Acquire assets through procurement
Finance provides many ways to create and acquire fixed assets directly from purchasing. Because of this variety, companies with complex asset acquisition requirements can meet those requirements.
Additionally, Finance offers several ways to create and acquire fixed assets directly from purchase orders in Accounts payable.
A user can assign a purchase line item as a fixed asset purchase without needing to create the asset record beforehand. The system automatically creates the asset during the product receipt or vendor invoice journalizing process. The user can define specific ledger posting accounts for use in purchasing when the item that they're purchasing is for fixed asset usage.
Also, organizations can manage the posting of asset acquisition transactions during vendor invoice posting through the user group assignment.
An organization can assign a specific user group so that the user group can post asset acquisitions from purchase orders, or the organization can deactivate this functionality. The acquisition proposal functionality in fixed asset journals is set up for the acquisition of those assets that are invoiced but not yet acquired in fixed assets. This function is available so that the user who manages the fixed asset records (typically not the same user who records the vendor invoice for the asset) can create the asset acquisition transactions on the asset. Then, that user can update the asset status to Open by retrieving vendor invoices that are recorded against the asset.
This unit explains how to set up the integration between Fixed assets and Accounts payable to automatically create fixed assets from purchase orders or vendor invoices, or to automatically post the acquisition and acquisition adjustment transactions for fixed assets.
The following methods are available for integrating Fixed assets and Accounts payable, and you must use the same method for all fixed assets:
Create a fixed asset manually before you add the fixed asset number to the line on the purchase order or vendor invoice. The system automatically posts an acquisition transaction for the asset when you post the vendor invoice. This method is the default.
Create a fixed asset manually before you add the fixed asset number to the line on the purchase order or vendor invoice. The system doesn't post an acquisition transaction for the asset when you post the vendor invoice.
Have the system automatically create a fixed asset when you post a product receipt or vendor invoice that has the Create a new fixed asset option turned on. The system automatically posts an acquisition transaction for the asset when you post the vendor invoice.
Have the system automatically create a fixed asset when you post a product receipt or vendor invoice that has the Create a new fixed asset option turned on. The system doesn't post an acquisition transaction for the asset when you post the vendor invoice.
Select one of the first two methods if you prefer to manually create fixed assets, and then assign the fixed asset number to the purchase order or vendor invoice. Select one of the last two methods if you prefer a more flexible approach. Occasionally, you might choose to create fixed assets manually, while other times, you might want the system to automatically create a fixed asset based on the fixed asset information in the line item details.