Linking Accounting Books to an Asset
You can link new and depreciating assets to an accounting book. The Asset Original Cost, Current Cost, Current Net Book Value, Prior Year NBV, and Cumulative Depreciation values are converted to the base currency of the book they're linked to. The depreciation amount is calculated based on the converted amount.
Fully depreciated and disposed assets can't be linked to an accounting book. For most FAM records, you can only select secondary books in the Accounting Book field.
The Depreciation History subtab stores secondary book values. The secondary book might use a different base currency from the primary book. If both books share the same base currency, they'll have the same default values. You can override these default values by editing the asset record.
When you depreciate a tax method, the system uses the accounting book's base currency, not the currency of the asset’s subsidiary.
OneWorld accounts can set the book base currency in the Currencies tab of the Subsidiary record. For more information, see Creating Subsidiary Records and Foreign Currency Management.
To link an accounting book to an asset:
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Go to Fixed Assets > Lists > Assets, and then click the Depreciation History subtab.
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In the Depreciation History subtab, do one of the following:
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To create a new alternate depreciation, click New FAM Alternate Depreciation.
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To edit an existing alternate depreciation, click the Edit link next to the alternate depreciation.
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In the FAM Alternate Depreciation page, select the Accounting Book that you want to link to this alternate depreciation.
You can only link active books to alternate methods. If an alternate depreciation is already linked to an accounting book, you can no longer change the Accounting Book value.
Note:If you select a value for the Accounting Book field, the Currency field is sourced from the subsidiary's book base currency. If the Accounting Book field is blank, the Currency field is sourced from the subsidiary's primary book.
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In the Alternate Method list, select the depreciation method to use. The system automatically populates other values on the form. These values are sourced from the Asset Type record.
Asset values on the form, such as Asset Cost and Net Book Value, is sourced from the Asset Record. This value is converted to the base currency of the secondary book. Values under the General tab are sourced from the Asset Record and values on the Accounts subtab are sourced from the Asset Type.
If the asset is already depreciating, you can't edit the fields unless Allow Asset Value Editing is enabled. For more information, see Restricting the Editing of Asset Values.
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Click Save.
No journal entries are created for depreciation history records that already exist or aren't linked to an accounting book.
The Accounting Book field is populated for new depreciation history records. For existing depreciation history records, the Accounting Book field might show as blank or null.
The acquisition history record is automatically created when you set a depreciation start date. The acquisition value is based on the asset amount in the primary book, multiplied by the secondary book’s base currency exchange rate at the depreciation start date.
If the asset is partially depreciated for the accounting method only, and you add a new tax method to an accounting book, the system creates monthly depreciation history records with journal entries. If you run depreciation on closed periods, the system posts the journal entries to the next open period.
If the asset is partially depreciated for both accounting and tax methods, a new depreciation history is created based on the last depreciation date. The system doesn't create catch-up depreciation histories. You must manually create a book-specific journal entry for the cumulative depreciation.