Work with Asset allows you add, view or maintain assets.
View assets
- In the menu, expand Other Modules > Fixed Assets > Entry and double-click Work with FA. FAW010 Asset Selection panel appears.
- Click OK to list the existing assets.
| Function | Description |
| Add | Add a new Fixed asset. |
| Init load | Initiate initial load process. |
| Option | Description |
| Change | Change is used to perform a change of a Group to a new Group for the selected Asset. Taking this action generates transactions as an adjustment reversing all previous postings for the old group and re-posts under the new group ID. These transactions are posted in the current period, the Status of the old Asset group changes to ‘E’ and the Status of the new Asset group is ‘A’. The next period the ‘E’ records a deleted from the Asset files. |
| Stop | Stop deletes the Asset at the End of Year. Taking this action will not generate monthly depreciation. The status changes to ‘D’. |
| Reject | Reject can be used when an error has been made in the entry of an asset. This process performs the depreciation in the current period and reverses all journals in the next period. An Adjustment journal will be posted and the asset is then deleted the following month. |
| Display | Display displays the asset without making any changes. Users with no authority to change can have this function |
| Reactivate | Reactivate reactivates assets that have been placed on stop or rejected or a disposed asset. Taking this action generates depreciation from the current period. The status changes to ‘A’. |
| GrpChg | Changes the Asset group for the selected asset. |
| TranInqy |
Displays all the transactions for a selected asset. It provides a complete list of historical transaction including details of the purchase, depreciation and disposals as well as the ability to view the link between the transactions and General Ledger. The information in the Transaction Inquiry Option generates after running the End of Month Depreciation or after maintenance to an asset. |
| Note | User access to these options is controlled via TMSFA/OPT-ASET. |
Add new assets
- From FAW010 Work with Asset panel with existing assets, click Add. FAW010 Work with Asset panel appears in Add mode.
| Field | Description |
| Asset in use |
In Work with Assets the asset is flagged as Y for in use or N for not in use. An error message displays if left blank in Add mode: Invalid in use flag. |
| Depreciate asset | Flag to determine if the asset should be depreciated. For example for LAND the flag would be No.
NOTE: The Asset in use and Depreciate flags must be set to Yes for the asset to depreciate. |
| Company depreciation method | In Work with Assets this mandatory field contains the Company Depreciation Method.
S=Straight Line (prime cost method) D=Diminishing Value Method (or Reducing balance) X=Straight Line ADJ Y=Diminishing Value ADJ X and Y Adjustment depreciation methods are used for incorrect depreciation amounts to recalculate and apply any variances from the purchasing period to the current month. This provides flexibility to adjust any variance automatically removing any manual process involved in calculating differences. The depreciation type and rate are based on the asset group selected when adding the asset. Under the Prime cost method, a deduction equal to a percentage of the original cost of the plant is allowable in each income year over its effective life. This method assumes that plant depreciates uniformly throughout its life. Where plant is used for the purpose of producing assessable income (or is installed ready for use for that purpose) for only part of the year, the deduction for depreciation is calculated on a pro rata basis. Under the Diminishing value method, depreciation is assumed to be greatest in the first year and smaller in each succeeding year. Depreciation is calculated in the first year by applying a percentage to the cost of the plant. In the second and following years, depreciation is calculated on the un deducted cost of the plant at the start of the income year. Other codes can be setup using TMSFA/DEP-TYP which allows calculation of depreciation from inception of the asset |
| Tax depreciation method | Tax Depreciation Method is mandatory. Refer to Company Depreciation Methods for further information |
| Company depreciation rate | This optional company depreciation rate field is the percentage figure used relevant to the company situation. The depreciation type and rate are based on the asset group selected when adding the asset. |
| Tax depreciation rate | This optional field is a percentage figure used relevant to the taxation situation. For tax purposes, depreciation deductions are allowed only in respect of a more narrow class of property called plant. Rates of depreciation may also differ for tax and account purposes. |
| Company purchase cost | The ‘initial value’ or cost of the asset which is used by the company for depreciation. This figure usually includes purchase cost sales tax, freight and installation charges. |
| Tax purchase cost | The initial value or cost of the asset used for taxation purposes. Usually it is the same as purchase cost with the exception of motor vehicles. |
| Purchase date | Date of the Asset purchase, this is a mandatory entry. |
| Company depreciation month to date | This is Depreciation for current month and is included in the depreciation this year, figures. This is display only and holds the work amounts from the last calculation. MTD does not add to YTD until period close. The month to date depreciation in the ‘Initial Load’ process will be calculated from the monthly process. |
| Tax depreciation month to date | Depreciation for current month is included in the depreciation this year, figures. This is calculated in the month end process. This is display only and holds the work amounts from the last calculation. MTD does not add to YTD until period close. |
| Company depreciation year to date | This is the year to date depreciation used for company. In the ‘Initial Load’ process enter the historical depreciation amount otherwise leave blank for auto calculation from the monthly process. |
| Tax depreciation year to date | The year to date tax depreciation used for company. In the ‘Initial Load’ process enter the historical depreciation amount otherwise leave blank for auto calculation from the monthly process. |
| Company depreciation prior year | This is the Total depreciation excluding this fiscal year which is used for the company. In the ‘Initial Load’ process enter the historical depreciation amount otherwise leave blank to auto calculation from the monthly process. |
| Tax depreciation prior year | This is the total depreciation excluding this fiscal year which is used for the company. In the ‘Initial Load’ process enter the historical depreciation amount otherwise leave blank to auto calculation from the monthly process. |
| Tax written value | The “Written down value” of plant is essentially the cost of an item of plant reduced by the depreciation deductions allowable for the plant. Written down value only takes into account actual depreciation deductions allowable. It does not take into account deductions that would have been allowable if the taxpayer had used the plant for income-producing purposes.(This is Australian Taxation Law). This figure is calculated and will change every processing period. |
| Disposal cost | Cost of the disposal of the asset. |
| Disposal date | Date on which the asset was disposed. |
- Enter relevant information, as necessary.
- Click Page down.
| Field | Description |
| Previous asset code | Optionally enter a previous asset code for the selected asset group. |
| Parent asset | This optional field is used to link assets while the individual assets may continue to depreciate independently. |
| Lease or land | Indicate if the asset is Leased or Land or All. |
| Estimate life | This is an optional estimate of the life of the asset, in months, and provides the user with capital expenditure projections. |
| Insurance value | In the case of assets owned by the Company this is the value for which the asset is insured. This field also can be used to show the residual value of the lease in the case of leased assets. |
| Project no | The project number is used to group assets within a project if required. |
| Project year | The Project Year field is used to group assets within a project for a particular year. Entry in this field is optional. The format for a Year entry is YYYY. |
| Tag number | This is the number currently given to the asset to identify it. Entering a Tag Number is optional. |
| Supplier | Entry of the Name of the Supplier or Vendor from which the asset was purchased is optional. |
| Requisition number | Entry of a Company Appropriation Request Number is optional |
| Serial number | This is an optional entry used to record Serial Numbers. |
| Port number | This Port number can be entered if it is a requirement to record the physical connection for devices on the system network. |
| Network ID | Record the network ID if it is needed to locate the computer devices. Example: Department and User ID and a number. |
| Foreign exchange rate | This depreciation rate in foreign currency is optional |
| Foreign purchase cost | The foreign purchase cost is the calculated cost once the exchange rate has been added in. This will only be updated when in ADD mode. |
| Stock take period | This is an optional entry to reference the last Stock take period. |
| Asset class 1 | In Year End Schedule select an Item Class of asset to be included in the report. |
| Asset class 2-3 | This is the second Asset/Item class field and is for future use. |
- Enter the relevant information, as necessary.
- Click OK to confirm and fixed asset gets added.
When there is an addition of a new asset the following journals are created:
DR Asset/Capital TMASFA/GL-ACC *
CR Fixed Asset clearing TMASFA/GL-CLAC (PC is from the Dept code field)
These General Ledger Accounts must be defined in the following Fixed Assets Control Files:
- TMSFA/DDEP Default Department for summary balance sheet.
- TMSFA/GL-ACC General Ledger accounts for Asset Groups
- TMSFA/GL-BACC General Ledger bank Account by group.
- TMSFA/GL-CLAC General Ledger clearing account by group.
- TMSFA/GL-PLACC General Ledger Profit and Loss account by group.
If the summary field on TMSFA/SUMBAL is flagged as ‘Y’ the profit centre is from the Dept code field. If it is flagged as ‘N’ the profit centre is from the Asset code field.
Change an asset
- In the menu, expand Other Modules > Fixed Assets > Entry and double-click Work with FA. FAW010 Asset Selection panel appears.
- Click OK to list the existing assets.
- Select an asset and click Change.
| Function | Description |
| Text | Used to add comments to asset. |
| Dispose | Used when asset has fully depreciated, allows it to be disposed and deleted from the system. |
| Accts | Shows GL postings for various treatments; acquisition, depreciation and disposal if applicable. |
| Trans | Displays a Transaction Inquiry which provides a complete list of historical transaction including details of the purchase, depreciation and disposals as well as the ability to view the link between the transactions and General Ledger. |
Disposal of an asset
- From FAW010 Work with Asset panel with existing assets, select the asset you wish to dispose and click Change. FAW010 Work with Asset panel appears in change mode.
- Enter the disposal amount and the disposal date.
- Select function Dispose. The asset status will now be altered to ‘R’ for retired.
| Note | The disposal cannot be posted to a future period. Disposal other than in current month is not required and the Profit and Loss amounts are adjusted accordingly. |
Already retired assets or deleted assets can not be sold and if tried the system indicates this by displaying the message “asset already disposed”.
The following Journal Entries are created on asset disposal:
CR Capital TMASFA/GL-ACC *
DR Provision for depreciation TMASFA/GL-ACC *
DR Fixed Asset Bank Clearing (for disposal value) TMASFA/GL-BACC (PC is from the Dept code)
CR/DR Profit and Loss on sale of an Asset TMASFA/GL-PLACC (PC is from the Asset code)
If the summary field on TMSFA/SUMBAL is flagged as ‘Y’ the profit centre used is from the Dept code field. If it is flagged as ‘N’ the profit centre used is from the Asset code field). The bank clearing account generally clears when the receipt of ‘cash’ is journalized to the Bank and the Fixed Asset Clearing Account.
The system also generates a journal for any additional days in the current month for which the asset was active. Transaction values can be viewed by clicking Transaction Inquiry.
