Handle Acquisition

The process used to enter and activate a fixed assets object in IFS Applications differs based on whether it has been depreciated in another system or not. If the object to be entered is newly acquired and has not been depreciated in any other system, the acquisition process can be used to enter it in IFS Applications. In this case acquisition transactions must have been transferred from IFS/General Ledger to IFS/Fixed Assets. On the other hand, if the object has been depreciated in another system, if no acquisition transaction has originated from IFS/General Ledger, the object can be imported to IFS Applications.
Note: Refer to the description written for the Import Object process.

Acquisition of Object

This process is used to update IFS Applications with details relating to the investment in a new fixed assets object. This involves entering general information of the object and entering a voucher to create an investment.

In order to enter the general information of a new object into the system, at least one code part for fixed assets accounting must exist for the company.

When a new object is entered into the system, you will be required to specify an object ID and a description. In addition, you are required to select a predefined object group and an acquisition reason for the new object. Therefore, to define a new object, at least one object group and a transaction reason must exist for the company.

Optionally, if IFS/Purchasing is installed, objects can be created automatically on release of a purchase order. In this case, the object group linking to the relevant purchase group for the part will be used.

Once a new object is defined and saved, the status of that object will be Registered. The object status must be changed to Investment before you create a voucher in the system to record the investment.

A voucher to record the investment in a new object can be created in the system

The account in the voucher row must be the acquisition account of the FA object. Vouchers with voucher types for opening balances (function group Q) cannot be used to create investment transactions for Fixed Assets.

Once the investment is recorded, you must update the voucher to the general ledger in order to make it possible to activate the object.

The possibility of maintaining a fixed code string or multiple code strings is controlled by the company parameter Allow Multiple Code String for Acquisition.  If this parameter is not selected, the code string used in the previous vouchers entered for the object must be maintained.

If you want to change the code string (when a fixed code string is maintained) to which the acquisition value of an object is posted after updating the voucher to the general ledger, you must enter a correction voucher to reverse the original posting. The correction voucher should be entered with the same code string as the original voucher. After updating the correction voucher to the general ledger, you must inactivate the accounting transactions that already exist for the object. The accounting can be inactivated only for objects of the status Investment. Inactivating the accounting will make it possible to enter a new voucher with a different code string to re-post the acquisition value.

It is possible to enter an additional investment for an object of the status Investment for which accounting transactions that are updated to the general ledger exist. This is done by creating another voucher (by entering a manual voucher or a supplier invoice) for the object and updating it to the general ledger.

However, if the status of the object to which you want to enter an additional investment is Active, the additional investment can be performed by using the Change Object Value operation or directly through other sources such as manual supplier invoicing or manual vouchers  (refer Change Object Value process for further information). Alternatively, you enter an additional investment to an object of the status Active by creating a voucher (by entering a manual voucher or a supplier invoice) for the main object of that object. In order to do this, the status of the main object must be Investment.

It is also possible to create further transactions for already Active objects

These transactions are for already active objects, and is considered as External Additional Investments, and must be activated in Fixed Assets to be considered in depreciation proposals or plans (refer to the Change Object Value process for further information).

Reduction of Acquisition Values by Cash Discount

The accounting principles and laws in some countries require that cash discount received when paying objects should reduce the acquisition values of these objects. The transactions for such reductions are automatically created and updated to Fixed Assets if;

The object must have Investment or Active status to create automatic acquisition value reductions by cash discount. The transaction reason for the reductions can be specified in the acquisition parameters of the company.