Fixed Asset Generation from PO

There are various ways to create a fixed asset and purchase in the system.

Here you can find the ones that can be used.

1. Create asset manually from the fixed asset module and use invoice or general journals to purchase the asset with the invoice information.

2. Create asset manually from the fixed asset module and select the asset on the PO lines.

3. Let system generate the assets due to the rules defined in the system.

In this blog we will be discussing the this option.

Why do we want/need system to generate an asset on behalf of the user?

Answer is easy, because user do/may not know the purchase item is an asset or not.

User may only know the type.

As an example, we can consider the items that are IT related items. You may need to say that the items above the amount of 8000 EUR should be considered as fixed assets and below are directly expenses.

In this case what you have to do is;

1. Create separate procurement categories for these kind of items that can be assets.

2. Go to Procurement and Sourcing -> Setup -> Fixed Assets -> Business Rules for fixed asset determination

Define the rule 

Select the procurement category

Define the threshold (Can be organization wide or company wide)

Select the asset group to be used during the generation of the asset.

That is it.

Hint: You can manage asset groups and amounts per legal entity. So they can be different. For example, if the amount changes per company while the currency changes, you can define that information on the parameters.

Hint: You may generate asset during the product receipt or the invoice process with the parameter selection.