15.01. Asset Setup

Asset Groups

Settings made for an Asset Group are inherited by the assets when they are created. These settings refer to the default asset characteristics such as life span, depreciation method, revenue and expense accounting.

Fixed Asset groups can be managed using the Asset Group window, located in the Customer Assets menu. The following fields are available:

• Name Description, Comment

• Owned - indicates that the assets in this grouped are owned by the tenant and are are registered to the accounting plan. Is used to differentiate fixed assets from customer assets:

  • checked - the group will be available for selection when defining fixed assets;

  • not checked - the group will be available for selection when defining customer assets;

• Depreciation - indicates that the assets in this group are subject to depreciation;

• One Amount per UOM - is used when generating assets from documents:

  • checked - number of assets generated will be equal to the quantity on the source document line;

  • not checked - a single asset will be generated, with its quantity equal to the source document line;

• Activate Rate Posting Level:

  • checked - posting depreciation rates will be done fr each asset;

  • no checked - posting asset rates will be done for the entire group, using the Depreciation by Asset Group window;

• Support Level (not usable in the current SocrateCloud version);

• Inventory No Sequence - the numbering sequence used for assets in this group;

Notes:

• Depreciation can be checked only of Owned is checked;

• For the asset group to be used for fixed assets, the Owned checkbox must to be checked;

Accounting

The Group Account tab is used to define the default accounts and depreciation methods used for assets in this group. The following fields are available:

• Accounting Schema, Posting Type

Setup section - is used to define the default depreciation method for the assets in this group. Details in Depreciation Methods.

• Depreciation Type - the method used to calculate depreciation amounts: Straight Line, Accelerate, Monthly Declining Balance, Declining Balance;

• Depreciation Method - determines the periods for which depreciation rates will be generated:

  • "Month - Current Period" - a depreciation rate will be generated for the current month;

  • "Year - Remainder of year" - depreciation rates will be generated for the remaining months, for the current year;

  • "Life - Remainder of life" - depreciation rates will be generated for the asset life span;

• Depreciation Convention - depreciation convention used for the first year;

• Split Percent - the percentage of depreciation expenses due to be allocated to this depreciation expense account. This allows for the allocation of asset depreciation expense to multiple accounting areas that share the same asset;

• Usable Life Years - life span of the asset in years which will determine the default end period for the assets in this group;

• Minimum and Maximum Life, Depreciation Duration (Months) - additional life span information for the asset group;

Note: The total split coefficient for an asset needs to always be 1.00, otherwise the depreciation will not be registered correctly;

Account section:

• Asset Acct. - the account where the asset values will be registered;

• Accum. Depreciation - the account where the cumulated depreciation amounts will be registered;

• Depreciation Acct. - the account where the realised depreciations will be registered. Exploitation expenses regarding asset depreciation.

• Disposal Revenue Acct. - the account where the realised profit/loss will be registered;

• Disposal Gain Acct. - the account where the realised revenue will be registered;

• Disposal Loss Acct. - the account where the realised loss will be registered;

• Subsidy Acct, Subsidy Revenue Acct

Revaluation Accounts section - is used to define the default method and parameters used for revaluation of assets in this group. Details in Revaluation.

• Reval Calc. Method - determines the method used to calculate the revaluation;

• Reval Cost Offset Current - the account where the compensation expenses of asset revaluation (at the revaluation date) will be registered;

• Reval. Cost Offset Prior - the account where the compensation expenses of the previous asset revaluation will be registered;

• Reval. Accum. Depr. Offs. Cur. - the account where the cumulated compensation expenses of the asset revaluation (at the revaluation date) will be registered;

• Reval. Accum. Dep. Offs. Prior - the account where the cumulated compensation expenses of the previous asset revaluation will be registered;

• Reval Expense Offs - the account where the asset revaluation depreciation expenses will be registered;

• Revaluation Acct, Revaluation Reverse Acct, Revaluation Gain Acct, Revaluation Loss Acct

The Copy Asset Account button can be used to copy and overwrite the accounts defined here to the asset belonging to this group group.

Classification Codes (Ro)

Asset classification codes are used by companies operating in Romania and can be managed using the Asset Classification (RO) window. Details in Asset Classification Codes (RO).

Asset Sets

Asset sets are used for asset grouping based on other criteria than asset groups or classification codes.

The Asset Set window, located in the Customer Assets menu, is used to manage asset sets. The following fields are available:

The Asset Set Details tab is used to add assets or asset groups to the asset set.

You can select the active asset sets as parameters for the following reports: Trial Balance - Fixed Assets; Trial Balance Detailed - Fixed Assets; Monthly Depreciation Report; Fixed Assets in Conservation; Assets Inventory List.