GLT Capitalization Section

Owned by Ashley Mattingly
Last updated: Apr 19, 2022 by Sarah Nguyen (Deactivated)
5 min read

On the General Ledger Transfer (GLT), when a Capital Equipment object code is used in the accounting lines, a capital asset number must be entered or an asset needs to be created.

There are three sections related to capital asset information:

  • Accounting Lines for Capitalization

  • Create Capital Assets

  • Modify Capital Assets

    Sections related to capital asset information

Completing the Capitalization Sections

  1. On each of the lines where a capital asset object code is entered, enter a unique value in each of the Org Ref ID lines on both the FROM and TO accounting lines.

    1. For more information about this step, see General Ledger Transfer FAQs. 

  2. When a capital object code is entered in the Accounting Lines, a Generate button will appear in the Accounting Lines for Capitalization section. Once your accounting lines are complete and accurate, click Generate.

  3. The next screen shows the accounting lines for Capitalization. Each accounting line from the top section that has a capital object code (i.e., 8202, 8215) will populate as an accounting line for Capitalization. You have the option to apply each line individually to one or multiple assets or to create new assets. For more details about these options, review the Modifying a Single Asset, Modifying Multiple Assets, and Creating an Asset sections below. 

    accounting lines for capitalization

Modifying a Single Asset

In this example, a GLT is applicable to one asset record, moving the payment from one account/object code to another. Both the FROM and the TO sides of the entry are related to the same asset, and the asset record already exists in KFS.

In this section of the eDoc, the FROM side is listed as Line Type: Source, and the TO side is listed as Line Type: Target.

  1. Select both checkboxes on the right.

  2. Click Modify Asset to open the Modify Capital Assets Section.

  3. Add the asset number by typing it in or searching for it with the lookup tool.

  4. If you are not sure what the asset number is, you can look it up. Search for the purchase order in KFS in the Notes and Attachments tab. Alternatively:

    1. Go to the Assets menu.

    2. Click on Asset Payment.

    3. Enter the PO number in the Purchase Order Number field, or enter the Payment Request eDoc number in the Document Number field (highlighted in the image below).

    4. If both of these methods do not provide an asset number, the asset has not yet been tagged. Contact Inventory Control for an asset number.

  5. Click Redistribute Total Amount to distribute all line items to the specified assets.

    1. The amount distributed will appear as though the amount is doubled.

      In this example, the amount of expense being moved from one account to another account is $22,716.66. The total amount distributed will appear as $45,433.32. This is normal. The amounts that actually go through the account and the asset record will still be -$22,716.66 and +$22,716.66.

  6. Once the total amount is allocated to an asset, the capitalization sections are complete.

Modifying Multiple Assets

In this example, a GLT is moving expenses from one account to another relating to two separate assets. You can enter the asset information for both assets in the GLT and specify which amounts apply to each one. For information on obtaining asset numbers, review Steps 4a through 4d in the Modifying a Single Asset section above. 

In the image below, Line 1 applies to Asset #672922 and Line 2 applies to Asset #662821. For this example, the asset numbers were entered in the Org Ref ID fields on the TO side).

The accounting lines translate from the top portion of the eDoc to the capitalization section, once generated. Note the Seq # on the left; this is the line number from the accounting lines above.

To modify multiple assets, 

  1. Select both checkboxes on the right for the first asset.

  2. Click Modify Asset.

  3. Type in or look up the asset number.

  4. Click Redistribute Total Amount.

  5. After applying the selected lines to the first asset, the Accounting Lines for Capitalization section will update. The lines that have been applied to the asset will then be greyed out. 

  6. This leaves the remaining two accounting lines to be applied.

    1. Select these checkboxes.

    2. Repeat Steps 4 and 5 the same way.

Creating an Asset

In this example, a document incorrectly coded something to non-capital equipment when it should have been coded to capital equipment. A GLT would be used to correct the accounting lines, moving the amount from object code 8306 to 8215.

  1. Click Generate in the Accounting Lines for the Capitalization section.

  2. Select the checkbox for the accounting line.

  3. Select Create Asset to expand the Create Capital Assets section in the document. 

  4. Complete the following fields. Some fields will allow you to enter data directly into the boxes, while others will prompt you to use the lookup tool. 

    • Asset Quantity

    • Asset Type

    • Vendor Name

    • Manufacturer

    • Model

    • Asset Description

  5. Once you have completed the fields, click Redistribute Total Amount to distribute the dollar amount from the accounting line to the asset. 

  6. Click the Add Tag/Location button under the Actions section on the right. 

  7. In this section, only the campus code, building code, and room number are required fields. In most cases, as in this example, the asset will most likely not have a tag number yet. If a serial number is accessible, enter it in the Serial Number field. 

Once this section is complete, the Capital Asset section of the document is finished and ready to be submitted.

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