Creating Asset Account Definition
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This page allows you to create the asset account for defaulting accounts during any transaction. For a combination of asset class, finance book and usage of an account, an asset account can be defined. You can specify the date from which the asset account is effective. But, the asset account that has been defined for the combination of asset class and the finance book must be unique.
On creation, the system updates the status of the asset class to “Active”. The system also stores the login ID of the user to the created by and the system date to the created date.
Select the “Create Asset Account Definition” link under the “Account Rule Definition” business component.
The “Create Asset Account Definition” page appears.
Enter the following field:
Asset Class Code |
Use the drop-down list box to select the code identifying the asset class. The system lists all the asset classes defined in the “Create Asset Class” activity of the “Asset Type Definition” business component in the ascending order. The system displays the first asset class in the list by default on launch of the page. |
The system displays the following:
Desc. |
The description to the asset class code. |
Enter the following field:
Finance Book |
Use the drop-down list box to select the code identifying the finance book to which the financial entries are posted. All the postings finance books that has been defined for the company, to which the login organization unit belongs will be available for selection, in the ascending order. The system displays the first finance book of the list by default on launch of the page. |
The system displays the following in the “Account Definition Details” multiline:
Usage |
The asset usages, for which account codes are to be defined. The system displays all the asset usages in the multiline to which account codes are yet to be mapped. Various usages are: “Capitalization Asset”, “Depreciation”, “Cumulative Depreciation”, "Capital WIP", "Revaluation Asset", "Revaluation Reserve", "Loss on Revaluation“, ”Revalued Depreciation” , “Revalued Cumulative Depreciation”, "Accumulated Impairment Loss" and "Impairment Loss". |
Enter the following fields:
Account Code |
The code identifying the asset account (Alphanumeric, 32). Mandatory. The account codes must have been defined in the “Create Operative Chart of Account” activity of “Accounting Setup” business component. |
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Help facility available. |
Note: The following things must be taken care while entering the account code.
If the account code has already been assigned to asset class in a particular finance book, then this account code cannot be assigned to any other asset class in any other finance book.
The account code is mandatory for the usage “Capitalization Asset”. If the “Depreciable” status of the asset class has been set to “Yes”, then account code value is mandatory for the usages “Depreciation” and “Cumulative Depreciation” also.
The account group for the account code must be “Asset” and the control account type must be “Asset Account” for the usage “Capitalization Asset”.
The account group for the account code must be “Asset” and the control account type must be “Capital WIP” for the usage “Capital WIP”.
The account group for the account code must be “Asset” and the control account type must be “Revaluation Asset” for the usage “Revaluation Asset”.
The account group for the account code must be “Expenditure” and the control account type must be “Depreciation Account” for the usage “Depreciation”.
The account group for the account code must be “Liability” and the control account type must be “Cumulative Depreciation Account” for the usage “Cumulative Depreciation”.
The account group for the account code must be “Liability” and the control account type must be “Revaluation Reserve Account” if the usage is “Revaluation Reserve”.
The account group for the account code must be “Expenditure” and the control account type must be “Loss on Revaluation” if the usage is “Loss on Revaluation”.
The account group for the account code must be “Expenditure” and the control account type must be “Revalued Depreciation” if the usage is “Revalued Depreciation”.
The account group for the account code must be “Liability” and the control account type must be “Revalued Cumulative Depreciation” if the usage is “Revalued Cumulative Depreciation”.
The account group for the account code must be “Liability” and the control account type must be “Accumulated Impairment Loss” if the usage is “Accumulated Impairment Loss”.
The account group for the account code must be “Expenses” and the control account type must be “Impairment Loss” if the usage is “Impairment Loss”.
Effective From Date |
The date from which the account definition details are effective (Date Format). Mandatory. The date entered here must be the financial year or the financial period start date. The effective from date must be greater than or equal to the account code start date and less than or equal to the end date of the account code. |
Note: The following things must be taken care while entering the effective from date.
If for the usage “Depreciation” and an account code “ADEP123” as asset account has already been defined and deleted with date range of 1st April 2001 to 31st March 2002, then the effective from date for the same combination must start from 1st April 2002.
If the account “ADEP123” has already been mapped to a combination from 1st Apr 2001, has to be mapped to a different account “ADEP456” with the same effective date, then the mapping with the account “ADEP123” can be deleted and a new mapping can be done to the account “ADEP456”.
Click the “Create” pushbutton to create the asset account definition.
The system updates the status of the asset class code to “Active”. The system updates the login ID of the user to the created by and the system date to the created date.
To proceed, carry out the following
Select the “View Asset Account Definition” link at the bottom of the page to view the asset account definition details.
The “Finance Book” must have been defined in the “Accounting Setup” business component.
The “Asset Class Code” must have been defined in the “Asset Type Definition” business component.
The “Account Code” must have been defined in the “Accounting Setup” business component.