NetAsset - Use a Different Segment for Balance Sheet or P&L Accounts
Overview
Use Case:
Some companies need:
- One department on the Fixed Asset (Balance Sheet) account
- A different department on the Depreciation Expense (P&L) account
This is common when assets are owned centrally, but expenses are tracked by department. It also happens when corporate purchases the asset, but individual departments are responsible for the depreciation expense. In other cases, companies want reports to show depreciation by operating department.
By default, NetAsset carries the same segments to all posting lines.
If you want different segments for different accounts, you’ll need to:
- Create a second segment field on the Asset record
- Use Custom Sourcing to control which department posts to the Balance Sheet and which posts to the Expense account
This process works the same for location, department, class, and other custom segments.
Prerequisite
Before starting this setup, please review the Manage Custom Sourcing article. It contains the detailed instructions for creating sourcing rules. This article provides a high-level overview of the process, but the step-by-step configuration details are covered there
Step-by-Step Setup
1. Add Field to the NetAsset Asset Form. This is the field that the custom sourcing will look to for the segment retagging on transactions.
2. Create a new Custom Sourcing rule using the Transaction Posting trigger. Make sure to specify the accounts the rule should apply to in the Sourcing Filters section; otherwise, it will update the segment on all journal lines. When setting up the rule, select the new field you created on the Asset record as the source field.
3. Now when journals are run, the new segment will be applied to the accounts specified in the sourcing.