<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/000138" xml:lang="en">
   <Header>
      <Title>Capitalizing Assets</Title>
      <Keyword type="header" order="d1e1632877">
         <Level1>Capitalizing</Level1>
         <Level2>Assets</Level2>
      </Keyword>
      <Keyword type="header" order="d1e1632882">
         <Level1>Transactions</Level1>
         <Level2>asset capitalization</Level2>
      </Keyword>
      <Keyword type="header" order="d1e1632887">
         <Level1>Assets</Level1>
         <Level2>capitalizing</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>Asset capitalization is the process of recognizing that an asset
		has been placed into service in your company and is eligible for depreciation.
		Until an asset has been capitalized, it cannot depreciate in any of its related
		books.</Paragraph>
      <Paragraph>You can capitalize assets that have the <GUIRef href="/baanerp/tf/domains/fam.asta#ente" role="option">Entered</GUIRef> status or the <GUIRef href="/baanerp/tf/domains/fam.asta#remo" role="option">Removed</GUIRef> status.</Paragraph>
      <Paragraph>When you capitalize an asset, its status and the status of each
		of its related books changes from <GUIRef href="/baanerp/tf/domains/fam.asta#ente" role="option">Entered</GUIRef> to <GUIRef href="/baanerp/tf/domains/fam.asta#capi" role="option">Acquired</GUIRef>. If the asset book
		contains accumulated depreciation and is capitalized, the status of the asset
		book becomes <GUIRef href="/baanerp/tf/domains/fam.bsta#depr" role="option">Depreciating</GUIRef>. After you
		capitalize an asset, you can begin depreciating it at any time.</Paragraph>
      <Paragraph>You can recapitalize assets that have the <GUIRef href="/baanerp/tf/domains/fam.asta#remo" role="option">Removed</GUIRef> status. If no depreciation has started for he asset, you can remove the
		capitalization of a capitalized asset. After you made the required changes to
		the asset, you must capitalize the asset again. All the subsequent FAM
		transactions such as depreciation and transfer will be based on the changed
		values.</Paragraph>
      <Paragraph>LN records the date you enter for the capitalization as the accounting period and
		year for the asset. The date you enter cannot be in a fiscal period prior to
		the asset's in-service date, must be an open period, and must fall within the
		start and end dates for the company with which the asset is associated.</Paragraph>
      <Paragraph>After you capitalize an asset, you can no longer directly
		change some of the information associated with it. You can make changes to this
		data by making an adjustment. For more information, see <Link href="/baanerp/tf/onlinemanual/000099" role="manual">Asset adjustment</Link>.</Paragraph>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>You can continue to add related books to an asset after
		  capitalization. LN automatically sets the status of each book to <GUIRef href="/baanerp/tf/domains/fam.asta#capi" role="option">Acquired</GUIRef> when you save your changes. You cannot remove existing books from an asset
		  after capitalization. To remove a book after capitalization, you must dispose
		  of the asset in that book. For more information, see <Link href="/baanerp/tf/onlinemanual/000172" role="manual">Disposing Asset Books</Link>.</Paragraph>
      </Note>
      <Paragraph>LN records journal entries for each asset you capitalize, using the values of the
		asset in its default general ledger book. You can prevent the journal entry
		from being made by using the <GUIRef href="/baanerp/tf/fam/tffam1200m000#suppress" role="manual">Suppress Journal Entries</GUIRef> check box in the <GUIRef href="/baanerp/tf/fam/tffam1200m000" role="session">Capitalization (tffam1200m000)</GUIRef> session. For more information, see <Link href="/baanerp/tf/onlinemanual/000148" role="manual">Capitalization Journals</Link>.</Paragraph>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>If you capitalize an asset that should never have been placed
		  into service, you can remove the capitalization status from it in the</Paragraph>
         <Paragraph>
            <GUIRef href="/baanerp/tf/fam/tffam1201m000" role="session">Remove Capitalization (tffam1201m000)</GUIRef> session. This removes an asset from service and
		  prevents it from depreciating. For more information, see <Link href="/baanerp/tf/onlinemanual/000139" role="manual">Removing Asset Capitalization</Link>.</Paragraph>
      </Note>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000099" role="manual">Asset adjustment</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000172" role="manual">Disposing Asset Books</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000148" role="manual">Capitalization Journals</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>