Asset Proposals

Asset Proposals are automatically generated records that capture potential fixed assets from source transactions like Purchase Orders, Vendor Bills, and Expense Reports.

Overview

ASSET PROPOSAL WORKFLOW
═══════════════════════════════════════════════════════════════════

Source Transaction                    Asset Proposal                Fixed Asset
─────────────────                    ──────────────                ───────────

┌─────────────────┐                ┌─────────────────┐          ┌─────────────────┐
│ Purchase Order  │                │                 │          │                 │
│ Vendor Bill     │───────────────▶│  ASSET PROPOSAL │─────────▶│  FIXED ASSET    │
│ Expense Report  │  Auto-created  │  (Pending)      │ Approved │  RECORD         │
│ Inv. Transfer   │                │                 │          │                 │
└─────────────────┘                └─────────────────┘          └─────────────────┘
                                           │
                                           ├──▶ Approve → Create Asset
                                           ├──▶ Split → Multiple Assets
                                           └──▶ Reject → Ignore/Expense

How Proposals Are Generated

Qualifying Transactions

Asset proposals are created when transactions meet these criteria:

Criteria	Description
Expense Account	Line uses a Fixed Asset expense account
Amount threshold	Above capitalization threshold (if configured)
Item type	Non-inventory purchase or expense

Source Transaction Types

Source	When Proposal Created	Information Captured
Purchase Order	When PO is approved/created	Vendor, item, cost, date
Vendor Bill	When bill is created	Vendor, amount, invoice date
Expense Report	When expense submitted	Employee, cost, expense date
Inventory Transfer	When transfer completed	Item, cost, location
Journal Entry	When posting to asset account	Amount, memo, date

Proposal Record Fields

Header Information

Field	Source	Description
Proposal Number	Auto-generated	Unique identifier
Status	System	Pending, Approved, Rejected
Source Transaction	Link	Original PO/Bill/Expense
Transaction Date	Source	Date of source transaction
Vendor/Supplier	Source	Vendor from source

Asset Information

Field	Source/Default	Description
Asset Name	Item/Memo	Proposed asset description
Asset Type	Manual/Default	Category for the asset
Acquisition Cost	Source amount	Original cost
Quantity	Source	Number of units
Location	Source	Assigned location
Department	Source	Assigned department

Managing Proposals

Proposal Status Flow

PROPOSAL LIFECYCLE
───────────────────────────────────────────────────────────

    PENDING                  APPROVED                 ACTIVE
       │                        │                       │
       ▼                        ▼                       ▼
┌─────────────┐          ┌─────────────┐         ┌─────────────┐
│  Review     │          │  Asset      │         │  Asset      │
│  Proposal   │─────────▶│  Created    │────────▶│  In Service │
│             │ Approve  │             │ Place   │             │
└─────────────┘          └─────────────┘         └─────────────┘
       │
       │ Reject
       ▼
┌─────────────┐
│  Rejected   │
│  (Expensed) │
└─────────────┘

Approval Actions

Action	Result	When to Use
Approve	Creates fixed asset record	Item should be capitalized
Split	Creates multiple asset records	Bulk purchase of identical items
Reject	Closes proposal, no asset	Item should be expensed
Edit	Modify before approval	Correct asset type, name, etc.

Approving Proposals

Single Asset Approval

APPROVE SINGLE ASSET
───────────────────────────────────────────────────────────

1. Navigate to:
   Fixed Assets > Asset Proposals > View Pending

2. Open the proposal record

3. Review and complete:
   ┌────────────────────────────────────────────┐
   │ Asset Name:    Dell Server Rack            │
   │ Asset Type:    Computer Equipment          │
   │ Acquisition:   $15,000                     │
   │ In-Service:    02/01/2026                  │
   │ Location:      Main Office                 │
   │ Department:    IT                          │
   └────────────────────────────────────────────┘

4. Click "Approve" button

5. System creates Fixed Asset record

Bulk Approval

For multiple proposals:

Navigate to Fixed Assets > Asset Proposals > Approve Multiple
Select proposals to approve
Verify asset type and settings
Click Approve Selected

Splitting Proposals

When to Split

Split proposals when a single transaction contains multiple identical assets:

Scenario	Example
Bulk equipment purchase	10 laptops on one PO
Fleet acquisition	5 vehicles on one bill
Furniture order	20 desks from one vendor

Split Process

SPLITTING A PROPOSAL
───────────────────────────────────────────────────────────

Original Proposal:
┌────────────────────────────────────────────────────────┐
│ Transaction: PO-12345                                  │
│ Item:        Laptop Computer                           │
│ Quantity:    10                                        │
│ Total Cost:  $15,000                                   │
└────────────────────────────────────────────────────────┘
                           │
                           ▼ SPLIT
                           │
┌────────────────┐ ┌────────────────┐     ┌────────────────┐
│ Asset 1        │ │ Asset 2        │ ... │ Asset 10       │
│ Laptop-001     │ │ Laptop-002     │     │ Laptop-010     │
│ Cost: $1,500   │ │ Cost: $1,500   │     │ Cost: $1,500   │
└────────────────┘ └────────────────┘     └────────────────┘

Each becomes a separate Fixed Asset record with:
- Unique asset ID
- Individual depreciation schedule
- Separate tracking/reporting

Split Limits

Maximum splits: Up to 120 records per transaction
Equal distribution: Cost divided equally by default
Custom allocation: Can manually adjust individual costs

Rejecting Proposals

When to Reject

Reason	Action
Below threshold	Expense immediately
Repair/maintenance	Not a capital asset
Duplicate proposal	Already captured
Error	Wrong account used

Rejection Process

Open proposal
Click Reject
Enter rejection reason (optional)
Proposal closed, no asset created

Note: Rejecting a proposal does not reverse the original transaction. The expense remains posted to the original account.

Proposal Configuration

Setting Up Automatic Proposals

CONFIGURE PROPOSAL GENERATION
───────────────────────────────────────────────────────────

Navigate to:
Setup > Accounting > Fixed Asset Management > Setup

Settings:
┌────────────────────────────────────────────────────────┐
│ ☑ Enable Asset Proposals                               │
│                                                        │
│ Generate proposals from:                               │
│   ☑ Purchase Orders                                    │
│   ☑ Vendor Bills                                       │
│   ☑ Expense Reports                                    │
│   ☑ Inventory Transfers                                │
│                                                        │
│ Proposal Threshold: $5,000 (optional)                  │
│                                                        │
│ Default Asset Accounts:                                │
│   1540 - Computer Equipment                            │
│   1510 - Machinery & Equipment                         │
│   1520 - Vehicles                                      │
└────────────────────────────────────────────────────────┘

Account-Based Triggering

Proposals are generated when transactions post to designated fixed asset accounts:

Account	Proposal Type
1540 Computer Equipment	Computer Equipment asset
1510 Machinery	Equipment asset
1520 Vehicles	Vehicle asset

Best Practices

Proposal Management

Practice	Recommendation
Regular review	Review pending proposals weekly
Timely approval	Approve before depreciation run
Consistent naming	Use standardized asset naming conventions
Complete information	Fill all required fields before approval

Workflow Tips

Tip	Benefit
Set up notifications	Alert asset manager of new proposals
Use saved searches	Track pending proposals by age
Document rejections	Maintain audit trail
Train AP team	Ensure correct account coding

Asset Creation - Manual asset creation and splits
Asset Types - Configure asset categories
GL Impact - Journal entries for acquisitions

Overview​

How Proposals Are Generated​

Qualifying Transactions​

Source Transaction Types​

Proposal Record Fields​

Header Information​

Asset Information​

Managing Proposals​

Proposal Status Flow​

Approval Actions​

Approving Proposals​

Single Asset Approval​

Bulk Approval​

Splitting Proposals​

When to Split​

Split Process​

Split Limits​

Rejecting Proposals​

When to Reject​

Rejection Process​

Proposal Configuration​

Setting Up Automatic Proposals​

Account-Based Triggering​

Best Practices​

Proposal Management​

Workflow Tips​

Related Topics​