NetAsset - Clearing Reconciliation on Capitalization
Overview
Use Case:
Implement a control that triggers an error message if the total of all clearing transaction amounts does not equal the asset's cost prior to creating the capitalization entry. This ensures data integrity and prevents capitalization with incomplete support.
In some cases, external scripts or workflows may prevent transactions from being tagged with a NetAsset Asset. When a transaction isn’t properly tagged, it will remain in the Create Assets from Proposals (Clearing)/(CIP) screen until it is tagged with the appropriate asset reference.
Prerequisites
- Asset record has been created from one of the following:
- Generate Depreciation Schedules has been completed
- Queue Additions for Capitalization has been completed
Note:
To set this feature as the default behavior during asset capitalization, go to NetAsset > NetAsset Setup > System Setup and check the Perform Clearing Reconciliation on Capitalization by Default box. For more information, refer to the NetAsset Global Settings article:
Step-by-Step Process
- Navigate to NetAsset > Process Monthly Journals > Run Monthly Asset Journals.
- Select the Reconcile Clearing Impacts on Capitalization box:
- Select the asset record(s) to be capitalized and click Create Journals.
- Depending on whether the sum of the clearing transaction amounts reconciles with the Capitalized Asset Value at In-Service on the asset record, the following will happen:
- If the amounts reconcile, the capitalization entry will be created.
- If the amounts do not reconcile, an error message will appear: "Tagged clearing impacts do not match the Capitalized Asset Value at In-Service on the asset."
Process for Resolving Reconciliation Errors
- On the asset record, compare the Capitalized Asset Value at In-Service to the Transactions sublist under the Related Records subtab. This comparison will show that the capitalized asset value does not reconcile with the total transaction amount.
- To resolve the discrepancy, follow these steps to identify any applicable transactions that are not tagged to the asset:
- Review the transactions tagged to the NetAsset Asset by navigating to the asset record, then checking the Transactions sublist under the Related Records subtab. Confirm that all relevant transactions have been correctly tagged:
- If transactions are missing, review the Create Assets from Proposals (Clearing)/(CIP) screens to ensure there aren’t any transactions that should be associated with the asset but haven’t been properly tagged.
- It’s possible that an error occurred while tagging one or more transactions during the asset creation process. To check, navigate to the NetAsset record and review the Processing Status and Script Execution Log fields under the System Notes subtab. These may help indicate whether an issue—such as a workflow error—prevented the transaction from being properly associated with the asset:
- If errors are present, resolve the underlying issues first. Then, return to the asset record, click Edit, and within edit mode, go to the Transactions sublist under the Related Records subtab. There, check the Reprocess Tagging box to retry tagging the transactions:
- Click Save on the asset record to prompt the system to reattempt tagging the original transactions used to create the asset, applying any that may have previously failed.
- Once the reconciliation issue is resolved, follow the previously outlined steps to reprocess the capitalization.
- Review the transactions tagged to the NetAsset Asset by navigating to the asset record, then checking the Transactions sublist under the Related Records subtab. Confirm that all relevant transactions have been correctly tagged:
If the reconciliation discrepancy is not related to the system’s inability to tag the transaction to the asset, the steps above are unlikely to resolve the issue. In that case, the discrepancy is likely being caused by another factor—such as a manual adjustment to the asset record—and would require further investigation.