Create or Update the Acquisition Cost of Fixed Assets with Project Costs through (FAS660)

Update a fixed asset with costs recorded against a specific project through processing in 'FA Under Construction. Open' (FAS660).

The function (FAS660) replaces the function 'Fixed Asset. Activate under Construction' (FAS160) and provides new capabilities for processing fixed assets under construction. The new function has configurable views and enables selection from all seven accounting dimensions during the creation of a proposal for the selected project. The proposal is processed through a batch job and a printout of the proposal is created.

Limitations

These are the limitations when updating a fixed asset with an acquisition cost in (FAS660):
  • When the functionality in (FAS660) is activated, you cannot use the old functionality in (FAS160).
  • If a proposal is created in (FAS660) from a blank division, you can only include one division in the selection.
  • When you create a proposal in (FAS660), you can only include one project in the selection.
  • When you activate a proposal in (FAS660), you can only select one fixed asset to receive the activated amount.
  • Only one user can edit one proposal at a time in (FAS660).
  • You cannot add records manually to a previously created proposal in (FAS660).
  • Job scheduling is not supported by (FAS660), as the activation of fixed assets under construction is a manual process.

Outcome

The fixed asset is updated with an acquisition cost equal to the incurred project costs. You can repeat this procedure several times for the same fixed asset, as only new project transactions update the fixed asset. If the fixed asset does not have a previous value, the activated amount is updated for the value types used for the purchase price and total acquisition cost, and a depreciation plan is created for the fixed asset. If the fixed asset already has a previous value, the activated amount is updated for the value types used for additional cost and total acquisition cost, and the depreciation plan is updated accordingly.

An activation voucher is created to reverse the project transactions posted on the fixed asset under construction account, with a contra posting on the ordinary fixed asset account using accounting rule FA70-550.

The original general ledger transactions posted on the fixed asset under construction account are automatically reconciled against the reversal transactions created during activation.

Before you start

Before you start, you must meet these prerequisites:
  • Define the accounting dimension for projects in 'Settings – Activating FA under Constr' (FAS940).
  • Define the project for the accounting dimension selected in (FAS940) in 'Accounting Identity. Open' (CRS630).
  • Define an account as a fixed asset under construction with the F/A account parameter set to 2='Fixed assets under construction' on (CRS630/E).
  • Define an account as an ordinary fixed assets account with the F/A account parameter set to 1='Fixed assets' on (CRS630/E).
  • Specify the transactions in the general ledger for the account defined as a fixed asset under construction account, with the F/A account set to 2 on (CRS630/E) and for your project. If the amount of the general ledger transaction is positive, the acquisition cost of the fixed asset increases at activation. If it is negative, the acquisition cost decreases.
  • Define the number series 50-F in 'Number Series. Open' (CRS165) for each division. When you create a proposal in (FAS660), a proposal number is retrieved from this number series.
  • Define setup for printout FAS663PF specifically for your user in 'Output Service Selection. Open' (MNS204). This setup is needed for the printout of proposals created in (FAS660).
  • Define the value types for the purchase price (VAPV), additional cost (VAT7), and total acquisition cost (VATT) in 'Settings – Fixed Asset Acquisition' (FAS900).
  • Create a fixed asset in 'Fixed Asset. Open' (FAS001) to receive the activated cost through (FAS660). The fixed asset must be in status 1 in (FAS001).
  • Define accounting rule FA70-550 in 'Accounting Rule. Set' (CRS395) and use the account defined as an ordinary fixed asset account, with the F/A account set to 1 on (CRS630/E) for this accounting rule. When you activate a proposal in (FAS660), the accounting string used for the activation is automatically set from accounting rule FA70-550.
  • Define FAM function FA60 in 'FAM Function. Open' (CRS405). This FAM function is used during the activation of proposals in (FAS660).

Workflow

Follow these steps to create or update the acquisition cost of fixed assets with project costs:
  1. Create a fixed asset under construction proposal in (FAS660).

    Create a proposal for a project by defining a set of selection criteria on 'FA Under Construction. Open' (FAS665/E).

  2. Verify and adjust the fixed asset under construction proposal in (FAS660).

    Review the proposal to ensure that the records are correct.

    If necessary, adjust the proposal by blocking or deleting project transactions in the subprogram 'FA Under Construction. Open Details' (FAS661). This prevents the transactions from being included in the final activation.

  3. Activate the fixed asset under construction proposal in (FAS660).

    After you review and adjust the proposal, activate the proposal in (FAS660).

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