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Asset Clearing or Asset Cost Account to use in Procurement while bringing Asset to FA module with Ma

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edited Jul 25, 2020 5:14AM in Assets 5 comments

Summary

Asset Clearing or Asset Cost Account to use in Procurement while bringing Asset to FA module with Mass Addition process

Content

We are using a Clearing account for any procurement of Asset purchase. Then while we are doing mass addition and after Asset creation we are making the accounting entries as follows

Dr Asset Cost Account

Cr Asset Clearing

This is working as expected no issue. 

Wanted to know the best practice on this, is this the best practice to capture with a clearing account and then during actual asset creation in FA module, this will be charged to Asset Cost or should we directly charge Asset Cost account directly during procurement and then follow through the steps? We tested that and that is also working as expected. But does this approach have any accounting reconciliation impact in bigger sense if we directly charge the Asset account instead of clearing account during the procurement

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