PO created for fixed asset and other issues

Question

1)Where does asset clearing account or CIP clearing account picks up in while creating a Purchase order for a fixed asset ?Is it from the item itself while defined or any other place ?
2)How does the accounting line flows from Fixed asset to General ledger especially for CIP assets?
3)How can a asset be attached to corporate book and tax book ,what is the set up required ?
Thanks
Jogendra

Answer 1

1)Where does asset clearing account or CIP clearing account picks up in while creating a Purchase order for a fixed asset ?Is it from the item itself while defined or any other place ?
Account gets defaulted from Item if it is there, if not you have to enter manually.But if you have customized your account generator, you have to look at the account generator.
2)How does the accounting line flows from Fixed asset to General ledger especially for CIP assets?
If you are creating a PO for an expense item, and have used CIP Asset Clearing Account in the PO Distributions it gets eligble. When you invoice this PO, this CIP Clearing Account gets Debited.
Cr Liability 100
Dr CIP Clearing Account 100
Obviously as this is setup as an asset account (flexfield qualifiers) this gets eligble for the mass addition transfers once you validate and account the invoice. When you run the mass additions create and post, these accounting entries will get created.
Cr CIP Clearing Account 100
Dr CIP Asset Cost Account 100
These accounts are defined at the asset category. The asset category for the mass additions is taken from the item setup (Purchasing Tab). Ofcourse this can be entirely different in R12.
Asset Book is derived based the asset category. Create Journal Entries program transfers the accounting entries to GL. Assets Creates the entries for the CIP Addition process in FA before transferring them to GL.
3)How can a asset be attached to corporate book and tax book ,what is the set up required ?
First you create a corporate book and then create a tax book and assign corporate book to this. WHile creating the tax book if you check the Allow CIP Asset check box (Tax Rules tab), the asset will automatically get copied into the tax book.
Thanks
Nagamohan