| Asset (tffam1100s000) |  |
| Use this session to provide detailed information about the selected asset. You associate books with an asset, creating an asset-book relationship. You can enter, edit, or view assets and their related books. If you create an asset in this session, asset books are also created according to the default books of the Default Books (tffam0510m000) subsession of the FAM Parameter (tffam0100s000) session. You can see and maintain the new asset books in the Asset Books (tffam1510m000) session. In addition, an asset distribution is created according to the default segment codes of the Location Segment and Segment (tffam5100m000) subsession of the Location Segments (tffam5510m000) session. You can see and maintain the new asset distribution in the Asset Distributions (tffam1520m000) session. Related topics Using Assets To set up asset transactions Asset Statuses Asset Book Statuses
Fields | Description
Asset Number | The asset number and asset extension create a unique identifier for the asset in the selected company.
Asset Extension | The asset number and asset extension create a unique identifier for the asset in the selected company.
Description | The description or name of the asset. Note You must enter some text in this field.
Transaction Cost | The transaction cost. ERP LN calculates the depreciation amount as follows:
    depreciation amount = transaction costs / asset life
If the costs in relation to the asset life are so low that after rounding off the amount according to the currency definition the depreciation amount approaches zero, a warning message appears.
Transaction Cost | The transaction currency.
Transaction Cost | The home currency. From the Tools menu, choose Rotate Currency to switch home currencies.
Category | When you add an asset, you assign it a predefined category. The category determines the accounts to which ERP LN records the asset's depreciation and transactional data. It also provides default data for the depreciation methods, lives, and description fields to the asset and related books from the Category (tffam2100s000) session.
Subcategory | Subcategories provide additional classification of assets within a category. For each category, you enter one or multiple subcategories. Default value The default value is obtained from Categories (tffam2500m000). You choose a subcategory for the selected category to further classify the asset for reporting and inquiry purposes. This uniquely identifies the subcategory in the selected company.
Group | A broader level of grouping than an asset category. Used to classify your organization's assets for reporting and inquiry. Default value Obtained from Categories (tffam2500m000).
Simulated | To create a simulated asset, select this check box.
In Service Date | Date the asset is ready to be placed into service. Assets can begin depreciating on their in-service date. The in-service date can be the same as the purchase date, or it can be later if the asset required preparation before it could be used. An asset cannot be capitalized before its in-service date.
Purchase Date | Date you purchased the asset.
Accounting Period | The current accounting period. If the actual accounting period is later than the Current Period in the FAM Parameter (tffam0100s000) session, ERP LN uses the current period. Otherwise, the Current Period of the FAM Parameter (tffam0100s000) session is used as the accounting period.
Year | The year the accounting period is associated with.
Current Quantity | Remaining quantity of the asset. As the asset goes through its life, its quantity might decrease, depending on the type of asset. Default value The default value is 1.
Original Quantity | The original quantity of the asset. If you have not capitalized the asset, the original quantity and the current quantity are the same. After you capitalize the asset, you cannot change the original quantity. Default value The default value is 1.
Owner | Indicates whether the asset is owned by the company, owned by a third-party, or used under a capital or operating lease. A third-party asset is one that is on the company's premises but is not leased or owned by the company. A capital lease is not a legal purchase, but the lessee does obtain significant property rights. A capital lease asset exists if any one of the following conditions is met: The ownership of the asset is transferred to the lessee at the end of the lease term. The lease covers a period of time equal to 75% of the life of the property. The present value of the minimum lease payments equals or exceeds 90% of the property fair value. In the United States, if the book is Federal Tax or Other Tax and the owner code is Operating Lease, Capital Lease, or Third Party, the asset is not eligible for Investment Tax Credit (ITC). ERP LN then sets the ITC Method field to None. For all books, you cannot calculate depreciation or create journals for the Third Party and Operating Lease assets, and they are not eligible for ADR or MACRS group depreciation.
Business Percentage | Indicates the percentage of the asset that is used for business purposes. For Federal Tax and Other Tax books, if the business usage is less than 50%, the asset is not eligible for an investment tax credit or ADR or MACRS group depreciation. ERP LN then sets the ITC Method field to None. No other books modify depreciation according to the business use percentage. Default value The default value is 100%.
ITC Method | Indicates whether an asset is eligible for an investment tax credit (ITC), and how that credit should be applied. Default value The setting in Category (tffam2100s000) for the selected category. For Federal Tax and Other Tax books, indicates whether the asset is eligible for an investment tax credit, and how that credit must be applied. If the asset is eligible, you can select Reduced Basis to use the credit to reduce your taxable income, or you can select Reduced Credit to reduce your tax due. If the asset is not eligible to receive an ITC, you can select None as the ITC method. You must set it to None if: The business usage for the asset is less than 50% The owner code is Operating Lease or Third Party The Listed check box is selected
Asset Distr. By | The way in which the asset is distributed: by quantity, or by percentage.
Serial Number | Identifying number given to the selected asset by the manufacturer to distinguish it from other products in a similar line.
Automobile | To indicate that the asset is an automobile, select this check box. Some types of automobiles must be identified as such for U.S. federal tax reporting purposes. Default value Cleared Only assets for which you select this check box can be entered in the Record Automobile Mileage (tffam1150m000) session.
Listed | Indicates if the asset is listed property as defined by the U.S. Internal Revenue Service (IRS). U.S. Federal tax regulations limit the amount of depreciation allowed for listed property. When this check box is selected, the asset is defined as listed property and depreciates as long as it still has cost left to depreciate, regardless of life. Default value Cleared
New | If the asset was new when you acquired it, select this check box. If the asset was already used by others when you acquired it, clear this check box. You can only add assets to the vintage or group account that also have the New status as the vintage/group account. By default, the check box is selected.
Business Partner | Indicates the business partner or vendor from which the asset was purchased.
Purchase invoice | The number of the purchase invoice for the asset.
PO Part Number | Purchase order part or catalog number for the asset.
Asset Status | Lists the status of the asset. The status of the asset determines the actions you can perform on it. Related topics Asset Statuses
Asset Source | Indicates whether the asset was manually entered or imported from another source, for example, the Accounts Payable module.
Transferred | If this check box is selected, the asset was transferred from another company.
Transferred | Identifies the company from which the current asset originated, if transferred from another company.
Transferred | Identifies the asset number from which the current asset originated, if transferred from another company.
Transferred | Identifies the asset extension from which the current asset originated, if transferred from another company
Tag Number | Number assigned to the asset by the owner for further identification. ERP LN checks whether a newly entered tag number is unique. If the number is already in use, ERP LN displays a warning. For example, if you use the tag number for your inventory number, it is important to ensure that the tag number is unique. In a multicompany structure, ERP LN also checks whether the tag number is unique across the companies.
Project | If you linked the asset to a project in Project, this is the asset's project. ERP LN displays the project number if you completed the following steps: In the Project (tppdm6100s000) session, select the Capital Project check box and enter the asset number and asset extension in the corresponding fields. Close the project in the Project Status (tppdm6107s000) session. ERP LN then sets the asset's status to Acquired. The transaction cost of the asset is equal to the actual project costs.
Vintage/Group Account | A classification of assets used for U.S. tax purposes to apply asset depreciation range (ADR) rules during depreciation.
Account Type | Indicates the type of vintage account.
Accum. Maint. Cost | The cost, to date, of maintaining the asset.
Last Maint. Date | Displays the last maintenance date for the asset.
Rate | A charge or payment fixed according to a standard scale, for example, the currency rate of the transaction.
Rate Factor | The factor by which the amount in the transaction currency or the invoice currency is divided before ERP LN converts it to a home currency. A rate factor is often used for currencies that have a relatively low price, for example, Korean Won.
Salvage Value | The estimated amount you expect to receive in cash or trade-in allowance when you dispose of the asset at the end of its useful life, expressed as a percentage of the amount you entered in the Transaction Cost field. If you enter a salvage value percentage, ERP LN calculates the salvage amount. If you enter a salvage value amount in the next field, ERP LN calculates the salvage percentage.
Salvage Value | The estimated amount you expect to receive in cash or trade-in allowance upon disposition of the asset at the end of its useful life. The asset cannot depreciate below this amount, unless you selected the Depreciate Below Salvage check box in the Asset Book (tffam1110s000) session. If you entered a salvage value percentage in the previous field, ERP LN calculates the salvage amount.
Sec. 179 Value | The Section 179 Value is a deduction available to certain types of property as specified by the IRS in the U.S. This allows taxpayers other than estates, trusts, and certain non-corporate lessors to claim a current deduction for a specified amount of the cost of qualified property placed in service during the tax year. For Federal Tax-U.S. book depreciation, ERP LN reduces cost by the section 179 value before calculating depreciation.
Capitalized Interest | Amount of capitalized interest for the asset in the selected book. When you have acted as your own bank in acquiring an asset, this value represents what it would have cost you to borrow from the bank to acquire the asset. Capitalized interest is income to you, even though it is not recognizable as income and there is no deduction. The capitalized interest amount does not affect how ERP LN calculates depreciation, but it can be useful for reporting purposes.
Current ITC Amount | Amount of the investment tax credit (ITC) for the asset in the selected book. This field is not available if one of the following conditions is met: The book type is Financial The ITC Method is None The Business Percent is less than 50 The Listed check box is selected The ITC amount does not affect the way ERP LN calculates depreciation, but it can be useful for reporting purposes.
Allocated Cost | Allocated costs represent indirect costs incurred in the purchase of an asset. For example, if you buy a car, the price of the car, the license, and the insurance are direct costs. The costs you incurred shopping for the car and taking time off to go and get it are indirect costs. In some cases, the federal government requires you to capitalize these indirect costs for United States federal tax purposes.
Shift Factor | The shift factor takes an extra depreciation for an asset that is used beyond a typical 8-hour workday. For example, a machine may be used for two 8-hour shifts per day. Allowed values The minimum value is 1.0. The shift factor depends on tax regulations. For instance, in Germany the shift factor is 1.25 for two shifts, and 1.5 for three shifts. The shift value is used as default for the generated assset books which can be looked over in the Asset Book (tffam1110s000) subsession of the Asset Books (tffam1510m000) session. The depreciation value is multiplied by the shift factor.
Reinvestment Amount | The reinvestment amount for the asset. You can enter the amount only if you select the Separate Revaluation Accounting check box in the FAM Parameter (tffam0100s000) session.
Reinvestment Year | The year in which you made reinvestment for the asset. You can enter the amount only if you select the Separate Revaluation Accounting check box in the FAM Parameter (tffam0100s000) session.
Comment | If this check box is selected, text is available. To see or change the text, click Texts on the File menu.
Associated Notes | If this check box is selected, notes associated with the asset are available. To see or change the text, click Texts on the File menu.