Certain expenses incurring for a fixed asset can also be tracked as fixed assets. These fixed assets, namely Longevity and Function Augmenter assets can be allocated to another asset as expenses by Allocation Slips.
For instance, a new engine can be purchased for a 10-year-old crane. This engine is defined as a new fixed asset record in system and it can be allocated to the crane by associating with the crane as a longevity expense in Allocation Slip.
In order to perform allocation:
- A new allocation slip is opened.
- After specifying slip number, date and organizational unit, the Longevity Asset or Function Augmenter Asset option is selected in Asset Info.
- Asset category and code are specified for the asset which will be assigned as an expense.
- Type info will be Asset automatically in Target Allocation Point info.
- Asset category and code of the asset to which this expense will be related is entered, and the slip is saved.
Allocation slip date is considered as the start date of association. It is possible to allocate multiple longevity and function augmenter assets to an asset, however an asset which is defined as expense can be allocated to one asset only. If it is required to associate the asset with another record, then its related to the asset should be terminated with the Usage Termination Slip.
Depreciation is calculated over the allocated assets for the fixed assets which will be tracked as expenses. Therefore, Calculate option is not available in expense asset cards' depreciation tables. It can be viewed in Depreciation Table only when depreciation is calculated for the relevant asset to which the fixed asset is allocated. Depreciation values calculated for the expense record are posted to General Ledger over the asset that it is allocated to.