Fixed Assets Procurement

Hello Everyone,

Please find below some instructions and good tips while creating Fixed Assets in the system. The aim of the document is to make clear the process of assets creation with Purchase Orders and Supplier Invoices.

As already known, fixed assets are tangible or intangible assets that can be identified on the closing key date as an individual asset. They normally include items such as land, buildings, equipment, machinery, vehicles, leasehold improvements, and other such items.

How can I create a new asset in the system?

To create a new Fixed Asset via Purchase Order, you have to follow the steps:

1. Go to Purchase Requests and Orders Work Center.
2. Under Common Tasks, select New Purchase Order.
3. Complete the supplier information.
4. Click to add a new Non-Stock Item and complete the data of the asset and also the Product Category, as per example below:

Tip: Note that the product category will define the Asset Class, as per maintained in the Business Configuration activity: Fixed Asset Classes > Asset Class Determination:

In this activity, you will also have the Account Determination Group maintained for each Fixed Asset Class (Fixed Asset Classes > Edit fixed asset classes):

  5.   Returning to the scenario, now the account assignment needs to be selected as Individual Material, which is where the acquisition costs are posted. You can use an existing Individual Material or create a new one:

Note that G/LAccount will be derived as per the configuration maintained for the Asset Class.

   6.  Add a Cost Center and complete the Purchase Order.

   7.  Now go to Goods and Services Receipts Work Center.

   8.  Go to Purchase Orders to Be Delivered

   9.  Click on “New Goods and Services Receipt” button and post it.

   10.  Go to Supplier Invoicing Work Center > Invoice Entry, select the Purchase Order created and click on “New Invoice” button.

   11.  Choose an External Document ID, complete the Invoice Date and post the invoice.

   12.  A new fixed asset is created under Fixed Assets Work Center.

In case you do not want to create the Purchase Order and Goods and Service Receipt, the new fixed asset can be created directly from the Supplier Invoice as per below steps:

1. Go to Supplier Invoice Work Center.
2. Go to Common Tasks > New Supplier Invoice without Purchase Order.
3. Select the Supplier, External Document ID and Invoice Date.
4. Go to Items tab and Add a Non-Stock Item and the Product Type as Material.
5. Complete the details of the Item and go to sub-tab Cost Distribution.
6. In this tab you have to maintain the Account Assignment Type as Individual Material.
7. Here you need to select an existing Individual Material or create a new one.
8. Complete the Supplier and Post it.
9. A new fixed asset is created under Fixed Assets Work Center.

Important Business Configuration Activities:

• Capitalization Threshold for Fixed Assets
• Fixed Asset Classes

Useful Help Documents:

• Fixed Asset Management
• Fixed Asset Classes
• Fixed Assets
• Fixed Assets Quick Guide

Let me know in case you have any questions about this document.

Best Regards,

Gabriel Barth