This chapter contains these topics:
To understand how costs and expenses are associated with fixed assets
To revise G/L journal entries before they are posted with fixed assets
To split G/L journal entries
To post G/L journal entries to fixed assets
You can generate fixed asset journal entries through any JD Edwards World system that creates entries in the G/L transaction table, the Account Ledger (F0911). Systems that frequently generate journal entries that affect the Fixed Assets system include:
Accounts Payable
General Accounting
Inventory
Procurement
Equipment Management
The system identifies fixed asset journal entries based on the fixed asset range of accounts you set up in the automatic accounting instructions (AAIs). Accounts that fall within the FX range of the AAIs include:
Asset cost accounts
Accumulated depreciation accounts
Operating expense accounts
Asset disposal accounts
In addition to determining which accounts fall into the fixed asset range, you can use subledger functionality to reflect another dimension of your costs. For example, you can use subledgers to show original cost, additions, and, if necessary, restatement or revaluation cost. This is useful when these components have different depreciation schedules.
After the system creates journal entries for the asset transactions that you enter, possibly including subledger information, you must post the entries first to the general ledger, and then to fixed assets. When you post to the general ledger, the system updates the Account Balances table (F0902). When you post to fixed assets, the system updates the Item Balances table (F1202). You can manually post journal entries to fixed assets, or you can set up your system to post the journal entries to fixed assets when you post the entries to the general ledger.
Before posting journal entries to fixed assets, the system verifies that each entry includes the following:
A general ledger post code of P (F0911's GLPOST field equals a 'P'), which means the journal entry has been posted to the Account Balances table (F0902)
An account that falls within the fixed asset range of accounts set up in automatic accounting instructions (FX AAIs)
A fixed asset post code of blank (F0911's GLBRE field) to indicate that the system can post the journal entry to the Item Balances table (F1202)
A valid asset number is populated in the F0911's Serial Number (GLASID) field
A hold code of blank (F0911's GLALT3 field)
When you post journal entries to fixed assets, the system updates the Item Balances table and marks each transaction as posted.
The following graphic shows the type of journal entries that affect fixed assets, and how the system assigns entries to the Fixed Assets system:
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Processing general ledger journal entries to fixed assets includes the following tasks:
Working with G/L journal entries
Posting G/L journal entries to fixed assets
Making corrections to fixed asset balances
Reviewing asset costs