NetAsset - Build Up Existing Assets
Overview
A build up adds cost to an existing asset rather than creating a new asset. It is typically used when an additional item or expense is coded to a Fixed Asset Clearing or Construction in Progress (CIP) account and belongs to an asset that already exists in a Pending or In-Service status.
Each build up produces three results:
| Result | Description |
|---|---|
| NetAsset Revaluation record | A revaluation of type Build Up, stored on the Revaluations subtab of the asset. Retains the asset's financial state before and after the build up. |
| NetAsset Build Up Entry | The custom transaction carrying the GL impact of the build up. |
| Updated depreciation schedule | Schedule lines are rebuilt from the effective build up period forward, depreciating the added cost over the asset's remaining useful life, or over a new useful life if one was entered. |
The GL impact debits the asset's Fixed Asset account and credits the clearing or CIP account(s) that the selected source transaction lines actually posted to.
Prerequisites
- The asset to be built up must already exist in Pending or In-Service status.
- The additional cost must be posted to an account mapped on an Asset Type as either the Fixed Asset Clearing Account or the Construction in Progress Account. Transaction lines posted to any other account do not appear on the Build Up page.
Step-by-Step Process
Navigate to the Build Up Page
The Build Up page can be reached in three ways:
- NetAsset > Update or Modify Assets > Build Up Asset from Proposals (Clearing)
- NetAsset > Update or Modify Assets > Build Up Asset from Proposals (CIP)
- Directly from the asset record by clicking the Build Up button.
The Clearing and CIP pages are the same page in two modes. The Clearing mode lists transaction lines posted to any Asset Type's Fixed Asset Clearing account; the CIP mode lists lines posted to any Asset Type's Construction in Progress account. Because the account list is built from every Asset Type in the account, a single build up may pull lines that sit in several different clearing or CIP accounts.
Identify the Asset
Enter the asset in the Asset To Build Up field. Key asset fields populate for informational purposes. If the page was reached using the Build Up button on the asset record, this field is already populated.
Change asset useful life with a build up
The asset's useful life and residual value may be edited while processing an individual asset's build up. When a single asset is populated in the Asset To Build Up section, three fields become available: Useful Life at In-Service, Remaining Useful Life, and Residual Value Estimate. Changes to these fields are reflected in the regenerated depreciation schedule.
Filter and Select Source Transaction Lines
- Apply any transaction filters needed to isolate the desired lines, then click Filter Results.
- Click Switch to CIP or Switch to Clearing depending on where the costs to be built up reside.
- Mark the Select checkbox next to each transaction line to be added to the asset.
Process the Build Up
- Validate the inputs and click Build Up Asset.
- The asset record opens with the Current Financial Information section updated to reflect the new built up value.
If the asset is in Pending status, the Capitalized Asset Value At In-Service is also updated. For assets in In-Service status, that value remains unchanged so the original value can be compared against the current value.
- If journals have already been recorded against the asset, the Processing Status field reads Processing Build Up… while the schedule is rebuilt. Refresh periodically until the Processing Status field is blank.
Review the Results
The effective build up period is split into two schedule entries: one recording the GL impact of the build up, and one recording the normally scheduled depreciation for that period.
Review the following records:
| Record | Location | What to confirm |
|---|---|---|
| NetAsset Build Up Entry | Hyperlinked from the Journal Entry column of the effective schedule line | The debit and credit lines match the accounts the source costs were accumulated in |
| NetAsset Revaluation | Revaluations subtab of the asset | Type is Build Up; before and after values are retained |
| Source transactions | Related Records subtab of the asset | The selected transactions appear and are tagged with the asset |
NetAsset Build Up Entry
NetAsset Revaluation
Source Transactions
GL Impact of a Build Up
The Rule
A build up debits the asset's Fixed Asset account once for the full build up amount, and credits each distinct clearing or CIP account that the selected source transaction lines posted to, for that account's share of the total.
Debit side
A single line for the full build up amount, posted to the Fixed Asset Account defined on the asset's Asset Type. The amount is the net book value adjustment, converted to the asset's currency.
Credit side
One line per distinct account, for that account's grouped total. When the build up is submitted from the Build Up page, NetAsset records the account, amount, currency, and transaction date of every selected source line, groups the amounts by account, and writes one credit line per account rounded to the asset's currency precision.
For each selected line, the account credited is the account on the transaction line itself.
A single build up may span multiple accounts
A build up is not limited to costs sitting in one account. The transaction lines available on the Build Up page are drawn from the accounts mapped across every Asset Type in the account — not only the Asset Type of the asset being built up. Costs accumulated across several accounts can therefore be applied to the same asset in one build up, and each account is relieved for its own share.
Rounding Differences
After the per-account credit lines are written, NetAsset compares their total to the debit. If a difference remains — possible with multi-currency conversion or currency rounding — one additional credit line is added for the difference, posted to the fallback clearing account.
This line is normally absent or sub-cent. A material rounding line indicates a problem, most often an exchange rate issue, and should be investigated.
Foreign Currency Handling
When a source transaction is denominated in a currency other than the asset's currency, NetAsset converts each recorded account impact individually before the build up entry is assembled. No manual rate entry is required.
Rate selection
The exchange rate applied to each source line is the rate effective on or before that line's transaction date — that is, the most recent effective rate as of that date. If no rate is effective as of that date, the last resolved rate is carried forward, defaulting to 1.
Because the same rate logic is applied to each account impact and to the overall build up amount, the credit lines and the debit total convert consistently.
Subsidiary currency differs from source transaction currency
When the subsidiary's functional currency differs from the source transaction currency, translation is performed automatically using the same rate logic. No additional configuration is required.
Multi-book assets
Multi-book assets follow the same path. Each book's entry is built from the same recorded account impacts:
- A book whose currency matches the source transaction currency receives the amount directly, with no conversion.
- A book whose currency differs is translated using the rate effective as of the source line's transaction date.
Limitations
- Segments are sourced from the asset, not from the source line. Department, Class, and Location on every credit line come from the asset record, even when the source transaction lines carry different segment values.
- The depreciation schedule does not show the credit split. The effective schedule line records a single Gross Asset Activity amount and a single Clearing Activity amount for the total. The per-account detail exists only on the NetAsset Build Up Entry.
Troubleshooting
Expected transaction lines do not appear on the Build Up page.
- Confirm the lines are posted to an account mapped as a Fixed Asset Clearing or Construction in Progress account on an Asset Type.
- Confirm the correct mode is selected. Use Switch to CIP or Switch to Clearing to toggle.
- Review the transaction filters, including Subsidiary, Accounting Period, and any date range, and broaden them as needed.
