How are the Asset Values Updated?
All of the transactions relating to a fixed asset are entered using either the Financials Ledger Entry (LEN) or Ledger Import (LIM) functions. For example, you might use Ledger Entry to manually record asset acquisitions, revaluations, and disposals.
You can also use Ledger Entry to enter manually calculated depreciation values, if required. Although these can be calculated and posted automatically using Depreciation Calculation (FDC). See also Ledger Entry Asset Details in the Financials User Guide / Help.
Asset Indicator
An asset indicator is included on all ledger transactions that post to an asset in the Fixed Assets Register. The indicator determines whether the transaction value is used to update the gross or depreciation value for the asset.
The following asset indicators are available:
- Unused - no asset details are updated for the ledger entry.
- Asset Value - the transaction amount(s)
update the gross value(s) of the asset.
You should not use the Value indicator with assets whose depreciation method is set to Table Depreciation.
- Depreciation - the transaction
amount(s) update the accumulated depreciation value(s) for the asset.
Note: It is not normally recommended to enter depreciation amounts in ledger entry, except under certain circumstances, as described in Entering Asset Transactions.
- Initial - this indicator treats the transaction as though the posting is made to the start depreciation period set in Asset Records (FAR), regardless of the current period in Ledger Entry. Subsequently, Depreciation Calculation (FDC) works out the depreciation due from the start period to the current period. This is compared with any depreciation accumulated so far. If you are using depreciation tables you must use this indicator.
All of the normal journal balancing controls apply to the transactions. However, when you post the journal, the transactions are posted simultaneously to the chart of accounts code in Financials and to the asset in the Fixed Asset Register.