NetAsset - Capitalization Thresholds
NetAsset has the ability to direct expense an asset, instead of capitalizing the asset, if the gross asset value is less than the desired capitalization threshold. To set up the capitalization thresholds, follow the below process.
Additionally, if capitalization thresholds are not desired, a transaction can be direct expensed by following the instructions in the Direct Expensing (transaction) article.
STEP BY STEP PROCESS
Navigate to NetAsset > NetAsset Setup > Manage Capitalization Thresholds > New
Enter the field information to create the applicable threshold:
Field | Description |
| Accounting Book | The accounting book the capitalization threshold should apply to. If empty the threshold will apply to all books. |
| Subsidiary | The subsidiary the capitalization threshold should apply to. If empty the threshold will apply to all subsidiaries. |
| Asset Type | The asset type the capitalization threshold should apply to. If empty the threshold will apply to all asset types. |
| Department | The department the capitalization threshold should apply to. If empty the threshold will apply to all departments. |
| Class | The class the capitalization threshold should apply to. If empty the threshold will apply to all classes. |
| Location | The location the capitalization threshold should apply to. If empty the threshold will apply to all locations. |
| Amount | The threshold at which all assets with a lessor (or equal) capitalized asset value will be immediately expensed instead of depreciated. |
Navigate to NetAsset > NetAsset Setup > Manage Asset Types
On any applicable asset types, enter the correct account in the "Direct Expense Account" field:
Expensed Asset Example
When an asset is created below the threshold, the generated depreciation schedule will only have one line showing that no asset will be capitalized:
You will also note that the "Queue for Capitalization" button does not appear, instead "Queue for Expensing" appears at the top of the screen.
For ease of system use, the assets for capitalization and the assets for expensing follow the same process flow through the Queue Additions screen and then the Run Monthly Asset Journals screen.
Once the monthly asset journals have been ran, the asset record will be updated to reflect a status of "Expensed" and the corresponding NetAsset Expense Entry:
The journal will include a debit to the applicable expense and a credit to the applicable fixed asset clearing account: