Creation of Fixed Assets.
Go to Fixed Assets> Fixed Assets> Assets.
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1- Click new
2- Select site
3- Select the relevant expenses to be grouped together as one asset by double clicking in the
field to the left of the reference field.
4- Fill in the new accounting code of the asset when prompted. (This will identify the category
of the asset).
5- Click on the Apply button. This will take you to the previous screen where the asset details
need to be completed (To be handled in the Financial Assets Management manual).
Financial Asset Management
Go to Fixed Assets > Fixed Assets> Assets
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Header Information
1- Click new
2- The Company is selected in the company field.
3- The Financial site is selected in the site field.
4- The asset reference field is automatically populated once the asset is saved.
5- Click capitalize
Main Tab
1- Different dates are applicable to fixed assets.
a) Purchase date – the date the asset first gets recognized.
b) Posting date – The date the cost would have been passed to the GL
c) Date put into service – This is linked to the default depreciation start date. The
depreciation start date can be individually changed for each ledger.
2- Holding type - where will you keep the asset
3- Purchase Condition - is it second hand goods or new assets
4- Receipt nature - how was this asset obtained, was it purchased, created, transferred. These
fields will also be updated when an asset is transferred, split or merged.
5- Unit - what is the measure of the asset? E.g. kg’s, meter’s etc. By default it will be Units.
6- Quantity -How many units are there in this asset? (If an asset has multiple units, then the
cost is the Total cumulative cost for all the units in that asset).
7- Fixed Assets type - is the asset Tangible or Intangible
8- Accounting codes - select accounting codes/category (This is the class that will determine
what accounts will be used for the asset.)
9- Serial number – the serial number assigned to the asset.
10- Tax Inc or Exc – Indication if the tax is included, or excluded for this asset.
11- Group No- The reference number the asset was assigned to when it was created. (this is so
that if you ever change the Reference, you have the original Reference number recorded)
12- Status- this determines the component status of the asset.
a) Stand Alone asset - The asset is neither a master or a component
b) Master asset -The asset is the master asset, and components can be assigned to the
asset
c) Component- The asset is a component of a Principal Asset (if the asset is a component,
the master asset can be assigned in the next field)
d) Nature- the nature of the asset is determined by the Account code, all capitalized assets
are classified as assets in service.
13- Values
a) The cost excluding vat is the cost of the asset.
b) Vat rate - the vat rate defaults to the rate defined as the default vat rate. This rate can be
changed.
c) Cost vat Inclusive, is the cost and the vat together.
Posting Tab.
1- Select the Tax class of the asset
2- If an asset can be assigned to a dimension, this can be done in the analytical table, by clicking
on the required dimension field, and selecting the appropriate dimension.
3- A physical site and Location can be assigned in the Geographical block.
Depreciation Tab
For each ledger, a depreciation policy must be created. This allows you to generate different
depreciation figures for the same asset.
- The Method - A depreciation method for that ledger.
- Mode of assets: UL- Straight line, UD - Reducing Balance, SA - Zero Depreciation
- Duration -Time the asset must be depreciated over. (Applicable for straight line, and Units of
production)
- Rate - The rate of depreciation if the plan is declining balance.
- Prorate - How often depreciation should be accounted for. (Default to monthly)
- Depreciation start date- date on which depreciation will start
- Balance sht. Val - Value that will be depreciated.
- Resid. Value - Residual value of the asset.
If you need to see a depreciation forecast for that ledger of the asset, right click on plan. This will give
you the option to select depreciation plan/forecast.
Receipt Entry, Concessions and Other info
The receipt entry and Concessions tabs are recording tabs. They will keep track of transactions done
on the asset, and will display the results.The Other info tab is a tab containing fields that can be setup
as custom fields, to accommodate any extra fields needed by the users.
Change account Posting
Within a fixed asset go to Menu Actions – Change account postings
This allows you to change the cost account/category of the asset.
1- Select the reason for the change
2- Tick the box of the field you want to update. (Holding type/Family/Accounting code
3- Change the appropriate field to the one you want it to be.
4- If accounting code is used, the related fields will be filled in automatically. (Holding type and
Family fields are not in use. They should not be filled in)
Change depreciation method for an asset
Within a fixed asset go to Menu Actions –Change Method
This will allow you to change some of the depreciation information.
1- When you want to update a field for a plan, you must switch the “Update” field TO THE LEFT
OF THAT FIELD to YES. This will allow you to change the depreciation method.
2- Mode of assets: UL = Straight line, UD = Reducing Balance, SA = Zero Depreciation
Revaluation of an asset
Within a fixed asset go to Menu Actions – Revaluation
An assets capital value can be revaluated here.
1- Select the relevant depreciation plan affected by the revaluation. (Should almost always be
Accounts).
2- If you are reversing a revaluation, then you select the “Reval Cancellation” box. Otherwise
leave it unselected.
3- Enter the revaluation effective date
4- Choose a method of revaluation. For each selection, the appropriate boxes will be made
available to be filled in. (You can choose a revaluation coefficient, an index or to revalue to a
market related value.
5- The person who did the evaluation must be selected.
6- If you want to add a comment to the revaluation, the comment field is use
