Processing PeopleSoft Purchasing Transactions with PeopleSoft Asset Management
Asset Management enables you to add assets from existing POs and receipts.
Note:
If you are using PeopleSoft Projects to capture data on asset-related POs and receipts, the system passes purchasing and receipts data through the Projects-to-Asset Management interface rather than directly from the Payables or Purchasing interface. In this way, the PeopleSoft system provides the navigation from the Asset Acquisition Detail page to POs and receipts, as well as the associated projects.
To send purchasing information to Asset Management:
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Generate a PO for the asset in Purchasing.
The PO should include the relevant AM business unit, profile ID, CAP number, sequence number, tag number, employee ID, capitalization status, and cost type.
If the quantity on the requisition is one, enter an asset tag number on the requisition to enable the PO and the receiver to appear by default.
Note:
You can specify a CAP number and sequence number on a requisition (or a PO, if you do not use a requisition) in Purchasing to tie an asset to a budget. The system then passes the CAP information from the requisition to the PO to the receiver, and then into Asset Management.
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Send the PO to the supplier.
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When you receive the asset, enter it as Received in Purchasing.
The asset information specified on the PO appears by default to the receiver; you can record additional asset information on the receiving pages of Purchasing.
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Run the Receiver Interface Push Application Engine process (PO_RECVPUSH) in Purchasing.
This process loads receiver lines into the Pre-Interface table (INTFC_PRE_AM).
Note:
The Receiver Interface Push process can be run in multiple ways. If you are processing a receipt that has no inventory-related lines, the Receiver Interface Push process is used. If you are processing a receipt that has both inventory-related lines and asset-related lines, the Receiver Interface Push process runs as part of the Receipts Assets and Putaway process.
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Run the Pre-Interface table (INTFC_PRE_AM) process.
Preview the data in the Pre-Interface table, and make corrections as needed.
Note:
The Receiver Interface Push application engine process (PO_RECVPUSH) must be run to send receiver information related to a purchase order to PeopleSoft Asset Management. Both the Receiver Interface Push process and the Payables to Assets Interface process must be run when the voucher is created from a PO.
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Run the Payables/Purchasing Interface process (AMPS1000).
This process loads the Transaction Loader tables (INTFC_FIN and INTFC_PHY_A).
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Preview data in the loader tables, and adjust the approval status if necessary.
Interface IDs appear with a status of Pre-approved. Set them to Unapproved on the Financial and Physical A Approval pages as needed.
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Run the Transaction Loader process (AMIF1000) to load these transactions into the Asset Management tables.
Note:
Because the Purchasing Interface sets the default profile switch to Yes in the load tables, the Transaction Loader automatically retrieves by default all book information defined on the asset profile for each asset created. In addition, all lines received are automatically approved.
Although capitalizing at the point of receipt is not a recommended accounting practice, an asset entered through Purchasing may be either capitalized or uncapitalized. Two ways are available to do this. The Capitalize check box on the PeopleSoft Purchasing Business Unit page enables you to specify that items are capitalized at the point of receipt. If an item is to be capitalized at the point of receipt, a financial asset is created when the receiver lines are loaded by the Transaction Loader. If an item is not capitalized at time of receipt, you can capitalize it later by either of the following methods:
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If your system is integrated with Payables, run the Payables Interface once a voucher has been entered for this asset, followed by the Pre-Interface and Transaction Loader to load the data.
The asset is capitalized automatically by means of the cost information entered on the voucher.
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You can capitalize the asset manually by using the Asset Basic Information component.
This method is not recommended if you have Payables and use the interface from Payables to Asset Management.
Assets are capitalized and depreciated based on actual cost and the date on which the asset is placed in service. This assumes that the asset has been received and invoiced by the supplier. Capitalization of an asset can include asset cost plus freight, taxes, and adjustments for installations. Each of these items may be treated differently for financial and tax purposes and can be determined only from the supplier's invoice.
Capitalizing an asset from PO cost may overstate or understate the asset account on the balance sheet because the final invoice cost has not been received. When the asset has been received and invoiced, it can then be capitalized correctly and depreciated by means of the actual invoiced costs. Additionally, if the asset has been capitalized upon receipt with differing ChartField information at the time of invoicing, it requires that the financial designation of the asset be finalized on the requisition.
If an asset has been received but not invoiced, it is included in the receipt accruals posted to the general ledger, but they are not yet capitalized. GAAP and FASB do not specifically support this accounting treatment; however, a standard recommendation is to maintain proper independent documentation that supports all recording of assets and expenses.
If an asset is created from PeopleSoft Purchasing, and it is serialized (or unitized later in Asset Management), and the corresponding voucher line's cost is different from the receiving amount, the difference is distributed to all assets created from the receipt.
The serialization attribute on the item is the easiest, most efficient, and most effective way to use the interface. The serialization attribute also streamlines the business process. Unitization or consolidation should be necessary only if you have not installed Purchasing, because PeopleSoft Purchasing serializes or leaves items and assets consolidated for the entire process.
Items used in this interface should be properly established in the item master catalog.
When an item is created, it can be classified as an asset by assigning an asset profile ID on the Purchasing Attributes page. An item can also be specified as serial-controlled on the Item Definition - Inventory: Tracking/Description page. Verify that the item ID is classified correctly prior to receiving assets. This saves you much time and eliminates such processes as Unitization and Consolidation. If, for example, you receive five items and the PO/AM interface should create five individual assets as opposed to one asset with a quantity of five, then the item ID should be serial-controlled, and it should also have an asset profile ID assigned in Purchasing Attributes.
However you choose to capitalize, understand that once an asset has been capitalized in Asset Management, you cannot subsequently change related asset or ChartField information in the subsystems. In other words, asset transfers are not performed from PeopleSoft Purchasing or Payables; transfers are handled only in PeopleSoft Asset Management.
If an asset is split-funded, the batch process generates the next asset ID based upon a subordinate sequence number identifying multiple distribution lines to a single asset allowing asset cost to be split across all identified accounting distributions.
Note:
Nonfinancial assets that are created in Purchasing (not capitalized at the point of receipt) automatically display a status of Received. The asset remains in Received status until the asset is paid or the decision is made to capitalize the asset. When the asset is invoiced in Payables and that invoice information is processed by the PO/AP/AM interface, the status of the asset is updated to In Service, and the asset is capitalized (if the asset profile is that of a capitalized asset).
Asset Management does not make adjustments for existing assets from the PO interface. The process only adds new assets.