Create Asset Proposal – A summary of the activity
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This activity allows you to create an asset proposal. An asset proposal is created to give the pattern in which the assets are to be purchased for the financial year based on the budget that has been sanctioned. An asset proposal is created for a finance book in a given financial year. There are two types of asset proposals that can be created. They are “Acquisition Proposal” and “Retirement Proposal”.
Acquisition Proposal
An acquisition proposal is created based on the budget that has been defined for the asset. This asset proposal spans over financial years till it expires. The proposed cost of the assets is stored in the base currency of the company and in another currency. A percentage of variance can also be set taking into account the fluctuations in the exchange rate and the actual cost of the asset.
Retirement Proposal
A retirement proposal is created to indicate the method in which the asset must be retired from use. The sale value of the asset can be defined here. The original sale value of the asset must be more than the sale value mentioned here, when the asset is disposed in the “Asset Disposal” business component. The retirement proposal does not require a budget. It is defined based on the description of the assets.
This activity allows you to create an “Acquisition Proposal” and a “Retirement Proposal” for a finance book in a selected financial year. The various costs and sale values are also stored in the base currency of the company if the currency in which the costs and values are specified are different from the base currency of the company. An expiry date can also be set for the proposal, which could span over to the succeeding financial years. This activity also allows you to set the method in which the asset can be retired and the value in which the asset can be sold while it is retired.
This activity also allows you to authorize both the acquisition proposal and the retirement proposal. The status of the authorized proposal is updated as “Active”. The status of the proposals after authorization is updated as “Active”. The system stores the login ID of the user and the system date along with the proposal details. This activity also allows you to view the details of the budget before creating the proposal.
Getting familiar with the pages inside
Go to page |
To carry out the task |
Create Asset Proposal |
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Create Acquisition Proposal |
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Edit Acquisition Proposal |
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View Budget |
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Create Retirement Proposal |
Calculate costs in base currency
Acquisition proposals are created based on the budgets that have been generated for a finance book in a selected financial year. An asset proposal is a pattern in which the asset would be acquired based on the budget allocated. A proposal can span over financial years. A proposal is created for the asset based on its description. A variance percentage for the exchange rate and the asset cost is also set to handle the fluctuations in the exchange rate and asset cost.
Go to “Create Acquisition Proposal” page.
Enter the necessary information.
A retirement proposal can be created for the asset / tag combination. An asset can be retired through “Sale” or as “Scrap”. A sale value is also defined for the asset. The original sale value of the asset at the time of retirement must not be lesser than the sale value defined here.
Go to “Create Retirement Proposal” page.
Enter the necessary information.
An asset proposal on creation attains a “Fresh” status. A proposal in this status can be authorized. The status of the proposal after authorization is updated as “Active”. This proposal remains active till the expiry date that is defined.
Go to “Create Acquisition Proposal” page.
Authorize the proposal.
A retirement proposal on creation attains a “Fresh” status. A retirement proposal in this status can be authorized. The status of the proposal after authorization is updated as “Active”.
Go to “Create Retirement Proposal” page.
Authorize the proposal.
An “Active” asset proposal can span over a couple of financial years. In the course of these years there could be a variance in the exchange rate or the cost of the asset. A percentage of variance can be set for both the exchange rate and asset cost for a proposal number.
Go to “Create Acquisition Proposal” page.
Enter the variance percentage.
Calculate costs in base currency
If the currency of the proposal amount is different from the base currency of the company, the system calculates the proposed costs in the base currency of the company. The proposed amount is also stored in the base currency of the company.
Go to “Create Acquisition Proposal” page.
Calculate the proposed cost in the base currency of the company.
An asset can be retired in two different methods. A retirement method can be set for the unique proposal. All the assets / tags that fall under the proposal can be retired in the selected method.
Go to “Create Retirement Proposal” page.
Define the retirement mode.