When creating a Purchase Order - if I select a Fixed Asset on the line item, what exactly does this do? Add the line item as a component of the Fixed Asset?

Are you referring to the related asset field? It just allows you to link income or an expense to that asset. It doesnt become part of the asset cost but can be referenced in the Income/Expense subtab of the asset.

Yes, exactly! Okay thank you for the infomration!

line item (either expense or the actual item) on PO does absolutely nothing. What does do is the receipt/VB. your line - if you want to post this transaction into FAM - should have fixed asset account selected either on the expense or on the item. Then when you run Asset Proposal process/script this receipt/VB will be available to become an asset. But of course for that the asset type needs to be created..

Yes, we are able to propose new assets just fine. What we are struggling with, is adding value to an existing asset when we replace parts or do maintenance that extends the life of the asset. For instance, replacing the battery on a vehicle or putting new tires on it. We don’t necessarily want to track the battery or the tires as a separate asset and then create a compound asset. We really just want the existing asset to have the added value, but also display the additional parts.

it is not possible the way you describe. you will have to create another asset. I also suggest creating a parent/child relationship for assets, not component. you will run into a situation where your added asset will be of different type (think of Conference Room with child Laptop).

Yes, that is a good point. We will take that into consideration during configuration.