Managing Assets

This chapter provides overviews of Project Costing asset capitalization processes, asset retirement, prerequisites, common elements, and discusses how to:

• Set up and using express capitalization.

• Run the Express Capitalization Application Engine process (PC_EXPRSS_AM).

• Set up and using manual capitalization.

• Run the Manual Capitalization Application Engine process (PC_AM).

• Review and approve assets.

• Retire assets.

Understanding Asset Capitalization Processes

Project Costing manages the transaction costs associated with assets from inception to cost value adjustment to retirement. Full lifecycle asset management provides detailed cost control, from defining the physical asset to placing it in service, maintaining it, and retiring it. You can create assets from project transactions by using either express capitalization or manual capitalization.

This section discusses:

• Express capitalization.

• Manual capitalization.

• Asset integration rules.

• Asset review and approval.

• Asset reversals.

• Work order-managed projects.

• Asset assignment to multiple projects.

• Transaction assignment to assets.

• Interunit asset transfers.

Express Capitalization

Express capitalization simplifies the process of creating assets by consolidating manual tasks. It is available only if you use Asset Management.

To use express asset capitalization:

1. Set up filter criteria that specifies which transaction costs are eligible to make up the cost basis of the asset.

2. Set up capitalization rules in advance at the business unit level that default to new projects and activities as they are created.

   The rules specify such things as the timing of asset creation, the relationship of projects and activities to asset creation, and how to handle asset adjustments.

3. Use the Express Asset Definition pages to define assets and their attributes and to relate those assets to projects and activities.

   The specific express asset page that you will use is based on the rule that you use to identify the asset.

4. Run the Express Capitalization Application Engine process (PC_EXPRSS_AM) that uses the filter and rules that are set up in previous steps to create or adjust assets, assign transaction costs to assets, and send assets from Project Costing to Asset Management.

   You can set up the process to require approval of summary data before you send it to Asset Management.

Note. You can use the express capitalization functionality to summarize assets by asset, but not to summarize assets by profile.

Manual Capitalization

Use manual capitalization processes if asset integration requires manual intervention, or if you want to:

• Summarize transactions by profile.

• Process asset information at the book level.

To use manual asset capitalization:

1. Set up asset profiles.

   Asset profiles are templates that contain standard depreciation criteria for asset types and the corresponding asset books. Asset profiles are usually set up in Asset Management, but they can also be created in Project Costing if Asset Management is not installed.

   See Defining Asset Profiles in Project Costing.

2. Set up these asset integration rules on the Asset Integration Rules page for integrating with Asset Management:

   • Select Enable Integration in the Asset Integration Defaults group box.

   • Select Manual Identification in the Asset Identification Rule group box.

3. Define assets in Project Costing.

   If the actual asset that is produced by a project is not yet known, define the asset by using a temporary asset ID and an asset profile.

4. Relate the defined assets to the projects and activities that accumulate costs for the assets.

   Project transactions can be associated with a specific asset or, if the actual asset is not yet known, with an asset profile. Projects and activities can be related to the asset by project ID or asset ID.

5. Select and group (filter) transaction attributes into criteria that the system uses to identify transactions to assign to the asset or asset profile.

   Note. You set up filter criteria for the manual capitalization process on the Define Filter Criteria - Standard 1, Standard 2, and Custom pages. This differs from the filter criteria that you set up for the express capitalization process on the Express Asset Filter Criteria page.

6. Periodically run the capitalization process that summarizes project transactions based on asset or profile information, distributes the costs, and creates new assets in Asset Management.

   You can set up the process to require approval of summary data before you send it to Asset Management.

This diagram illustrates the process of manually capitalizing assets and lists the related application pages that you use in Project Costing. The arrows represent links to pages in the Project Costing application:

Project Costing pages used to manually capitalize assets

Book Processing

You can select the Enable Book Processing option on the Define Assets page to process asset information at the book level. With this option the system populates each book with default information from the book profile, such as salvage value, useful life, depreciation method, or depreciation convention. For example, by using book processing an asset valued at 10,000.00 USD on the corporate book may be value at only 9,000.00 USD on the tax book if a tax rule prevents you from capitalizing the difference.

As another example, assume that an asset is created from these transaction rows:

In this example, the corporate book allows all three types of costs to be capitalized, but the tax book does not allow you to capitalize interest costs. To track this asset, set up two filter criteria—one called CORP_CRITERIA that includes all the rows, and another called TAX_CRITERIA that only includes LABOR and MATERIALS. Associate CORP_CRITERIA to the corporate book and TAX_CRITERIA to the tax book in the same manner that you perform the assign process for a nonbook asset.

When you associate the criteria with their respective books, processing for the asset occurs in the same manner as for a nonbook asset. Setting up filter criteria for each book and associating each criterion with its appropriate book results in sending a different value for each book to Asset Management. You use Selection Criteria pages to define transactions for assignment to assets and to specify to which books each transaction is posted. If you post transactions to more than one book, the Assign Transactions to Assets page displays multiple rows (one for each book).

When you search for assets on the Review Assets page, you can limit the search results to assets that use the book processing functionality. The amount for the default book for each asset appears in the search result rows on the Integration Summary page.

See Maintaining Asset Book Information.

Asset Integration Rules

The asset integration rules that you establish at the business unit level appear as default values when you create projects. You can override the default asset integration rules at the project level. Activities inherit asset integration rules from the project level. Some of these rules are not available to change at the activity level based on the project-level option that you select to distribute project costs to assets.

Asset integration rules consist of:

• Asset integration defaults which consist of an option to enable integration with Asset Management, the integration type (capitalization or retirement), and the filter that identifies the rows from the Project Transaction table (PROJ_RESOURCE) that are eligible for retirement or capitalization.

• Rules that specify how to identify an asset.

  For example, you can instruct the system to create only one asset for each activity, or one asset from many activities, and so on.

• Timing triggers that specify when to create an asset.

  For example, you can specify that asset processing can create a new asset when a project status is approved, or an activity is 95 percent complete, and so on.

• The asset location source that indicates if the asset integration process uses the asset definition's location code or the activity definition's location code to determine the asset's location.

• Rules that specify the destination of the asset rows that result from the capitalization processes.

  For example, you can choose to: Summarize asset transaction rows in the PC to AM (Project Costing to Asset Management) Staging table (PROJ_AM), but not send the rows to the Asset Management Loader tables (INTFC_FIN and INTFC_PHY_A). If you do not require asset approval prior to sending assets to Asset Management, you can:

  • Summarize asset transaction rows in the PC to AM Staging table and send them to the Asset Management Loader tables, but not send the rows to the Asset Management transaction tables.

  • Summarize asset transaction rows in the PC to AM Staging table, send them to the Asset Management Loader tables, and send the rows to the Asset Management transaction tables. This option is available if you do not require asset approval prior to sending assets to Asset Management.

• Rules that specify how to adjust assets.

Inherit Asset Integration Rules from Programs

You can set up a project to inherit its asset integration rules from a program instead of from the business unit by entering the program name on the Asset Integration Rules page for a project. Use this functionality if there is a summary project or program that contains child projects, each of which need to contribute transaction costs to the same asset.

When you use the program asset integration rules for a project that belongs to the program, the system:

• Overrides all of the rules on the project to match the specified program.

• Overrides all of the rules for activities that are already associated with the project to match the parent project.

• Disables all of the integration rules, except for the rules in the Asset Integration Defaults group box on the Asset Integration Rules page.

  The disabled fields are available for editing again if you clear the Inherit from Program field and save the page.

• Prevents a change to the identification option if assets are related to the project.

When you change the asset integration rules at the program level, the system also changes the corresponding project and activity rules to keep the rules synchronized across all projects that contribute to an asset.

End-of-Year Rule

The Express Capitalization process triggers end-of-year processing. You can select one of these options that determines how the system treats asset adjustments at the end of the fiscal year:

• Ignore end of year: The system creates asset adjustments as if there is no designated end of year.

• Create parent/child assets: The system creates new assets that are children to the original (now parent) assets if adjustments are sent from the project after the specified end of the year. All adjustments belong to the child assets.

• Create new asset: The system creates new assets if adjustments are sent after the specified end of the year. All adjustments belong to new assets instead of child assets.

• Stop sending adjustments: The system does not send adjustments to Asset Management after the specified end of year.

The system assigns the next available asset ID automatically when it creates a new asset during end-of-year processing. In this situation you cannot manually assign the asset ID.

The in-service date of an asset is used as the reference point to determine the end of a year. So, an asset in-service date of December 1, 2005, a last month of year of December, and a last day of year of 31, allows only one month before the end-of-year treatment occurs after December 31, 2005. An asset with an in-service date of January 1, 2006, however, has one year until the end-of-year treatment occurs after December 31, 2006.

The following table provides examples of how adjustments are treated for all four end-of-year rules. Assume in these examples that you use a 5-4-4 quarter and the current fiscal year ends on April 2, 2005:

Asset Review and Approval

This diagram illustrates the capitalization processes of summarizing costs, sending data to the PC to AM Staging table, sending data to Asset Management loader tables, and loading the transactions into Asset Management production tables:

Sending assets to Asset Management

Prior to sending data to asset management, you can review the summarized costs of assets and perform these actions:

• Review and approve asset transactions that are in the PC to AM Staging table before sending them to Asset Management Loader tables.

• Reject asset transactions that are in the PC to AM Staging table before sending them to Asset Management Loader tables.

• Proceed with the capitalization process with no changes.

During installation you can select Require Asset Approval in the Asset Management Integration group box on the Installation Options - Project Costing Integration page to require approval of asset transactions before they are sent to the Asset Management Loader tables.

Asset Reversals

You can reverse transaction rows that were incorrectly distributed to Asset Management. For example, assume that cost data is sent to Asset Management, after which you realize that an incorrect amount was used to capitalize the asset. The high level steps to reverse transaction rows are:

1. Access the Review Assets page, search for the erroneous asset, and determine which summarized row contains the incorrect amount.

2. Select the Reverse option on the Integration Summary page and run the process to send the reversal to Asset Management.

You can view rows that are already distributed to Asset Management in both summary and detail format, and reverse transactions as necessary. Reversing a row does not roll back to the original transaction, as doing so would not maintain an accurate audit trail. Instead, a reversal results in the creation of two additional rows—the reversing transaction that is sent to Asset Management and a new, undistributed transaction in Project Costing.

You cannot reverse temporary assets that have already been replaced by permanent assets. In other words, if you create temporary assets in Asset Management by using the Summarize by Profile feature in Project Costing, and subsequently create permanent assets by using the Summarize by Asset feature, you can no longer reverse the temporary assets.

Work Order-Managed Projects

PeopleSoft uses work orders to track the costs associated with maintaining or creating assets. In Maintenance Management, a work order consists of one or more work order tasks. Each task specifies the asset that is being maintained and a related project and activity, and contains the transaction costs of performing asset maintenance. The transaction costs flow from Maintenance Management into various PeopleSoft applications such as Time and Expense, Inventory, and Payables, and from these systems into Project Costing.

If you use Maintenance Management, you can designate projects as work order-managed. Work order-managed projects is a term that refers to projects that are managed with work orders in Maintenance Management, instead of by a project manager in Project Costing. You can use work order-managed projects to capitalize, adjust, or retire assets in Asset Management. For example, you can use a work order-managed project to track several unrelated maintenance tasks for an asset, or to track the cost of constructing an asset.

This is an example of a process flow for a work order-managed project to track the cost of constructing an asset:

1. Plan and budget for construction of an asset.

2. Obtain approval for the construction.

3. Create a project plan and work orders to construct the asset.

4. Complete the work orders.

5. Capture the costs—labor, materials, and depreciation—that are associated with the effort.

6. Capitalize the project costs.

A work order task can specify only one asset, one project, and one activity. For work order-managed projects:

• You can create multiple assets from a single project.

• You can maintain a single asset from multiple projects.

The Maintenance Management system creates assets from work order tasks and relates the assets to projects and activities. You can use the Define Assets and Relate by Project pages to view the details of asset definitions and the relationship of assets to projects for assets that are associated with work order-managed projects.

The system automatically updates certain fields on the Asset Integration Rules page during the life of a work order-managed project, such as:

• When you save a project as a work order-managed project, the system automatically selects the asset identification rule of Derive from Work Order Task and the adjustment trigger of Automatic.

  When Derive from Work Order Task is selected, the Express Retirement (PC_EXPRET_AM) or Express Capitalization processes begin with the closure of a work order task.

• When you change a work order task status to complete, the system updates the filter ID (filter identifier) and integration type at the activity level to reflect the criteria in Maintenance Management.

See Also

Integrating with Maintenance Management

Asset Assignment To Multiple Projects

You can associate the same asset with multiple projects if any of these conditions exist:

• The projects are work order-managed.

• Asset integration is disabled on all but one of the projects.

• The projects belong to the same program, and the asset is not associated with projects that are asset integration enabled on a different program.

Use the assign assets to multiple projects functionality when:

• A summary project or program contains child projects that contribute transaction costs to the same asset.

• A project is complete and the related asset is capitalized, and later additional costs are accumulated for the same asset in a new project.

  You must disable integration on the project where the asset integration was previously completed.

• Multiple work order-managed projects are set up to accumulate costs for the same asset over time or simultaneously.

Transaction Assignment to Assets

Use the Assign Transactions to Assets page to assign transactions to assets for projects that have an asset identification rule of Manual Identification on the Asset Integration Rules page. You can also view transactions that are eligible for asset assignment.

The purpose of assigning transactions to assets is to specify the transaction costs to include in the cost basis of the asset that is created. The assign process stamps the asset management business unit, profile ID, and asset ID on the transaction row in the Project Transaction table. Alternatively, you can enter the asset management business unit, profile ID, and asset ID on the transaction row by performing one of the following functions:

• Manually assigning transactions by using the Transaction List page.

• Using the allocation process.

• Using a system that feeds into Project Costing.

  Under certain circumstances you can add asset information into the feeder system; thus, transaction rows may already have these values populated. If this is the case, you do not have to reenter the asset information in Project Costing.

Interunit Asset Transfers

In Asset Management you can interunit transfer an asset from one business unit to create another asset in a different business unit. The transfer is recognized by the Project Costing system if you subsequently try to adjust or retire the original asset in Project Costing. In this situation the system detects the transfer, adds the new asset to Project Costing, modifies the project to point to the new asset, and processes the adjustment or retirement on the new asset. The original asset is no longer available for you to adjust, retire, or relate it to a project.

For example, assume that Asset 1 was created from Project Costing and sent to Asset Management as Asset 1. Then Asset 1 was interunit transferred to create Asset 2. If you enter an adjustment for Asset 1 in Project Costing, the system adds Asset 2 to Project Costing tables and applies the adjustment to Asset 2. In this example, you can no longer select Asset 1 to adjust or retire, and Asset 2 is eligible for asset capitalization and retirement processes.

Understanding Asset Retirement

This section discusses:

• Manual asset retirement.

• Asset retirement for work order-managed project activities.

• Proceeds from sale and cost of removal.

Manual Asset Retirement

Asset retirement is a method of indicating that an asset is being removed from service. There are two kinds of retirement—partial and full. In partial retirement only a certain portion of the asset is retired. In full retirement the full value of the asset is retired. You can partially or fully retire assets that are managed in Project Costing by using the Asset Retirement Integration Application Engine process (PC_RETIRE_AM).

Project Costing-managed project is a term that refers to a project that is managed by a project manager in Project Costing, instead of with work orders in Maintenance Management. You must use the manual asset retirement process to retire assets if Maintenance Management is installed and the project is a Project Costing-managed project. You must also use the manual asset retirement process to retire assets if Maintenance Management is not installed.

Retirement Process Flow - Project Costing-Managed Project Activities

The process flow for retiring assets for Project Costing-managed project activities is:

1. Create a retirement project

   On the Asset Integration Rules page, select the Enable Integration option and an integration type of Retirement.

   Note. If a project has a retirement integration type, then all of the project's activities must also have a retirement integration type.
   
   You must select the Manual Identification option on the Asset Integration Rules page for projects and activities to be eligible for asset retirement.

2. Accumulate transaction costs.

   Transactions with analysis types in the PC to AM Cost of Removal (AMCOR) and AM Proceeds from Sale (AMPFS) analysis groups are eligible for processing to Asset Management.

3. Assign transactions to assets.

   Use the Assign Transactions to Assets page for projects that have an asset identification rule of Manual Identification on the Asset Integration Rules page.

4. Use the Asset Retirement page to run the Asset Retirement Integration process to:

   • Send the asset cost value, cost of removal, and proceeds from sale, to Asset Management.

   • Update the AM Distribution Status field (AM_DISTRIB_STATUS) to D (distributed) in the Project Transaction table, indicating the transaction rows have been distributed to Asset Management and cannot be updated in the Project Transaction table.

Note. The Asset Retirement Integration process does not use the PC to AM Staging table. The transactions go directly to the Asset Management Loader tables.

Asset Retirement for Work Order-Managed Project Activities

You can use the Express Retirement process to fully retire assets that are associated with work order-managed projects. You cannot partially retire assets that are associated with work orders.

For project assets to be eligible for the Express Retirement process, you must:

• Select the Work Order Managed Project option for the project, and change the project processing status to Active, on the Project Definition - General Information page.

• Establish express asset filter criteria for the business unit on the Express Asset Filter Criteria page.

• Select Derive from Work Order Task for the project in the Asset Identification group box on the Asset Integration Rules page.

• Accumulate costs in Project Costing directly (using online transaction entry in Project Costing) or indirectly (from feeder systems such as Payables, Expenses, and Inventory).

You can retire an asset only once. If the same asset is assigned to multiple work order tasks, the Work Order Close Application Engine process (WM_CLOSE) restricts the system from processing two retirements for the same asset.

Retirement Process Flow - Work Order-Managed Projects

The process flow for retiring assets for work order-managed project activities is:

1. Close the work order task.

   Maintenance Management determines if the asset that is associated with the work order task is already retired, or if it is tagged for retirement in the Asset Management Loader table (INTFC_FIN). If either of these conditions exist, the Work Order Close process will not proceed for this work order task.

   Alternatively, you can retire the asset using the Asset Retirement Integration process.

2. Maintenance Management updates these values for the project activity in the Asset Integration Defaults group box on the Asset Integration Rules page:

   • Selects the Enable Integration flag.

   • Selects an integration type of Retirement.

   • Enters a value for filter ID.

3. The work order closed status triggers the Express Retirement process and indicates to the system that the project activity is ready to process.

4. The Express Retirement process:

   1. Determines the assets, which are associated with work order-managed project activities in the Project Transaction table, to send to Asset Management based on defined rules and criteria.

   2. Stamps Project Transaction table rows (cost of removal or proceeds from sale) with asset information.

   3. Calls the Asset Retirement Integration process.

You can submit an asset for retirement only once if you use the Express Retirement process. For example, assume that two work order tasks are associated with the same asset. When you close just one of the work order tasks, the Work Order Close process triggers the Express Retirement process to retire the asset.

Alternatively, you can enter adjustments directly in Asset Management for assets that are distributed from Project Costing to Asset Management.

Expenses

Expenses that are booked against work order-related projects interface with Project Costing; however, Expenses does not maintain work order-related fields. These transactions are not included in the Express Asset Retirement Integration process unless you manually update the transactions in Project Costing with the work order-related fields.

You can, however, include expenses transactions in asset retirement for projects that are actively managed in Project Costing.

See Also

Integrating with Maintenance Management

Proceeds from Sale and Cost of Removal

By using the Asset Retirement Integration process you can send the cost of removing an asset or the proceeds from selling an asset to Asset Management at the time that you retire the asset, or after you retire the asset. Transactions are eligible for the retirement process if they are assigned to the asset on the Assign Transactions to Assets page, and the analysis type belongs to the PC to AM Cost of Removal (AMCOR) or AM Proceeds from Sale (AMPFS) analysis groups. Transactions with analysis types in the AMCOR analysis group post to Asset Management as a transaction removal cost. Transactions with analysis types in the AMPFS analysis group post to Asset Management as proceeds from sale.

To send costs for removing an asset or the proceeds from selling an asset to Asset Management, assign transactions to the asset and use the Asset Retirement page to retire the asset. The asset's quantity and retirement quantity determine what proportion of the asset's cost is calculated as the retirement amount. For example, assume that the asset's quantity is 2 and you enter a value of 1 as the retirement quantity on the Asset Retirement page. The retirement quantity is 50 percent of the asset quantity, and the system uses this percentage to calculate the asset's retirement amount. If the cost is 500.00, the retirement amount is calculated as 50 percent of 500.00, which is 250.00. These calculations appear in the following table:

You can also send the cost of removing an asset and the proceeds from selling an asset to Asset Management after the asset is retired from Project Costing. For example, assume that on January 1 you retire Asset 123 from Project Costing with a cost value of 2,240.00, cost of removal of 5,435.00, and proceeds from sale of 1500.00. On January 2 through 6, transaction costs that are eligible for cost of removal accumulate in the Project Transaction table totaling 7500.00. You can assign the transactions to the asset and use the Asset Retirement page to send the transactions to Asset Management.

Prerequisites

Set up these installation options to integrate with Asset Management:

• Specify on the Installation Options - Project Costing Integration page if asset approval is required prior to sending assets to Asset Management.

  You can require approval of asset capitalization transactions before they are sent to the Asset Management Loader tables (INTFC_FIN and INTFC_PHY_A). This option applies to assets that you create or adjust in Project Costing. It does not apply to asset retirement transactions.

• Specify on the Integration Options - Project Costing Integration page if departments are derived from the cost transactions that come into Project Costing from feeder systems.

  This enables the system to breakdown costs by department based on the department specified on the transaction row in the project costing transaction table. Otherwise, there can be only one department included per asset, and the department is derived from the Department field on the Define Assets page.

• Specify on the Integration Options - Project Costing Integration page if cost types are derived from cost transactions that come into Project Costing from feeder systems.

  This enables the system to breakdown costs by cost type for assets based on the cost type specified on the transaction row in the project costing transaction table. Otherwise, there can be only one cost type included per asset, which you enter on the Define Assets page.

See Defining Project Costing Integration Installation Options.

Common Elements Used in This Chapter

Setting Up and Using Express Capitalization

To set up and use express capitalization, use these components:

• Express Asset Transaction Filter (PC_AM_FLTR).

• Projects Options (PC_BUS_UNIT_OPT).

• Project General (PROJECT_GENERAL).

• Activity General (PROJECT_ACTIVITY).

• Project Costing - Asset Management Express (PC_AM_EXPRESS).

This section provides an overview of the Express Asset Definition pages and discusses how to:

• Filter asset transactions for express capitalization.

• Define filter criteria for express capitalization.

• Define asset integration rules for express capitalization.

• Create one asset per activity.

• Create one asset from many activities.

• Create many assets from many activities.

• Select activities to create many assets from many activities.

• Distribute cost percentages at the project level.

• Distribute cost percentages at the activity level.

• Distribute quantities at the project level.

• Distribute quantities at the activity level.

Understanding the Express Asset Definition Pages

The Express Capitalization process distributes project costs to assets according to asset integration rules. For example, when multiple assets are created from a project, cost distribution can take place at the project or activity level as percentages of the project costs spread across each asset.

After you define filter criteria and asset integration rules for express capitalization, you define express assets and relate them to projects by using an Express Asset Definition page. The Express Asset Definition page that appears when you enter the Project Costing - Asset Management Express component (PC_AM_EXPRESS) is based on the asset identification rule that you select on the Asset Integration Rules page.

When you save an Express Asset Definition page, the system:

• Creates an asset definition.

• Relates the specified assets to the selected activities.

• Automatically assigns an asset ID if the Asset ID field contains the default value of NEXT.

• Enables the system to create express assets.

• Removes a previously saved relationship of an asset to an activity for each activity that you cleared (deselected) in the Capitalize column.

Most of the Express Asset Definition pages contain three tabs that you use to define asset details: Basic Asset, Asset Detail 1, and Asset Detail 2. All of the Express Asset Definition pages contain a link to the Define Assets page to view the details of a project asset. Additionally, all of the pages display the program name if the project is inheriting asset integration rules from a program.

Many of the Express Asset Definition page fields that are discussed in this section are defined in the Common Elements Used in This Chapter section.

See Also

Defining Asset Integration Rules for Express Capitalization

Initiating the Express Capitalization Process

Defining Project Assets

Pages Used to Set Up and Use Express Capitalization

Filtering Asset Transactions for Express Capitalization

Access the Express Asset Filter Criteria page.

Create a filter that the system uses to select the transaction costs that are eligible for express capitalization. Add rows to designate additional parameters to narrow selections to the appropriate set of transactions. The filter that you create is available for selection on the Asset Integration Rules page at the business unit, project, and activity levels.

Defining Filter Criteria for Express Capitalization

Access the Select Field Values page.

Field Value

Select one or more field values that defines the filter criteria on the Express Asset Transaction Filter page. Leave the field value blank to specify a blank value as valid filter criteria. Blank values appear in the field value list in the Express Asset Transaction Filter page as an empty pair of single quotes. The values that are available for the ANALYSIS_TYPE field name are based on the analysis types with positive multipliers in analysis groups PC to AM Asset Summary (CLOSE), PC to AM Proceeds from Sale (AMPFS), and PC to AM Cost of Removal (AMCOR).

OK

Click to return to the Express Asset Filter Criteria page, where you can click Refresh List to view the updated list of parameters that the system uses to uses to select eligible transactions. Note. Click Save on the Express Asset Filter Criteria page to save the changes that you make on the Select Field Values page.

Defining Asset Integration Rules for Express Capitalization

Access the Asset Integration Rules page.

Note. There are three Asset Integration Rules pages in Project Costing—one at the business unit level, project level, and activity level. The navigation path to these pages is based on whether you are defining the integration rules for the business unit, project, or activity. The field definitions that appear in this section are applicable for all three pages.

If you enable integration for the business unit, projects inherit asset integration rules that you establish at the business unit level. You can override business unit default values at the project level. Activities also inherit asset integration rules from the project level. Based on the project's capitalization rule, you can override some of the asset integration rules at the activity level.

Asset Integration Defaults

Integration Type

Select an option to specify if the project activity is for retiring or capitalizing assets. The default value at the project level is from the business unit. The default value at the activity level is from the project. After you create a project or activity, changes to the value at a higher level do not change existing projects or activities at a lower level.

Asset Identification Rule

Select the method for distributing project costs and creating assets. The available asset creation triggers and location sources are based on the asset identification rule that you select.

Note. The system disables most of the asset integration rules at the activity level when you select any asset identification rule, except for the One Asset Per Activity and Derive From Work Order Task options. This prevents confusion from options such as One Asset from Many Activities where each activity can specify a different rule. Regardless of the asset identification rule that you select, the enable integration, filter, and integration type options in the Asset Integration Defaults group box remain enabled.

Asset Creation Trigger

Select the event that causes asset integration to occur automatically. You must select an asset integration trigger if you enable integration.

When you save the page, a message appears indicating that the system will ignore the unselected asset integration triggers and the system clears their values from the page.

Asset Location Source

You must select an asset location source if you enable integration.

Asset Processing Destination

Select the default option that determines what tables that the system updates with asset information during the asset integration process.

If you require asset approval before sending assets to Asset Management, the available options are:

Summarize

If you do not require asset approval before sending assets to Asset Management, the available options are:

Summarize

Summarize and Run Interface

Sum, Run and Load Transactions

You must select an asset processing destination if you enable integration.

Asset processing destination options are discussed in the Common Elements Used in This Chapter section.

See Common Elements Used in This Chapter.

Asset Adjustment Trigger

Select if you want to create asset adjustments manually or automatically. You must select an adjustment trigger if you enable integration.

Note. The transaction date of an adjustment that you make after an asset is created must be equal to or greater than the previous transaction date.

Transaction Load Type

The system uses transaction load types to determine the types of transactions that occur when the Load Transaction into Asset Management process loads rows into the Asset Management transaction tables. Different load types set different attributes of an asset, perform different asset processing, or load different asset tables.

See Understanding the Loader Table Data Dictionary.

These transaction load type options enable different processing to occur when cost adjustments are sent to Asset Management. You must select a transaction load type if you enable integration.

End of Year Rule

You must select an end-of-year rule if you enable integration.

Creating One Asset per Activity

Access the Express Asset Definition page.

This page appears when the project capitalization rule is one asset per activity.

This page displays a list of every activity under a project, matching every activity to an asset ID and additional asset details.

When you save the page, the system creates an asset definition for each activity that you selected in the Capitalize column and relates that asset to each activity.

Creating One Asset from Many Activities

Access the Express Asset Definition page.

This page appears when the project capitalization rule is one asset from many activities.

The system creates a single asset definition when you save the page and relates the asset to each activity that you select in the Capitalize column.

Creating Many Assets from Many Activities

Access the Express Asset Definition page.

This page appears when the project capitalization rule is many assets to many activities.

Add a row for each asset that will be created, and enter the necessary values to define express assets and relate them to a project and project activities.

When you save the page the system creates asset definitions and relates the assets to the activities that you select on the Select Activities page.

Selecting Activities to Create Many Assets from Many Activities

Access the Select Activities page.

Select the activities that contribute costs to the asset that is defined on the Express Asset Definition page (many assets from many activities). You can select an activity for only one asset definition.

Distributing Cost Percentages at the Project Level

Access the Express Asset Definition page.

This page appears when the project capitalization rule is many assets from each activity, and the distribution option is project percent distribution.

Add a row for each asset that will be created, and enter the necessary values to define express assets and relate them to a project and project activities.

When you save the page the system creates asset definitions and relates the assets to each activity under this project that has integration enabled at the activity level on the Asset Integration Rules page.

This distribution method relates assets to the entire project. Because of this relationship, each activity in the project contributes the same percentage that is specified on the asset row to the asset. This table illustrates an example in which a project with three activities distributes cost to two express assets:

In this example, distributing cost percentages at the project level results in creating two assets with each activity contributing 75 percent of its cost to Asset 1 and 25 percent of its cost to Asset 2.

Distributing Cost Percentages at the Activity Level

Access the Express Asset Definition page.

This page appears when the project capitalization rule is many assets from each activity, and the distribution option is activity percent distribution.

Add a row for each asset that will be created, and enter the necessary values to define express assets and relate them to a project and project activities.

Using this distribution method, assets are related to activities within the designated project. Because of this relationship, each activity contributes the specified percentage on the asset row to the asset. This table illustrates an example in which a project with two activities distributes cost to each activity's respective assets:

In this example, distributing cost percentages at the activity level results in each activity contributing a specified percentage of its cost to its respective assets. Note that the same asset (Asset 2 in this example) can draw its costs from more than one activity.

Distributing Quantities at the Project Level

Access the Express Asset Definition page.

This page appears when the navigation menu and the project capitalization rule is many assets from each activity, and the distribution option is project quantity distribution.

Enter parameters to indicate the number of assets to create from the designated project. After generating the list of assets that will be created, enter the necessary values to define express assets and relate them to a project and project activities.

Warning! If you click Generate Assets after asset rows are created, the system deletes all existing rows and replaces them with the number of new rows that are specified in the Number of assets to create field.

When you save the page, the system relates the assets to each activity under this project that has integration enabled on the Asset Integration Rules page at the activity level. Additionally, the system distributes the project costs equally across the assets.

Distributing Quantities at the Activity Level

Access the Express Asset Definition page.

This page appears when the project capitalization rule is many assets from each activity and the distribution option is activity quantity distribution.

Enter parameters to indicate the number of assets that are created from each of the designated project's activities. After generating the list of assets that will be created, enter the necessary values to define express assets and relate them to a project and project activities.

Warning! If you click Generate Assets after asset rows are created, the system will delete all existing rows and replace them with the number of new rows that are specified in the Number of assets to create field.

When you save the page, the system distributes the activity costs equally across the assets.

Running the Express Capitalization Process

This section discusses how to:

• Review assets before express capitalization.

• Initiate the Express Capitalization process.

Pages Used to Run the Express Capitalization Process

Reviewing Assets Before Express Capitalization

Access the Manual Capitalization Review page.

When the asset creation trigger is Manual Capitalization Review on the Asset Integration Rules page, assets that are created from project transactions must be reviewed before they are sent to Asset Management. When the asset adjustment trigger is Manual Capitalization Review, asset adjustments must be reviewed before they are sent to Asset Management.

On this page you can retrieve the list of assets either by selecting the My Projects option or by entering a project business unit. Click Reset to clear the search criteria.

After you select the appropriate selection criteria, click Search to display a list of assets that require a review.

Initiating the Express Capitalization Process

Access the Express Capitalization Process page.

The Express Capitalization process runs at the business unit level and performs the following:

• Processes the Project Costing activities whose asset integration trigger event has occurred, when the Express Capitalization process is initiated from a run control page or a scheduled process.

  The process does not occur for activities with manual asset integration triggers.

• Assigns the cost transactions to their respective assets, and applies the end-of-year rule for adjustments and the remaining integration rules.

Asset processing destination options are discussed in the Common Elements Used in This Chapter section.

See Common Elements Used in This Chapter.

Note. You can initiate the Express Capitalization process from the Manual Capitalization Review page to process Project Costing activities with an asset integration trigger of manual capitalization review.

Project Costing does not perform open period validation when sending transactions to Asset Management.

Setting Up and Using Manual Capitalization

To set up and use manual capitalization, use these components:

• Asset Profile (PROFILE_PC).

• Project Costing Options (PC_BUS_UNIT_OPT).

• Project General (PROJECT_GENERAL).

• Activity General (PROJECT_ACTIVITY).

• Project Costing Asset Definition (PC_AM_DEFN)

• Relate Assets by Project ID (PC_PCAM_DEFN)

• Assign Resources to an Asset component (PC_AM_RESOURCES)

• Selection Criteria component (PC_SEL_CRITERIA)

This section discusses how to:

• Define asset profiles if you do not use Asset Management.

• Define asset integration rules for manual capitalization.

• Define project assets.

• Capitalize assets in the early phases of projects.

• Relate assets to projects and activities for manual capitalization.

• Relate projects and activities to assets for manual capitalization.

• View assets and profiles related to projects.

• Assign transactions to assets.

• Define date, activity, and transaction filter criteria.

• Define department, location, and asset profile criteria.

• Define custom filter criteria.

Pages Used to Set Up and Use Manual Capitalization

Defining Asset Profiles If You Do Not Use Asset Management

Access the Asset Profile page.

Define templates that contain standard depreciation criteria for an asset type and its corresponding asset books. Asset profiles are discussed in the "Setting Up Project Costing Control Data" chapter.

See Asset Profiles.

See Defining Asset Profiles in Project Costing.

Defining Asset Integration Rules for Manual Capitalization

Access the Asset Integration Rules page.

To enable the manual asset integration processes to create assets from the business unit's project activities:

1. Select Enable Integration in the Asset Integration Defaults group box.

2. Select an integration type of Capitalization.

3. Select an asset identification rule of Manual Identification.

After you select the manual identification rule on the Asset Integration Rules page you will perform other manual steps to define assets, relate assets to projects, and assign transactions to assets. After those manual steps are complete, the values that you specify on this page for timing triggers, asset location source, destination of asset rows, and asset adjustment rules can be used for the manual capitalization process.

Defining Project Assets

Access the Define Assets page.

Some of the fields that are discussed in this section are defined in the Common Elements Used in This Chapter section.

Note. Project Costing can create capitalized rows and distribute them without integrating with Asset Management. You can use the Asset Management Loader tables, but you must create a custom process that PeopleSoft does not support to extract data from the tables.

When an asset definition is created in Asset Management, information such as depreciation method, useful life, category, or group asset ID are inherited from the asset profile. You can override default values from the profile on this page.

See Also

Defining Financial Processing for Asset Management

Maintaining Asset Book Information

Capitalizing Assets in the Early Phases of Projects

Costs that a project incurs can be depreciated during the early phases of a project's life cycle even before you know exactly what assets the project will create. By using the Summarize by Profile feature in Project Costing to integrate with Asset Management, the system automatically reverses profile summaries and creates permanent assets when you process the actual asset information.

To set up this integration process:

1. Create a project and a work breakdown structure (WBS) that contains one or more activities.

   You must select an asset identification rule of Manual Identification on the Asset Integration Rules page.

2. Define a temporary asset by using the Define Assets page.

   When you define the permanent asset, assign the same asset profile to the permanent asset as you assign to the temporary asset.

3. Relate the temporary asset to the appropriate project activities.

   You must select a Summarization Type of By Profile on the Relate by Project page or Relate by Asset page.

4. Accumulate transaction costs against the project activities.

   Transactions with an analysis type that belongs to the PRECL (PC to AM Profile Summary) analysis group are eligible for assignment during this process.

5. Assign transactions to the temporary asset.

   You must select an Assign Type of Profile on the Assign Transactions to Assets page.

6. Run the Send to Asset Management process.

   You must select a Summarize Type of By Profile on the Send to Asset Management page.

Use the manual capitalization process when you are ready to capitalize the permanent asset. On the Relate by Project page, select a summarization type of By Asset. On the Assign Transactions to Assets page, select an assign type of Asset.

Before you run the Send to Asset Management process you must change the accounting date of the temporary asset to match the accounting date of the permanent assets. Additionally, you must change the transaction date of the permanent assets to match the original transaction date of the temporary asset. This ensures that the system reverses the temporary asset capitalized value and uses the correct final capitalized amount to create the permanent assets.

Relating Assets to Projects and Activities for Manual Capitalization

Access the Relate by Project page.

Note. You can relate a single asset to multiple projects and activities.

This page displays a project's view of the data. Add rows to associate the project activity with additional assets.

Relating Projects and Activities to Assets for Manual Capitalization

Access the Relate by Asset page.

Note. You can relate a single asset to multiple projects and activities.

This page displays an asset's view of the data and it is used to associate an asset with project activities. Add rows to associate the asset with additional project activities.

Viewing Assets and Profiles Related to Projects

Access the Assign Transactions to Assets page.

Projects appear on this page if the project's asset identification rule is Manual Identification on the Asset Integration Rules page.

Assigning Transactions to Assets

Access the Assign Transactions page.

Use this page to:

• Assign a group of transactions to a profile or an asset.

• Clear a group of transactions from the profile or asset.

• View transactions that are eligible or ineligible for asset assignment based on specific criteria.

• Selectively override the criteria for individual transactions.

Note. The Activity, Max Rows, and and Include Type fields define only which rows appear in the grid. These fields are used for viewing only, whereas the Criteria ID field is used to filter rows. For example, assume that the filter criteria returns transaction rows with activities of PLAN, DEVELOP, and BUILD. You can enter a value of PLAN in the Activity field to view only the transaction rows in the PLAN activity. If you click the Assign Transactions button, the system stamps the asset information on all transactions from the PLAN, DEVELOP, and BUILD activities that the system returned based on the criteria ID.

Warning! You must save the selections on this page before you click the Assign Transactions or Clear Assignments buttons. Otherwise, you will lose any unsaved actions when the assign or clear event occurs.

Defining Date, Activity, and Transaction Filter Criteria

Access the Define Filter Criteria - Standard 1 page.

Define criteria to determine what transactions are eligible to select transactions for asset assignment. You must define filter criteria each time that you create a new project for the manual capitalization process. The system stores manual capitalization filters at the project level, and the express capitalization filters at the project business unit level.

Defining Department, Location, and Asset Profile Criteria

Access the Define Filter Criteria - Standard 2 page.

Description (criteria)	Enter a description in the field or leave the default description from the Define Filter Criteria - Standard 1 page.
Department	Select from the list of departments that are defined for this business unit and project.
Location	Specify the location of each activity when defining the activity. This field refers to the location of the activity, not the location of the asset in Asset Management. If you exclude location from the selection criteria, the system excludes all transactions that are associated with the activity.
Asset Profile	Select from the list of asset profiles that are based on the value in the Asset Business Unit field.

Defining Custom Filter Criteria

Access the Define Filter Criteria - Custom page.

Custom Field Name	Select a field from the drop-down list box that is unique from the fields that are available on the Define Filter Criteria - Standard 1 and Standard 2 pages.
Valid Field Values	Select the operand to specify if the field name and its associated value is included (=) or excluded (<>) from the definition.

See Also

Assigning Transactions to Assets

Running the Manual Capitalization Process

This section discusses how to initiate the manual capitalization process.

Page Used to Run the Manual Capitalization Process

Initiating the Manual Capitalization Process

Access the Send to Asset Management page.

Run the Send to Asset Management process periodically to send information to Asset Management.

You must use this page if you want to summarize transactions by profile, or process asset information at the book level.

Based on asset integration rules and the options that you select on this page, the process can accomplish these tasks that are associated with capitalizing project assets:

• Summarize transactions by profile or asset.

• Populate Asset Management Loader tables with summarized profile or asset data.

• Reverse summarized profiles when summarizing by asset, if needed.

Note. You can modify which costs are included in the summarization by adding analysis types to analysis groups.

If data does not load into any of the Asset Management production tables after you run the integration process, check for these possibilities:

• You cannot send acquisition detail for group assets to Asset Management.

  Group assets coming from Project Costing should not have acquisition detail functionality.

• If the system does not load cost rows into the asset management system, verify that the Group Asset Processing option is selected on Installation Options - Asset Management page (INSTALLATION_AM).

  The cost rows for group assets load only if this option is selected.

Note. Project Costing does not perform open period validation when sending transactions to Asset Management.

See Also

Previewing Data in the Loader Tables

Defining Asset Management Installation Options

Enterprise PeopleTools 8.46 PeopleBook: PeopleSoft Process Scheduler

Reviewing and Approving Assets

You can review and approve asset transactions before transferring them to the asset management system when you create or adjust assets in Project Costing.

This section discusses how to:

• Select asset transactions for review.

• Review and approve summarized assets.

• Reverse asset transactions.

• Review assets staged in Project Costing.

Note. The pages discussed in this section apply only to assets that you create or adjust in Project Costing. The Approve Review Assets component does not apply to asset retirement transactions.

Pages Used to Review and Approve Assets

Selecting Asset Transactions for Review

Access the Review Assets page.

Enter search criteria to retrieve the list of assets that you want to review. You must select at least one of these fields:

• Project Business Unit

• Asset Business Unit

• My Projects

Summarize Type

Select to limit the assets retrieved to those that are either summarized by asset or summarized by profile. The default value is By Asset.

Distribution Status

Reviewing and Approving Summarized Assets

Access the Integration Summary page.

The selection criteria from the Review Assets page appears at the top of this page. If you use project level security, the system retrieves only the projects to which you have security access. If you don't use project level security, the system returns all projects that match the search criteria. Additionally, using PeopleTools security, you can grant full access to this page to users who approve and reject assets, and grant read-only access to users who need to enter search parameters and retrieve data, but do not need to change asset status or run the integration process.

Approve Assets

Asset transaction rows have an interface status of New when they are first sent to the PC to AM Staging table. If assets require approval prior to sending them to Asset Management, rows with a New status will not be sent to the Asset Management Loader tables until the interface status is Approved.

If assets do not require approval prior to sending them to Asset Management, the system assigns an Approved status to asset transaction rows when they are first sent to the PC to AM Staging table.

Modify Review Status

The action that you take in the Modify Review Status group box applies only to the rows that you select in the Approve Assets grid.

Note. After you apply the new status to selected rows, click Save to save the changes to the PC to AM Staging table.

Send to Asset Management

The action that you take in the Send to Asset Management group box applies only to the rows that you select in the Approve Assets grid. The system processes all selected rows in the grid, even if they do not appear in the current view.

Reject Asset Transactions

The action that you take in the Reject Asset Transactions group box applies only to the rows that you select in the Approve Assets grid. The system processes all selected rows in the grid, even if they do not appear in the current view.

Reversing Asset Transactions

Access the Review Assets page.

To reverse transactions:

1. Enter search criteria to retrieve the list of assets that you want to reverse.

2. Select a distribution status of Distributed and click Search.

3. Select rows on the Integration Summary page that you want to reverse.

   The Integration Summary page appears with a list of transactions that match your search criteria.

4. In the Modify Review Status group box, select Reverse and click Apply Status to Selected Rows.

5. Select the date type that the system uses as the transaction date or the accounting date on all assets that are processed in this run control.

   The Transaction Date Override and Accounting Date Override group boxes are available if you selected a Distributed distribution status on the Review Assets page.

   See Reviewing Assets Before Express Capitalization.

6. Select the asset processing destination and click Process Selected Reversals.

   The Process Selected Reversals button is available if you selected a Distributed distribution status on the Review Assets page.

These steps trigger the Reverse Distributed Assets Application Engine process (PC_REVERS_AM) that creates two additional rows—a negative offset transaction row that is sent to Asset Management as a reversal, and the original, undistributed transaction in Project Costing.

To view the reversed summarized transactions, select the Reversed distribution status as selection criteria on the Review Assets page. Use the Transaction List page to view the detailed reversed transactions.

You can modify the express filter criteria for the new, undistributed transactions in Project Costing as required, and send the transactions back through the asset assignment and capitalization processes.

Note. You cannot reverse temporary assets that you created by using the Summarize by Profile feature if you already replaced them with permanent assets by using the Summarize by Asset feature.

Reviewing Assets Staged in Project Costing

Access the Integration Detail page.

This page displays details of the transactions that were summarized on the previous tab.

Additional tabbed pages that appear on this page in the Detail Review group box provide more details about the asset. These fields are display only to ensure that required changes to the asset are made at the data source.

Project Detail

Book

The Book grid appears on this page if you select Book Processing Assets as a search criteria in the Review Assets page. You can scroll through and analyze detail data that is grouped by book.

Retiring Assets

This section discusses how to:

• Manually retire assets.

• Retire work order assets.

Pages Used to Retire Assets

Manually Retiring Assets

Access the Asset Retirement page.

Note. Prior to retiring an asset in Project Costing, process all unprocessed transaction rows pertaining to this asset out of Asset Management's staging table and into production. This ensures that you have updated asset status and cost information.

Enter the asset management business unit and a range of asset IDs, if appropriate, to view a list of assets that are eligible for retirement. The system retrieves assets that meet the search criteria and:

• Exist in Asset Management as financial assets, and not as group assets.

• Have an asset status that does not equal transferred, which indicates that the asset has been transferred from one business unit to another within Asset Management.

• Are capitalized assets.

Eligible Assets

Processing Option

Note. The system does not update the Asset Retirement page until after the AM Transaction Loader process runs in Asset Management and the retirement transaction is loaded into Asset Management production tables. Run the AM Transaction Loader process to keep the Asset Retirement page current and to avoid creating duplicate retirement transactions in the Asset Management Loader table.

Retiring Work Order Assets

Access the Express Retirement Process page.

Use this page to fully retire assets that are associated with work order-managed projects. This page is accessible only if Maintenance Management in installed. Otherwise, an error message appears when you try to access the page.

Select the project business unit and click Run Retire Asset Option to launch the Express Retirement process. The process:

• Retrieves the related costs (removal cost and proceeds for sale) for all eligible project activities from the Project Transaction table.

• Retrieves the asset data from the work order task.

• Automatically runs the Asset Retirement Integration process to send the assets to Asset Management.

You can send assets to the Asset Management Loader table only, which is the default value. Alternatively, you can send assets to both the Asset Management Loader table and the Asset Management production tables.

See Also

Closing Service Requests, Work Order Tasks, and Work Orders