Financial Processing eDocs: Capitalization

Staff can process financial documentation (eDocs) through Kuali Financials (KFS).  

On the General Ledger Transfer (GLT) and other financial processing eDocs, when a Capital Equipment object code is used in the accounting lines, the user must either enter a capital asset number or create an asset.    

Three sections are related to capital asset information:  

• Accounting Lines for Capitalization 

• Create Capital Assets 

• Modify Capital Assets

Completing the Capitalization Sections

1. Enter a capital object code in the Accounting Lines at the top portion of the eDoc.  

2. Verify that your accounting lines are complete and accurate.  

3. Click on the Generate button that appears in the Accounting Lines for Capitalization section. The next screen will look like this.
   

4. 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. From here, you can:

   1. Apply each line individually to one asset.

   2. Apply each line individually to multiple assets.

   3. Create new assets. 

For more detailed instructions, review the Modifying One Asset, Modifying Multiple Assets, and Creating an Asset sections below. 

Modifying One 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.

1. Select both checkboxes on the right.  

2. Click on 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. Click Redistribute Total Amount to distribute all line items to the specified assets.
   Note: The amount distributed will appear as though the amount is doubled, as shown in the image below. In this example, the amount of expense being moved from one account to another account is $22,716.66. The total amount distributed will be $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. 

   Open

   

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

Modifying Multiple Assets

In the example below, 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. 

• Line 1 applies to Asset #672922.  

• Line 2 applies to Asset #662821 (entered in the Org Ref ID fields on the TO side). 
  

• The accounting lines will translate from the top portion of the eDoc to the capitalization section once generated. 

To add multiple assets, 

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

2. Click on Modify Asset. 

3. Enter or look up the asset number.  

4. Click on 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 are now greyed out. This leaves the remaining two accounting lines to be applied.  

   1. Select the checkboxes for the two remaining accounting lines.  

   2. Repeat Steps 1-4. 

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 by 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. Click on Create Asset to expand the Create Capital Assets section in the document. 

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

   • Asset Quantity 

   • Asset Type 

   • Vendor Name 

   • Manufacturer 

   • Model 

   • Asset Description  

5. Click the Redistribute Total Amount button to distribute the dollar amount from the accounting line to the asset. 

6. Click on 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 fields are required. In most cases, the asset will most likely not have a tag number yet. However, if a serial number is accessible, enter it here, as well. 
   

Once this section is complete, the Capital Asset section of the document will also be complete and ready for submission. 

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