Using Capital Object Codes on Financial Documents

Description: When a capital object code is used on a financial processing document, the document initiator must provide information about the asset on the financial processing document.

On This Page: Overview | Accounting Lines Tab | Accounting Lines for Capitalization Tab | Create Capital Assets Tab | Modify Capital Assets Tab | Control and Total Amounts | Known Issues | Additional Information

Read about KFS document layout, including standard KFS document components, on the FMS website.

Click a screenshot below to view the full-sized image in a new tab.


Overview

When a capital object code is used on a financial processing document, Capital Asset Management (CAMS) requires the document initiator to provide information about the asset on the financial processing document. That information could be the information needed to create a new asset or the asset number(s) of an existing asset so the existing asset can be modified. A capital object code begins with a 7, but not all object codes that begin with a 7 are capital.

The table below lists the financial processing documents may be used to collect asset information.

Document

Use with Create Assets tab

Use with Modify Assets tab

Advance Deposit   X
Cash Receipt   X
Credit Card Receipt   X
General Accounting Adjustment X X
Distribution of Income and Expense X X
Internal Billing X X
Procurement Card X X
Service Billing X X
Year End General Accounting Adjustment X X
Year End Distribution of Income and Expense X X

Asset information is collected for the following categories: Art and Museum, Buildings, Capital Leases, Fabrications, Intangibles, Land, Leasehold Improvements, and Moveable Equipment. Library Book object codes do not require asset information on a financial document.

Considerations

Before issuing a financial document with a capital object code, it is important to calculate how the accounting changes will affect the asset(s) involved. For example, perhaps a $35,000 capital asset was erroneously purchased on a general fund account instead of a contract and grant account. The department therefore needs to use a General Accounting Adjustment (GEC) document to move $35,000 on Purchase Order 123456 from a general fund account to a contract and grant account.

Purchase order 123456, however, created three assets. if the GEC is applied to only one of the assets, the funding will not be correctly allocated to all three assets. In addition, the asset to which the GEC is applied would have a federal contribution greater than the cost of the asset.

Use an Asset Payment Lookup to display assets, accounts, and account amounts.


Accounting Lines Tab

The document initiator should complete the fields in the Accounting Lines tab as normal. More information about the fields in the Accounting Lines tab is available on the KFS Document Layout page of the FMS website.

Note, however, that when working with capital object codes, each accounting line must be unique. Therefore, no two accounting lines may have the same information in all of the following fields: Account, Sub-Account, Object, Sub-Object, Project, and Org Ref ID.

If two or more accounting lines are not unique, the following error will display when generating capitalization information or upon document submission:

screenshot


Accounting Lines for Capitalization Tab

When a capital object code is used in the Accounting Lines tab, the Accounting Lines for Capitalization will automatically open and display the following message:

screenshot

Make sure to review the information entered in the Accounting Lines fields before clicking Generate. As the message says, once Generate has been clicked, the document initiator must delete the capitalization information to edit or enter new accounting lines for capital assets. See instructions for deleting capitalization information later in this section.

Click Generate to populate the Accounting Lines for Capitalization tab with an asset information table. The document must have a description for the capitalization information to generate.

screenshot

The above example is taken from a document with both "From" and "To" sides. The Source line is equivalent to the "From" side of the transaction; the Target line is equivalent to the "To" side of the transaction. One-sided Financial Processing documents can be interpreted using the same correlations.

The account, sub-account, object code, sub-object code, project, org ref ID, and amounts listed for each line in this tab must equal the lines in the Accounting Lines tab. Additionally, the information on the Create Capital Assets and Modify Capital Assets tabs must be in agreement with the information on this tab.

Select asset line(s) to create or modify

Select asset line(s) to create or modify by clicking the Select Line box. As items are selected for processing, the amount is added to the System Control Amount and the System Control Remainder Amount.

Note that if a financial document includes multiple transactions, the document initiator may need to process the accounting lines separately. Only select the accounting line(s) that pertain to the asset being created or modified.

All accounting lines must be processed prior to document submission. Additionally, note that each accounting line must have asset information associated with it.

Select amount distribution method

Once the capital lines have been selected for processing, the document initiator must decide how the cost should be distributed to the assets involved using the Select Amount Distribution Method drop-down menu. The options include:

  • Distribute cost evenly: The selected accounting line amounts will be distributed equally between the assets. Default option.
  • Distribute cost by amount: Allows the document initiator to enter the amount that should be distributed to each asset being created or modified.

Create or modify asset

Once the cost distribution method has been selected, the document initiator can either create a new asset or modify an existing asset using the Create Asset and Modify Asset buttons. Depending on the button chosen, the asset information will be populated in the appropriate document tab.

Click Create Asset when moving an amount from expense to capital. Click Modify Asset when moving amounts between accounts, sub-accounts, object codes, or sub-object codes for an existing asset. Both buttons set the percent column in the Accounting Lines for Capitalization tab. To create and/or modify additional assets, click the appropriate button as many times as necessary.

Note that, when correcting an error, the Modify Asset button and the Modify Capital Assets tab must be used.

Delete capitalization information

If changes or additions need to be made to the accounting lines for capital assets after the capitalization information has been generated, the capitalization information must be deleted. To delete the capitalization information, click the Delete button at the bottom of the Accounting Lines for Capitalization tab. Capitalization information will be deleted immediately.

screenshot


Create Capital Assets Tab

When the Create Asset button is checked in the Accounting Lines for Capitalization tab, the Create Capital Assets tab will automatically open. The fields in this tab allow the document initiator to move an amount from expense to capital.

screenshot

The following fields are required:

  • Asset quantity.
  • Asset type code - must be a valid value.
  • Manufacturer.
  • Asset Description.
  • Vendor.

Once an Asset Quantity is provided, the Add/Tag Location can be used to open a tab to collect location information.

screenshot

The following fields are required and must be valid values:

  • Campus code.
  • Building code.
  • Room number.

Click the Clear button to clear the following fields: Asset Quantity, Asset Type, Vendor, Manufacturer, Model, Amt, Amt Distribution Method, and Tag/Location information. The Clear button will also reset the System Control Amount and the System Control Remainder Amount and will uncheck the selected accounting lines. The asset information tab will remain open.

Click the Delete button to clear all asset information, including the System Control Amount and the System Control Remainder Amount, and close the Create Capital Assets tab. Selected accounting lines will be unchecked.

If the Create Asset button was clicked erroneously, click the Delete button in the Create Capital Assets tab to return to the Accounting Lines for Capitalization tab and start over.


Modify Capital Assets Tab

When the Modify Asset button is checked in the Accounting Lines for Capitalization tab, the Modify Capital Assets tab will automatically open. The fields in this tab allow the document initiator to move amounts between accounts, sub-accounts, object codes, or sub-object codes for an existing asset. This tab must be used when correcting an error.

screenshot

Use the magnifying glass to the right of the Asset Number field to search for the asset to be modified. Alternatively, use the Lookup/Add Multiple Capital Asset Lines magnifying glass to search fro and select multiple assets to which the accounting lines will be applied.

If the Modify Asset button was clicked erroneously, click the Delete button in the Modify Capital Assets tab to return to the Accounting Lines for Capitalization tab and start over.


Control and Total Amounts

System Control Amount, System Control Remainder Amount, and Redistribute Total Amount is included at the top of both the Create Capital Assets and Modify Capital Assets tabs.

screenshot

System Control Amount is a field used to ensure that asset amounts are not greater than the sum of the amounts selected for processing. As line items are selected for processing, those amounts are added to the System Control Amount.

System Control Remainder Amount is a field that shows the amounts yet to be distributed to assets. Amounts are distributed to assets when either the Redistribute Total Amount or Save buttons are clicked. Once the System Control Remainder Amount is zero, the lines selected for processing in the Accounting Lines for Capitalization tab are greyed out.

The Redistribute Total Amount allows a document initiator to distribute the cost to the asset(s) and update the "Amt" column. This button should be clicked when all assets for the selected accounting lines have been created or modified. Behavior varies depending on whether Distribute cost evenly or Distribute cost by amount was selected in the Accounting Lines for Capitalization tab:

  • If Distribute cost evenly was selected, the Redistribute Total Amount button will calculate the "Amt" by dividing the number of assets by the account amount.
  • If Distribute cost by amount was selected, the Redistribute Total Amount button will calculate the "Amt" as a proportion of the total asset amount.

When Redistribute Total Amount is clicked, the accounting lines selected for processing in the Accounting Lines for Capitalization tab will grey out and the System Control Remainder Amount will be zero. The document cannot be submitted until all accounting lines have been redistributed.


Known Issues

If all the lines have been processed, the System Control Remainder Amount is zero, and you receive an error, you have entered a rounding error in the Capital Asset For Accounting Lines amounts. The error message will read:

Capital Asset Line Sequence#: 1 Asset Line#: Source Line Type: $chart chart: $account account; $object object code {5} – Capital assets total amounts is more than Capital Accounting Line’s Amount.

In this case, issue a separate financial document for each asset.


Additional Information

The asset information required to be collected is determined by the financial object sub type code.