Field help (LVA)

Low Value Assets are managed according to two different terms: LVA and Pool.

Management terms of LVA status assets:

• The company is submitted to the German or Austrian legislation.
• The management type of the accounting and financial depreciation context has the value: LVA
• It is possible to create several assets of this type in a fiscal year. Expenses can be attached to them. The amount of expenses and the amount of assets created by direct entry cannot, in principle, exceed the LVA threshold defined in the parameters of the context (non-blocking warning message).
• The creation of an LVA is authorized only in the current fiscal year and/or the next fiscal year. Beyond the next fiscal year, the creation is prohibited.
• The accounting code of an asset of this type must be associated with a fixed asset account whose management type is LVA and whose chart of account is submitted to the German or Austrian legislation.
• An LVA cannot be attached to a main asset.
• A component asset cannot be attached to an LVA.
• The depreciation method of an LVA is freely chosen. Generally speaking, the depreciation follows the 1P mode (depreciation over a single period).
  
  Creation of an LVA by capitalization of expenses:
  
  If the main expense is posted on an LVA-type account:
  
  
  • It is possible to select other expenses that are also posted on a LVA-type account or on any other account (Pool-type accounts excepted): the account transfer toward the main expense account will be automatically performed upon validation of the asset creation.
  • A non-blocking check is performed to verify that the amount of each of the expenses and the amount of the capitalized value do not exceed the LVA threshold defined in the parameters of the context.
  
  An expense posted on a Pool-type account cannot be selected as a main expense.
  
  It is not possible to capitalize expenses whose posting dates are set in different fiscal years.

Management terms of Pool assets:

• The company is submitted to the German legislation.
  This management mode is obligatory for the fiscal years 2008 and 2009.
• The management type of the accounting and financial depreciation context has the value: "Pool".
• Only one Pool asset can be created per fiscal year. When it is created via a direct entry, its start value takes the value 0. It is only valued with the attachment of expenses. The value of the asset is not limited, but the value of each expense should not exceed the Pool threshold defined in the context setup (non-blocking warning message).
• The creation of a Pool asset is authorized only in the current fiscal year and/or the next fiscal year. Beyond the next fiscal year, the creation is prohibited.
• The accounting code of an asset of this type must be associated with a fixed asset account whose management type is Pool and whose chart of account is submitted to the German legislation.
• A Pool asset:
  - cannot be deleted if at least one expense is attached to it,
  - cannot be disposed or split,
  - cannot be attached to a main asset.
• A component asset cannot be attached to a Pool asset.
• The depreciation method of a Pool asset is freely chosen. Generally speaking, the depreciation follows the Linear mode over a period of 5 years.
  
  Creation of a Pool asset via the capitalization of expenses:
  
  A value posted on a LVA account cannot be selected as a main expense.
  
  It is not possible to select a Pool-type expense as a main expense if there is already a Pool asset in the fiscal year.
  
  It is not possible to capitalize expenses whose posting dates are set in different fiscal years.
  
  If the main expense is posted on an Pool-type account:
  
• It is possible to select other expenses that are also posted on a Pool-type account or on any other account (LVA-type accounts excepted): the account transfer toward the main expense account will be automatically performed upon validation of the asset creation.
• A non-blocking control is performed to verify that the amount of each of the expenses does not exceed the LVA threshold defined in the parameters of the context.