1. Accounting
  2. Fixed Assets Management
  3. Multi-Book Accounting for Fixed Assets Management
  4. Managing Assets in Multiple Books
  5. Linking Accounting Books to an Asset

Linking Accounting Books to an Asset

You can associate 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 will be converted to the base currency of the book it is associated to. The depreciation amount will be computed based on the converted amount.

Note that fully depreciated and disposed assets cannot be associated to an accounting book. For most FAM records, you can only select secondary books in the Accounting Book field.

The Depreciation History subtab will be used to store secondary book values. The secondary book might use a different base currency from the primary book. But, if both the primary and secondary books share the same base currency, they will have the same default values. You can override these default values by editing the asset record attached to the asset.

Note:

When depreciating a tax method, the system will use the base currency of the accounting book, 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 associate an accounting book to an asset:

  1. Go to Fixed Assets > Lists > Assets, and then click the Depreciation History subtab.

  2. In the Depreciation History subtab, do one of the following:

    • If you want to create a new alternate depreciation, click New FAM Alternate Depreciation.

    • If you want to edit an existing alternate depreciation, click the Edit link next to the alternate depreciation.

  3. In the FAM Alternate Depreciation page, select the Accounting Book that you want to associate to this alternate depreciation.

    You can only associate active books to alternate methods. If an alternate depreciation is already associated 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 will be sourced from the book base currency of the subsidiary. If the Accounting Book field is blank, the Currency field will be sourced from the currency of the subsidiary’s primary book.

  4. In the Alternate Method list, select the depreciation method to use. The system automatically populates other values on the form. These values are sources from the Asset Type record.

    Asset values on the form, such as Asset Cost and Net Book Value, will be sourced from the Asset Record. This value will be 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 will not be able to edit the fields unless Allow Asset Value Editing is enabled. For more information, see Restricting the Editing of Asset Values.

  5. Click Save.

No journal entries will be created for depreciation history records that already exist or are not associated to an accounting book.

The Accounting Book field will be populated for newly created depreciation history records. For existing depreciation history records, the Accounting Book field may be shown as blank or null.

The acquisition history record will be automatically created when you have defined a depreciation start date. The acquisition value will be based on the amount of the asset in the primary book multiplied by the secondary book’s base currency exchange rate at depreciation start date.

If the asset is partially depreciated for the accounting method only, and a new tax method is added to an accounting book, the system will create monthly depreciation history records with journal entries. If you run a depreciation on closed periods, the system will post the journal entries to the next open period.

If the asset is partially depreciated for both accounting and tax methods, a new depreciation history will be created based on the last depreciation date. No catch-up depreciation histories will be created. You will need to manually create a book specific journal entry for the cumulative depreciation.

General Notices