Setting the currency rules for an asset

Four values are maintained for an asset: gross value, accumulated depreciation, net value and final value, and can all be held in up to three different currencies for the asset; depending on the business unit and ledger setup options.

These are the three currency values that can be entered on each asset posting transaction. All three of these currencies are fixed on asset posting transactions:

• the base currency is defined in Business Unit Setup, as normal.
• the transaction currency is not usually a fixed currency, however on asset postings the currency code must be preset for each asset and all transaction currency values must be entered in this currency. This is because the asset values are calculated in this currency from the transaction values, so a single currency must be used to establish meaningful values. The currency is identified in the Asset Currency Code field in the Value 2 Depreciation tab on Asset Records (FAS).
• the second base or reporting currency, if it is required is defined on Business Unit Setup. Asset values are maintained in this currency if the Assets in Second Base/Reporting Currency option is set in Ledger Setup (LES).