How to generate an expense from a manual journal entry and capitalize it?

As you are aware, we can generate an asset by capitalizing an expense in Sage X3 Fixed assets module. Expenses can be generated from a purchase invoice, supplier BP invoice or a manual journal entry.

Let’s talk about how to generate an expense from a manual journal entry and capitalize it.

  1. In Financials, Journals, Journal entry select an entry transaction and click ‘New’.

  2. Select the site where you want the expenses to get generated from.

  3. Select the entry type which you want to use for this journal entry.

      - When selecting a document type make sure the ‘Expense creation’ check box is checked.

      - This check box is subject to an activity code FAS.

      - It is used to indicate if the journal associated with this journal type must lead to the automatic creation of an expense in the Fixed assets module.

Setup, Financials, Document types

  4. Additionally, we need to make sure the following setup is implemented.

     Account setup:

     - The ‘Fixed asset tracking’ must be activated in order to authorize the use of the account for the assets and expenses managed in the Fixed assets module.

     - The ‘Expense creation’ from the validation of a journal allocated to the account, must be authorized.

     - The ‘Accounting nature’ must be specified.

Common data, G/L accounting tables, General, Accounts

   5. Enter the rest of the information including the journal entry lines selecting the appropriate accounts.

   6. Finally, the Journal entry category must be ‘Actual’ and the status must be ‘Final’.

      - You can finalize a journal entry manually by switching the ‘status’ flag from Temporary to Final

      - Or by running the Final validation function in Financials, Current processings, Final validation.

Financials, Journals, Journal entry

Journal entry line

Journal posting by switching the flag from Temporary to Final.

   7. Select the expense generated form the journal entry posting and capitalize it.

       - In Fixed assets, Fixed assets, Fixed assets, Assets

       - Select the asset and use the Capitalize button to pick the capitalized expenses

       - Click Apply

       - This will generate a new asset.

       - Depending on the setup you may need to enter the information in the depreciation tab.

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