15.08. Fixed Asset Projects

The "Projects" functionality can be used to manage fixed assets resulting from projects representing internal investments. First you need to register the monthly project expenses and then generate the fixed asset based on the project.

Generating a fixed asset through an internal project:

1. Defining the project:

   • "Project" window;

   • Project Category = "Fixed Asset";

2. Issue to Project:

   • Issued Documents: Internal Inventory Use, Vendor Invoice, GL Journal;

   • Accounting Consequences: 6%= xxx;

3. Capitalization:

   • "Capitalization" window;

   • Accounting Consequences: 231%=722;

• 1. Complete the Investment Project:

• • Accounting Consequences: 2% = 231%;

4. Generate Fixed Asset:

   • "Asset Entry" window;

   • Source document for Fixed Asset Generation: accounting transactions, from accounts grouped in a set of account used for capitalization;

   • Generate a fixed asset from the project by by processing the In Asset Entry document.

Capitalization

Starting with v14.04 SocrateCloud offers the possibility to capitalize monthly expenses registered for projects used to generate fixed assets. With this purpose "Capitalization" type documents have been added.

The document source is the accounting transactions registered within the current month to specific accounting elements used for Fixed Asset projects.

A single monthly document can be generated for all the amounts capitalized, with amounts detailed by project. The project amounts will be detailed by accounting transactions, grouped by accounting element and product. The amounts will be capitalized in the base currency defined for the tenant accounting schema.

The document is posted using the accounts defined for the project or the default accounts from the accounting schema. Starting with 15.05, the document details will also contain the project organization. If the project is defined at tenant level, the document details and their accounting effects will be generated using the document master organization.

Accounting Consequences:

• debit = Fixed Asset Account, e.g. 231%

• credit = In Production Account e.g. 722%

Conditions required in order to generate the capitalization docuemnt:

• • a "Capitalization" set of accounts, defined in the Account Set window from the Accounting menu. The set should contain the accounts where amounts are capitalized and are registered in the current investment account element 231% = 722%. A set must have a relevant name. Multiple sets can be defined. Only sets marked as "Active" can be used for capitalization. A set can contain multiple account elements, each added by a user.

    • Do not add the account element where the capitalization will be posted!

  • the projects for which monthly capitalization for expenses are defined with project types with the project category = "Fixed Asset"

  • the project types that generate fixed assets should have a "Fixed Asset Group" defined, which will be used for the asset;

When adding a capitalization document the following information needs to be completed in the Capitalization window:

• Document No, Description

• Document Type = document type used for capitalization documents. Details in Document (Types);

• Account Set = List of accounts used as a selection filter when determining he capitalized accounting transactions;

• Period = select an accounting calendar period (month);

• Accounting Date = Last date of the accounting calendar period;

• Amount = system maintained amount based on the document lines;

The Load Details process is used to load, as capitalization document lines, all the accounting transactions with the following properties:

• • have the same currency as the default accounting schema currency;

  • post amounts on account elements belonging to the capitalization account set;

  • have a project element with project category = fixed asset project;

  • have the account date within the capitalization period;

The capitalization document lines will contain a record for each existing fixed asset project, used as account element for the transactions loaded.

The Capitalization line tab can be used to view the capitalized amounts for each project. For each project the transaction amounts will be detailed by account and product.

• Note: starting v15.04 the accounting transactions will be grouped by transaction instead of account and each line will have it' corresponding source document.

The following document statuses are available for the capitalization document:

• • Draft:

    • The document can be deleted;

    • the load details process can be run;

    • the docuemnt lines are read only;

  • Complete:

    • the document is read only;

    • the document can be posted;

    • the Asset Entry document can be added;

  • Void:

    • deletes the resulting GL Journal;

    • a new capitalization can be generated;

    • a capitalization used to generate a fixed asset using the Asset Entry document cannot be voided.

Asset Entry

The Asset Entry window is used to generate the fixed asset based on a project for which all expenses were capitalized. The following fields are available:

• Account Date - will be used as the fixed asset in service date;

• Create Lines from capitalization button - creates lines that will be used as asset entry lines, which will be available for the asset in the Cost Details tab;

• Complete - is used after defining the asset entry document, in order to process the document and obtain the fixed asset.