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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

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.
Cap. Service Fixed Asset G/L Journal Template Select the journal template used to post capitalized services as well as fixed asset attachments and detachments.
Cap. Service Fixed Asset G/L Journal Batch Name Select the journal batch used to post capitalized services as well as fixed asset attachments and detachments.
Depr. until FA Posting Date Activate this toggle switch if the fixed asset should be depreciated until the FA posting date when posting acquisition costs.
Depr. Acquisition Cost Activate this toggle switch if the acquisition costs to be posted for a fixed asset should be depreciated proportionately when posting. This toggle switch can only be used if you have selected the Acquisition Cost value for the FA Posting Type when posting Fixed Asset Adjustment in the Service Management Setup.

You have successfully set up the calculation bases and postings of capitalized services. You can find more information on the service management setup here.

Tip

For fixed assets, you can post capitalized services for items and resources to separate G/L accounts. To do so, fill in the following fields in the Balancing Account FastTab on the FA posting group card:

  • Acquisition Cost Items Bal. Acc. – G/L account to which item amounts with capitalized service should be posted.
  • Acquisition Cost Resources Bal. Acc. – G/L account to which resource amounts with capitalized service should be posted.

If these fields are left blank, the Acquisition Cost Bal. Acc. field is used as the balancing account instead.

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. This applies to service items that are in stock as inventoriable as well as to those that are in stock as a fixed asset.

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.

Using Capitalized Service for Fixed Assets in Service Orders

Note

You can only attach and detach items and service items linked to an inventoriable via the service order. If you want to attach or detach a fixed asset or a service item linked to a fixed asset, use the configuration of the service item instead. You can find more information on this here.

You can post capitalized service for service items that are in stock as a fixed asset. Additionally, you can attach and detach items as well as service items linked to items directly to such a fixed asset via the service order, without having to open the configuration of the service item separately. Proceed as follows to post capitalized service for a fixed asset in a service order:

  • Use the quick search (ALT+Q) to find the Service Orders page.
  • Create a new service order with an internal customer or open an already existing service order.
  • In the Order Type field, enter an order type for which you have selected the Capitalized Service checkbox. You can find more information on this here.
  • In the Lines FastTab, select an already existing service item line or create a new line.
  • Then, click Line > Worksheet in the menu bar of the Lines FastTab to open the worksheet.
  • In the worksheet, add lines of the Item, Service Item, or Resource type.
  • In the Line Action column, select one of the following options:
Line Action Usage
Attach Permanently attaches an item or a service item linked to an item to the fixed asset. According to the setup of the FA Posting Type when posting Fixed Asset Adjustment field in the Service Management Setup, the value is posted to the fixed asset as a value increase, and the item or service item is removed from stock.
Capitalized Service Posts the unit cost or unit price of an item or a resource to the fixed asset as a value increase, without creating a configuration line.
Detach Removes an item or service item previously added via Attach from the fixed asset again and posts it back into stock.
  • Once you have completed all settings, you can post the service order and create a service invoice. To do so, proceed as described under Creating Service Invoices.

When posting, the fixed asset is first depreciated up to the posting date, depending on the Service Management Setup. The amounts for items and resources with capitalized service are then posted as a value increase, each in a separate line, on the FA G/L Journal. For the balancing account, the system first checks whether the Acquisition Cost Items Bal. Acc. or Acquisition Cost Resources Bal. Acc. fields are filled in on the FA posting groups of the fixed asset. If this is not the case, the Acquisition Cost Bal. Acc. field is used instead. The posted values are now displayed in the calculation review of the fixed asset, in the Fixed Asset category.