Not valuable fixed assets (NVFAs) (Russia)

Low-value, high-wear items that are used in the workplace can be tracked and accounted for as special types of fixed assets that are known as not valuable fixed assets (NVFAs). NVFAs are items that have a cost that is less than the specified cost limit. The full cost of NVFAs should be written off for depreciation in the first month of use.

When you purchase fixed assets, regular fixed assets and NVFAs are divided based on the purchase price (cost). The value that you set for the Max cost of the NVFA field when you set up Fixed assets parameters for NVFAs determines the cost that distinguishes regular fixed assets and NVFAs.

After you purchase and register NVFAs, you can perform the following tasks:

• Automate the process of putting NVFAs into operation and adding them to subsequent depreciation transactions.
• Print the MB-2, MB-4, and MB-8 reports.

Set up Fixed assets parameters for NVFAs

1. Go to Fixed assets (Russia) > Setup > Fixed assets parameters.
2. In the Base value model field, select the default base value model.
3. In the Max cost of the NVFA field, enter the maximum limit for the cost of the NVFA.
4. In the NVFA inventory profile field, select the inventory profile for the NVFA.
5. On the Number sequences tab, in the Number sequence code field, select the number sequence code for the NVFA inventory number and NVFA issue journal number reference types.
6. On the Document tab, on the Document types FastTab, in the Number sequence code field, select the number sequence code for the NVFA Act on disposal (No. MB-4) and NVFA Act on writing-off No. MB-8) document types.

Set up fixed asset groups for NVFA

1. Go to Fixed assets (Russia) > Setup > FA groups.
2. On the FA groups page, create a record, and fill in the fields. In the Type of group field, select NVFA.

Set up the identification of fixed asset groups for NVFAs

1. Go to Fixed assets (Russia) > Setup > Working clothes/Special riggings/NVFA > Identification of FA groups.

2. On the Condition for FA group identification page, create a record, and fill in the fields.

3. Select Compliance, and specify how the item is related to a fixed asset group.

   Note

   The system uses this setting to fill in the FA group and Lifetime fields on the Working clothes/Special riggings/NVFA issue journal lines page. For more information, see Generate NVFA records, putting into operation transactions, and depreciation transactions for NVFAs.

Set up inventory dimensions for NVFAs

Use this procedure to set up inventory dimensions for NVFAs, working clothes, and special rigging items.

1. Go to Product information management > Setup > Dimensions and variant groups > Tracking dimension groups.
2. Create a dimension group.
3. For the Batch number dimension, select the Active check box to enable batch accounting for NVFAs. Items that have different prices are accounted for in different batches.
4. Also select the Primary stocking and Financial inventory check boxes for the Batch number dimension.
5. For the Serial number dimension, select the Active check box. This dimension is used when the asset is put into operation.
6. Also select the Blank receipt allowed and Blank issue allowed check boxes for the Serial number dimension. When these check boxes are selected, you can perform inventory operations without having to specify a serial number.
7. For the Inventory profile dimension, select the Active and Primary stocking check boxes to enable inventory profile accounting for NVFAs.

Set up items as NVFAs

1. Go to Product information management > Products > Released products.
2. Create a new item, or double-click an existing item to open the item record.
3. Select Set up > Dimension groups to set up storage and tracking dimension groups for the item.
4. In the Item model group field, select the item model group.
5. In the FA group field, select a fixed asset group that has the NVFA group type for the item.

Set up officials for the NVFA Statement of writing-off (No. MB-8)

Use this procedure to set up the members and chairperson of the commission that is responsible for the NVFA Statement of writing off (No. MB-8).

1. Go to Organization administration > Setup > Contacts > Officials.
2. On the Fixed assets tab, select NVFA Statement of writing-off (No. MB-8).
3. Select Add to create a record.
4. In the Position field, select Member or Chairman to indicate whether the selected employee is a commission member or the chairman. You can select only one employee as the chairman.
5. In the Name field, select the name of the employee.

Register an NVFA by using a purchase order

1. Go to Accounts payable > Common > Purchase orders > All purchase orders.
2. On the Action Pane, select New > Purchase order.
3. In the Vendor account field, select the vendor account that you require, and then select OK.
4. Create a purchase order line.
5. In the Item number field, select an item number.
6. In the Quantity field, enter the quantity of the item that is being ordered.
7. In the Unit price field, enter the purchase price for an item unit. If the purchase price of a fixed asset is less than the value that is specified in the Max cost of the NVFA field on the Fixed assets parameters page, excluding the sales tax value, the item is considered an NVFA. In this case, the Inventory profile field on the Product tab of the Line details FastTab is automatically set to the value that is entered on the Fixed assets parameters page.
8. Post the vendor invoice.

Note

If the system defines the item on the purchase line as an NVFA, you should not specify a fixed asset inventory number for that line in the purchase order.

Generate NVFA records, putting into operation transactions, and depreciation transactions for NVFAs

Use this procedure to automatically create NVFA records on the Not valuable FAs page (Fixed assets (Russia) > Common > Not valuable FAs), and to automatically create fixed asset journals for NVFA putting into operation and depreciation.

1. Go to Fixed asset (Russia) > Journals > Working clothes/Special riggings/NVFAs issue.
2. Select New to create a journal, and fill in the fields.
3. Select Lines, and then select New to create a record.
4. Fill in the Item and Quantity fields. The values in the Person in charge and Location fields are filled in from the journal. The Lifetime and FA group fields are filled in automatically from the Condition for FA group identification page.
5. Verify and fill in the fields on the Product dimensions tab.
6. Close the Working clothes/Special rigging/NVFA issue journal lines page.
7. Select Close on the Working clothes/Special rigging/NVFA issue journal page. The system selects the Posted check box and creates fixed asset journals for NVFA putting into operation and depreciation.
8. Select FA journals > FA journal (putting into operation) and FA journals > FA journal (depreciation) to validate and post fixed asset journals.

Note

The system creates records on the Not valuable FAs page after the fixed asset journal for NVFA putting into operation is posted.

Register an NVFA by using the Not valuable FAs page

1. Go to Fixed assets (Russia) > Common > Not valuable FAs.
2. Select Fixed asset to create an NVFA.
3. In the FA group field, select a fixed asset group for the NVFA.
4. In the Acquisition cost field, enter the acquisition amount for the fixed asset.
5. In the Note field, enter any additional information for the asset.
6. In the Resource field, select the resource or resource group that is assigned to the asset.
7. Select Fixed asset > Componentry > Componentry.
8. Select Add to create a line. In the Item number field, select an item.
9. Select Warehouse > Dimensions display to enable the Batch number and Serial number dimensions for the item.
10. In the Batch number field, select a batch number for the item.
11. In the Serial number field, select a serial number for the item.
12. In the Initial quantity field, enter the initial quantity of the item that is used.

Generate a disposal transaction and print the NVFA Statement of disposal (No. MB-4) from the fixed asset journal

Use this procedure to generate and print the NVFA Statement of disposal (No. MB-4) report from the fixed asset journal after you enter disposal or writing-off transactions. For transactions that have a status of Written off or Written off (sale), the report can also be printed from the Working clothes, Special rigging, or Not valuable FAs page. This report is generated by each department that uses working clothes, special rigging, and NVFAs.

Note

You can generate the report from the Working clothes, Special rigging, and Not valuable FAs pages only after you generate the report from the fixed asset journal.

1. Go to Fixed assets (Russia) > Journals > FA journal.
2. Create a journal.
3. In the Name field, select the journal name.
4. Select Lines to open the Journal voucher page.
5. Select New to open the Add to journal dialog box.
6. In the Transaction date field, select the transaction date.
7. In the Transaction type field, select Disposal (sale).
8. In the FA inventory number field, select the inventory number for the fixed asset.
9. In the Value model field, select the value model for the fixed asset.
10. In the Reason code field, select a reason code for the transaction.
11. In the Reason comment field, enter a comment or a description of the transaction.
12. Select OK. The write-off lines for all value models that are registered in the fixed assets account are created in the journal. –or–

Select Group operations > Disposal (sale) after step 4 to create disposal transactions .

5. In the Disposal date field, select the date of the disposal transaction.

6. On the Records to include tab, select Filter. Then specify the selection criteria that are used to create transactions.

7. Select OK, and then select OK again to create disposal or write-off transactions.

8. Select Validate > Validate to validate the write-off transactions.

9. Select Post > Post to post the transaction.

10. Close the page.

11. On the FA journal page, select Print > NVFA Statement of disposal (No. MB-4) to open the NVFA Statement of disposal (No. MB-4) page.

    Note

    The Print button is available only for journals that have been posted. The written-off transaction that is created on the Journal voucher page appears on the Overview tab. This transaction has a document number. The document number is generated based on the number sequence that is set up on the Fixed assets parameters page.

12. In the Comment field, enter the reason for disposal.

13. On the Rows tab, you can view the document number, fixed asset number, and value model code.

14. Select Print to generate the NVFA Statement of disposal (No. MB-4) report.

Generate a writing-off transaction and print the NVFA Statement of writing off (No. MB-8) from the fixed asset journal

Use this procedure to generate and print the NVFA Statement of writing off (No. MB-8) report from the fixed asset journal after you enter writing-off or disposal transactions. For transactions that have a status of Written off or Written off (dismantlement), the report can also be printed from the Working clothes, Special rigging, or Not valuable FAs page.

1. Go to Fixed assets (Russia) > Journals > FA journal.

2. Create a journal.

3. In the Name field, select a journal name.

4. Select Lines.

5. Select New to open the Add to journal dialog box.

6. In the Transaction date field, select the transaction date.

7. In the Transaction type field, select Writing-off.

8. In the FA inventory number field, select the inventory number of the fixed asset.

9. Select OK. The value model lines for the asset record are created in the journal. –or– Select Group operations > Writing-off after step 4 to create writing-off transactions.

10. In the Disposal date field, select the date of the writing-off transaction.

11. On the Records to include tab, select Filter. Then specify the selection criteria that are used to create transactions.

12. Select OK, and then select OK again to create disposal or writing-off transactions.

13. On the Journal voucher page, select Validate > Validate to validate the journal.

14. Select Post > Post to post the journal.

15. Select Print > NVFA Statement of writing-off (No. MB-8).

16. On the Overview tab, in the Order number field, enter the order number that the writing-off transaction should be posted under. In the Resolution date field, select the order date.

17. On the Rows tab, you can verify the document number, fixed asset number, and value model code.

18. On the Officials tab, you can view details about the officials who were assigned on the Officials page. You can also modify the employee details, if modification is required.

19. Select Print to generate the NVFA Statement of writing off (No. MB-8) report.

Additional resources

• Working clothes/special rigging accounting (Russia)