Specifying Asset Budgeting Defaults

You must define the asset budgeting defaults that are used for the planning model. The default settings determine the level of autonomy that budget preparers have as they plan for new assets. Preparers can enter only the accounts specified on the setup pages in asset budgeting. The override check boxes control the preparers' ability to modify information as they add assets.

This section discusses how to:

Define asset budgeting defaults.
Select asset accounts.
Select depreciation accounts.
Specify asset catalog items.
Define capital acquisition plans.

Pages Used to Specify Asset Budgeting Defaults

Page Name	Definition Name	Navigation	Usage
Asset Budgeting Defaults	BP_ASSET_OPTIONS	select Planning and Budgeting, then select Planning and Budgeting Setup, then select Asset Budgeting Defaults	Establish defaults used when working with assets, enable override capability for CAP and cash account information, and specify cash accounts.
Asset Budgeting Defaults - Asset Accounts	BP_ASSET_ACCOUNT	Click the Asset Accounts link on the Asset Budgeting Defaults or Asset Budgeting Defaults - Depreciation Accounts pages.	Define the asset accounts through which preparers perform asset budgeting.
Asset Budgeting Defaults - Depreciation Accounts	BP_DEPR_ACCOUNT	Click the Depreciation Accounts link on the Asset Budgeting Defaults or Asset Budgeting Defaults - Asset Accounts pages.	Specify depreciation accounts or enable override capability for useful life, salvage value, and the depreciation method associated with assets.
Asset Catalog	BP_ASSET_CATALOG	select Planning and Budgeting, then select Planning and Budgeting Setup, then select Asset Budgeting Defaults, then select Asset Catalog	Set up asset profiles that comprise an asset catalog. Profiles include default accounts, cost, depreciation method, useful life, salvage value, and currency code.
Capital Acquisition Planning Details	BP_CAP_DETAILS	select Planning and Budgeting, then select Planning and Budgeting Setup, then select Asset Budgeting Defaults, then select Capital Acquisition Planning	Add new or view existing CAPs that you can use in the planning model.

Asset Budgeting Defaults Page

Use the Asset Budgeting Defaults page (BP_ASSET_OPTIONS) to establish defaults used when working with assets, enable override capability for CAP and cash account information, and specify cash accounts.

Navigation

select Planning and Budgeting, then select Planning and Budgeting Setup, then select Asset Budgeting Defaults

Image: Asset Budgeting Defaults page

This example illustrates the fields and controls on the Asset Budgeting Defaults page. You can find definitions for the fields and controls later on this page.

Asset Prefix

Enter the prefix assigned to assets that you add in Planning and Budgeting.

Last Assigned Asset Nbr (last assigned asset number)

Enter the last assigned asset number so that the system can determine the next number to use.

The system automatically increments this value by one each time you save an asset in the planning model.

Note: To ensure that your asset numbers align properly, determine the number of digits that you need, and then enter the desired numerals as necessary.

Capital Acquisition Plan #

Enter a plan number to which all budgeted assets are attributed.

Sequence

Enter a CAP sequence number to which all budgeted assets are attributed.

Budgets User Can Override

Select to enable preparers to specify a CAP number or CAP sequence number other than the default when using the Asset Data page.

Capital Acquisition Plan Req (capital acquisition plan required)

Select to require the CAP number for any assets added in Planning and Budgeting.

Default Cash Account

Enter the acquisition cost stored in the default cash account for accurate projected cash outflows.

Select Budgets User Can Override to let preparers override this account on the Asset Data page. If override capability is enabled, you can select from the list of cash accounts that you enter in the Cash Accounts grid.

Account

Enter the cash accounts affected by the acquisition of an asset.

Select the cash accounts that can be used for asset budgeting activity.

Asset Budgeting Defaults - Asset Accounts Page

Use the Asset Budgeting Defaults - Asset Accounts page (BP_ASSET_ACCOUNT) to define the asset accounts through which preparers perform asset budgeting.

Navigation

Click the Asset Accounts link on the Asset Budgeting Defaults or Asset Budgeting Defaults - Depreciation Accounts pages.

Image: Asset Budgeting Defaults - Asset Accounts page

This example illustrates the fields and controls on the Asset Budgeting Defaults - Asset Accounts page. You can find definitions for the fields and controls later on this page.

Account

Enter the accounts used for asset budgeting activity.

Affects Cash Account Indicator

Select to specify that the asset account affects cash accounts.

If selected, when preparers add or edit a new asset, Planning and Budgeting updates the cash account information.

If cleared, you can create new assets without creating cash accounting entries.

Asset Budgeting Defaults - Depreciation Accounts Page

Use the Asset Budgeting Defaults - Depreciation Accounts page (BP_DEPR_ACCOUNT) to specify depreciation accounts or enable override capability for useful life, salvage value, and the depreciation method associated with assets.

Navigation

Click the Depreciation Accounts link on the Asset Budgeting Defaults or Asset Budgeting Defaults - Asset Accounts pages.

Image: Asset Budgeting Defaults - Depreciation Accounts page

This example illustrates the fields and controls on the Asset Budgeting Defaults - Depreciation Accounts page. You can find definitions for the fields and controls later on this page.

Asset Life - Override Allowed

Select to let preparers edit the useful life when adding or editing a new asset.

Clear to restrict preparers from changing the default value that you specify for an asset catalog item using the Asset Catalog page.

Salvage Value - Override Allow

Select to let preparers edit the salvage value when adding or editing a new asset.

Clear to restrict preparers from changing the default values that you specify using the Asset Catalog page.

Depr Method - Override Allowed (depreciation method - override allowed)

Select to let preparers edit the depreciation method when adding or editing a new asset.

Clear to restrict preparers from changing the default values that you specify using the Asset Catalog page.

Account

Enter the accounts used for depreciation expense in asset budgeting.

Asset Catalog Page

Use the Asset Catalog page (BP_ASSET_CATALOG) to set up asset profiles that comprise an asset catalog.

Profiles include default accounts, cost, depreciation method, useful life, salvage value, and currency code.

Navigation

select Planning and Budgeting, then select Planning and Budgeting Setup, then select Asset Budgeting Defaults, then select Asset Catalog

Image: Asset Catalog page

This example illustrates the fields and controls on the Asset Catalog page. You can find definitions for the fields and controls later on this page.

Defaults that you define for an Asset Profile ID using this page appear on the Asset Data page when you select an asset catalog item.

Note: If you use Asset Management and import asset catalog data into Planning and Budgeting, most of the fields on this page display the asset profile data from Asset Management. However, some information, such as depreciation account, asset account, and cost is required for budgeting purposes and unavailable in Asset Management.

If you are not using asset data from Asset Management, use this page to define a catalog item (Asset Profile ID) for each type of asset that you want to enter in Planning and Budgeting.

Asset Class

Enter the asset profile that groups default values for the asset class.

Depreciation Account

Enter the desired depreciation account.

The available values come from the accounts that you enter using the Asset Budgeting Defaults - Depreciation Accounts page. You cannot override this value using the Asset Data page.

Asset Account

Enter the desired asset account.

The available values come from the accounts that you enter using the Asset Budgeting Defaults - Asset Accounts page. You cannot override this value using the Asset Data page.

Cost

Enter the cost of the asset for this asset class.

Method, Useful Life, and Salvage Value

Override these defaults at the preparer level if you enabled override capability using the Asset Budgeting Defaults - Depreciation Accounts page.

Note: The system expresses the asset's Useful Life in years. For assets that require partial year depreciation, use a decimal instead of rounding to the nearest year. For example, an asset with an 18-month useful life would be expressed as 1.5000.

Currency Code

Enter the currency related to the asset's default cost and salvage value.

Note: Since these account default rules represent the dimension members for the asset activities in your planning model, make sure that all values exist on the same level of an account tree you use in your activity group. You want all the accounts used for asset budgeting to be consistent with the account tree, dimension leveling, and parent line item activity, within the scenario of your business unit's planning model. Users may not be able to add assets or run reports when the accounts used are at varying levels of an account tree. This applies for all the above listed pages which use account defaults, namely: Asset Budgeting Defaults, Asset Budgeting Defaults - Asset Accounts, Asset Budgeting Defaults - Depreciation Accounts, and Asset Catalog pages.

Capital Acquisition Planning Details Page

Use the Capital Acquisition Planning Details page (BP_CAP_DETAILS) to add new or view existing CAPs that you can use in the planning model.

Navigation

select Planning and Budgeting, then select Planning and Budgeting Setup, then select Asset Budgeting Defaults, then select Capital Acquisition Planning

Image: Capital Acquisition Planning Details page

This example illustrates the fields and controls on the Capital Acquisition Planning Details page. You can find definitions for the fields and controls later on this page.

The Details group box displays details about the CAP. When you add an asset, you can select a combination of CAP number and CAP sequence number to further identify the plan row to which the asset is associated. For example, if the CAP is for a new building, sequence 1 could have a description of Office Space, sequence 2 could be Cafeteria, and sequence 3 could be Conference Rooms.

Capital Acquisition Plan Class

Select the capital acquisition plan class: Values are: Cost Reduction, Expansion, Necessity, or New.

Original/Adjustment Switch

Select the type of information that you are entering. Values are:

Adjustment: Use this value if you are revising existing plans
Original: Use this value if you are entering a new plan

Description

Enter a description for the plan detail.

This may be similar to the high-level plan description if your plan contains only one sequence number.

Capital Acquisition Plan Type

Select from the CAP types that you defined when you established asset processing.

Specify the ChartFields (dimensions) for each CAP plan sequence if the CAP plan sequence can be associated only with these ChartField values.

Status

Select the desired CAP status.

The CAP must have a status of Open for you to be able to associate assets with it in Purchasing or Asset Management. A CAP that is still in the approval phases cannot have actual assets linked to it; however, preparers can link budgeted assets to a CAP regardless of its status.

Estimated Completion Date

Enter a date to track this plan.

Date Closed

Enter the completion date after all of the items in this plan have been acquired.

Estimated Cost

Enter a different cost to adjust the cost estimate.

Enter this value only after selecting Adjustment from the Original/Adjustment Switch dropdown list box.

Cost Limit and % Over Allowed (percentage over allowed)

Enter one or the other value to define cost thresholds.

The system automatically calculates the cost limit when you enter the percentage over allowed cost. The system allows you to add an asset to the plan that raises your acquisition costs over the limit. The capital acquisition planning standard query reports reflect the disparity.