Define Key Flexfields (KFFs):
- Asset Key Flexfield: Captures specific details of the asset.
- Location Flexfield: Captures the location of the asset.
- Category Flexfield: Determines the category to which an asset belongs.
Define Value Sets for KFFs:
- Asset Value Set: For Asset KFF.
- Location Value Set: For Location KFF.
- Category Value Set: For Category KFF.
Enter Value Set Values:
- Required: Populate the predefined lists for each value set.
- For Asset Value Set: Values such as ‘Laptop’, ‘Truck’.
- For Location Value Set: Values like ‘New York HQ’.
- For Category Value Set: Values such as ‘Electronics’.
Manage System Controls:
– Required: Set Once for Entire Enterprise
Define Fiscal Years and Periods:
– Required: This will be necessary for the correct calculation of depreciation in subsequent steps.
Define Depreciation Methods:
- Straight Line: The asset’s value decreases uniformly.
- Declining Balance: There’s faster depreciation in the initial years.
Define Prorate Convention:
- Full Month: Depreciate from the start of the month.
- Half Year: Half-yearly depreciation.
Define Asset Categories:
- Required: Asset categories group assets of similar nature. Each category can be linked to specific depreciation methods and conventions.
- Example: ‘Computers’ linked to the Straight Line method.
Define Asset Books:
- Required: Asset books determine how assets are accounted for and reference the asset categories.
- Corporate Book: For financial reporting.
- Tax Book: For tax purposes.
Define Asset Locations:
- Optional: More specific locations within the broader categories identified by the Location KFF.
- Example: Within ‘New York HQ’, specify ‘First Floor’.
Configure Asset Workbench:
- Optional: Customize the user interface as per business requirements.
Set Up Security and Access Controls:
- Required: Define user access levels and permissions.
Define Approval Workflows:
- Optional: Set up workflows for different asset operations.