depending on whether the invoice is matched to a goods receipt.

     Specify an approved invoice for the purchase of the asset in 'Supplier Invoice Batch. Open' (APS450) or use APS450MI, transaction AddLine, and record the cost on a fixed asset account with line type '8 - Accounting Line'. Fields for the fixed asset are automatically displayed on 'Supplier Invoice Batch. Open Lines' (APS451/F), or can be entered in APS450MI. The fixed asset fields must be specified if it is a fixed asset account.

   • Recode supplier invoice

     Recode an invoice on a clearing account for the purchase of the asset in 'Supplier Invoice. Recode' (APS110) and record the cost on a fixed asset account. (FAS180) is automatically displayed, either directly or after, depending on whether the invoice is matched to a goods receipt.

     Recode an invoice on a clearing account for the purchase of an asset in (APS450) or use APS450MI, transaction AddLineRecode, invoice batch type 25 - 'Recode', and record the cost on a fixed asset account with line type '8 - Accounting Line'. Fields for the fixed asset are automatically displayed on (APS451/F), or can be entered in APS450MI. The fixed asset fields must be specified if it is a fixed asset account.

   • Record payment in the general ledger

     Make a manual journal voucher entry of a cost related to the acquisition of the asset, for example, based on a statement of account, in 'Journal Voucher. Open' (GLS100) and record the cost on a fixed asset account. (FAS180) is automatically displayed.

2. Register basic fixed asset data

   In (FAS180), or for the fields in (APS450) or APS450MI, specify a brief description of the preliminary asset to create in the Fixed Assets module as well as the quantity. If the asset is new, do not specify an ID for the asset; it will automatically be assigned an ID from 'Settings – Fixed Asset Acquisition' (FAS900). The only time you must specify the asset ID in (FAS180), or for the fields in (APS450) or APS450MI, is when the asset already exists, and you are recording an additional cost. Such an additional cost will be stored in a separate value type that was selected in (FAS900).

   If applicable, specify a residual value, which is used by M3 Business Engine, to create the depreciation plan when you activate the preliminary asset. The amount to depreciate will be the depreciation base amount minus the residual value. For example, if the acquisition cost is EUR 1,000 and the residual amount 100, then only 900 will be depreciated. If the lifetime of the asset is defined as twelve months and the depreciation is linear, then the monthly depreciation will be 75 (900 divided by 12 months). Without the residual value the monthly depreciation would have been 83,33 (1,000 divided by 12 months).

   After you specify the applicable values and press Enter, you return to the program where you recorded the payment. Continue as usual. The acquisition cost of the preliminary asset is automatically calculated as the purchase price plus any additional costs minus any cash discount.