ASSET ACCOUNTING

Accounting Configuration Guide

Configure and verify the asset accounting chain before allowing acquisition, depreciation, and disposal to post.

Configuration order

1. Rules before creation
2. Configuration order
3. Accounting foundation
4. Major accounts and headers
5. Chart of accounts
6. Sub-ledgers and tags
7. Reusable GL posting rules
8. Asset posting-rule mapping
9. Disposal methods

This is configuration guidance, not tenant test data

Select the current tenant's approved COAs, sub-ledgers, business units, currencies, and users. Do not copy numeric IDs or account codes from another company or environment. Complete Asset Setup first.

1. Rules before creation

Rule	What it means	Why it matters
Search before creating	Search by visible name and code first.	Prevents duplicate account structures, rules, and disposal methods.
Do not copy IDs between companies	Select records in the current company.	COA, sub-ledger, business-unit, currency, asset, and rule IDs are tenant-specific.
One reusable rule per action	Reuse Asset Acquisition, Asset Depreciation, and Asset Disposal.	Avoids duplicating accounting logic for every asset type.
Concrete COAs are required	Assign real approved COAs to posting details.	The resolver reads coa_id; symbolic names or tags alone do not create journal lines.
Approve every dependency	Approve COAs, details, links, mappings, and asset records where required.	Posting filters for approved rows.
Configure one currency scope	Set currency only when company policy requires it.	Prevents a more-specific mapping from overriding the general mapping unexpectedly.
Test before live use	Post one acquisition, one depreciation, and one disposal in a controlled environment.	Proves that the COAs, handler, mapping, and journal are connected.

2. Configuration order

Order	Setup layer	User action	Completion evidence
1	Account foundation	Select the existing ASSET, LIABILITY, EQUITY, INCOME, and EXPENSE foundations.	Each required foundation is active.
2	Major accounts	Create or reuse Fixed Assets, Accumulated Depreciation, Asset Expenses, Disposal Results, and related groups.	Each major account has the correct foundation.
3	Account headers	Create or reuse class headers such as Computer Equipment, Motor Vehicles, Buildings, and Furniture.	Each header is under the correct major account.
4	Chart of accounts	Create the actual posting COAs and parent-child relationships.	Each COA is active, approved, and reportable.
5	Sub-ledgers	Create sub-ledgers only where transaction-level detail is required.	Each sub-ledger belongs to the selected COA and currency.
6	Disposal methods	Create or reuse the five standard disposal routes.	Each route is available and active once.
7	GL posting headers	Retain one reusable header for each supported lifecycle.	Code, mode, channels, and approval are correct.
8	Posting details	Add one debit and one credit detail for each supported header.	Every detail has a real approved COA.
9	Detail bindings	Attach the matching asset resolver to each detail.	Resolver code and binding are approved.
10	Asset mapping	Map asset, product, or asset type plus event to the reusable header.	Mapping resolves for the target business unit and date.
11	Runtime proof	Create and post representative asset events.	Journal lines balance and use intended accounts.

3. Accounting foundation

These are accounting roles, not new tenant records to create blindly. Select the existing foundation that matches the company chart.

Foundation	Normal balance	Asset-module use	Do not use it for
ASSET	Debit	Asset cost, CIP, disposal receivable, bank/cash, and contra-asset balances.	Depreciation expense or disposal income.
LIABILITY	Credit	Acquisition clearing, supplier payable, lease liability, and approved funding obligations.	Asset cost.
EQUITY	Credit	Revaluation reserve or another approved equity movement.	Ordinary depreciation.
INCOME	Credit	Gain on disposal or approved asset income.	Asset cost.
EXPENSE	Debit	Depreciation, impairment, disposal loss, and maintenance expense.	Accumulated depreciation balance.

4. Major accounts and headers

Create a major account only when an equivalent active record is not already present.

Major account	Foundation	Role in the asset lifecycle
Fixed Assets	ASSET	Groups original cost of buildings, vehicles, equipment, furniture, software, and other approved classes.
Construction in Progress	ASSET	Holds approved project cost before the asset is ready for use.
Accumulated Depreciation	ASSET	Groups contra-asset balances created by depreciation.
Accumulated Impairment	ASSET	Groups contra-asset balances created by impairment.
Asset Clearing and Payables	LIABILITY	Groups acquisition funding and clearing accounts.
Asset Expenses	EXPENSE	Groups depreciation, impairment, maintenance, and disposal losses.
Asset Disposal Results	INCOME / EXPENSE	Groups gains and losses from retiring assets.
Revaluation Reserve	EQUITY	Holds approved upward revaluation surplus.

Open: Accounting -> Setup -> Chart of Accounts -> Create Account Header

Choose the existing major account before creating a class-level header.

Use one header for a class of assets when the reporting policy groups that class together. Useful names include Buildings, Motor Vehicles, Computer Equipment, Furniture and Fittings, Plant and Machinery, Software and Intangibles, and Construction in Progress.

5. Chart of accounts

Open: Accounting -> Setup -> Chart of Accounts -> Create Chart of Account

Use the target company's generated or approved account code.

Account purpose	Search for or create	Foundation	Normal balance	Parent header
Asset cost	Fixed Assets - Buildings	ASSET	Debit	Buildings
Asset cost	Fixed Assets - Motor Vehicles	ASSET	Debit	Motor Vehicles
Asset cost	Fixed Assets - Computer Equipment	ASSET	Debit	Computer Equipment
Asset cost	Fixed Assets - Furniture and Fittings	ASSET	Debit	Furniture and Fittings
Asset cost	Fixed Assets - Plant and Machinery	ASSET	Debit	Plant and Machinery
Asset cost	Fixed Assets - Software and Intangibles	ASSET	Debit	Software and Intangibles
Work in progress	Construction in Progress	ASSET	Debit	Construction in Progress
Contra-asset	Accumulated Depreciation - Fixed Assets	ASSET	Credit	Accumulated Depreciation
Contra-asset	Accumulated Impairment - Fixed Assets	ASSET	Credit	Accumulated Impairment
Acquisition source	Asset Acquisition Clearing	LIABILITY or approved clearing foundation	Credit	Asset Clearing and Payables
Acquisition source	Asset Purchase Payable	LIABILITY	Credit	Asset Clearing and Payables
Expense	Depreciation Expense - Fixed Assets	EXPENSE	Debit	Asset Expenses
Expense	Impairment Loss - Fixed Assets	EXPENSE	Debit	Asset Expenses
Expense	Asset Maintenance Expense	EXPENSE	Debit	Asset Expenses
Disposal proceeds	Asset Disposal Receivable	ASSET	Debit	Asset Disposal Results or current assets
Disposal proceeds	Bank - Asset Disposal or Cash - Asset Disposal	ASSET	Debit	Bank or Cash
Disposal result	Gain on Disposal of Fixed Assets	INCOME	Credit	Asset Disposal Results
Disposal result	Loss on Disposal of Fixed Assets	EXPENSE	Debit	Asset Disposal Results
Revaluation	Revaluation Reserve - Fixed Assets	EQUITY	Credit	Revaluation Reserve

For each account, confirm active status, approval, business-unit scope, currency, and parent. The readable name helps the user; the selected COA is what the posting detail uses.

6. Sub-ledgers and tags

Configuration	When to use it	Rule
Sub-ledger under asset-cost COA	The company needs class or transaction detail below the COA.	Select the parent COA first, then the sub-ledger.
Sub-ledger under depreciation expense	Depreciation must be analysed by branch, class, or cost centre.	Do not attach a sub-ledger from a different COA.
Static COA detail	The same account is correct for every event in the selected scope.	Set the actual COA on the detail and approve it.
Domain-resolved detail	The asset resolver should return the selected rule's concrete lines.	The current resolver still requires coa_id on the detail.
Tag-resolved detail	Only when a verified tag resolver exists for that asset line.	Do not use an event tag as a substitute for COA assignment.

Existing asset handlers

Handler code	Procedure	Supported lifecycle	What it does
ASSET.ACQUISITION.RESOLVE	asset_acquisition_resolver	Acquisition	Reads the selected rule and emits approved debit and credit lines with concrete COAs.
ASSET.DEPRECIATION.RESOLVE	asset_depreciation_resolver	Depreciation	Reads the selected rule and emits approved debit and credit lines with concrete COAs.
ASSET.DISPOSAL.RESOLVE	asset_disposal_resolver	Disposal	Reads the selected rule and emits approved debit and credit lines with concrete COAs.

7. Reusable GL posting rules

Open: Accounting -> Setup -> GL Posting Rules -> Create GL Posting Rule

Create one reusable lifecycle rule and assign details underneath it.

Rule code	Rule name	Event	Posting mode	Allowed channels	Handler
ASSET.ACQUISITION	Asset Acquisition	ACQUISITION	SYSTEM	BACKOFFICE, API, SYSTEM	ASSET.ACQUISITION.RESOLVE
ASSET.DEPRECIATION	Asset Depreciation	DEPRECIATION	SYSTEM	BACKOFFICE, API, SYSTEM	ASSET.DEPRECIATION.RESOLVE
ASSET.DISPOSAL	Asset Disposal	DISPOSAL	SYSTEM	BACKOFFICE, API, SYSTEM	ASSET.DISPOSAL.RESOLVE

Keep the asset class in the mapping or account resolution, not in the reusable rule name. Use system tags only when they are verified asset lifecycle tags; tags do not replace COA assignment.

Posting rule details

Each detail needs a concrete approved COA before posting is enabled.

Header	Detail name	Line type	Detail nature	Amount source	COA to assign
Asset Acquisition	ASSET_ACQUISITION_DR_ASSET_COST	Debit	DOMAIN_RESOLVED	SYSTEM	Fixed asset cost COA
Asset Acquisition	ASSET_ACQUISITION_CR_CLEARING	Credit	DOMAIN_RESOLVED	SYSTEM	Clearing, payable, bank, or cash COA
Asset Depreciation	ASSET_DEPRECIATION_DR_EXPENSE	Debit	DOMAIN_RESOLVED	SYSTEM	Depreciation expense COA
Asset Depreciation	ASSET_DEPRECIATION_CR_ACCUMULATED	Credit	DOMAIN_RESOLVED	SYSTEM	Accumulated depreciation COA
Asset Disposal	ASSET_DISPOSAL_DR_PROCEEDS	Debit	DOMAIN_RESOLVED	SYSTEM	Bank, cash, or disposal receivable COA
Asset Disposal	ASSET_DISPOSAL_CR_CLEARING	Credit	DOMAIN_RESOLVED	SYSTEM	Disposal clearing or proceeds COA

Bind the same resolver to both details for one rule. Set the real COA, required sub-ledger, amount source SYSTEM, and APPROVED status. Do not bind different resolvers to the two sides of one rule.

Read back financial events

After a lifecycle action, use Assets -> Setup -> GL Integration -> Financial Events to confirm the event, amount, asset description, and posted state before opening the journal.

Use Financial Events as the first read-back point for the asset posting result.

8. Asset posting-rule mapping

Open: Assets -> Setup -> GL Integration -> Create Asset Posting Rule

Connect an asset scope and lifecycle event to a reusable GL header.

UI field	Acquisition example	Depreciation example	Disposal example
Reference type	ASSET_TYPE, ASSET_PRODUCT, or ASSET	Same	Same
Reference	Buildings asset type or Toyota Hilux product	Same approved scope	Same approved scope
Event type	ACQUISITION	DEPRECIATION	DISPOSAL
GL posting rule header	Asset Acquisition	Asset Depreciation	Asset Disposal
Business unit	Only when branch-specific	Only when required	Only when required
Currency	Only when currency-specific	Only when required	Only when required
Effective from/to	Approved policy window	Approved policy window	Approved policy window
Active	Enabled after verification	Enabled after verification	Enabled after verification
Approval	APPROVED	APPROVED	APPROVED

The resolver searches the approved mapping for asset, then product, then asset type, while applying business-unit, currency, and effective-date filters. Keep one unambiguous active mapping for each scope, event, and window.

9. Disposal methods

Open: Assets -> Setup -> GL Integration -> Disposal Methods

Create or reuse the operational method before mapping disposal posting.

Code	Method name	Use when	Proceeds account	Additional consideration
DM001	Public Auction	The asset is sold through a public auction.	Bank, cash, or disposal receivable.	Record approved auction proceeds and derecognition evidence.
DM002	Sale To Third Party	The asset is sold directly to an external buyer.	Bank, cash, or disposal receivable.	Record sale evidence and gain/loss treatment.
DM003	Private Settlement	The asset is settled through an approved private agreement.	Settlement receivable or bank.	Retain settlement approval and amount evidence.
DM004	Scrap / Salvage	The asset is scrapped or sold for salvage.	Bank, cash, or salvage receivable.	Confirm whether proceeds are zero or non-zero.
DM005	Repossession Offset	The asset is applied as an approved repossession offset.	Approved offset or clearing account.	Confirm the offset agreement and related receivable or liability.

The method describes the operational route. It does not by itself select the COA or calculate gain/loss. Use the actual disposal flow to verify full cost and accumulated-depreciation derecognition.

Runtime boundary

Capitalization, revaluation, impairment, transfer, maintenance, lease, insurance, and other events must not be enabled for automatic posting merely because a setup row exists. Prove the runtime handler, mapping, and balanced journal first.