Activating Maximum Amount Check for Low-Value Assets

Asset accountants have a preferred way of capitalizing assets.

Typically, they enjoy capitalizing all assets under the 'Low-Value Assets' or LVA category.

You can define the maximum amounts for certain valuation views of asset class LVA in the configuration area.

First, go to the Make Valuation View-Dependent Settings for Asset Class component. Here, you can specify for an asset class whether and how a maximum amount check is to be performed for low-value assets (LVA).

The following entries are possible:

• 0 - No maximum amount check

  Choose this option when no maximum amount check should take place for fixed assets of this asset class.

• 1 - Value based maximum amount check

  Choose this option, if each of your low-value assets has its own asset master record (that is, you do not use collective management of low-value assets).

  For each acquisition posting, the system checks whether the value for the asset exceeds the LVA maximum amount for the company code/depreciation area. If it does, the system does not accept the posting.

• 2 - Check maximum amount with quantity

  Choose this option if several low-value assets should be managed in one asset master record (collective management).

  For each acquisition posting, the system checks whether the value for the asset divided by the quantity managed in the one record exceeds the LVA maximum amount for the company code/depreciation area.

Kevin understood that there is a maximum amount check for asset class LVA. However, he also knows that the specific maximum amount varies from country to country. To ensure the correct check, Maxine helps Kevin to check the maximum amount for the German company code 1010.

• Maximum amounts can be defined for each accounting principle and company code.
• If the maximum amount is exceeded, the system issues an error message.
• The accountant must decide for himself whether it is an expense or an LVA.