Example of an Asset Book Using the Primary Balancing and Natural Account Segments
In this example, the Vision Operation (USA) ledger has two balancing segment books and an asset book is set up for each balancing segment value.
For the purpose of this example:
- Segment 1 is the Primary Balancing segment
- Segment 2 is the Cost Center segment
- Segment 3 is the Natural Account segment
This table lists values for the invoice rules in the asset book:
| Book Name | Natural Account | Primary Balancing | Cost Center |
|---|---|---|---|
| OPS CORP | Enabled | Enabled | Disabled |
| VISION CORP | Enabled | Enabled | Disabled |
Here's an example of the categories that are set up for the books:
| Book Name | Category | Cost Clearing Account | CIP Clearing Account |
|---|---|---|---|
| OPS CORP | COMPUTER-PC | 01-000-1570-0000-000 | 01-000-1580-0000-000 |
| OPS CORP | BUILDING-OFFICE | 01-000-1570-0000-000 | 01-000-1580-0000-000 |
| OPS CORP | FURNITURE-DESKS | 01-000-1570-0000-000 | 01-000-1580-0000-000 |
| VISION CORP | COMPUTER-PC | 02-000-1570-0000-000 | 02-000-1580-0000-000 |
| VISION CORP | BUILDING-OFFICE | 02-000-1570-0000-000 | 02-000-1580-0000-000 |
| VISION CORP | FURNITURE-DESKS | 02-000-1570-0000-000 | 02-000-1580-0000-000 |
This table shows examples of the invoices created in Payables:
| Business Unit | Invoice Number | Distribution Account | Track as Asset Option |
|---|---|---|---|
| AP_BU_1 | AP_INV_01 | 01-100-1570-0000-000 | Yes |
| AP_BU_1 | AP_INV_02 | 02-110-1580-0000-000 | Yes |
| AP_BU_2 | AP_INV_03 | 02-110-1580-0000-000 | Yes |
| AP_BU_2 | AP_INV_04 | 01-000-1570-0000-000 | Yes |
| AP_BU_2 | AP_INV_05 | 03-000-1570-0000-000 | Yes |
Here's an example of how the Create Mass Additions process transfers the invoices:
| Invoices | Transferred To |
|---|---|
| AP_INV_01 and AP_INV_04 | Asset book OPS CORP, when you run the process for this book. |
| AP_INV_02 and AP_INV_03 | Asset book VISION CORP, when you run the process for this book. |
| AP_INV_05 | Not yet transferred. |
Invoice AP_INV_05 is eligible for transfer to Assets because the Natural Account segment is an asset clearing account, but the process couldn't find an asset clearing account with a Primary Balancing segment of 03 for any asset book category setup. You can transfer this line at any time once you set up an asset category for any book with an asset clearing account with these segment values. When you enable the Primary Balancing segment rule, then you must set up asset categories for all of your balancing segments without any gap.
If you enabled the Cost Center segment, the Create Mass Additions process considers the Cost Center segment along with the Natural Account to decide which book to transfer the invoice lines to.