Executing the Procurement of Fixed Asset Process for Non-Valuated Goods

Objective

After completing this lesson, you will be able to procure fixed assets with a non-valuated goods receipt

Asset Procurement Process for Non-Valuated Goods Receipt

In addition to the overview for a valuated goods receipt, Kevin finds an overview of the activities that are part of the asset acquisition process in materials management for a non-valuated goods receipt.

The steps for the process are as follows:

If necessary, a purchase requisition is created.
An asset master record is created. A purchase order is created with the account assignment category, Asset (A).
In the Account Assignment section, the asset master record is linked to the purchase order.
In the Process Control section, the Non-Valuated Goods Receipt field is selected.
Post the goods receipt. No Financial Accounting document is created. The asset is not capitalized.
Post the invoice receipt. A different asset master record can be assigned.
The invoice receipt is posted, and the asset is capitalized. The asset acquisition is posted with the net invoice amount.

Make Postings Integrated with Materials Management (Non-Valuated Goods Receipt)

Kevin was entrusted with the procurement process for a new milling machine.

Help him execute the process using a non-valuated goods receipt.

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The milling machine has been delivered but is not yet activated in the system because the goods receipt is marked as not valuated.

Help Kevin post the invoice and activate the milling machine in the system.

ExerciseStart Exercise

Key Takeaways

Purchase requisition/purchase order: Asset Accountant creates asset master record and assigns it to the purchase order. However, you can also order a dummy asset.
Posting of goods receipt: No posting: The assignment asset in purchase order can be changed.
Invoice: Other asset master records can be assigned. The invoice amount and asset value date can be entered. The asset is capitalized.
Payment: Cash discount is automatically posted to the asset.
Year-end closing: Delivered assets without invoice are not capitalized and need to be determined for year-end closing.

Kevin informs his manager that there are two ways to procure assets in Materials Management: Using valuated or non-valuated goods receipts. He presents both options and the Bike Company chooses one of these processes.

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