Capitalized Service
In our ERP solution, you have the option to post capitalized services. This includes in-house work that your company does itself, as well as machines that are transferred to your fixed assets. Even if these services or machines are not sold to third parties, they still create measurable value for your company and represent a kind of fictitious income. This chapter provides all relevant information on posting capitalized services and is divided into the following sections:
- Setting up Capitalized Service in Service Management Setup
- Setting up Order Types for Capitalized Service
- Using Capitalized Service in Service Orders
Setting up Capitalized Service in Service Management Setup
To ensure that capitalized service is posted to the correct journal when service orders are posted, and that the correct calculation bases for items and resources are used, it is essential to make the correct settings during service management setup. To do so, proceed as follows:
Note
For better clarity and traceability, you can post capitalized services for items and resources to separate G/L accounts in our ERP solution. A requirement for this is that the service item for which the capitalized service is posted must be in stock as a current asset. Additionally, the following conditions must be met in the General Posting Setup:
- In the Cap. Service Bal. Acc. Items column, specify the G/L account to which capitalized services for items should be posted, e.g., 8990.
- In the Cap. Service Bal. Acc. Resources column, specify the G/L account to which capitalized services for resources should be posted, e.g., 8991.
If the columns are left blank, the account specified in the Inventory Adjmt. Account column will be used instead. If you require further information on the general posting setup, please contact your representative at TRASER Software GmbH.
- Use the quick search (ALT+Q) to find the Service Management Setup page.
- Navigate to the Equipment DMS FastTab.
- Fill in the fields in the Capitalized Service FastTab:
| Field | Description |
|---|---|
| Calculation Base (Item) | Select here if the calculation base of the capitalized service should be the Unit Cost or the Unit Price of the item. |
| Calculation Base (Resource) | Select here if the calculation base of the capitalized service should be the Unit Cost or the Unit Price of the resource. |
| Capitalized Service Reason Code | Specify the reason code that should be used when service orders with capitalized service lines are posted. The reason code will be added automatically to the service header, if a corresponding order type is selected. |
| Cap. Service Item Journal Template | Here, select the item journal template for the capitalized service. |
| Cap. Service Item Journal Batch Name | Here, select the item journal batch for the capitalized service. |
You have successfully set up the calculation bases and postings of capitalized services. You can find more information on the service management setup here.
Setting up Order Types for Capitalized Service
To use the capitalized service functionality, it must be activated for an order type. Once this order type is selected in a service order, you can specify in the worksheet lines that a capitalized service should be posted. Proceed as follows to set up the order type for a capitalized service:
- Use the quick search (ALT+Q) to find the Order Types page.
- Set up a new order type or carry out the following step for an already existing order type.
- In the Capitalized Service column, select the checkbox for the desired order type.
You have successfully set up that a capitalized service can be posted when using this order type in service orders.
Using Capitalized Service in Service Orders
Proceed as follows to use capitalized services in a service order:
- Use the quick search (ALT+Q) to find the Service Orders page.
- Create a new service order or open an existing service order. You'll find more information on creating service orders under Service Orders.
- In the General FastTab in the Order Type field, enter the order type for which you have selected the Capitalized Service checkbox. You'll find more information on this in the Setting up Order Types for Capitalized Service section.
- In the Lines FastTab, select an existing service line or create a new line.
- In the menu bar of the FastTab, click Line > Worksheet to open the worksheet.
- In the worksheet, navigate to the Lines FastTab. You can add items or resources that should be posted with a capitalized service to the lines.
- To do so, select either Resource or Item in the Type column.
- Then, enter the relevant item or resource number in the No. column.
- In the Line Action column, you can then specify that a capitalized service should be applied. To do so, select the Capitalized Service value.
Tip
If you want to block the Capitalized Service line action for a specific resource, activate the toggle switch Non-capitalizable in the Invoicing FastTab of the related resource card. The resource will then not be considered for capitalized services.
- Once you made all settings and added lines to the worksheet, you can post the service order and create a service invoice. To do so, proceed as described under Creating Service Invoices.
You have successfully used a capitalized service in a service order. Once the service order is posted, the capitalized service will be posted to the correct journal.