SECTIONSJournals Overview
Provided that Accounting has been configured correctly, asset information is sent automatically from Fixed Asset Management the next time a user approves an asset, exports a depreciation schedule, or disposes of an asset. Accounting receives this information and automatically creates journals to record the resulting financial transactions.
When communicating with Accounting, Fixed Asset Management includes the following fields and any additional details required to create the accounting journal:
- Fixed Asset ID
- Fixed Asset Name
- Asset Tag Number
- Asset Description
- Department ID
- Department Name
- Journal Type
Accounting can receive the information and create journals to record the acquisition, depreciation, and disposal values on the balance sheet. These journals are created with the status "In Progress" so that they can be reviewed prior to posting. Journals are created with one of the following types:
- Fixed Asset Acquisition
- Fixed Asset Depreciation
- Fixed Asset Disposal
Information Sent to Accounting
Fixed Asset Management sends specific information to Accounting depending on whether you approve an asset, export a depreciation schedule, or dispose of an asset.
The following information is sent to Accounting for asset approval, depreciating and disposal in Fixed Asset Management.
Asset Approval (Acquisition)
When you approve an asset in Fixed Asset Management, the appropriate debit and credit values are sent to Accounting to record the asset's acquisition.
The fields sent to Accountinginclude:
- Fixed Asset GLA (debit)
- Payment GLA (credit)
- Asset Cost
- Acquired Date
- Dimensions
- Journal Type (Fixed Asset Acquisition)
Depreciation Schedules
When you export a depreciation schedule in Fixed Asset Management, the depreciation information that is due for the asset is sent to Accounting.
The fields sent to Accountinginclude:
- Depreciation GLA (debit)
- Accumulated Depreciation GLA (credit)
- Depreciation Amount
- Effective Depreciation Date
- Dimensions
- Journal Type (Fixed Asset Depreciation)
Asset Disposal
When you dispose of an asset in Fixed Asset Management, the following information is sent to Accounting:
- The disposal information that ensures the asset value and accumulated depreciation are cleared from the balance sheet
- The disposal information that ensures any remaining asset value is recorded in the financial accounts.
The fields sent to Accountinginclude:
- Accumulated Depreciation GLA (debit)
- Asset Disposal Profit and Loss GLA (debit)
- Fixed Asset GLA (credit)
- Asset Cost
- Total Depreciation To Date
- Quantity of Usefulness
- Disposal Value
- Disposal Date
- Dimensions
- Journal Type (Fixed Asset Disposal)
The disposal process also triggers the generation and export of a depreciation schedule for any accumulated depreciation between the asset's disposal date and the effective depreciation date of the last full depreciation schedule. For example, if the last full depreciation schedule has an effective date of December 31, 2015 and the asset's disposal date is October 21, 2016 then a depreciation schedule is generated and exported to cover the accumulated depreciation from December 31, 2015 to October 21, 2016. Depreciation schedules that fall after the disposal date are terminated.
If the asset has any earlier depreciation schedules with the status "Pending" you must export them manually. They are not exported automatically by the disposal process.
Setting up Fixed Asset Management to Accounting Journals
To set up the integration between Fixed Asset Management and Accounting assign appropriate permissions to the relevant user profiles. For more information, see Setting up Fixed Asset Management to Accounting Journals.