Asset Acquisition

Asset Acquisition

1. Purpose

Document defines asset acquisition process in SOFT4Leasing.

2. Setup

Navigate to Financial Product Setup and set values for following fields.

General fastab:

Asset Acquisition Method. Specifies whether asset is acquired during lease activation (At Lease Activation) or issuing a purchase invoice (Via Purchase Invoice (independent of lease activation)).
Min. Status for Disbursement. Specifies minimum application/contract status when supplier payment is released.

Accounting and Tax fasttab:

Purchase VAT Group (default). Specifies VAT Product posting group for asset acquisition.

Navigate to Leasing Posting Setup and set G/L Accounts for following fields:

Supplier Clearing Acc. (Cr) - supplier payable transit account. Used if Asset Acquisition Method is set to Via Purchase Invoice on Financial Product.

Accrued Amounts Owed (Cr.) (optional) - supplier payable transit account. Used if Asset Acquisition Method is set to Via Purchase Invoice on Financial Product and asset is not yet purchased on contract activation moment. If is blank than, Supplier Clearing Acc. (Cr) is used.

3. Asset acquisition at activation

If Asset Acquisition Method is set to At Lease Activation on Financial Product than supplier payable is created on contract activation moment and clearing accounts from Leasing Posting Setup are not used.

4. Asset acquisition via purchase invoice

If Asset Acquisition Method is set to Via Purchase Invoice (independent of lease activation) on Financial Product than supplier payable should be created manualy.

In order to create supplier payable click action Create Purchase Invoice on application card.

Action Create Purchase Invoice creates purchase invoice for asset acquistion and opens created invoice card for a user. Created purchase invoice must reconcile with actual supplier invoice.

Click action Post to post the invoice.

On posting supplier payable is created and balanced with Supplier Clearing Acc. (Cr).

Supplier Clearing Acc. (Cr) will net on contract activation and balance with receivable or fixed asset (depends on financial product type).

5. Asset acquisition via purchase invoice after contract activation

Asset acquisition process may differ in case asset purchase invoice is created and posted after contract activation and Accrued Amounts Owed (Cr.) account is used on Leasing Posting Setup.

First activate a contract and Accrued Amounts Owed (Cr.) will be used instead of Supplier Clearing Acc. (Cr) from Leasing Posting Setup to balance with receivable or fixed asset (depends on financial product type).

Click action Create Purchase Invoice on active contract card.

Action Create Purchase Invoice creates purchase invoice for asset acquistion and opens created invoice card for a user. Created purchase invoice must reconcile with actual supplier invoice.

Click action Post to post the invoice.

On posting supplier payable is created and balanced with Supplier Clearing Acc. (Cr). Also additional transactions are created to net accounts Supplier Clearing Acc. (Cr) and Accrued Amounts Owed (Cr.) together.