Assets Register Introduction

> Assets Register Introduction

Assets Register Introduction

The Assets Register module enables you to manage and control your non-current asset investment.

It enables you to track your non-current assets by recording their acquisition, disposal, revaluation and transfer. Asset tracking can be enabled by asset branch, cost center, location and owner. An asset count and labeling system is also provided.

The Assets module also records the financial information for each non-current asset. This information includes the cost, book value, tax value and up to 10 alternate valuations for each non-current asset. In addition, costs incurred in the maintenance of a non-current asset can be recorded against that asset.

Individual depreciation books are defined for Book value and Tax value. In addition, you can define up to 10 Alternate valuation books.

An audit trail of all entries is recorded and can be viewed using the Asset Query and printed using the Asset Full Enquiry Listing program.

The information contained in the Assets Register can be output to (and integrated with) the General Ledger. The integration of financial information to the General Ledger can be defined at branch, group and cost center level, or a combination of these (General Ledger Integration). Alternatively, the Assets module can be run as a stand-alone module.

Security can be enabled at program, transaction, activity and field level.

An import program enables you to create your assets register by importing asset details created using 3rd party application software.

Configuring Assets Register

This task outlines the procedures you should follow to configure your Assets Register module before you begin to process transactions.

Some of these steps are optional and will depend on how you intend implementing this module.

Navigate to the Set Key Information program.

Indicate the properties and numbering method you require for the Assets and Capex numbers keys.
Navigate to the General Ledger Codes program.

Define the General Ledger control accounts for the Assets module.

If you want to integrate Assets to the General Ledger, then you require the following account codes in the General Ledger:
- Assets control account.
- Profit and loss account for asset disposal
- Capex in progress account for manufacturing assets in house.
- Revaluation reserve account
- Asset clearing account
- Depreciation account if you are not posting book value depreciation at Individual asset level (Assets Register Setup)
- Accumulated depreciation account
- Asset inter-company clearing account
- Profit and loss inter-company account
General Ledger Integration
1. Navigate to the General Ledger Integration program and indicate the following:
  - the Integration level you require for Assets
  - the level of automation for creating and posting General Ledger journals for Assets.
  - the point at which you want to force entry of analysis information, if you are using the General Ledger analysis facility
2. Navigate to the Assets tab and define the General Ledger control accounts for Assets.
3. Select the Assets Interfaces function.
  
  Using the Assets Ledger Interface program, indicate the interface ledger accounts at asset branch/cost center/group level for the Assets Register. These are used to integrate the Assets module to the General Ledger.
4. Select the Branches function.
  
  Using the Asset Branches program, define the asset branch codes.
  
  The branch code is used to apportion costs where an asset is moved between locations when using the Asset Transfer program.
  
  A branch must be defined against each asset.
5. Select the Cost Centers function.
  
  Using the Asset Cost Centers program, define the cost centers (within the asset branches) to which your fixed assets will be allocated.
  
  Cost centers can also be used to integrate asset transactions to the General Ledger.
  
  A cost center must be defined against each asset.
6. Select the Groups function.
  
  Using the Asset Groups program, define the asset groups.
  
  Asset groups are used to categorize your assets and can also be used as a selection criterion when printing reports. They also have a link to a depreciation code, enabling each group to have a default book value depreciation percentage and a default wear and tear (tax) depreciation percentage.
Assets setup

Define the Configuration, Preferences, Financial Periods, History and User Defined Fields setup options you require for Assets.
Capture the asset locations that you require (Asset Locations).

Locations are used to identify the physical place in which an asset resides. For example: Room 113, Reception, Factory floor, etc.

A location must be defined against each asset.
Capture details of your various types of non-current assets (Asset Types).

Asset type codes are used to distinguish between the different classes of assets on file. For example: Land and Buildings, Furniture and Fittings, Motor Vehicles, Plant and Machinery, etc.

An asset type must be defined against each asset.
Capture details of the owners of your fixed assets (Asset Owners).

Owners are used for information purposes only and must be defined against an asset.

You could use owner codes to indicate the person responsible for the safe-keeping and/or the maintenance of an asset, or the person responsible for authorizing any costs spent on the asset. For example: The Fleet Manager could be the responsible owner for all vehicles in the organization.
Capture details of the status codes for your non-current assets (Asset Statuses).

Asset status codes are used for information purposes only and do not have to be defined against an asset.

You could use the asset status codes to indicate the whereabouts or the condition of an asset at a particular time. For example: If the asset is being refurbished, is in storage or temporarily out of commission, you could use the asset status codes to indicate this against the asset.
Capture details of your disposal reason codes (Asset Reasons for Disposal).

A disposal reason code must be entered when you use the Asset Disposal program to dispose of an asset.
Capture details of your revaluation reason codes (Asset Reason for Revaluation).

A revaluation reason code must be entered when you use the Asset Revaluation program to revalue an asset.
Capture details of your mechanics (Asset Mechanics).

The rate per hour assigned to each mechanic is used during processing in the Asset Labor Time Sheet Posting program to establish the costs incurred by labor.
Capture details of your asset expense codes Asset Expense Codes.

The cost of purchases and labor are accumulated by expense code.
Capture details of your depreciation codes (Asset Depreciation Codes).

The depreciation codes are used to establish the actual depreciation percentage rates applied to an asset.

Take on the details of your existing assets.

This can be done using any of the following programs:


	After the take-on of your assets is complete, you should use the Assets and Asset Acquisitionprograms, together with the Assets Transaction Processing programs, to add, maintain and dispose of assets.

Asset Initial Capture

This program enables you to manually capture all data related to your assets.


The Asset Initial Capture program does not generate any General Ledger entries. If you want to integrate your Assets module to the General Ledger, then you will have to use the GL Journal Entry program to manually create and post the General Ledger journals for the Asset control and expense accounts in the General Ledger. Once you have completed the take-on, we recommend that access to the Asset Initial Capture is restricted, unless your Assets are not integrated to the General Ledger and you do not require a Distribution Report (i.e. Not linked to G/L - no distribution report is selected for Assets in the General Ledger Integration program).

The Asset Initial Capture program does not generate any General Ledger entries.

If you want to integrate your Assets module to the General Ledger, then you will have to use the GL Journal Entry program to manually create and post the General Ledger journals for the Asset control and expense accounts in the General Ledger.

Once you have completed the take-on, we recommend that access to the Asset Initial Capture is restricted, unless your Assets are not integrated to the General Ledger and you do not require a Distribution Report (i.e. Not linked to G/L - no distribution report is selected for Assets in the General Ledger Integration program).

Asset Import and Asset Acquisition Import

If you are using these two programs, then you must first use the Asset Import program and then the Asset Acquisition Import program.

The Asset Import program does not generate any General Ledger entries as this program captures only descriptive asset information, so there are no values to post.

You can selectively choose to create General Ledger entries for the Asset Acquisition Import program, by enabling the Generate general ledger entries option in the Asset Acquisition Import program.

If you select not to create the General Ledger entries, but you want to integrate the Assets module to the General Ledger, then you will have to use the GL Journal Entry program to manually create and post the General Ledger journals for the Asset control and expense accounts in the General Ledger.

Once you have completed the take-on, we recommend that access to the Asset Import and Asset Acquisition Import programs is restricted.
Assets and then Asset Acquisition

If you are using these two programs, then you must first use the Assets program and then the Asset Acquisition program.

The Assets program does not generate any General Ledger entries as this program captures only static (descriptive) information for assets, so there are no values to post.

The Asset Acquisition program creates General Ledger entries.

Establish the links required between your master and sub assets (Asset Master Sub-assets).

This enables you to produce reports which can be analyzed separately or together with subtotals produced for the master asset.
Define the page layout to print labels for your fixed assets, asset branches and asset locations (Asset Label Format).

A label format must be defined before you can use the Asset Label Print program.

Maintaining the Assets Register During the Month

This section outlines the typical functions you would perform to maintain your Assets Register on an ongoing basis.


	You may not require all the functions or reports listed.

Add new assets and maintain details of existing assets using the Assets and Asset Acquisition programs.

Generate the Asset List of Additions report as an audit trail of assets added.

Generate the Asset Amendment Journal to produce a list of all assets, branches, cost centers, groups and locations that have been added, changed or deleted.


	You can only run the Asset Amendment Journal if you indicated that asset amendment journals are required (Assets Setup).

Remove assets from the Assets Register using the Asset Disposal program.

Generate the Asset List of Disposals report as an audit trail of assets sold since the last year end date, and within a specified range of dates.
Transfer assets between Branches, Cost Centers and/or Asset Groups using the Asset Transfer program.

Generate the Asset List of Transfers report as an audit trail of assets transferred within a specified range of dates.

Revalue assets using the Asset Revaluation program.


	You cannot revalue assets in the current period once you have run the Asset Depreciation Calculation program for the current period and selected the Generate & update option.

Generate the Asset List of Revaluations report as an audit trail of assets revalued.

Post transactions of costs incurred against individual assets using the Asset Transactions program.

Generate the Asset Transaction Journals report as an audit trail of these transactions.
Record expenses incurred against assets using the Asset Expense Posting program.

Generate the Asset List of Expense Codes report to list the expense codes and the month to date and year to date expenses captured against each expense code.
Post labor hours against your assets using the Asset Labor Time Sheet Posting program.

Generate the Asset Timesheet Journals report as an audit trail of transactions posted.

Generate the Asset Labor Analysis Reports program to produce reports analyzing all postings made using the Asset Labor Time Sheet Posting program.

Adjust depreciation against individual assets using the Asset Depreciation Adjustment and the Asset Depreciation Adjustment Recalc programs.


	Before making any adjustments, you should run the Asset Depreciation Calculation report in Generate only mode so that you have a record of the values before the adjustments are made.

Generate the Asset List of Depreciation Adjustments report as an audit trail of depreciation adjustments processed.

Generate the Asset Depreciation Calculation report in Generate only mode to view the impact of your changes.

Assets Period End Processing

The following sections outline the procedures that you should follow to ensure that the integrity of the Assets module is maintained.

Pre-month end reporting

Ensure that all the Assets Register maintenance functions required for the period are complete.

Generate the Asset Timesheet Journals program to produce a report showing all the transactions entered using the Asset Labor Time Sheet Posting program.


	You should print these journals before you run either the Labor weekly update or Month end functions of the Asset Period End, as both of these functions delete the journal files.

Run the Labor weekly update function of the Asset Period End program to update the month to date fields with the labor amounts entered against an asset.
Generate the Asset Labor Analysis Reports using the Monthly option.
Generate the Asset Depreciation Calculation report in Generate only mode to check that the asset cost and depreciation values are as expected.

This report can be run as a report only as often as required. When generating the report only, depreciation is calculated, but the asset master file is not updated and no General Ledger distribution entries are created.

Use the various Assets Transaction Processing programs to correct errors (for example to adjust depreciation or to revalue or transfer assets, etc).
Optionally generate the Asset Movement Schedule to analyze the movements of assets added prior to the period selected at run time. Verify that these movements are correct.

Once you have verified that the values on the Asset Depreciation Calculation report are correct, re-run the report in Generate & update mode to process the depreciation calculations for assets for the current period.


	You can only run the Asset Depreciation Calculation program once in Generate & update mode for Book value depreciation during a single period. You must therefore only run the report in this mode for Book value depreciation after you have processed all your asset transactions for the month (i.e. acquisitions, disposals, revaluations, etc).

If the option: Create general ledger journal is not enabled for Assets (General Ledger Integration) then run the Asset GL Integration program to ensure that all the General Ledger journals for transactions processed in the Assets module are created.
If the option: Post general ledger journal is not enabled for Assets (General Ledger Integration) then use the GL Journal Entry or GL Post Multiple Normal Journals program to post the General Ledger journals for Assets into the General Ledger.
Print (or reprint) the Asset Distribution report for the month for audit trail purposes.
Generate the Asset Movement Schedule for all assets. You use this report to balance your Assets Register to the General Ledger
Optionally print or reprint the following reports as required:
- Asset Full Enquiry Listing
- Asset Tax Values Schedule
- Asset Disposal Tax Values Report
Balance the Assets Register to the General Ledger (see Reconciliation to General Ledger)

Reconciliation to General Ledger

Once you have generated the Asset Templates in Generate & update mode for the period, the values in your assets control and expense accounts in the General Ledger should correspond to the values on the Asset Templates report for the period and the Asset Movement Schedule report for all assets (using the Report option: Historical).

Balancing the Assets Register to the General Ledger using the Asset Movement Schedule report for all assets (using the Report option: Historical):

Report	Report Column	General Ledger Account(s)
Asset Movement Schedule	Gross cost
	Opening balance	Total of all opening balances in your asset Cost accounts (balance sheet accounts) as at the beginning of the financial year.
	Closing balance	Total of all closing balances in your asset cost accounts (balance sheet accounts) as at the current period.
	Depreciation reserves
	Opening balance	Total of all opening balances in your asset Accumulated Depreciation accounts (balance sheet accounts) as at the beginning of the financial year.
	Closing balance	Total of all closing balances in your asset Accumulated Depreciation accounts (balance sheet accounts) as at the current period.
	This period	Total of all entries in your asset depreciation expense accounts for the period (income statement accounts).

If there are differences, then:

Check that all journals were created and posted into the General Ledger.
- If the option: Create general ledger journal is not enabled for Assets (General Ledger Integration) then run the Asset GL Integration program to ensure that all the ledger journals for transactions processed in the Assets module are created.
- If the option: Post general ledger journal is not enabled for Assets (General Ledger Integration) then use the GL Journal Entry or GL Post Multiple Normal Journals program to post the General Ledger journals for Assets into the General Ledger.
- You can use the GL Journal Entry program to generate a report of Asset sub module journals not yet posted or on hold.
- You can use the Asset Distribution report to assist you in identifying the entries in the General Ledger control accounts.
Check that no journals other than journals from sub-modules were posted into the Assets control account(s) in your General Ledger. Only journals with a source type of AS should appear in these control accounts. If transactions for any other types of source codes exist, then these must be identified and reversed if invalid.
Check if any error messages were generated by the Asset Depreciation Calculation report - see Error Messages.

Period End Close


	It is strongly recommended that you take a backup of your data before processing a Month end, a Year end or a Purge.

After you have completed the pre-month end reporting process:

Select the Month end only or Month end and purge option from the Asset Period End program to close off the current Assets period and to enable you to process asset transactions for the following period.
Reindex the Assets module files using the Reindex Files program.

Year end

The year end procedure is similar to the month end procedure except that it can only be processed in the final accounting period of your financial year. The year end process transfers current year information to previous year and sets the current year-to-date information to zero.


	It is strongly recommended that you take a backup of your data before processing a Year end.

Ensure that the pre-month end reporting procedure is completed.
Select the Year end only or Year end and purge function of the Asset Period End program to close off the final Assets period of the financial year and to enable you to process transactions for the first period of the following financial year.