FXA - Fixed Assets Setup (SU)
Parameters Tab
This tab is used to set up and maintain the system defaults and parameters to be used for fixed asset processing.
To edit any of these parameters, click on the 'Edit' icon at the top of the screen.
When satisfied with your entry, click on the 'Save' button to commit your changes to the TASS.web database.
| Fields that require further explanation | |
|---|---|
Fixed Assets Journal Code | General Ledger journals that are created as a result of processing from within the Fixed Assets module will use the code nominated here. The journal code must be created using Finance > General Ledger > Setup Information > General Ledger Setup on the 'Journal Type' tab first. |
Summary or Detailed Journal | This field will determine how posting in the GL occurs for all asset types. The options are:
|
Number of Periods in the Year | This field is for display purposes only and is not editable in 'Add' or 'Edit' mode. It displays the number of accounting periods for the current year as set up in Finance > General Ledger > Setup Information > Years and Periods. |
Use Batch Control Totals | Tick this checkbox if you want to use the 'Control Totals' functionality when adding an asset transaction using program Finance > Fixed Assets > Asset Transactions > Transaction Batches. The 'Control Total' feature forces the entry of an asset batch header amount. The subsequent lines in the batch must balance to this figure before the batch can be posted. |
Start Number for Automatic Asset Numbering | This field is only editable in 'Add' mode. We recommend that auto numbering is used for asset additions. Therefore, '1' should be entered here when setting Fixed Assets up for the first time. |
Next Asset Number | This is a display-only field and will indicate the next available asset number. |
Next Asset batch Number | This is a display-only field that will indicate the next available asset batch number. |
User Defined Field Names – Text (1 – 5) | User definable fields allow you to store additional information about assets that are not already included in the Fixed Asset record. An example of a text type user defined field might be 'Artwork Category'. By entering this description in this setup screen it means that this field will become available on every asset record. You could display information such as 'Oil', 'Poster' or 'Drawing' on the appropriate asset records. Another example of how this may be used is as a further breakdown below 'Physical Location'. You may choose to use 'Physical Location' which is a field on the asset record to record 'building' and then create a user defined field to record 'room'. The descriptions that you enter here for user defined fields become available when entering and maintaining assets in Finance > Fixed Assets > Asset Information > Assets. |
User Defined Field Names – Amount (1 – 5) | User definable fields allow you to store additional information about assets that are not already included in the Fixed Asset record. 'Amount' names can be used to store information of a monetary nature. An example might be an asset that is fully depreciated when added to the database (which therefore has a zero dollar value) but for which you want to store the original cost. You could use a user defined cost with a label such as '$0 Original Cost'. |
Book Details Tab
This tab is used to enter information about the asset book.
Important!
Completion is mandatory.
To initially add your book details click on the 'Add' button.
Once the book details have been saved, use the 'View' or 'Edit' functions.
| Fields that require further explanation | |
|---|---|
Book Description | This is a narrative to describe the book, e.g. Accounting. Field size is 20 characters. |
Integrate to GL | Tick this checkbox if the transactions from this book are to create General Ledger journals. If this is checked, you must set up the correct GL accounts on the 'GL Integration' tab located in the Fixed Assets Setup. |
Current Year / Period | The financial year and period in which depreciation is to be calculated for this book. These fields cannot be changed after the first financial (batch) transaction has occurred. |
Depreciation Run Flag | This field indicates as to whether a depreciation run has occurred for the year/period combination above. Important! On initial setup, this field will default to unchecked and should be left this way to allow the first depreciation run to occur in the fixed assets start-up period. |
Click on the 'Update' button to commit your changes to the TASS.web database.
Categories Tab
This is the program to define the categories that assets will be assigned to. A category is a logical grouping of assets, e.g. Motor vehicles, computer equipment, plant and equipment.
Important!
Categories are particularly important as the asset register can be sorted by category and General Ledger integration is determined by the combination of category and GL location.
Usually, separate GL accounts are maintained in the balance sheet for each asset category.
Therefore Category Codes must be set up in parallel with the chart of accounts. Additional Category codes may be required to provide more details than held in the GL.
Adding a Category
To add a new category, click the 'New Category' button to display a blank 'Category Details' screen.
When satisfied with your entry, click the 'Save' button to commit your changes to the database or 'Cancel' to return to the selection screens.
Viewing and Editing Categories
To 'View' or 'Edit' a category, click on the associated link next to the relevant category.
When satisfied with your entry, click on the 'Update' button to commit your changes to the TASS.web database.
| Fields that require further explanation | |
|---|---|
Code | This is a 2 character alpha/numeric code. Examples could be: MV = Motor Vehicles, PE = Plant and Equipment. |
Description | This is a 20 character text field to describe the asset category, e.g. Motor Vehicles, Plant and Equipment. |
Depreciation Flag | Tick this checkbox if assets assigned to this category are to be depreciated when Finance > Fixed Assets > Asset Transactions > Depreciation Calculation is run. |
GL Locations Tab
This tab is used to define the GL locations that assets will be assigned to.
Important!
GL locations are particularly important as the asset register can be sorted by GL location and General Ledger integration is determined by the combination of category and GL location.
GL Location is not to be confused with 'Physical Location' which is used to track an assets actual location.
It is recommended that the number of GL locations is kept to a minimum. A good way to work out which GL locations that you are likely to need is to look at the expense area in your Income Statement and see how many breakdowns of depreciation expense that you have.
For example, Boarding Depreciation Expense, Admin Depreciation Expense, Tuition Depreciation Expense etc. In this example you would create three GL Locations (Boarding, Admin and Tuition) one for each of these areas.
If you don't have depreciation expense broken down within GL Chart sections then it is quite OK to only have one GL Location. The fewer GL Locations that you setup, the more manageable GL account Integration becomes.
Adding a GL Location
To add a new GL location, click the 'New GL Location' button to display a blank 'GL Locations' screen.
When satisfied with your entry, click the 'Save' button to commit your changes to the database or 'Cancel' to return to the selection screens.
Viewing and Editing GL Locations
To 'View' or 'Edit' a GL location, click on the associated link next to the relevant location.
When satisfied with your entry, click on the 'Update' button to commit your changes to the TASS.web database.
| Fields that require further explanation | |
|---|---|
GL Location Code | This is a ten character alpha/numeric code. |
GL Location Description | This is a narrative to describe the GL Location, e.g. Boarding, Admin and Tuition. Field size is 30 characters. Refer to the explanation of prudent setup of GL locations in the section above. |
Manager | This is an optional field to record the name of the staff member in charge of this GL location. It is a 15 character field. |
Additional Details 1-4 | Four fields of 20 characters are available to record additional information against each GL location. |
Physical Locations Tab
This tab is used to define the physical locations that assets will be assigned to.
Buildings, rooms or departments are examples of physical locations.
Physical locations are not important for General Ledger integration as they have NO influence on the creation of GL journals (GL integration is determined by a combination of asset category and GL location).
Adding a Physical Location
To add a new Physical Location, click the 'New Physical Location' button to display a blank 'GL Locations' screen.
When satisfied with your entry, click the 'Save' button to commit your changes to the database or 'Cancel' to return to the selection screens.
Viewing and Editing Physical Locations
To 'View' or 'Edit' a Physical location, click on the associated link next to the relevant location.
When satisfied with your entry, click on the 'Update' button to commit your changes to the TASS.web database.
| Fields that require further explanation | |
|---|---|
Physical Location Code | This is an 18 character alpha/numeric code. |
Description | This is a narrative to describe the physical location. Buildings, rooms or departments are examples of physical locations. Field size is 30 characters. |
Note Categories Tab
TASS.web provides a facility for entering and retrieving fixed assets notes. A note category is required to be entered against each note entered.
Possible examples of asset note categories could be; adjustments, maintenance, conditions, photographs etc.
This tab allows the setup and maintenance of 'Fixed Assets Note Categories'.
Highlight the appropriate line and click 'Edit Selected' to make description changes, or 'New' to add a new 'Code' and 'Note Category' description.
Each 'Note Category' requires a unique alphanumeric code up to 3 characters long and a description up to 30 characters long.
Important!
Categories cannot be deleted after they have been used, and care should be taken when changing the description, as any notes entered against the category would be affected by the change.
GL Integration Tab
This is the program to define the General Ledger integration for each asset category/GL location combination.
The General Ledger accounts used in all batch processing functions and the depreciation calculation are derived from the setup here. A full set of GL account codes must be defined for each category/GL combination.
Below are examples of the GL journals that are created by the Fixed Asset module transactions.
Examples of GL Entries From Fixed Assets
Example 1: Asset Purchase.
Purchase of computer equipment for $8000.00
DR Original Cost A/C $8000.00
CR Asset Purchases Clearing A/C $8000.00
It is assumed that the Asset Purchase Clearing A/C acts as a clearing account with a clearing entry through Accounts Payable to:
DR Asset Purchase Clearing A/C $8000.00
CR Accounts Payable Control A/C $8000.00
Example 2: Asset Depreciation.
Whatever method of depreciation used, the entry is always:
DR Depreciation Expense A/C $___.__
CR Accumulated Depreciation A/C $___.__
Important!
An asset will not be depreciated below its salvage value. NIL depreciation will apply when the Net Book Value is 0 or = Salvage Value.
Example 3: Asset Sale.
1. Sale of an asset with Original Cost = $1000.00
Net Book Value = $ 200.00
Sale Price = $ 200.00
DR Asset Sales Clearing A/C $ 200.00
DR Accumulated Depreciation A/C $ 800.00
CR Original Cost A/C $ 1000.00
It is assumed that the Asset Proceeds A/C acts as a clearing account with a subsequent entry in through either A/C Receivable or Receipting to:
DR Cash at Bank A/C $ 200.00
CR Asset Sales Clearing A/C $ 200.00
2. Sale Price = $150.00
DR Asset Sales Clearing A/C $ 150.00
DR Loss on Sale A/C $ 50.00
DR Accumulated Depreciation A/C $ 800.00
CR Original Cost A/C $ 1000.00
3. Sale Price = $250.00
DR Asset Sales Clearing A/C $ 250.00
DR Accumulated Depreciation A/C $ 800.00
CR Profit on Sale A/C $ 50.00
CR Original Cost A/C $ 1000.00
4. Sale Price = $1200.00
DR Asset Sales Clearing A/C $ 1200.00
DR Accumulated Depreciation A/C $ 800.00
CR Profit on Sale A/C $ 800.00
CR Capital Profit A/C $ 200.00
CR Original Cost A/C $ 1000.00
Example 4: Asset Retirement (Write-off).
Used where an asset is physically disposed of or sits idle (due to damage or otherwise) and no proceeds are received.
DR Accumulated Depreciation $ 800.00
DR Loss on Sale $ 200.00
CR Original Cost A/C $ 1000.00
Example 5: Asset Transfer.
The transfer can be from one category or location to another.
From Location :
DR Accumulated Depreciation A/C $ 800.00
DR Asset Transfer Clearing A/C $ 200.00
CR Original Cost A/C $ 1000.00
To Location :
DR Original Cost A/C $ 1000.00
CR Asset Transfer Clearing A/c $ 200.00
CR Accumulated Depreciation A/C $ 800.00
Important!
All details including history transfer with the asset.
Example 6: Asset Revaluation.
An asset that has an Original Cost of $1000, Accumulated Depreciation of $800 hence a Net Book Value of $200 is to be revalued.
1. Revalued to a Net Book Value of $1050.
DR Accumulated Depreciation A/C $ 800.00
CR Original Cost A/C $ 800.00
(To make original cost = net book value)
DR Original Cost A/C $ 850.00
CR Revaluation Reserve A/C $ 850.00
(To revalue the asset to $1050.00)
Important!
Depreciation is now calculated on an Original Cost of $1050.00
2. Revalued to a Net Book Value of $150.
DR Accumulated Depreciation A/C $ 800.00
CR Original Cost A/C $ 800.00
(To make original cost = net book value)
DR Revaluation Reserve A/C $ 50.00
CR Original Cost A/C $ 50.00
(To revalue the asset to $150.00)
Adding a GL Integration
To add a new GL Integration, click the 'New' button to display a blank 'GL Integration' screen.
When satisfied with your entry, click the 'Save' button to commit your changes to the database or 'Cancel' to return to the selection screens.
Viewing and Editing GL Integration
To 'View' or 'Edit' a GL Integration, click on the associated link in the 'Action' column.
When satisfied with your entry, click on the 'Update' button to commit your changes to the TASS.web database.
| Fields that require further explanation | |
|---|---|
Category Code | Select the category of the asset for which you will be setting up GL accounts integration. These have been set up on the 'Categories' tab. |
GL Location Code | Select the GL location code of asset for which you will be setting up GL accounts integration. These have been set up on the 'GL Locations' tab. |
Original Cost | The account code entered here will be used by most asset transactions. Refer to the 'Examples of GL entries from fixed assets' for examples of the GL journals. |
Depreciation Expense | The account code entered here will be used by the depreciation program. Refer to Example 2 in the 'Examples of GL entries from fixed assets' for examples of the GL journals. |
Accumulated Depreciation | The account code entered here will be used by most asset transactions. Refer to the 'Examples of GL entries from fixed assets' for examples of the GL journals. |
Asset Purchase Clearing | The account code entered here will be used by asset addition. Refer to Example 1 in the 'Examples of GL entries from fixed assets' for examples of the GL journals. |
Profit on Sale | The account code entered here will be used by asset sale. Refer to Example 3 in the 'Examples of GL entries from fixed assets' for examples of the GL journals. |
Loss on Sale | The account code entered here will be used by asset sale. Refer to Example 3 in the 'Examples of GL entries from fixed assets' for examples of the GL journals. |
Capital Profit on Sale | The account code entered here will be used by asset sale. Refer to Example 3 in the 'Examples of GL entries from fixed assets' for examples of the GL journals. |
Revaluation Reserve | The account code entered here will be used by asset revaluation. Refer to Example 6 in the 'Examples of GL entries from fixed assets' for examples of the GL journals. |
Asset Transfer Clearing | The account code entered here will be used by asset transfer. Refer to Example 5 in the 'Examples of GL entries from fixed assets' for examples of the GL journals. |
Asset Sales Clearing | The account code entered here will be used by asset sale. Refer to Example 3 in the 'Examples of GL entries from fixed assets' for examples of the GL journals. |
A 'Clone' button is available to make the establishment of subsequent category/GL location GL integrations quicker.
You can select an existing category/GL location and clone it to another combination. The clone feature allows you to make changes to the GL accounts before committing the new combination to the database.
Depreciation Rates Tab
This tab is used to set up depreciation rates to be used by the asset depreciation program.
TASS.web Fixed Assets supports the following depreciation methods:
- SLL — Straight Line method over life of asset.
- SL% — Straight Line method using a percent.
- DVL — Diminishing Value method over life of asset.
- DV% — Diminishing Value method using a percent.
Adding a Depreciation Rate
To add a new Depreciation Rate, click the 'New Depreciation Rate' button to display a blank 'Depreciation Rate' screen.
When satisfied with your entry, click the 'Save' button to commit your changes to the database or 'Cancel' to return to the selection screens.
Viewing and Editing Depreciation Rates
To 'View' or 'Edit' a Depreciation rate, click on the associated link next to the relevant location.
When satisfied with your entry, click on the 'Update' button to commit your changes to the TASS.web database.
| Fields that require further explanation | |
|---|---|
Depreciation Code | This is a 2 character alpha/numeric code. |
Depreciation Method | Choose from one of the following depreciation methods:
Where either SL% or DV% are selected; a depreciation rate must be entered in the next field so that a valid calculation can be made by the depreciation program. Where either SLL or DVL are selected the depreciation will be calculated over the life of the asset. |
Depreciation Rate | A percentage must be entered into this field if SL% or DV% have been selected in the 'Depreciation Method' above. The percentage entered here is used to calculate depreciation on a per annum basis. |