One of the following processes can be run using this program.
- Closing period and interface to General Ledger, or
- Trial run.
NOTE: If an error occurs, the period is not closed and there is no interface.
The following functions are performed within this run.
- The Monthly Reset program will reset the Asset Yearly Masterfile month to date depreciation amount as well as delete all depreciation records for the period which are not yet posted. The month to date of disposed assets for the current month is not reset.
- The Monthly Depreciation Run program uses the Asset Updater to write to the Asset Posting Interface File and completes the monthly depreciation run.
- The General Ledger Posting Audit program reads status E only and is an option used to correct the amount
- The Capital program is used for period close and requires the End of Month Period Reset program to be run as well as End of Year (if required).
- End of Month Period Close adds the month to date figures to year to date. The Period stored in TMSFA/PERIOD is advanced by one month. Status E (removed/rejected) assets are purged from the masterfile.
- In the menu, expand Other Modules > Fixed Assets > Other > Period End processing > Month End Processing and double-click FA Monthly Depreciation/Close. FACEOM F/A End of Month Processing panel appears.
| Field | Description |
| Current period | The current period defaults to the current period of processing and cannot be changed. |
| Processing mode |
End of Month Processing can be run in two modes. Trial run or Close period and interface to the G/L. The Trial Run option processes depreciation without a closing/rolling over the period, and no updates or interface to the General Ledger takes place. Various reports are produced for checking purposes prior to the updates being posted. The Close Period option will post journals/interface to the General Ledger and close/roll over the Fixed Asset Period. |
- Enter the information, as required.
- Click OK to save the changes.
| Process | Description |
| Trial run |
Selecting the Trial Run option runs the month end to be on a trial basis without the General Ledger being updated. Once checked the month end can proceed and interface to the General Ledger. Four reports are generated:
Once these reports have been checked then Monthly Depreciation and update can be run to update the General Ledger. Note: If there are General Ledger Account errors, the errors are indicated in the report and a posting option cannot be taken until the errors are corrected. To view the transactions in the General Ledger Module, choose G/L Inquiries then Transactions by Journal. Enter the necessary information on the screen and <ENTER>. The General Ledger Posting Report lists all postings by Ledger Account Number. For details refer to the G/L Posting Report section of this manual.
|
| Close period |
The program depreciates every active fixed asset both for company and tax purposes, and posts the depreciation to the Asset posting file interface (FAPST00P). NOTE: If an error occurs, the period is not closed and there is no interface. Additions: The system date is checked and active assets purchased in the previous month are depreciated ‘from the day of purchase as a proportion against the total days in the current month’. The total number of days is retrieved from TMSFA/PERIOD. Fully Depreciated Assets: If an asset becomes fully depreciated (zero book value) this month, the last increment of depreciation will be posted to the active depreciation account in the normal way. The status is updated to ‘F’. Due to adjustment, this may not be a whole increment, so when book value becomes less than or equal to zero, the remaining value only is posted. Normal Case: Where an asset has an ‘A’ status, the depreciation is calculated and the amount is credited (added) to the appropriate cost account/active depreciation account (TYP on CTL). At the same time the amount is debited to the default cost account/depreciation expense account (TYP: on CTL). The debit is posted according to the flag (TYP: 015 on CTL) for summary balance sheet. If ‘Y’ a debit journal is written at a change in group. Otherwise it is written with every credit journal using the default costing account, if specified in TYP045 on CTL for the particular group. Note: if summary Balance sheet flag is ‘Y’ and no default cost account is found for the group, the cost account becomes zero (0). If ‘N’ and no default cost account is found, the cost account stays the same as department COE from Fixed Asset Masterfile (FAMST00P). These postings are written to the Fixed Asset Posting File (FAPST00P) and appear on the General Ledger postings report produced by program FAL055. Journals are calculated only for company side. The posting type is D for depreciation. Journal Entry DR – Depreciation TMSFA/GL-ACC (PC is from Asset code) CR – Provision TMSFA/GL-ACC * 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. Depreciation Methods If Method = S then increment company depreciation YTD by the amount calculated as Company Cost multiplied by a Company rate divided by 1200 and rounded to two decimal places. Use as a rounding factor the sum of four and the remainder form the division of Month by two (i.e. flip-flop rounding up and down). If Method = D then instead of Company cost, use the company cost minus depreciation to date i.e. company cost minus the sum of company depreciation to end at last financial year. Calculate depreciation assets as in case (b) above on the adjusted cost, rounding in the same way. Assets retired this month are proportionally depreciated depending on the actual day of disposal against the total number of days in the current month. Enter the necessary information in the following screen which is option Monthly Depreciation and Update and click OK and the General Ledger updates. |
