Configure fixed assets components
The Fixed asset group field is the only required field when you create a fixed asset. The value of this field determines the default value of several informational fields for the asset. Books are set up so that a default book is assigned to each asset in a group. In this way, attributes that you set for the books can be specific to a group of assets. These attributes include the service life and the depreciation convention.
You can also define special depreciation allowances, or bonus depreciation, for a specific combination of a fixed asset group and a book. Assign a priority to the special depreciation allowance to specify the order in which allowances are calculated when multiple allowances are assigned to a book.
Watch this video to learn about the fixed asset groups and how to create one:
Journal names
On the Journal names page, you can create the journal names that should be used with the Fixed assets journal. Set the Journal type field to Post fixed assets, and then set the Voucher series field so that the journal names are used for the Fixed assets journal. Fixed assets journals should not use the One voucher number only setting, because a unique voucher number is required for several automated processes, such as transfers and splits.
Fixed assets parameters
The Capitalization threshold field determines the assets that are depreciated. If a purchase line is selected as a fixed asset, but it doesn't meet the specified capitalization threshold, a fixed asset is still created or updated, but the Calculate prorated depreciation option is set to No. Therefore, the asset won't be automatically depreciated as part of the depreciation proposals.
When you set the Automatically create depreciation adjustment amounts with disposal option to Yes, the asset depreciation is automatically adjusted, based on the depreciation settings at the time of asset disposal. Another option lets you deduct cash discounts from the acquisition amount when you acquire fixed assets by using a vendor invoice.
On the Purchase orders FastTab, you can configure how assets are created as part of the purchasing process. The first option is named Allow asset acquisition from Purchasing. If you set this option to Yes, asset acquisition occurs when the invoice is posted. If you set this option to No, you can still put a fixed asset on a purchase order (PO) and invoice, but the acquisition won't be posted.
Posting must be done as a separate step, from the Fixed assets journal. The Create asset during product receipt or invoice posting option lets you quickly create a new asset while posting. Therefore, the asset doesn't have to be set up as a fixed asset before the transaction. The last option, Check for fixed assets creation during line entry, applies only to purchase requisitions.
Watch this video to learn about the setups for fixed assets integrations in the Parameters page in Fixed assets > Setup > Fixed assets parameters.
You can configure reason codes so that they are required for changes to a fixed asset or for specific fixed asset transactions.
Finally, on the Number sequences tab, you can define number sequences for fixed assets. The Fixed asset number sequence can be overridden by the Fixed asset group number sequence if it has been specified.
Watch this video to learn how to set up fixed assets parameters and fixed assets journals for acquisitions, depreciations, and disposal of sales: