Fixed Asset Tutorial

Investment/Fixed Asset Control File Maintenance

To begin the Fixed Asset Subsidiary Ledger setup, start with the Investment/Fixed Asset Control File. Follow these directions.

1. From the Master Menu, select 8 - General Ledger/Subsidiary Ledger Menu (you will need to login into G/L if not already logged in), 9 - General Ledger Control File Menu, and 2 - Investment/Fixed Asset Control File.
   
   
   
   
2. Enter the appropriate settings for the Investment Posting Mode, the Fixed Asset Posting Mode, and the Auto G/L Posting Mode fields. The options for each field are listed below.

3. Press the Escape key and select Update Maintenance Entry to record your settings.
   
   

The Control File is saved and ready.

Setting Tran Codes & Recommendations

Fixed Asset Transaction Code Definition

Follow these directions on setting up your Fixed Asset transaction codes.

1. From the Master Menu, select 8 - General Ledger/Subsidiary Ledger Menu (you may need to login), 8 - General Ledger Utilities Menu, and 4 - Fixed Asset Transaction Code Definition.
   
   
   
   
2. Select 1 - Edit Fixed Asset Transaction Code Definition List.
   
   
3. Enter a Transaction Code.
   
   
   
   
4. Enter a Description of the transaction code entered. Description can be upto 30 characters.
   
   
5. Enter the Valid Debit Entries for the transaction code.
   
   The Valid Debit Entries include:
   
   
   1. Bank/Cash Account
   2. Asset Account
   3. Expense Account
   4. Depreciation Account
   5. Payable Account
   6. Gain/Loss Account
   
   
   Note: Each items is numbered for reference in the table below.
   
   
6. Enter Valid Credit Entries for the transaction code.
   
   The Valid Credit Entries include:
   
   
   1. Bank/Cash Account
   2. Asset Account
   3. Expense Account
   4. Depreciation Account
   5. Payable Account
   6. Gain/Loss Account
   
   
   
7. Enter the Fixed Asset Journal Code. This is the G/L Journal Code associated with this transaction code. The options are:
   
   
   • 0 - General Ledger
   • 1 - Cash Receipts Journal
   • 2 - Cash Disbursements Journal
   • 3 - Depreciation Journal
   • 4 - Payable Journal
   
   
   Note: Each items is numbered for reference in the table below.
   
   
8. Enter the Code Origin for this transaction code. The options are:
   
   
   • 0 - CompuSource Defined
   • 1 - Credit Union Defined
   
   
   
9. Enter the Bank Cash Overrides. Enter 0.00 to use the Account Number defined in the Fixed Asset Master File.
   
   
   
   If you press Alt + L, you will receive a list of G/L Accounts to select from. Press Enter on the account you want.
   
   
   
   
10. To save the transaction code, press Escape and select Update Maintenance Entry.
    
    
    
    Note: When you press Escape, you can select Void Maintenance Entry to not save changes, Hardcopy Maintenance Entry for a screen print, Update Maintenance Entry, or Delete Maintenance Entry to delete the transaction code.
    
    

Repeat the above steps for each transaction you would like to define.

To understand the Bank Cash Overrides, review the table below.

You can review the codes on a print out by selecting 2 - Print Fixed Asset Transaction Code Definition List.

Fixed Asset Class Code Definitions

A Fixed Asset Class code defines the type of fixed asset. Examples include, Building, Computer Equipment, Furniture & Fixtures, etc.

Follow these directions to set up the Class Code:

1. From the Master Menu, select 8 - General Ledger/Subsidiary Ledger Menu (you may need to login), 8 - General Ledger Utilities Menu, and 3 - Fixed Asset Class Code Definition.
   
   
   
   
2. Select 1 - Edit Fixed Asset Class Definition List.
   
   
3. Enter the Fixed Asset Class Code. This field can be up to 4 characters.
   
   
4. Enter the Description for this Fixed Asset Code. This field can be up to 30 characters.
   
   
   
   
5. Enter the default Class Life (Years) for this Asset. Example: 5 for a 5 year asset life.
   
   
6. Enter the default Class Life (Months) for this Asset (1-12.) Use in Conjunction with the Class Life (Years) field. (Ex. Enter 6 for a 6 months, etc.)
   
   
7. Enter the G/L Bank/Cash Account.
   
   
   
   If you want a list of G/L Accounts, press Alt + L for a complete list. Press Enter on the G/L Account you want.
   
   
   
   
8. Repeat Step 7 for each G/L Account.
   
   
9. Enter the Depreciation/Expense Posting Tran Code. The system will default this value to DEPR.
   
   For a complete list of Transaction Codes, press Alt + L. Press Enter on the transaction code you want.
   
   
   
   
10. Press Escape and select Update Maintenance Entry when you have completed defining the Class Code.
    
    
    
    Note: When you press Escape, you can select Void Maintenance Entry to not save changes, Hardcopy Maintenance Entry for a screen print, Update Maintenance Entry, or Delete Maintenance Entry to delete the transaction code.
    
    

Repeat the above steps for each class code you would like to define. Check this table for suggested codes.

You can review the codes on a print out by selecting 2 - Print Fixed Asset Class Definition List.

You have now set the Fixed Asset Class Codes.

Fixed Asset Vendor Code Definition

The subsidiary ledger module provides a vendor code definition. This allows the vendor’s name, address, phone and fax numbers, and contact name to be stored for easy retrieval during purchase of new asset procedures.

Follow these directions on setting up the Vendor Code Definition.

1. From the Master Menu, select 8 - General Ledger/Subsidiary Ledger Menu (you may need to login), 9 - General Ledger Control File Menu, and 3 - Fixed Asset Vendor Code Definition.
   
   
   
   
2. Enter the Vendor Number. This value is 3 digits long and can be between the numbers of 1 and 999.
   
   
3. Enter the Vendor Name. There is a maximum character number of 30 for this field.
   
   
4. Enter the Vendor Address - 1 and Vendor Address - 2 if applicable. Both fields have a maximum number of 30 characters.
   
   
5. Enter the Vendor City, State and Zip fields. You can enter up to 20 characters for the city, 2 for the state and 9 for the zip code.
   
   
6. Enter the Vendor Phone and Vendor Fax Phone Numbers. Each field allows 20 characters.
   
   
7. Enter the Vendor Contact field. This field allows 30 characters.
   
   
8. Press Escape and select Update Maintenance Entry when you have completed defining the Class Code.
   
   

You can review the Vendor Code on a print out by selecting 2 - Print Vendor Definition List.

You have now completed defining the Vendor Codes for the Fixed Assets.

Maintenance on the Master File

Once the Investment/Fixed Asset Control File, Fixed Asset Class Codes, Fixed Asset Transaction Codes and Vendor Codes are defined, the next step is to set up each Fixed Asset in the Fixed Asset Master File Maintenance. Follow these directions to set up the Maintenance file:

1. From the Master Menu, select 8 - General Ledger/Subsidiary Ledger Menu (you may need to login), 6 - General Ledger File Maintenance Menu, and 2 - Fixed Asset File Maintenance.
   
   
   
   
2. Enter the Asset Number you would like to create. The number can be up to 7 digits long and between the range of 1 and 9999999.
   
   
3. Enter the Fixed Asset Descriptive Name in the Name field.
   
   
4. Enter the Fixed Asset Location Descriptive Name in the Location field. (i.e. Manager's Office, Lobby, etc.).
   
   
   
   
5. Enter the Fixed Asset Class Code. For the list of available Class Codes, click the Browse button.
   
   For a complete list of Class Code, press Alt + M for the Available Fixed Asset Types. Press Enter on the Class Code you would like to use in this definition.
   
   
   
   
6. Enter the Estimated Life in Years for this Asset in the Est Life (yrs) field. For example, 5=5 years, 10=10 years, etc.
   
   
7. Enter the Estimated Life in Months for this Asset in the Est Life (Mths) field. For example, 1=1 month, 12=12 months, etc.
   
   
8. Enter the Placed in Service Date. This could be the date purchased.
   
   
9. Enter the P.O. Number. This is the Purchase Order Number used to obtain this asset.
   
   
10. Enter the Custodian. This is the person responsible for watching over this asset.
    
    
11. Enter the Vendor or Manufacturer Code for this Fixed Asset. You can enter it manually or click the Browse button (...) for a complete list of available Vendor Codes.
    
    Note: Enter 0 if the Vendor Code is unknown or undefined.
    
    
12. Enter the Manufacturer Serial Number.
    
    
13. Enter the Warranty Expire Date.
    
    
14. Enter the Acquired Value. The maximum amount is 99,999,999.99.
    
    
    
    
15. Enter the Period Beginning Value for this asset. The maximum amount is 99,999,999.99.
    
    
16. Enter the Current Value. The maximum amount is 99,999,999.99.
    
    
17. Enter the Depreciation Method for this asset.
    
    
    • 0 = Manual Posting
    • 1 = Straight Line Amortization
    
    
    
18. Enter the Straight Line Method Depreciation Amount for this asset. The maximum amount is 99,999,999.99.
    
    
19. Enter the Expected Salvage Value for this asset. The maximum amount is 99,999,999.99.
    
    
20. Enter the Depreciation Y-T-D (Year to Date). The maximum amount is 99,999,999.99.
    
    
21. Enter the Depreciation L-T-D (Life to Date). The maximum amount is 99,999,999.99.
    
    
22. Enter the Start Depreciation Date for this asset.
    
    
23. Enter the Last Depreciation Date for this asset.
    
    
24. Enter the G/L Bank/Cash Account associated with this Fixed Asset (Asset Account Range) or 0 if not used.
    
    Note: For all G/L Accounts, you can press Alt + L for a complete list of G/L Accounts. Press Enter on the G/L Account you would like to use.
    
    
    
    
25. Enter the G/L Asset Account associated with this Fixed Asset (Asset Account Range) or 0 if not used.
    
    
26. Enter the G/L Expense Account associated with this Fixed Asset (Asset Account Range) or 0 if not used.
    
    
27. Enter the G/L Depreciation Account associated with this Fixed Asset (Asset Account Range) or 0 if not used.
    
    
28. Enter the G/L Payable Account associated with this Fixed Asset (Asset Account Range) or 0 if not used.
    
    
29. Enter the G/L Gain/Loss Account associated with this Fixed Asset (Asset Account Range) or 0 if not used.
    
    
30. Select the Status Code for the Fixed Asset.
    
    The available Status Codes are:
    
    
    • 0 - Open
    • 1 - Closed
    
    
    
31. Enter the Inventory Control Number. This number can be up to 5 digits long.
    
    
32. Press Escape and select Update Maintenance Entry when you have completed defining the transaction type.
    
    

Repeat these steps for each asset you want to define.

Fixed Asset Setup Balancing

Once all the Fixed Asset Master Files are entered, you can use the Fixed Asset Trial Balance Report to assist in balancing. Follow these steps to run this report.

1. From the Master Menu, select 8 - General Ledger/Subsidiary Ledger Menu (you may need to login), 4 - General Ledger Fixed Asset Reports Menu, and 2 - Fixed Asset Trial Balance.
   
   
   
   
2. Set the parameters for the report.
   
   

   Parameter Information Option Selected - You can either select All Asset Number, Asset Number Range or an Individual Class Code. If you choose the Individual Class Code, select the class code you would like to print. Print Detail - Select Exclude Transaction Detail or Include all Transactions within Date Range. If you select the second option, you will need to define a date range. Branch Option - Select either All Branches or select the Branch Code Range. If you do not have a second branch defined, it will default to All Branches and disable to the range option. Class Code - Select Print Totals by Class Code for balancing purposes. Acquired Dates - Select All Dates or Acquired Date Range. If you select the second option, you will need to define a date range.

   
   
   
3. Select 1 - Print Report to print out the Fixed Asset Trial Balance.

The Fixed Asset Trial Balance contains a total page by class code. Use these totals to verify the Fixed Assets are in Balance. This table will assist you with this process.

From the Fixed Asset Trial Balance Totals, verify the following:

For Class Code pertaining to Pre-Paid Expenses (PPD): Verify that the Current Balance matches the balance in the 760.XX (Pre-Paid Expenses) G/L Accounts.

For Class Code pertaining to Land (LAND): Land is not depreciated. The Acquired Value and Current Value should match G/L account 771.00.

For Class Code pertaining to Building (BLDG): The Acquired Value should match to G/L account 772.00, the L-T-D Depreciation should match to G/L account 773.00, and the Current Value should match the Net amount in G/L accounts 772.00 & 773.00.

For Class Codes pertaining to Computer & Furniture (COMP & FURN): The Acquired Value should match to G/L account 774.00, the L-T-D Depreciation should match to G/L account 775.00, and the Current Value should match the Net amount in G/L accounts 774.00 & 775.00.

Fixed Asset Transactions Details

This section will focus on transactions and how to set up certain transactions for Fixed Assets. Follow these directions below on setting up the transaction listed:

1. From the Master Menu, select 8 - General Ledger/Subsidiary Ledger Menu (you may need to login), 1 - General Ledger Posting Menu, 1 - General Ledger Transaction Posting.
   
   
   
   
2. Press Alt + J for a list of available journals. Press Enter on Fixed Asset Journal.
   
   
   
   
   
   You are now ready to continue with posting transactions.

New Pre-Paid Expense - Transaction Example for Fixed Assets

Follow these directions to create a new Pre-Paid Expense:

1. From the Fixed Asset Posting Screen, press Alt + M on the keyboard for the options.
   
   
   
   
2. Select New Fixed Asset by press Enter on the selection.
   
   
3. Enter an Asset Number and fill in each field on this form. For more information on the fields, see Section 5.
   
   
   
   
4. Press Escape and select Update Maintenance Entry when you have completed create this new asset.
   
   
   
   
5. On the Fixed Asset Posting form, enter ACPD in the Tran Code/Desc field.
   
   
   
   Note: For a list of transaction codes, press Alt + M. Select the Transaction Code you want and press Enter.
   
   
   
   
6. Enter the Debit and Credit information for the transaction and press Escape.
   
   
   
   
7. Enter the Estimated Life (Years), the Estimated Life (Months), and the Depreciation Amount.
   
   
   
   
8. Press Escape and select Accept Transaction on the menu.
   
   
   
   
9. O-T-C Check Printing program will come up. Select the appropriate menu option and continue.
   
   
   
   
10. Press Escape until you leave the Fixed Asset Posting when completed. You can continue posting if you wish. Once you are done, the G/L Receipt Printing program will come up. Select the appropriate menu option and continue.
    
    

You can create and post assets following these directions. Different transaction codes such as ACMT and IQ will show the account in the maintenance and inquiry programs. Here is some more examples of transactions on the following form views.

Sale of existing Fixed Asset:

When selling or disposing of a Fixed Asset you must write off the original purchase price from 774.00 and all depreciation from 775.00. The difference between this and any money received is the gain or loss on the disposal of the asset.

Sold at a Loss



Disposal of a Fixed Asset



Adjustments

Adjustments can be made to Fixed Assets that do not affect your G/L by using the ADJ transaction code.

Month End Posting and Balancing for Fixed Assets

At month end, the Fixed Asset Depreciation/Expense Posting program must be run. It is recommended that a print only of the depreciation posting be done the first couple of months to ensure accuracy of the depreciation amounts entered.

Follow these direction on running this report:

1. From the Master Menu, select 8 - General Ledger/Subsidiary Ledger Menu, 1 - General Ledger Posting Menu, and 6 - Fixed Asset Depreciation/Expense Posting.
   
   
   
   
2. To print a Print Only report, select 1 - Print Only.
   
   
3. To post the report, select 2 - Print and Update.
   
   
4. If you just want to see the totals, select 3 - Depreciation/Expense Proof Totals.
   
   
   
   
5. Press Enter when you are done viewing the totals.

After all month end posting is completed, print the Fixed Asset Trial Balance, and use the balancing procedures outlined in Section 5, to ensure proper balancing between fixed Assets and General Ledger.



You have now completed the Fixed Asset Tutorial.