Additions to Assets: To Make a Manual Addition

The following activity will walk you through the process of making a manual addition to an existing fixed asset.

Story

Suppose that on May 30, 2024, the system administrator of SweetLife Fruits & Jams installed a new SSD hard drive on the server. The accountant of SweetLife decided to add this cost to the current cost of the Server asset. Acting as the SweetLife accountant, you need to create a purchasing transaction and reconcile the transaction amount.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

  • On the Enable/Disable Features (CS100000) form, the Fixed Asset Management feature has been enabled.
  • On the Chart of Accounts (GL202500) form, the needed GL accounts have been created.
  • On the Vendors (AP303000) form, the COMPULINK vendor has been created.
  • On the Fixed Assets Preferences (FA101000) form (Posting Settings section), the Automatically Release Acquisition Transactions check box has been selected.

Process Overview

In this activity, you will create a purchasing transaction on the Bills and Adjustments (AP301000) form. On the Reconciliation tab of the Fixed Assets (FA303000) form, you will manually create an addition to the fixed asset and reconcile the amount. On the Balance tab of this form, you will review the updated cost of the fixed asset.

System Preparation

Before you begin making a manual addition to a fixed asset, do the following:

  1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as an accountant by using the johnson username and the 123 password.
  2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, click the Business Date menu button, and select 5/30/2024 on the calendar.
  3. In the company to which you are signed in, be sure that you have implemented the fixed asset functionality by performing the following prerequisite activities: Fixed Assets: To Configure the System for Fixed Asset Management, Fixed Assets: To Configure the Fixed Asset Functionality, and Fixed Assets: To Create Fixed Asset Classes.
  4. Make sure that you have created the Server fixed asset by performing the Conversion of a Purchase: To Convert a Purchase to Multiple Assets prerequisite activity.
  5. On the Company and Branch Selection menu on the top pane of the MYOB Acumatica screen, select the SweetLife Head Office and Wholesale Center branch.

Step 1: Creating a Purchasing Transaction

To create an AP bill to record a purchasing transaction, do the following:

  1. On the Bills and Adjustments (AP301000) form, add a new record.
  2. In the Summary area, specify the following settings:
    • Type: Bill
    • Vendor: COMPULINK
    • Date: 5/30/2024 (inserted automatically)
    • Post Period: 05-2024
    • Description: SSD hard drive
  3. On the Details tab, click Add Row, and specify the following settings in the added row:
    • Branch: HEADOFFICE
    • Transaction Descr.: SSD hard drive
    • Ext. Cost: 300
    • Account: 15010 (Accrued Purchases: Fixed Assets)
  4. On the form toolbar, click Remove Hold, and then click Release to release the AP bill.

Step 2: Reconciling the Transaction Amount

To make the addition to the cost of the Server fixed asset, do the following:

  1. On the Fixed Assets (FA303000) form, open the Server fixed asset.
  2. In the Summary area of the Reconciliation tab, specify the following settings:
    • Reconciliation Type: Addition
    • Account: 15010
    • Tran. Date: 5/30/2024 (the date of the Purchasing+ transaction generated for the addition)
    • Addition Period: 05-2024 (the period to which the Purchasing+ transaction generated for the addition is posted)
  3. In the table on this tab, select the unlabeled check box in the row with the original amount of $300, and specify 300 in the Selected Amount column, as shown in the following screenshot.
    Figure 1. The amount to be processed as an addition


  4. On the table toolbar, click Process.
  5. On the form toolbar, click Save to save the transactions generated by the reconciliation process.
  6. On the Transactions tab, review the transactions that were created when the addition was processed.
  7. Click the link in the Batch Nbr. column, and review the generated batch on the Journal Transactions (GL301000) form. In the generated batch, the first two rows were generated by the Reconciliation+ transaction, and the next two rows were generated by the Purchasing+ transaction.

    The system has created and released the following transactions:

    • A Purchasing+ transaction that updates the current cost and the basis of the asset, and generates a GL transaction that debits the Fixed Assets account (15300) and credits the FA Accrual account (15010).
    • A Reconciliation+ transaction that updates the unreconciled amount of the asset, debits the FA Accrual account (15010), and credits the GL account (15010) that was used in the AP bill. The transaction also decreases the open amount of the converted GL entry to avoid converting the same amount to a fixed asset multiple times.
  8. On the Balance tab of the Fixed Assets (FA303000) form, review the current cost of the asset. Notice that the current cost of the asset has been increased and is now $1,215 ($915 + $300).