Setting Up Units for Balance Sheet Lessee Accounting (Release 9.2 Update)
If you are entering units that will be included on a lease that you are running through the balance sheet lessee accounting process, you must be sure to review and set the processing options on the Versions and Assets tabs of the P15217.
When you create a unit that will be included in lessee accounting processing, that unit must be associated with a unique asset. You can use the following methods to associate a unit with an asset:
Manually enter an existing asset number in the Unit Asset Number field when you create the unit.
Set up the Real Estate Management Constants to automatically create the asset record for you (if you leave the Unit Asset Number field blank) when you create the unit record. The system generates an asset record, and then populates the Unit Asset Number field on the Unit Master with the newly created asset number.
Use the Create Asset row menu option from the Work With Units form to create the asset and populate the Unit Asset Number field.
Click the Create Asset icon (plus sign) in the grid to create the asset and populate the Unit Asset Number field.
Run the Create Assets from Unit Master Entries program (R15072) to create asset records for selected unit records, and update the Unit Asset Number field for those units.
This program is intended for use in creating assets for, and associating the asset number with, units that were created before balance sheet lessee accounting features were implemented. You can set the data selection for this program to retrieve specific units, and if the Unit Asset Number field on those units is blank, the system generates an associated asset record, and updates the Unit Asset Number field on the records. The system also uses the values in the unit record and the processing option values on the Asset tab to determine the account number for the asset cost account. The account, which uses the object/sub from the processing options and the company of the unit, must be set up in the Depreciation Defaults app P12002. The account must also exist in F0901. If the account number has not been set up, the system generates an error.
When the system creates an asset record from a unit record, it uses the Unit Description as the Asset Description. Therefore, the Unit Description must not be blank when you create your asset. However, you can access the Asset Master record to change the unit description after the asset has been added to the Asset Master table.
The Unit Master Revisions forms have been updated as follows to support lessee accounting:
The Unit Asset Number field has been added to the form.
You can manually enter an existing asset in this field (provided it is not already in use) or, when creating a new unit, you can leave the field blank and let the system populate it during unit creation. If the Real Estate Management Constants are set to automatically create the unit asset, the system creates the asset record in the Asset Master for you when you save the new unit record, and populates the Unit Asset Number field in the Unit Master with the newly created asset number. Alternatively, you can use the row menu option on the Work With Units form for existing unit records to create the associated asset record and update the Unit Asset Number field.
The Create Asset icon was added to the form.
If the Unit Asset Number field is blank, the Create Asset icon is available. You can click the icon to create an asset in the Asset Master, and update the Unit Asset Number field in the associated unit. The icon is available only if the Unit Asset Number field is blank.
The Show Only Units With Blank Asset option has been added to the Work With Units forms.
You can use this option to view unit records that currently do not have an associated asset record. This option enables you to determine whether you must generate asset records for certain units before processing lessee accounting information. Note that you must click Find after selecting this option to refresh the records in the detail area of the form.
Row menu options to create or update the associated asset record have been added to the program.
If you access the row menu from the Work With Units form when the Unit Asset Number field is blank, the system displays the Create Asset menu option. If you access the row menu when there is a value in the Unit Asset Number field, the system displays the Asset Master option, which you can use to review and update the asset.
When you create an asset from the Unit Master, the system:
Creates a record in the Asset Master table (F1201), using the value in the Unit Description field as the new value for the Asset Description field. Additionally, the Finance Method from the processing options is used.
The system also uses the values in the unit record and the processing option values on the Asset tab to determine the account number for the asset. The account, which uses the object/sub from the processing options and the company of the unit, must be set up in the Depreciation Defaults app P12002. The account must also exist in F0901.
If the generated account number does not already exist, the system displays an error that the default accounts are invalid. Verify that your accounts are set up correctly, and then attempt to generate the asset again.
Updates the Unit Asset Number field in the F1507 table with the asset number.
Displays an informational message that the asset was created.
Clears the form so you can enter additional unit records. If you inquire on the unit, you will notice that the Unit Asset Number and Asset Description fields are now populated.
Note that if you copy an existing unit record, and that unit includes an asset number, the system does not populate the Unit Asset Number field for the newly created asset. If your system is set up to automatically create unit assets, the system will populate the field with a new asset number. Alternatively, you can enter an existing asset number in the field, if it is not already being used on another unit.
You can set the processing options on the P15217 to disable the Unit Asset Number field on the unit once an asset has been added and the record has been saved.
For additional information about lessee accounting, see Balance Sheet Lessee Accounting (Release 9.2 Update).