Understanding Work Order Asset Capitalization and Retirement

This topic lists prerequisites and discusses:

  • Asset capitalization.

  • Asset retirement for work order-managed project assets.

For project assets to be eligible for the Express Retirement process, you must:

  • Select the Work Order Managed option for the project, and change the project processing status to Active, on the Project Definition - General Information page.

    This check box becomes unavailable when you save the Project Definition - General Information page and an activity is associated with the project. If an activity is not associated with the project, and you save the page, the field remains open and available.

  • Establish express asset filter criteria for the business unit on the Express Asset Filter Criteria page.

  • Select Derive from Work Order Task for the project in the Asset Identification group box on the Asset Integration Rules page.

  • Accumulate costs in PeopleSoft Project Costing directly (using online transaction entry) or indirectly (from feeder systems such as PeopleSoft Payables, Expenses, and Inventory).

    Note: Transactions that the PeopleSoft Expenses application sends to PeopleSoft Project Costing do not contain work order-related field values, such as work order business unit, work order ID, work order task ID, work order resource type, and work order line number. Therefore, the Express Asset Retirement Integration process does not include transactions that originate in the PeopleSoft Expenses application unless you manually update the work order-related field values on the transactions in PeopleSoft Project Costing.

PeopleSoft Maintenance Management maintains assets from work order tasks and relates the assets to projects and activities. You can maintain multiple assets from a single project, or you can consolidate a single asset from multiple projects.

Each work order task can specify one asset that is being maintained, one related project, and one related activity. The task contains the transaction costs of creating and maintaining the asset. These costs flow from PeopleSoft Maintenance Management into various PeopleSoft applications such as PeopleSoft Purchasing, Payables, Time and Expense, and Inventory, and from these systems into PeopleSoft Project Costing.

You can use the Express Retirement Application Engine process (PC_EXPRET_AM) to fully retire assets that are associated with work order-managed projects. If a project asset is eligible for the Express Retirement process, this is the process flow for retiring the asset for work order-managed project activities:

  1. A user closes the work order task.

  2. PeopleSoft Maintenance Management updates values for the project activity on the Asset Integration Rules page to synchronize the PeopleSoft Project Costing and PeopleSoft Maintenance Management systems.

  3. The work order closed status triggers the Express Retirement process and indicates to the system that the project activity is ready to process.

  4. The Express Retirement process determines the assets to send to PeopleSoft Asset Management, stamps the Project Transaction table rows with asset information, and initiates the Asset Retirement Integration Application Engine process (PC_RETIRE_AM).