NetAsset - Build Up Existing Assets

Overview

It may be the case that a pending or in-service asset needs to have its capitalized value built up via a new item/expense coded to Fixed Assets Clearing or Construction In-Progress.


STEP-BY-STEP PROCESS

  • Navigate to the Build Up page in one of 3 ways
    • Selecting NetAsset > Update or Modify Assets > Build Up Asset from Proposals (Clearing)
    • Selecting NetAsset > Update or Modify Assets > Build Up Asset from Proposals (CIP)
    • Directly from the asset itself by clicking the Build Up button.
  • Once on the Build Up page, enter the Asset to Build Up and allow key asset fields to populate for quick informational purposes.
    • If you navigated to the page via the Build Up button on the NetAsset record this will already be filled in.

  • If necessary, add any transaction filters needed to isolate the desired transaction line(s) then click Filter Results. You may need to click the Switch to CIP button if the desired costs reside in Construction In Progress instead of the Fixed Asset Clearing account.
  • Next, check the Select checkbox next to any number of line items/expenses you would like to build up the asset with. After you have validated the inputs, click the Build Up Asset button. You will be redirected to the asset to build up with the Current Financial Information updated to reflect the new built up value.
    • Note: if the asset is in Pending status, then the Capitalized Asset Value at In-Service will also be updated. Otherwise, that value remains the same so the original value can be compared against the current value.

  • If journals have been recorded against the asset, the Processing Status field will read Processing Build Up…while the schedule is being updated. Refresh periodically until the Processing Status field is blank.
    • The Effective Build Up Date Period will be split into two entries, one to record the GL Impact of the Build Up and one to record the normally scheduled depreciation.

  • Click on hyperlink to the NetAsset Build Up Entry to see the adjustment to the Fixed Asset Account and Fixed Asset Clearing Account.
    • Debit Asset Type’s “Fixed Asset Account” for the build up amount
    • Credit Asset Type’s “Fixed Asset Proposal (clearing)” for the build up amount

  • A NetAsset Revaluation record will be saved on the Revaluations subtab of the asset to save historical data before and after the build up.

  • The selected Vendor Bills and/or Journal Entries should appear on the Related Records subtab. The selected expense/item lines will also be updated with the Asset being built up.

Foreign Currency Handling During Build-Ups

When a source transaction used in a build-up is denominated in a currency that differs from the currency of the asset record, NetAsset applies an exchange rate to convert the transaction amount to the asset's currency. The following sections describe how this conversion is handled across different scenarios.

Source Transaction Currency Differs from Asset Currency

When a source transaction (such as a Vendor Bill or Journal Entry) is in a different currency than the asset record, NetAsset uses the exchange rate in effect on the date the source transaction was created to perform the conversion. The converted amount is then applied to the asset's currency as the build-up value. No manual rate entry is required; the conversion is applied automatically based on that transaction creation date rate.

Subsidiary Currency Differs from Source Transaction Currency

When an asset is being created or built up within a subsidiary whose functional currency differs from the currency of the source transaction, NetAsset automatically performs the currency translation. The exchange rate applied is sourced from the date the source transaction was created, consistent with the behavior described above. No additional configuration is required for this translation to occur.

Multi-Book Assets and Foreign Currency Build-Ups

When an asset is configured with multiple accounting books and a build-up is processed from a source transaction, NetAsset applies exchange rates to each book as needed based on that book's currency relative to the source transaction.

  • If the primary book currency matches the source transaction currency, no conversion is required for the primary book and the build-up amount is applied directly.
  • If the secondary book uses a different currency than the primary book, NetAsset applies an exchange rate to translate the build-up amount into the secondary book's currency. The exchange rate used is derived from the date the source transaction was created, consistent with the behavior applied to the primary book.
  • If the source transaction currency matches the secondary book currency rather than the primary book currency, the same logic applies in reverse: the primary book will have a conversion applied using the source transaction creation date rate, while the secondary book will receive the amount directly without conversion.

In all multi-book scenarios, the exchange rate logic is consistent: NetAsset uses the exchange rate from the source transaction creation date to perform any required currency conversions, regardless of which book is receiving the translated amount.

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