Asset Disposal: Implementation Checklist
The following sections provide details you can use to ensure that the system is configured properly for disposing of fixed assets, and to understand (and change, if needed) the settings that affect the processing workflow.
Implementation Checklist
We recommend that before you dispose of a fixed asset, you make sure that the needed features have been enabled, settings have been specified, and entities have been created, as summarized in the following checklist.
| Form | Criteria to Check |
|---|---|
| Enable/Disable Features (CS100000) | The Standard Financials and Fixed Asset Management features have been enabled. |
| Multiple forms | The minimum configuration of the company has been performed, as described in Company Without Branches: General Information, Company with Branches that Do Not Require Balancing: General Information, and Company with Branches that Require Balancing: General Information. |
| Multiple forms | The general ledger functionality has been implemented, as described in General Ledger: General Information. |
| Customers (AR303000) | Customer accounts have been created in the system for all customers to which you will sell items that have been disposed of and for which you will create an AR invoice. For details, see Customers: Implementation Activity. |
| Fixed Assets (FA303000) | The fixed assets that you are going to dispose of have been created in the system, as demonstrated in the examples of Conversion of a Purchase: To Convert a Purchase to an Asset, Conversion of a Purchase: To Convert a Purchase to Multiple Assets, Fixed Asset Creation: To Create and Reconcile an Asset, Fixed Asset Creation: To Create an Asset with Multiple Units, and Non-Default Asset Settings: Process Activity. |
Other Settings That Affect the Workflow
The processing of fixed assets causes batches to be produced by the system on the Journal Transactions (GL301000) form. A user can also manually create batches on this form. The settings on the General Ledger Preferences (GL102000) form can affect the processing workflow of each batch as follows:
- If the Hold Batches on Entry check box is selected, a batch is saved with the On Hold status by default. If the batch is on hold, the user should click Remove Hold on the form toolbar of the Journal Transactions form for the batch so that they can process it further. If the check box is cleared, the batch is saved with the Balanced status.
- If the Validate Batch Control Totals on Entry check box is selected, the user has to enter the control total of the batch before they save the batch on the Journal Transactions form. If this check box is cleared and the status of the batch is Balanced, the system automatically validates the batch.
- If the Automatically Post on Release check box is selected, the system posts batches on release. If this check box is cleared, the user has to post the batches after release.
AR invoices are typically created on the Invoices and Memos (AR301000) form to record the sale of items that have been disposed of. The workflow of processing AR invoices can be affected based on the settings on the Accounts Receivable Preferences (AR101000) form as follows:
- You select the Hold Documents on Entry check box in the Data Entry Settings section if you want the created AR invoices to be assigned the On Hold status. You clear the check box to cause these invoices to be assigned the Balanced status.
- If you want AR invoices to be automatically posted to the general ledger once they are entered, make sure that the Automatically Post on Release check box is selected in the Posting Settings section. Otherwise, you should clear this check box.
The following settings on the Fixed Assets Preferences (FA101000) form can affect the processing workflow as follows:
- If the Automatically Release Acquisition Transactions check box is selected, the disposal transactions are posted automatically. If this check box is cleared, the disposal transactions are created with the On Hold status. The user has to release these transactions manually on the Release FA Transactions (FA503000) form.
- If the Update GL check box is selected, transactions associated with fixed assets are posted to the general ledger and affect the GL balances. If this check box is cleared, transactions associated with fixed assets are not posted to the general ledger.
- If the Automatically Post on Release check box is selected, transactions associated with fixed assets are automatically posted to the general ledger when they are released. This check box is selected by default.
Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you dispose of fixed assets by performing instructions similar to those described in Asset Disposal: Process Activity.