Convert Purchases to Assets

Form ID: (FA504500)

By using this form, you can convert purchased items to fixed assets or define the items as components of a specific fixed asset in the system. If a transaction includes multiple units of a purchased item, you can convert fewer units to fixed assets than this purchased quantity. For more information about how to convert purchased items to fixed assets, see Conversion of a Purchase: General Information.

To prepare for the conversion of purchases to fixed assets, when you create the bills for purchases based on requisitions, you should use the fixed asset accrual accounts and subaccounts that are specified on the Fixed Assets Preferences (FA101000) form.

Note:

If a fixed asset has at least one book for which Australian Prime Cost is selected in the Depreciation Method column on the Balance tab of the Fixed Assets (FA303000), additions to and deductions from this asset cannot be processed in the system.

Form Toolbar

The form toolbar includes standard and form-specific buttons and commands. For the list of standard buttons, see Form Toolbar and More Menu. The form-specific commands are listed in the following table.


Button	Description
Process	Based on your selections on this form, processes the lines you have selected in the lower table and creates new fixed assets or new components of the specified assets.

Selection Area

In this area, you can select the accrual account used for fixed assets and the appropriate subaccount (if subaccounts are used in your organization) to display the purchase transactions in the upper table. Also, you can select the branch, custodian, and department to be assigned to the new assets.

Note:

If you need to assign certain selected items to different branches, custodians, or departments, you can specify these details for each item in the respective row of the upper table. Moreover, you can specify different branches, custodians, or departments for each unit of the item in the lower table.


Element	Description
Account	The asset account of the purchase transactions that should be converted to fixed assets. By default, this account is the fixed asset accrual account specified on the Fixed Assets Preferences (FA101000) form.
Subaccount	The subaccount of the purchase transactions, if subaccounts are used in your organization. By default, this subaccount is the fixed asset accrual subaccount specified on the Fixed Assets Preferences form.
Show Transactions Marked as Reconciled	A check box that you select to view transactions marked as Reconciled.
Branch	The branch of the organization to which the new fixed assets will be assigned.
Custodian	The person who will be responsible for the new fixed assets.
Department	The department to which the new fixed assets will belong.

Upper Table

This table displays the transactions (each of which might include multiple quantities of an item) from purchase receipts. If you select a transaction in this table, you can specify the conversion details in the lower table.

The table toolbar includes only standard buttons. For the list of standard buttons, see Table Toolbar.

Table 1. Table Columns
Column	Description
Included	An unlabeled check box that you can select to include the purchase if you click Process. Leave the check box clear for the purchases you don't want to convert.
Branch	The branch of the organization where the selected quantity of the item will be placed if the transaction is processed.
Asset Class	The asset class to which the new fixed assets will be assigned by default. If multiple assets should be created and assigned to different classes, you can enter these details in the lower table.
Department	The department to which the selected quantity of the item will belong after its conversion to fixed assets.
Custodian	The person who will be responsible for the selected quantity of the item when the item is converted to fixed assets.
Reconciled	A check box that indicates (if selected) that the transaction was reconciled.
Transaction Branch	The branch whose balance is updated by the conversion transaction.
Inventory ID	The inventory ID of the item to be converted to fixed assets.
UOM	The unit of measure used for this stock item.
Selected Quantity	The quantity of the stock item that will be converted to new fixed assets. This value is automatically updated as you specify details for this stock item in the lower table.
Selected Amount	The total cost of the selected quantity of the stock item. This amount is equal to the selected quantity multiplied by the unit cost.
Open Quantity	The difference between the quantity specified in the transaction and the selected quantity.
Open Amount	The total cost of the open quantity of the stock item, which is calculated as the difference between the original amount and the sum of the amounts specified in the lower table.
Orig. Quantity	The original quantity, which is the number of units of the purchased item.
Unit Cost	The cost of each unit of the item, according to the bill.
Orig. Amount	The total cost of the item, according to the transaction. This amount is calculated as the unit cost multiplied by the original quantity.
Transaction Date	The date of the transaction. This date should be the same as the Receipt Date or the same or earlier as the Placed-in-Service Date specified for the asset on this form.
Module	The two-letter identifier of the part of the product where the transaction originated.
Batch Number	The identifier of the batch generated for the transaction.
Ref. Number	The external or internal reference number associated with the transaction.
Customer/Vendor	The customer or vendor that is associated with the transaction.
Transaction Description	The description of the transaction.

Lower Table

This table provides a list of units (with details) of the item selected for conversion in the upper table.

By using this table, you can assign new assets (converted from the units of the item selected in the upper table) to classes, associate new assets with their parent assets, and specify the department, location, and custodian for converted assets.

The table toolbar includes only standard buttons. For the list of standard buttons, see Table Toolbar.

Table 2. Table Columns
Column	Description
Create Asset	A check box that indicates (if selected) that the selected unit of the inventory item will be a new asset. This asset will have no parent asset if the Component check box is cleared. If the Component check box is selected, select a parent asset. Clear the Create Asset check box if the selected unit of the inventory item will be another unit of an existing fixed asset, which you specify in the Asset ID column.
New Asset ID	The unique identifier for the new fixed asset, which can be assigned automatically or manually.
Branch	The branch of the organization to which the selected quantity of the item will be assigned.
Asset Class	The class with which the new asset is associated.
Department	The department to which the selected unit of the item will belong.
Component	A check box that you select to indicate that this unit of the inventory item will be a component of the asset specified in the Asset ID column.
Asset ID	A value that has different meanings depending on whether the Create Asset and Component check boxes are selected: If both check boxes are selected, this column displays the asset ID of the parent asset for this new asset. A fixed asset can have any number of components. If Create Asset is selected and Component is cleared, this column is unavailable. If both check boxes are cleared (if Create Asset is cleared, Components is unavailable), this column refers to an existing asset; after processing on this form, the cost of the existing asset will be increased by the cost of this item. The lookup table that is opened in this column does not show assets with the Reversed and Disposed statuses.
Quantity	The quantity of the new fixed asset.
Transaction Amount	The amount of the transaction—that is, the cost of the asset.
Receipt Date	The date of the purchase receipt document.
Placed-in-Service Date	The date when an asset will be placed in use and from which this asset will be depreciated. This date should be the same or later than the Receipt Date specified for the asset on this form.
Tran. Period	The financial period to which the purchasing transaction should be posted. The period of the transaction date is used.
Custodian	The person who will be responsible for the selected unit of the item when it is converted into a fixed asset.
Transaction Type	The type of the transaction. The following option is available: Purchasing +. With this transaction, the asset cost asset is transferred from the fixed asset accrual account that is specified on the Fixed Assets Preferences (FA101000) form to the default fixed asset account specified for the asset class.
Transaction Description	The description of the asset.