47 Overview to System Setup

This chapter contains these topics:

47.1 Objectives

  • To set up the Fixed Asset system to meet specific business needs

47.2 About System Setup

Before you use the Fixed Assets system, you must define fixed asset information that you want the system to use during processing procedures. Set up this information to customize the Fixed Assets system for your specific business needs.

Setting up Fixed Assets consists of the following tasks:

  • Setting up fixed asset constants

  • Setting up user defined codes

  • Setting up automatic accounting instructions

  • Setting up next numbers

  • Setting up asset acquisition years

  • Setting up depreciation account rules

  • Setting up ledger depreciation rules

  • Setting up ledger type rules

  • Setting up disposal account rules

  • Setting up revaluation indices

  • Setting up units of production schedules

  • Mapping category codes

  • Setting up supplemental data

  • Setting up beginning balances

47.2.1 What You Should Know About

Topic Description
Fixed Assets constants Establishes system basics, such as:

  • The default business units for asset cost, accumulated depreciation, depreciation expense, and revenue accounts for an asset

  • The category code number that you use to define the depreciation category for use in the depreciation rules

  • The code that determines whether depreciation is derived from the depreciation rules or from information stored with each asset

  • The codes that determine whether the depreciation accounts specified in the company depreciation account rules are locked to their respective cost accounts

  • The symbols that identify the three types of asset identification numbers, including your company's primary number

  • The category code number that you use to define the asset class for use in the supplemental database

  • The number of category codes that appear on the asset master record and other data entry screens
User defined codes Defines customized codes, such as:

  • Asset category codes, including major accounting class and major asset class

  • Finance methods

  • Asset status codes

  • Asset message types
Automatic accounting instructions Defines accounting information and general ledger relationships when the Fixed Assets system interacts with the General Accounting system
Next numbers Enables the system to automatically assign numbers to various items in the system that require unique numbers.
Asset acquisition years Defines date patterns in the system for every fiscal year in which assets are acquired and each year thereafter for any asset that you want to depreciate.
Depreciation account rules Simplifies the creation of new asset master records by establishing default values for the Master Information screen, such as:

  • Cost account links and their effective dates

  • Accumulated depreciation accounts

  • Depreciation expense accounts

  • Major accounting class

  • Major equipment class

  • Revenue account
Ledger depreciation rules Specifies the depreciation methods for groups of assets by defining the groups according to any of the following:

  • Company

  • Accounting category

  • Depreciation category

  • Asset cost account

  • Effective dates

Further define how assets are depreciated within the groups by specifying depreciation methods by ledger type.
Ledger type rules Controls processing for specific ledger types. Specify any necessary ledger dependencies and associated transaction creation. Further define:

  • Currency codes

  • Date pattern overrides

  • Period number overrides

  • Rounding rules
Disposal account rules Specifies the accounts used for asset disposal.
Revaluation indices Automates revaluation so that you can easily keep pace with inflation or market fluctuations.
Units of production schedules Establishes units of production schedules so the system can calculate depreciation by the measurements of production you track and record in the system for your company.
Category code mapping Maps specific business unit category codes to specific asset category codes.
Supplemental data Defines additional data you can use to track assets.

  • Define the types data that you want to track

  • Determine which data type will appear for groups of assets with Data Type Cross Reference

  • Define specification sheets, such as asset nameplate information

  • Establish security to limit user access to supplemental data
Beginning balances Simplifies the initial conversion to the Fixed Assets system by recording beginning balances for assets in the Item Balances table (F1202).