Create an Asset Item from an AP Voucher Line Item

In the Equipment hub, you can generate asset items automatically from line items that you enter for AP vouchers in Transaction Entry.

Prerequisites: Before you can automatically generate asset items in the Equipment hub from AP voucher line items, you must:

• Activate the Asset Management application in Settings > General > Modules.
• Select the Allow Equipment Entries for AP Vouchers and Journal Entries check box for your security role on the Accounting tab in Settings > Security > Roles.
• Select the AP Voucher check box for Asset Item Source on the General tab in Settings > Asset Management.
• Enter the default overhead project, phase, and task in the Default Overhead Project section on the General tab in Settings > Asset Management.

To automatically generate a new equipment item from an AP voucher:

1. On the Navigation menu, click Transaction Center > Transaction Entry.
2. In the Transaction Type field on the Transaction Entry form, select AP Vouchers.
3. On the toolbar of the Transaction Entry form, click New to create a new transaction file that will contain the AP voucher transactions that you are going to enter.
4. On the New File dialog box, complete the information for the transaction file and click OK. You must select the Allow Asset Entries check box on this dialog box. If the check box does not display on the dialog box, review the settings listed above that are required for generating asset items from AP voucher line items.

   If you forget to select the Allow Asset Entries check box on the New File dialog box, you can select it on the AP Vouchers form by clicking File > Control Totals on the form toolbar. The check box displays on the AP vouchers control totals dialog box.

5. On the AP Vouchers form, enter the information for the AP voucher, such as the vendor, invoice date, voucher date, bank, and so on.
6. In the AP voucher line item grid, add a row for each voucher line item for which you want to automatically generate an asset item. For each of the line items, complete the information in the row, including the following specific information for the asset item to be generated:
   1. Select the Create Asset check box.
   2. Use the Asset Type field to select the asset type for the asset item. The asset type determines the property type, depreciation method, asset account, accumulated depreciation account, and depreciation expense account that will be used for the monthly depreciation journal entry for the asset item. This information prefills on the GL Book tab in the Equipment hub when the asset item is generated.

      Asset types are set up on the Asset Type tab in Settings > Accounting > Asset Management. When you select an asset type in the Asset Type field, the asset account that is set up for the asset type in Asset Management Settings prefills in the Account field in the voucher line item grid.

   3. In the Item Number field, select a purchasing item from the drop-down list. This is the purchasing item upon which the asset item will be based when it is automatically generated in the Equipment hub. The drop-down list includes only purchasing items entered in Settings > Purchasing & Inventory > Items Master whose category type is Capital Items. These are the only items that can have depreciation processed for them.
   4. In the Project field, select an overhead project. If you do not use organizations, or if you use organizations, but you do not maintain separate balance sheets, the Project, Phase, and Task fields prefill with the default project, phase, and task entered in the Default Overhead Project section on the General tab in Settings > Accounting > Asset Management, which you cannot change.
7. Click Save.
8. In Transaction Center > Transaction Posting, post the AP voucher transaction file. When you post, each line item from the voucher that has asset item information entered for it is added automatically as an equipment item in the Equipment hub. Information from the AP voucher line items prefills on the General tab, GL Cost tab, GL Book tab, and Additional Books tab if you have additional books.

Postrequisite: You must enter depreciation information for an asset item in the Equipment hub. See Enter Depreciation Information for Asset Items Generated Automatically from Other Applications.

You must do this before you can process depreciation for an asset item in Asset Management > Depreciation Processing. You must change the asset status from Inactive to Active and enter an in-service date and other depreciation information in the Equipment hub. Optionally, you can also associate and assign employees with asset items in the Equipment hub.