Onboarding and Maintaining Units

Units are automatically created when the contract is approved, and they can be viewed on the Unit List page. While the activation group is being assessed, approved, and classified, unit information can be updated by Lease Administrators and Accountants.

The following fields at the top of the page are for informational purposes:

  • Bulk Asset: Indicates if the lease component is being treated as 1 asset.
  • Active Units: Indicates the number of active units in the activation group. Units become active once the activation group is activated, and does not include units that have been replaced or canceled.

If the system is operating in standalone mode and Cost Center Allocation Rules has been enabled in the Nakisa AdminConsole, you can define rules at the unit level to split amounts for P&L accounts across different Cost Centers. The rules are defined on the Unit Cost Center Allocations page.

Before the activation group can be activated, the units must all be received, and all of the activation groups in the lease component must be classified.

If the Global Asset Tracker feature is enabled in the Nakisa AdminConsole, you can assign locations to units after activating the activation group.

Note: If all of the units are no longer expected, the activation group can be split and cancelled (if it has not been activated yet).

To maintain units:

  1. Open the activation group.
  2. In the left-panel, click Unit List.
  3. The list of units is displayed. Click on the icons to edit each unit.
  4. Each unit has the following information:
    • The Unit ID is automatically generated.
    • By default, the Name of the unit is the same as the lease component Name field. Modify the field, as required.
    • The Reference ID is a free text field.
    • The GBV for the unit. This value is either read from SAP, or entered by a user for standalone mode.

      Note: If the contract is a non-lease service contract, short term lease, or low value lease (set in the Lease Type field), the value is always zero and cannot be changed.

    • The Accumulated Depreciation indicates the value at the time of a reassessment. This value is either read from SAP, or entered by a user for standalone systems.
    • The Currency field displays the company code currency.
    • The Asset Class field shows the asset class defined in Nakisa Lease Administration, and selected for the lease component.
    • The Asset Number field shows the asset number that was created in SAP, or the asset number generated by the application if the system is not connected to SAP.
    • The Serial Number field is a free text field where you can enter the unit's serial number.
    • The Unit Status is automatically set by the application. The available status (and when they are set) are:
      • Received: Once the Reception Date is entered.
      • Activated: Once the activation group is activated.
      • Casualty: Once a casualty event has been entered for the activation group.
      • Purchased: When there is a Purchase Option term (in the Lease End category) that is likely to be executed, and the lease end process has been triggered.
      • Returned: Once the activation group has entered Lease End.
      • Replaced: Once a unit replacement event has been entered for the selected unit.
      • Cancelled: When all of the units in the activation group were never received, and the user cancels the activation group.
    • The SAP Asset Retirement Date is automatically set whenever an asset is returned or purchased. It indicates the day the asset in SAP has been retired.
    • The Reception Date is the date that the goods are received or are ready to be used, and is manually entered by the user.

      Note: This field must be set to activate the activation group.

    • The Activation Date is the date selected when the activation group was activated.
    • The End Date represents the end of the asset whenever a lease end is triggered, an activation group is cancelled, a unit is replaced, or if there is an casualty.
    • The Liability Company is the company code that was set in the MLA or contract.
    • The Liability Cost Center is set by default to the value defined in the activation group. It can be modified for each unit, if required.
    • If the system is operating in standalone mode and Cost Center Allocation Rules has been enabled in the Nakisa AdminConsole, the checkbox Allocate Cost Center (Inherited) is unchecked by default, which means that amounts going to P&L accounts will be split across Cost Centers using the same rules defined on the activation group Accounting page. To define a new set of rules for the unit, select the Allocate Cost Center checkbox. (Note that "Inherited" disappears from the field name at this point.) The rules have to be defined on the Units Cost Center Allocations page.
    • The Liability WBS field can be modified for each unit.
    • The Liability Business Area field can be modified for each unit.
    • The Functional Area field can be modified for each unit.
    • The following tax fields can only be set if Generate Vendor Invoice is enabled for the contract. If these fields are set, the application retrieves tax amounts and rates from SAP, which are then used in postings. Note that in standalone systems, these fields are only used for informational or reporting purposes.

      The tax code fields represent the rate of the city/region/province where the goods are used, while tax jurisdiction fields represent a geographical area in countries where taxes are levied at more than one level.

      • The following tax fields are used for leases under ASC 840 and IAS 17, and short term, low-value, or service leases (under all standards):
        • If the Tax Code is set, the application posts the tax code amount received from SAP.
        • If the Liability Tax Jurisdiction is set, the application posts tax jurisdiction amount received from SAP.
      • The following tax fields are used for all other leases under ASC 842, IFRS 16, and GASB 87. If these fields are set, the application posts the principal, interest, and non-lease tax amounts received from SAP.
        • Tax Code Principal Paid
        • Tax Jurisdiction Principal Paid
        • Tax Code Interest Paid
        • Tax Jurisdiction Interest Paid
        • Tax Code Non Lease
        • Tax Jurisdiction Non Lease
      • If Gross Tax Calculation is enabled, the tax amount for the principal, interest, and non-lease amounts are calculated in SAP using the tax gross calculation. By default this field is unselected, i.e., the tax net calculation is used.
    • The Trading Partner field shows the partner that was selected in the MLA.
    • The License Number field is a free text field, which is passed to the SAP ERP.
    • The Inventory Number field is a free text field, which is passed to the SAP ERP.

To define Cost Center allocation rules for individual units:

  1. If the system is operating in standalone mode and Cost Center Allocation Rules has been enabled in the Nakisa AdminConsole, the page Units Cost Center Allocations appears in the left-panel. Separate allocation rules can be defined per unit on this page (instead of inheriting the rules from the activation group). To define separate rules for the unit:
    • On the Unit List page, click on the icons to edit the required unit. Select the checkbox Allocate Cost Center. (Note that "Inherited" disappears from the field name at this point.)
    • On the Units Cost Center Allocations page, select the Allocate Cost Center checkbox in the table.
  2. The allocation rules from the activation group are automatically copied to the table for that unit.
    • Edit or delete an existing rule, or click Add Rule to add a new row. The Allocation Percentage for all the rules must add up to 100%.

      Tip: Once Cost Center splitting has been set up at a higher level, it cannot be turned off. To no longer split amounts to multiple Cost Centers, simply define one rule that sends 100% of the amount to a single Cost Center.

    • Alternatively, rules can be imported via Excel at the unit level or at application level if Excel imports and exports have been enabled in the Nakisa AdminConsole.

Note: If the Allocate Cost Center checkbox is unchecked after adding allocation rules, the rules will still be displayed in the table (but will not be used).

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