- 13 Jun 2024
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CIP & Active Credit Offset Accounts
- Updated on 13 Jun 2024
- 1 Minute to read
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This article is part of the Fixed Assets Module training. Click here for more information on the Fixed Assets module and click here for more information on Asset actions, where CIP & Active Offset Accounts are selected.
When the Status of an Asset is changed from 'Draft' to 'CIP', or from 'Draft' to 'Active', an Offset prompt will appear asking the User to select a GL Account to record the Credit Offset to the Debit on the CIP or Asset Account.
The recommended method for adding new Assets is through the use of the Potential Assets list or the Asset Import Template on the Setup Assistant. Please consider using these methods in place of manual Asset creation as the Credit Offset assignment is not required.
Review each of the following scenarios to determine which GL Account should receive the Credit Offset.
Asset Purchase recorded on AP Invoice using Potential Asset Trigger Account
Click 'Cancel' and navigate to the Potential Assets list
Locate the Asset and create a new Asset on the Potential Assets list
Review the new Asset, and compare it with the original Asset record
Make any necessary updates to the new Asset and save
Delete the original Asset record
Asset Purchase recorded on AP Invoice using other Expense Account (Non-Potential Asset Trigger Account)
Using the prompt, select the same Expense Account that was used to record the purchase of the Asset
Click 'OK' to complete the Credit Offset assignment
Asset Purchase has not been recorded (no AP Invoice has been created)
Using the prompt, select the Cash Account that was used to purchase the Asset
Click 'OK' to complete the Credit Offset assignment
When this method is used, the Asset Purchase will not be recorded in AP. Do not use this method if the Asset Purchase needs to be recorded in AP
Asset Purchase was recorded in legacy accounting system and is currently being depreciated
Using the prompt, click the 'No Entry' button located below the Account selector
Click 'Yes' after reading the text on the Confirmation Window to bypass the Credit Offset Assignment