15.02. Entering Fixed Assets

Fixed Assets

Fixed Assets can be managed using the Asset (Customer) window, located in the Customer Assets menu.

• to enter a new asset press the new record button in the toolbar

• the window will only display assets with the Owned checkbox. The assets without the can be found in the Customer Assets window, located in the Customer Service menu;

The following fields are available:

• Search Key, name, Description, Comment

• Parent Asset

• Owned - is used to differentiate fixed assets from customer assets. Assets by definition are owned by the organization;

  • in Possession - is used to indicate that the asset is in the organization's possession.

    • Cell - if the asset is in possession, the corresponding warehouse locator can be specified;

  • Depreciation - is used to indicate whether the asset is subject to depreciation:

    • if checked, the available asset groups will also have "Depreciation" checked;

    • the checkbox is only available for "Owned" assets;

  • Fully Depreciated (system maintained) - indicates that depreciation rates were processed for the entire asset value;

• • Asset Classification - Romanian asset classification code. Details in Asset Setup;

  • Trx Organization, Project, Activity - accounting dimensions used for analysis, determined by the accounting schema. Details in Accounting;

• Product, Attribute Set Instance - product based on which the asset was generated;

• Version No - descriptive field, used by IT or editorial organizations;

• System Status - used to determine the priority for maintenance operations;

• Lot No, Serial No - lot or series number of the product based on which the asset was defined;

• In Service Date - date when the asset was enabled fr service (is used to determine the starting depreciation period);

• Expiration Date - expiration or end of service date for the asset;

• Asset Group - determines the default accounts, revaluation method and depreciation method used for the asset. Details in Asset Setup;

• TrialPhase

• Quantity - number of units for the asset. Details in Asset Allocation;

• • Address - address where the asset is currently located;

  • Location Comment - description or comment regarding the asset location;

  • Business Partner, Address, Contact - the source business partner for the asset;

  • Representative - employee responsible for the asset;

  • Reval Date - planned date for asset revaluation;

  • Usable Life - Years - years planned for asset usage (determines the end period for depreciation);

  • Usable Life Months (informative) - months planned for asset usage;

  • Life Use Units (informative) -estimated lifespan for the asset in units;

  • Use Units - asset quantity allocated for use. Details in Asset Allocation;

  • Initial Amount - asset amount taken from asset cost records registered before the "In Service Date";

  • Inventory Amount - total asset amount taken from the cost records registered in the Cost Details tab;

• Last Maintenance, Next Maintenance, Last note, Last Unit, Next Unit - are used to register service and maintenance operations;

• Disposed - indicates that the asset has been disposed;

  • Asset Disposal Date - date of asset disposal;

• Has Cost Details (system maintained) - indicates that the asset has cost records registered in the Cost Details tab;

• Estimated Investments - invested estimated and agreed upon between the organization and the institution providing subsidy. Details in Fixed Assets - Extension;

• Source - source document type based on which the asset was generated (Create Asset checkbox). The corresponding document and line can be selected depending on the choice:

  • "Internal Use Inventory"

  • "Vendor Invoice"

  • "Shipment"

  • <nothing>

• Source Document - note regarding the source document;

• Asset Receipt, Asset Receipt No, Asset Receipt Date, Asset Receipt ISD, Asset Recept ISD No, Asset Receipt ISD Date - reference to documents used to register asset ownership and use;

• State Aid (subsidy) - indicates that the asset was purchased using subsidy;

With SocrateCloud it is possible to register assets purchased using subsidy, plan subsidy distribution and generate the corresponding accounting transactions. Subsidies are registered for an asset in the Investment Details tab. Details in Fixed Assets - Extension;

Asset Costs

The Cost Details tab is used to register assed related costs. The following fields are available:

• Posting Type

• Cap vs Expense - the type of cost:

  • "Capital" - increases the total asset value;

  • "Expense" - will be added as an entry in the assets journal;

• Source - the type of the source document based on which the cost was registered;

• Transaction Date - date when the source document was registered;

• Asset Value, Current Qty, Currency - determines the total cost amount: Total Cost Amt = Asset Value x Current Qty

• Account Date - date for the resulting accounting records. A date before the "In Service Date" is used to represent costs related to asset procurement. A date after the "In Service Date" is used as an asset value adjustment during depreciation;

• Added Value

Accounting Setup

The Accounting Setup tab is used to define the accounting information and depreciation methods for the asset. The following fields are available:

• Accounting Schema, Calendar, Posting Type

Setup section - used to define the depreciation method used for the asset. Details in Asset Depreciation.

• Period Start - indicates the month after the "In Service Date" when the asset depreciation starts;

• Period End - month when depreciation ends

  • Depreciation Type, Depreciation Method, Depreciation Convention - parameters used to generate asset depreciation rates;

  • Salvage Value - value already depreciated;

  • Fully Depreciated (system maintained) - indicates that depreciation rates were processed for the entire asset value;

  • Fully Depreciated Date - date of the last depreciation date;

Note: For inventory objects where a single rate is required, the start date should be 0 and the end date 0. Starting 14.05, a period should be added in the Added Periods tab, with the transaction and account date same as the "In Service Date", and 1 as the added period amount. This is how the depreciation rate will be generated for the inventory object;

Accounts 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

Note: the accounts defined here will not be in use if records were defined in the Account Transfer tab;

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

Action section:

• Create Depr Rates button - is used to generate depreciation rate using the parameters selected in the Setup section;

• Update Asset Accounts button - is used to overwrite the asset account with the accounts defined for the asset group;

The Depreciation Rate displays the depreciation rates generated for the asset;

The Added Period tab can be used to add additional depreciation periods to the asset, starting with a specific date.

Account Transfer

The Account Transfer tab is used to register the account corresponding to asset transfers. The records in this tab can be manually entered or generated based on an a transfer document from the Asset Account Transfer window, located in the Customer Assets menu.

A "transferred" asset will use the accounts defined in this tab, from the record with the most recent account date instead of the accounts defined in Accounting Setup, Accounts section; The following fields are available:

• Document No, Description

• Account Date - date when the account transfer was made;

• Account Transfer - the transfer document based on which the record was generated. Details in Asset Operations;

Accounts section:

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

• Depreciation Acct. - the account where the realised depreciations will be registered;

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

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

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

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