Capitalization of Assets and Liabilities
'Scrubber' generates entries and offsets to properly record the capitalization of assets and liabilities. The KFS determines which items need capitalization entries by looking for transactions affecting 'Actuals' balance type and using an object code with an asset-related object sub-type (defined in the parameter CAPITALIZATION_OBJECT_SUB_TYPES).
If is the process determines that a qualifying capital expenditure has occurred, it generates capitalization entries to book an asset to the appropriate plant fund account under the appropriate plant fund object code. The appropriate account is generally the plant fund account associated with the organization owning the account on which the original transaction occurred (for movable assets) or the plant fund account associated with that organization's campus (for non-movable assets).
The KFS includes 'Generated Capitalization' or 'Generated Liability' in the transaction description of the generated entry and also sets the object code type to 'Asset' or 'Liability' as appropriate. The object sub-type of the expenditure determines the object code used on the generated entry (defined in the parameter CAPITALIZATION_OBJECT_CODE_BY_OBJECT_SUB_TYPE).
Transactions created on journal vouchers, transfer of funds, auxiliary vouchers (accrual type) or the Annual Closing (ACLO) document type are generally excluded from the capitalization process. This list of document types is defined and may be modified in the CAPITALIZATION_DOCUMENT_TYPES parameter. Transactions associated with particular sub-fund groups or charts may also be institutionally excluded from the capitalization process using one or more of these parameters:
• CAPITALIZATION_CHARTS defines charts excluded from the capitalization process.
• CAPITALIZATION_FISCAL_PERIODS defines fiscal periods excluded by the capitalization process.
• CAPITALIZATION_SUB_FUND_GROUPS defines the sub-fund of accounts that should be excluded from the capitalization process.
• CAPITALIZATION_IND contains a yes ('Y') or no ('N') value that indicates whether or not the capitalization process should be active.
• CAPITALIZATION_OBJECT_CODE_BY_OBJECT_SUB_TYPE - The plant fund object code(s) to which the generated capitalization will be assigned, by object sub-type(s) of the original transaction, in the scrubber process.
• CAPITALIZATION_OBJECT_SUB_TYPES - The object sub-type(s) associated with transactions that will be considered as part of the generated capitalization in the scrubber process.
• CAPITALIZATION_OFFSET_CODE - This overrides the Chart Fund Balance object code for Capitalization.
Plant Indebtedness