There are four available methods for integrating Fixed assets and Accounts payable, and you must use the same method for all fixed assets:

• You manually create a fixed asset before you add the fixed asset number to the line on the purchase order or invoice. An acquisition transaction automatically is posted for the asset when you post the invoice. This is the default method.

• You manually create a fixed asset before you add the fixed asset number to the line on the purchase order or invoice. No acquisition transaction is posted for the asset when you post the invoice.

• A new fixed asset automatically is created when you post a packing slip or invoice that has the New fixed asset?check box selected. An acquisition transaction automatically is posted for the asset when you post the invoice.

• A new fixed asset automatically is created when you post a packing slip or invoice that has the New fixed asset?check box selected. No acquisition transaction is posted for the asset when you post the invoice.

For more information, see About assets created from Accounts payable.

This topic discusses how to set up all of the methods except the first method. If you are using the first method, you do not need to complete these steps, because that is the default method and requires no setup.

1. Click General ledger> Setup> Parameters.

2. On the Fixed assetstab, specify the following options for fixed assets:

   • Select the Allow asset acquisition from Accounts payablecheck box to post acquisition transactions when you post invoices that include a fixed asset number or a new fixed asset.

   • Select a group in the Restrict asset acquisition posting to user grouplist to specify the user group that can post acquisition transactions (optional).

   • Select the Create asset during packing slip or invoice postingcheck box to create a new fixed asset record if the New fixed asset?check box is selected in the lines of a packing slip (or in the lines of an invoice, if no asset was created when you posted the packing slip).

3. Click Inventory management> Setup> Item groups.

4. Select the item group to define fixed asset receipt and fixed asset issue accounts for. For example, you might select the Computers item group if you receive laptops from a vendor that are for employee use.

   You can set up the same item with fixed asset receipt, fixed asset issue, receipt, and issue accounts. You might want to do this so that you can use the same item with fixed asset purchases for resale and fixed asset purchases for internal use. For more information, see Fixed assets integrationand About assets created from Accounts payable.

5. On the Purchase ordertab, in the Fixed asset receiptfield, enter the account number to use for posting the receipt of items in this group. This account is updated when you post an invoice with a fixed asset assigned, and the system is set up to not post an acquisition transaction for the asset when you post the invoice.

6. On the Inventorytab, in the Fixed asset issuefield, enter the account number to use when you issue items in this group. This account is updated when the asset acquisition is posted, either through invoice posting or through an acquisition proposal.

   Note
   Instead of setting up the Fixed asset receiptand Fixed asset issueaccounts by item group, you can set them up by individual item in the Inventory postingform.

7. Click Posting.

8. In the Inventory postingform, use the Purchase orderand Inventorytabs to verify that the accounts that you set up in item groups were copied correctly to this form, and that the setup is correct for the fixed asset receipt and fixed asset issue types.