Fixed Asset Acquisition (FA)

Purpose

Fixed Asset documents that record new assets may be system-generated or manually created by users.  A Fixed Asset document may be automatically generated by the system as the result of payment requests and disbursements associated with a capital asset purchase.  The Fixed Asset Shell Generation offline process creates a fixed asset acquisition “shell” document.  (This guide refers to this type of document as a “shell” document because it does not include all required fields and needs to be further processed by users.)  Assets that are not acquired through the procurement process (such as donated or contributed assets) need to be manually entered.  In this case, there is no payment, so the system cannot automatically create a shell document.

Automating the creation of the Fixed Asset acquisition documents helps ensure that all purchased assets are recorded in the asset inventory.  The manual creation of Fixed Assets documents enables you to enter any assets that were not acquired with a direct purchase.

This document enables you to perform the following tasks with these delivered event types:

• Processing FA Documents with the Acquisition (FA01) Event Type

  Record information about establishing newly acquired, contributed, adjustment, or memo assets using event type, FA01.  This action is referred to as a Fixed Asset Acquisition. To record the acquisition, the Asset number should be provided.  Alternatively, the system can generate the FA number automatically when the user provides a valid prefix.

• Processing FA Documents with the Betterment (FA02) Event Type

  The Fixed Asset Acquisition (FA) document, whether generated by the Shell Generation Process or manually created, is used to improve existing assets using the Betterment (FA02) Event Type.  Processing this event following the same general process as described in the “Recording New Assets“ section, with the following differences:

  • An existing Fixed Asset Number is required and most asset header attributes will be inferred from the Fixed Asset Registry (FAR) table based on the asset’s Fixed Asset Number.  Using the pick list to select the appropriate Fixed Asset Number (or manually entering the Fixed Asset Number and Validating the document) automatically populates these inferred fields. For more details on the Fixed Asset Registry, see the “View Information using Fixed Assets Inquiries“ section.

  • You must add a unique Component Number for each new Component Line processed as a betterment to an existing asset.  The new component is added on the Component page under General Information subsection.  Each new component is subject to the standard field requirements necessary to describe the attributes associated with the new component as well as a separate accounting distribution added as accounting lines on the accounting page.

  • If the asset is flagged as a composite asset, you will not be able to modify header attributes by entering new information in the document’s Header section.

  • When the Acquisition (FA) document is processed with the Betterment (FA02) Event Type, processing results in new component line on the Fixed Asset Registry (FAR) and updates to the Fixed Asset Component (JFACJ), Fixed Asset Accounting Journal (JFAAJ) and general Accounting Journal (JACTG).

• Processing FA Documents with the Increase Asset Value through Shell (FA10) Event Type

  The Fixed Asset Acquisition (FA) document, whether generated by the Shell Generation Process or manually created, is used to increase the value of existing assets using the Increase Asset Value through Shell (FA10) Event Type.  Processing this event following the same general process as described in the “Recording New Assets“ section, with the following differences:

  • An existing Fixed Asset Number is required and most asset header attributes will be inferred from the Fixed Asset Registry (FAR) table based on the asset’s Fixed Asset Number.  Using the pick list to select the appropriate Fixed Asset Number (or manually entering the Fixed Asset Number and Validating the document) automatically populates these inferred fields. For more details on the Fixed Asset Registry, see the “Viewing Information using Fixed Assets“ section.

  • You must add an existing Component Number for each Component Line processed as an increase to an existing assets value.  The components Units value of the document is added to the components current Units value stored on the Fixed Asset Registry Component (FARCOMP) page for the Fixed Asset Number and Component Number combination being increased.  Each document component line will have its values inferred from FARCOMP by Fixed Asset Number/Component Number and the values on the document must match the values on FARCOMP.

  • If the asset is flagged as a composite asset, you will not be able to modify header attributes by entering new information in the document’s Header section.

  • When the Acquisition (FA) document is processed with the Increase Asset Value through Shell (FA10) Event Type, processing results in updates to the component line Units field on Fixed Asset Registry Component (FARCOMP) and updates to the Fixed Asset Component (JFACJ), Fixed Asset Accounting Journal (JFAAJ) and general Accounting Journal (JACTG).

  • Record the reversal of a pending asset balance that was previously established on a payment request and then disbursement using event type, FA14.  This action is referred to as “Unpend’ in that it removes the pending asset accounting recorded from a disbursement. The FA number and FA Description are not allowed when this event type is used. This event type can be used only on the documents generated by the FA shell generation process and FAPR details are required at the component level.

  • This transaction can be processed only to increase the unit and cost of the asset. This document cannot be processed to record the decrease in the quantity.

• Processing FA Documents to record Internal Acquisition / Betterment

  Internal Acquisition (FA27)	FA
  Internal Betterment (FA28)	FA

  Two internal sale events are defined for the FA document.  These are in addition to the standard FA Event Types (FA01 – Acquisition, FA02 – Betterment, and FA14 – Unpend).  If desired, separate document codes may be created for Internal Sale events.

  Internal sale events post to the Fixed Assets Due To / Due From accounts on the System Special Accounts (SPEC) table.  These posts offset the internal gain and internal loss that results from the difference between the Selling Price and asset Net Book Value.  The internal gain and internal loss will post to expense or revenue based on the Disposition Method and the Gain/Loss Posting indicator on the Fixed Asset Acquisition / Disposition Method (FADM) table.

  • Acquire a Fixed Asset document internally using event type, FA27.  This action is referred to as an Internal Fixed Asset Acquisition, which has different accounting impacts and edits than an acquisition from an external party. The Selling FA Number and Selling component number has to be provided for this event type. The number of units cannot be greater than the number of disposed units of the component sold. The sum of the accounting line amounts should equal the selling price of the component sold.

  • Better a Fixed Asset document internally using event type, FA28.  This action is referred to as an Internal Fixed Asset Betterment, which has different accounting impacts and edits than betterment from an external party. The Selling FA Number and Selling component number has to be provided for this event type. The number of units cannot be greater than the number of disposed units of the component sold. The sum of the accounting line amounts should equal the selling price of the component sold. The system validates if the FA Number and component already exist.

 The following main events occur when processing a FA acquisition/ betterment document:

• New records are inserted into the FAR tables of Header, component and accounting for event for event types of FA01 and FA27.

• If warranty details are provided the new records are inserted to the FA Warranty table.

• If the asset is composite, has a depreciation method of modified, estimated amount and actual amount are provided then an active record is inserted to the FA infrastructure maintenance table.

• For event types of FA02 and FA28 records are inserted to the FAR component and accounting and the historical cost and the summary net book value on the FAR header are updated.

• For event types of FA02 and FA28 if the asset is a composite asset and has been depreciated a record is inserted to the depreciation elements changes table only for the new component.

• The FA10 event type updates the FAR Header by updating the historical cost and the summary net book value. This event type updates the FAR component table it by increasing the number of units, increasing the historical & component net book value and inserts records into the FAR accounting table.

• Records are inserted to the FA component Journal and Accounting Journal.

The Fixed Asset Acquisition/Betterment (FA) document has five sections.  Each is broken down into various tabs that contain groups of related fields.  Details on the individual fields can be found in the individual field help files for each field.

Structure

The FA document has the following sections:

• Header

• Component

• Warranty

• Accounting

Tasks

To create a FA, go to "Record Standard Fixed Asset".