Inventory Valuation and Fixed Assets. Lawson User Association AGM. Helen Davis Solution Design firstname.lastname@example.org. Fixed Assets. Register Asset. Record Asset . Define Depreciation. Activate Asset. Register Asset. Record Asset . Define Depreciation. Activate Asset.
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Solution Design email@example.com
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1. From entry of supplier
invoices or journal entries
2. Manual entry
in assets book
3. Activation of
assets in progress
the value of a tangible fixed asset in the balance sheet (carrying amount) cannot exceed its estimated economic worth (recoverable amount).
If there is any indication on the balance sheet date that a tangible fixed asset has diminished in value, the company should analyze whether the fixed asset must be impaired. Otherwise, the analysis must be done as a part of the company’s year-end routines.
Companies must impair their fixed assets even when the recoverable amount is only temporarily lower than the carrying amount.
IAS 36 applies to all fixed assets in the following categories:
1. Identify the Recoverable Amount
2. Update Recoverable Amounts in M3
3. Run a report identifying assets where carrying value > recoverable amount
If the extraordinary depn value is entered, the replacement value will be calculated as the remaining value less extraordinary depreciation.
If you enter a replacement value, the extra depreciation amount is calculated automatically as the residual value less the replacement value.
The field indicates how depreciation will continue when an extraordinary depreciation has been made.
1 = Depreciations continue in the same way as before. This means that the fixed asset will be fully depreciated faster than it would have been without extraordinary depreciation.
2 = The depreciation will continue as long as planned, but with a lower amount each year. The extraordinary depreciation is stored in a specific value type.
Purpose Financial reports
(other than agricultural producers &
- Item Group
- Item Number
The field indicates which method to be used for calculating the acquisition cost of the inventory.
1 = FIFO
2 = LIFO
3 = Average.
Price list indicates the price list with manually entered inventory values for items.
You can choose to automatically update the inventory value of the item in the price list if you enter an inventory value manually in CAS196/E - Inventory Valuation. Enter Manually
The Obsolete field indicates the percent of the inventory value considered as obsolete during inventory valuation.
The search path indicates the sequence in which the net sales value is searched.
1 = From the price list
2 = From the item's basic data
3 = From preferred acquisition cost method.
Value 21 means that the price is first searched for in the item file. If there is no value there, the search continues in the specified price list.
The Percent Share Inventory Value field indicates the percent of the price from the price list or item file used when calculating inventory value.
Every inventory item has the FIFO, LIFO, Net Sales and Replacement Sales value calculated for it.
Depreciation is calculated by forecasting future demand based on historical usage split into “buckets”.
Depreciation for each bucket is calculated as follows:
(Quantity per bucket) x (Unit price) x (Percentage per bucket)
Replacement value calculated based on search path nominated in settings (CAS025)