PeopleSoft Asset Management:
Asset management is a systematic process of deploying, operating, maintaining, upgrading and disposing of assets cost-effectively. The basic flow in PeopleSoft Asset Management begins with creating an asset, calculating the depreciation, creating accounting entries, closing depreciation and ends with generating journals.
Transaction Reversal in Asset Management:
Occasionally, there are cases where users enter incorrect transaction details or apply the changes to wrong asset id in PeopleSoft Asset Management. These error transactions affect the depreciation of the asset and accounting entries as well. To resolve this PeopleSoft has delivered a transaction reversal page.
Transaction reversal automatically reverses the last transaction of the asset and allows tracking the history of transaction reversals performed on any particular asset. Reversal of a transaction other than the initial asset addition results in reversing the cost of the transaction.
Steps to perform Transaction Reversal:
1) Check Reversal reason required on the AM BU definition page. This ensures the reasons are properly documented for future reference.
(Note: This step is required forces the user to select Reversal transaction code)
Navigation: Set Up Financials/Supply Chain Business Unit Related Asset Management Asset Management Definition
2)Create Reversal Reason using Reversal Reason Code page. In addition to delivered reasons, we can add more code to suit our business needs.
Navigation: Set Up Financials/Supply Chain Product Related Asset Management Financials Reversal Reason Code
3)Perform Transaction reversal using transaction reversal page.
Navigation: Main Menu Asset Management Asset Transactions Financial Transactions Transaction Reversal
The below asset is loaded with the wrong asset cost and quantity. Hence reversing the asset with the reversal code as an incorrect asset. Please see the screenshot below which shows the wrong quantity and cost.
4)Select the transaction reversal code from the prompt values and save the page.
5)Review the transaction reversal using Review Transaction Reversal page.
- No technical assistance required to correct the depreciation for the error transactions loaded.
- After transaction reversal Asset will be available for update or delete from system using Change/Delete pending transaction page.
- Transaction reversal page can be used for different kind of asset transactions i.e. initial addition, transfer, recategorization, adjustment transactions.
- Ability to attach relevant supporting documents ensures all reversals are accounted for.
- Transaction Reversal can be done only on the assets completed depreciation process.
- Transaction Reversal can’t be performed on assets which accounting entries are posted to GL.
- Transaction Reversal can’t be performed on leased assets, group assets.
- Transaction Reversal will only reverse the latest transaction recorded in the asset book.
Author: Siva Prasad, PeopleSoft Consultant