Posting Groups #21 – FA Disposal Posting

When you want to post disposal of Fixed Assets, you can do it using FA G/L Journals. You must choose Disposal as FA Posting Type. In my examples, I post this journals with marked Depr. until FA Posting Date field.

You can get two different types of G/L entries, depends of setup in Depreciation Book. You can choose Net or Gross method on Disposal Calculation Method field.

In my first example, I have used net method. In this example I used FA with already posted some depreciation and write-down entries.

FA Disp Nm

In my second example, I have used gross method. In this example I used FA with already posted some depreciation and appreciation entries (entries can be different, depends your FA has had appreciation or write-down).

FA Disp Gm

All of these posting results depend only of FA Posting Type.

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Posting Groups #20 – FA Write-Down and Appreciation

When you want to change Fixed Asset value, you can do it on few ways. In this post, I will show you how you can do it using Write-Down and Appreciation in what will be results of these postings in G/L entry, based on posting groups you use.

Both of these posting types, you can do using FA G/L Journals. Posting depends on FA Posting Type.

In my first example, I will use Write-Down FA Posting Type. If we do not mark Depr. until FA Posting Date field, the result will be as following:

FA WD 1

But, if we mark this field, result will with some difference (system will post depreciation in the same register):

FA WD 2

In my second example, I will use Appreciation FA Posting Type. Again, in my first posting I will not mark Depr. until FA Posting Date field and result will be as following:

FA App 1

If we however mark Depr. until FA Posting Date field, the result will be as following:

FA App 2

But, we have common fact with all of these examples. In all of them, system only uses FA Posting Groups and manually configured Balance Account No.

Posting Groups #19 – FA Sales Credit Memo Posting

It is usual to have possibility to post Credit Memo for any item you sold. You can also make Credit Memo for Fixed Assets you sold. Generally, you can use the same flowchart about using of posting groups, as I published for FA Sales Posting.

But G/L entries will not be the same (with opposite sign) as you got in FA sales posting process. You will get the following G/L entries:

FA_Sales_CrMem

Entries are a bit different in comparison with posted invoice. Entries in FA Ledger Entries also will be the different. You will get only Gain/Loss FA Posting Type entries in FA Ledger Entries with Credit Memo Document Type. That means, you must create additional Acquisition and Depreciation entries manually, if you want to have Fixed Asset again in your system.

Posting Groups #18 – FA Sales Posting

If we want to sale our fixed assets, it is a similar process as FA purchasing, but in opposite direction. In this situation, system uses customer posting group, VAT and general posting groups and FA posting groups.

You can see this process concept on following flowchart. One of specifics is how system determines VAT Production Posting Group. You can use it on one of following ways:

  • Manually choosing VAT Production Posting Group;
  • Inheriting from manually choosing/changing General Production Posting Group (Def. VAT Prod. Posting Group);
  • Inheriting from VAT Production Posting Group, configuring on Acq. Cost Acc. On Disposal on FA Posting Group;
  • Inheriting from General Production Posting Group (Def. VAT Prod. Posting Group), configuring on Acq. Cost Acc. On Disposal on FA Posting Group.

FA_Sale_FwC

Other specific in FA sales process is that system uses different configuration from FA Posting Group, depending of FA sales price (higher or lower price in comparison with Book Value).

In my first example, you will see what G/L entries you will get when we sale FA with higher price:

FA_Sale_G

In this example, you will see result of FA sales posting with lower price:

FA_Sale_L

On both of these examples, you will see that we have the last additional G/L entry. This entry will exist as Residual caused by rounding of Additional-Currency, but only if you use Additional Currency configured on General Ledger Setup. This entry will be usually a zero amount.

Posting Groups #12 – Payment Posting

When we post payments, we usually have payments for customers and from vendors. In the same time, we should have bank account posting as balance accounts. Bank account is not necessary, but it is the best practice.

When we post payments from bank statement, we will get the same G/L entries, regardless we have payment in local currency or in some other. These are entries as following:

1PaymStat

If we use non-local currency in payment process, after running Adjust Exchange Rate batch job, we will get the following G/L entries:

2PaymAdjustER

In previous example, you could see result if used currency exchange rate was increased. But, if exchange rate was decreased, the posting results in G/L entries would be as following:

3PaymAdjustER

All previous results were unrealized exchange rates gains or losses, but when we apply these payments, we will get realized exchange rates as on following table:

4PaymApply

All postings, based on difference currency code, use posting groups and accounts as on following flow chart:

AdjFlowChart

Posting Groups #11 – Prepayments Posting

Before I start with this post, I want to emphasize once again, in all my examples I use W1 database. I know that prepayments can be quite differently from country to country, but I have used only W1 examples here.

Now, when this is clear, we can continue with examples. First, I will describe purchase prepayment invoice. When we choose to create Prepayment Invoice from Purchase order, system will post document with G/L Account in line (from General Posting Setup) and with following G/L entries:

PPPI

The similar situation is when we create and post sales prepayment invoice. Then, we will get these G/L entries:

PSPI

If we want to post Prepayment Credit Memo, in both cases, we will get the same entries, but with opposite signs.

Posting Groups #10 – Item Returns Posting (Sale & Purchase)

In my earl posts about posting groups, I have showed purchase and sales processes. But both of these processes have its opposite processes.

If our customer wants to return items to us, we can use the Sales Return Order for this. When we finish posting, we will get Return Receipt and Sales Credit Memo as result.

On other side, if we want to return items to our vendor, we can use the Purchase Return Order for this. As result of posting, we will get Return Shipment and Purchase Credit Memo.

I will not prepare flow chart about using posting groups, because we can use the same schemas as we already have in Item Sale Posting and Item Purchase Posting posts.

First, I will describe sales return process. When we post Return Receipt, we will get only these G/L Entries:

##1

But, when we finish posting and post Sales Credit Memo, we will get more G/L Entries:

##2

The similar situation is in purchase return process. When we post Return Shipment, we will get again only these G/L Entries:

##3

But, when we post Purchase Credit Memo for this item, we will get more G/L Entries:

##4

And, on the end when we run Adjust Cost – Item Entries batch job, we will get the following G/L Entries (variance between expected and actual cost):

##5