NetAsset - Clearing Reconciliation on Capitalization

OVERVIEW

Use Case: Set a control to deliver an error message that ensures all clearing transaction amounts sum to equal the cost of an asset prior to creating the capitalization entry. In some cases users may have outside scripts or workflows that prevent the tagging of a transaction with the NetAsset Asset. If a transaction is not tagged, the transaction will sit in the Create Assets from Proposals (Clearing)/(CIP) screen until it has been tagged.

Prerequisite: 

Asset record has been created from the Create Assets from Proposals (Clearing) or Create Assets from Proposals (CIP) page, Generate Depreciation Schedules, and Queue Additions for Capitalization are complete.

Note: To add this feature as the default control when capitalizing assets, Perform Clearing Reconciliation on Capitalization by Default must be enabled on the NetAsset Setup System Features.

STEP BY STEP PROCESS

  • Navigate to NetAsset > Process Monthly Journals > Run Monthly Asset Journals
  • Check the Reconcile Clearing Impacts on Capitalization box

  • Select assets record to be capitalized.
  • Click Create Journals
  • If the sum of the clearing transaction amounts reconciles to capitalized asset value at in-service on asset record, the capitalization entry will be created. 
  • If the sum of the clearing transaction amounts do not reconcile to capitalized asset value at in-service on asset record, the user will receive an error. The error will read "Tagged clearing impacts do not match the Capitalized Asset Value at In-Service on the asset".

STEPS TO RESOLVE RECONCILIATION ERRORS

  • On the asset record, by comparing the "Capitalized Asset Value at In-Service" to the "Transactions" on the related record subtab, you can see that the capitalized asset value does not reconcile to the summed transaction amount.

  • To resolve the discrepancy, you will first identify any applicable transactions that are not tagged to the asset by following the below recommended steps:
    • Review the transactions in the Create Assets from Proposals screen and if transactions are present that should be tagged to the asset but have not been tag in the NetAsset Asset column
    • Check for errors in the System Notes by navigating to the Asset Record > System Notes. If there are transactions that were attempted to be tagged to the asset but could not be (due to a workflow or other problem) these may display on this tab 
    • Review the transactions tagged with the NetAsset Asset by navigating to the Asset Record > Related Records > Transactions and confirm the correct transactions have been tagged
  • Once the applicable transactions have been identified, navigate to the Asset Record > Related Records > Transactions, select Edit and check the "Reprocess tagging" checkbox
  • Select Save

  • Once all transactions are updates so they match the Capitalized Asset Value, navigate to NetAsset > Process Monthly Journals > Run Monthly Asset Journals, check the Reconcile Clearing Impacts on Capitalization box, and run the appropriate journals
Was this article helpful?