Fixed Assets: To Configure the Fixed Asset Functionality

In the following implementation activity, you will learn how to configure the fixed asset functionality.

Story

Suppose that an implementation consultant has prepared the system for the configuration of the fixed asset functionality. Based on SweetLife's policy, the company needs one depreciation book to depreciate fixed assets by using the straight-line depreciation method. The company is planning to dispose of assets by selling them.

Acting as an implementation consultant, you need to specify fixed asset configuration settings in the system, create the SOLD disposal method, and generate a calendar that must include as many years as are needed to be able to calculate depreciation for any existing fixed asset, which will later be created in the system, for the entire asset's life.

In SweetLife, all the fixed assets will be placed in service in the same year, and the fixed assets of the BUILDING class will have the longest useful life: 39 years. (In a later activity, the company will acquire the BUILDING asset in the middle of 2024; therefore, you will have to generate a calendar through the year 2063 (2024 + 39). The lifespans of other fixed assets are shorter; therefore, they will also fit the generated range of years.)

Process Overview

In this activity, you will specify the configuration settings on the Fixed Assets Preferences (FA101000) form and create a disposal method on the Disposal Methods (FA207000) form. On the Books (FA205000) form, you will create a posting book; then on the Generate Book Calendars (FA501000) form, you will create a financial calendar for this posting book. Finally, on the Master Financial Calendar (GL201000) form, you will create GL calendars for multiple years and activate their financial periods on the Manage Financial Periods (GL503000) form.

System Preparation

Before you start configuring the fixed asset functionality, launch the MYOB Acumatica website, and sign in to a company with the U100 dataset preloaded. You should sign in as Kimberly Gibbs with the gibbs username and the 123 password.

As a prerequisite activity, in the company to which you are signed in, be sure you have prepared the system, as described in Fixed Assets: To Configure the System for Fixed Asset Management.

Step 1: Specifying Fixed Asset Preferences

To specify the fixed asset preferences, which are the basic configuration settings, do the following:

Open the Fixed Assets Preferences (FA101000) form. In the Account Settings section, select 15010 (Accrued Purchases: Fixed Assets) in the FA Accrual Account box.
This account is used to hold the cost of fixed assets that have not yet been put into service.
In the Posting Settings section, specify the following settings:
- Update GL: Selected
  Tip: If you were preparing the system for production use, you could clear the check box during initial data migration to import the fixed assets that are already capitalized without affecting GL balances.
- Automatically Post on Release: Selected
  With this check box selected, the system releases and immediately posts the batch of journal transactions that has been generated on release of a fixed asset transaction.
On the form toolbar, click Save.

Step 2: Creating a Disposal Method

To create the SOLD disposal method, do the following:

Open the Disposal Methods (FA207000) form.
On the form toolbar, click Add Row, and specify the following settings in the added row:
- Disposal Method ID: SOLD
- Description: Sold
- Proceeds Account: 11010
  This is the accrual account used for recording the proceeds from sales of fixed assets. The account will be used for processing transactions when fixed assets are sold. The account is debited in the amount of the proceeds when an asset is sold, and credited when the AR invoice to the buyer of the fixed asset is released.
On the form toolbar, click Save to save the changes.

Step 3: Creating the Posting Book

To create the posting book, do the following:

Open the Books (FA205000) form.
On the form toolbar, click Add Row, and specify the following settings in the added row:
- Book ID: FIN
- Description: Posting Book
- Posting Book: Selected
  With this check box selected, the transactions of this book will update GL accounts.
- Mid-Period Type: Fixed Day
  This setting means that the day specified in the Mid-Period Day box will be used as the middle of the period in averaging conventions.
- Mid-Period Day: 15
  This setting specifies the day to be considered as the last day of the first half of the period (that is, as the middle of the period).
On the form toolbar, click Save to save your changes.
The created FIN book will be assigned by default to all created fixed asset classes and thus will keep all the fixed asset transactions for the created fixed assets.

Step 4: Generating the Calendar for the Posting Book

To generate the calendar for the posting book, do the following:

Open the Generate Book Calendars (FA501000) form.
In the From Year box, leave the default value of 2023.
In the To Year box, enter 2063.
In the table, select the unlabeled check box in the row of the FIN book.
On the form toolbar, click Process.
After the processing has completed, notice that the calendar has been generated through 2063. For a posting book, the generated calendar starts from the first calendar year in the GL calendar—in this example, from 2023.

Step 5: Activating Financial Periods

To activate the financial periods to which GL transactions will be posted, do the following:

Open the Master Financial Calendar (GL201000) form.
On the form toolbar, click Add New Record.
In the Financial Year box, type 2025.
On the form toolbar, click Generate Calendar.
In the Generate GL Calendar dialog box, which is opened, specify the following settings:
- From Year: 2025
- To Year: 2029
Click OK.
Open the Company Financial Calendar (GL201100) form.
In the Selection area, specify the following settings:
- Company: SWEETLIFE
- Financial Year: 2029
On the More menu, click Open Periods.
On the Manage Financial Periods (GL503000) form, which is opened, click Process All.