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Capitalizing Assets from AC to AM

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johnmessina

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Posts: 4

9/5/2009 12:01 PM

Greetings All!

I have a question I'm hoping someone can help me with, regarding the capitalization of assets from the Activities module to the Asset Management module.

I'm interested in learning the "official" process in transferring costs from AC to AM, that is, the way the developers designed for the System to work. I would imagine this method would encompass an entry that reduces the balance in the specific activity itself, while increasing a corresponding fixed asset account, or something to that effect. You would also then be able to print some type of report that would allow you to see the historical transactions in that activity?...

We currently don't directly reduce our Activities Module/ GL balance, but use a contra account, reflecting capitalized assets, to net the gross Activities balance against. In essence, our Activities Module balance continuously grows w/o being reduced, due to what I believe was urgency in getting items booked. This can't be the way the program was designed!

Thanks for your help! It is GREATLY & genuinely appreciated!

All the best,

John

Deleted User

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Posts: 0

9/7/2009 7:14 PM

My brief answer is that things should clear out.

Rather than right a long answer (especially as I don't know the details of what your doing), I'd suggest you check out the Project Accounting user guide. - Chapter 18 (version 9) available on mylawson.com (just search for projects user guide under my support)
They have several examples of how the entries flow with AP175/AC190/AC160/AM170

Kevin Hagan

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Posts: 30

9/8/2009 4:21 PM

While I think it is wise to have the system set up to reduce your AC system balance upon capitalization, remember to accomplish this you do not necessarily need to reduce the balance on the activity being capitalized. By not reducing the balance on the activity being capitalized you allowed the canned AC reporting to show balances without having to select category options.

In the end I think it depends a great deal on how you are/aren't using the AC module for reporting or tracking capital exspense.

Sherry Shimek

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Posts: 43

10/1/2009 1:25 PM

We capitalize our assets primarily using Activities. We post the purchases to a gl clearing account and the activity with the account category of the intended asset such as fixed equipment. When we capitalize the asset, we use AC10.3, AC160, and AM15.3. The dollars are moved from the gl clearing account to the asset account using a default activity so the costs flow in and out of the default activity. We leave the costs in the activity when it is capitalized so the costs are still applied to the budget. We use a cost cateory of CAPC for the capitalization process so we can see the costs were capitalized on AC reports.

If you want more detailed instructions ir have any questions, please contact me.