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Projects:Assetsmanagement

Contents

Functional Specifications sign-off

Role Name Sign-off date
PM Richard Morley
HIS Anja 30.03.10Bochmann
HIS Michael
QA Pablo Sarobe
Development David Alsasua 06.04.10

Overview & Justification

Purpose

The purpose of this document is to describe the Functional Specifications for an extension module to be developed in OB ERP version 2.50 called Advanced Asset Management

This function is required by HIS but it could also be used by any company managing assets.

This function is required in Germany, but is also generally useful in other countries.

NEW

According to the HIS Project Development Backlog and Feature Requests published at https://spreadsheets.google.com/ccc?key=0AkYBG_s9jeTOdGJEMk9ZeU9tVmJ5ejlIMUhoUFN2enc&hl=it#gid=0, the following features are added to the functional scope of this module:

Modifications due to these features will be marked with a leading Orange coloured [HIS-XX] string. XX stands for the number of the feature.

Scope and Overview

In Scope:

The Advanced Asset Management module is going to cover the following main areas:

Out of Scope:

The Advanced Asset Management module is not going to cover the following main areas:

Overview:

1.- Assets types:

Fixed Assets must be created and managed as part of Advance Asset Management module.

2.- Parent View concept and Sub-assets:

Openbravo Adv Asset Management will support the concept of a "Parent View". This will be a mechanism for viewing a collection of assets. Each asset that is part of a structure may have a link to a parent view. It should be possible to link multiple assets to a single parent view. The parent view must then be able to present a view of all assets that are linked to it, either in summary or detail.

A parent view is not an asset as such but just a view of assets, therefore it can not be depreciated but the assets which belong to it.

Besides "Parent View" concept and depending on how strong the relationship between assets is we will define:

Both scenarios above will be defined as part of the Parent View definition

3.- Asset data:

4.- Assets work flow:
Either "Central Purchase Office" or an Institute/Professor can order and buy an asset; therefore assets can be delivered to an institute or to a central goods receipt.

A Requisition or/and an Order could be created by using BES system and only orders (purchase orders) could be imported in OB. (MORE INFO IS REQUIRED HERE)

Purchase invoices will be booked in the system by the Financial booking people and will be approved for payment at any time within the corresponding Financial process.

As a summary there might be neither a purchase order nor a goods receipt nor an invoice (donations), therefore it must be possible to create an asset card manually as well as manage inventory movements manually.

5.- Assets Management To Do List:
Once an asset invoice is booked in the system it will be sent to the "Assets Management" team for them to either create or review the corresponding Asset Card.

6.- Assets Management Transactions:
Besides booking liability invoices, Assets Management feature is also going to cover "specific" transactions which can be executed for assets. An asset can be acquired and can also be disposed as well as depreciated and appreciated. It will be key here to handle in the proper way asset costs, economic lifetime, depreciation and appreciation amounts base on the corresponding depreciation plan as well as posting/accounting each transaction type.
Therefore different "Document Types" will have to be created for each type of asset movement required.

7.- Other rules

Justification

Advanced Asset management is a new feature required to be implemented as part of Financial and Cost Accounting and besides it is going to be approached as an extension of Inventory Management.

The function of asset management is valuation and booking of additions and disposal of assets and determination and booking of depreciation, appreciation as well as other asset related transactions types.

Costing

Assets, which are purchased from third parties by the university, are estimated with acquisition costs in accessing. Self-made assets are estimated with their development costs. The estimation of assets is not allowed to exceed the once determined acquisition- or development costs. The acquisition- or development costs constitute the value limit even then, if the value of day is far beyond the value of balance sheet day.

Depreciation & Depreciation Method

Assets expense (acquisition or development cost) must be depreciated which means allocated to each year of its economic lifetime based on a depreciation plan which will be the one setup for the corresponding Asset Class that specific asset belongs to.
Commonly know asset class are:

  1. Land and Buildings
  2. Tangible assets in common usage
  3. Equipment and machinery
  4. Other equipment, fixtures and office equipment
  5. Payments on fixed assets under construction
  6. Intangible assets
  7. Payments in advance of intangible assets

HIS assets Class are:

  1. Fixed Assets
    1. Intangible assets
      1. Industrial property rights
      2. Concessions acquired against payment
      3. Goodwill
      4. Prepayments for intangible assets
      5. Made Investment grants
    2. Fixed Assets
      1. Land, inmovable property rights and buildings
      2. Public use
      3. Technical equipment and machinery
      4. Other equipment
      5. Prepayment for fixed assets and assets under construction
    3. Financial Assets
      1. Shares in affiliated companies
      2. Loans in affiliated companies
      3. Shareholdings
      4. Loans in affiliated companies, in which participating interest are held
      5. Non-current securities
      6. Other loans
      7. Separate estate

Each Asset Class will contain "Depreciation" rules and "Accounting" related setup for every balance sheet position, including:

  1. Depreciation Method - Linear
  2. Depreciation Type - Time/Percentage
  3. Depreciation Interval - Month/Year
  4. Depreciation Account (expense account type)
  5. Adjustments Account (asset account type)

Benthien 10:00, 5 April 2011 (UTC)

in addition we need the following account-informations:

  1. balanced sheet account
  2. Account for special depreciations
  3. Account for appreciations
  4. Account for sales revenues (asset-sales)
  5. Account for expenses by asset sales

(HIS-25)


Every asset belonging to an asset class will be depreciated according to that depreciation plan and accounting.

It is important to highlight that current OB Depreciation Method is "Linear by either Month or Year" ("Time" Depreciation Type) or Annual % ("Percentage" Depreciation Type), therefore new depreciation methods should be created as extension modules if required as a modular plug-in that can then be associated with an Asset Class.

The Depreciation Method to be used by HIS is Linear, the Depreciation Type to be used by HIS is Time and the Depreciation Timing is Monthly depending on economic lifetime of the asset and according to Fiscal tables of depreciation.

Cost activity accounting is not tied to a law, therefore an asset which can be depreciated in 10 year according to fiscal list or DFG list could be used and therefore depreciated for 18 years.

At the beginning of use of an asset a depreciation plan must be create, which documents at least following contents:

Rounding depreciation rules:

Way of rounding depreciation might work as explained below:

Asset Cost= 999,35€
Economic Lifetime = 4 years
Scrap value = 20,00€
(999.35€/4 years = 249,83€ -> rest = 0,03€ [(249,83 x 4) -999.35]
That rest is added to the first depreciation:
Year 1 = 249,83+0,03 = 248,86
Year 2 = 249.83
Year 3 = 249.83
Year 4 = 249.83-20.00

Posting rules

As an overview: 1.- when an asset is purchased and paid; the asset account must be in the DEBIT side for the total Asset Value (by example = 100.000,-€)
Posting should look like:
100.000,- Asset Account DEBIT
100.000,- Vendor liabilities CREDIT

2.- when the asset gets depreciated the first year, by example for an amount = 500,-€;
Posting should look like:
500,- Depreciation account(expense account) DEBIT
500.- Adjustment Account CREDIT

3.- Same would applied to year 2 Posting should look like:
500,- Depreciation account(expense account) DEBIT
500.- Adjustment Account CREDIT

4.- at the end of year 2 our Balance sheet must look like
100.000,- Asset Account
(-1.000,-) Adjustment Account
which means that at the end of year 2 our asset is worth = 99.000,-€

New definitions and acronyms

Users & business process description

User goals

Assets Management feature will allow the end user to:

User Roles and Personas

There are mainly 3 different roles to highlight:

Asset Owner - is the one who require/order an asset.

Inventory staff - the ones who manage inventory related information by filling-in Asset Card - Inventory Tab as part of inventory management process; it could be Central Goods Receipt staff or Institute Central Goods Receipt staff.

Financial staff - the ones who manage and book Asset related invoices and besides the ones who approve assets invoices for payment.

Asset Management staff - the ones who manage assets by filling-in Asset Card - Asset Tab as part of asset management process

Business process diagrams

Below diagrams show high level:

Purchasing process:

Purchasing Fixed Assets.png

Depreciation process:

Depreciation.png

Disposal process: Assets diagram.png

Business scenario/s

Functional Requirements

Functional Requirement 1 - Setup and data

Asset Management related thresholds & set up at client level

Below described parameters must be created at Client level under application path: General Setup || Client || Client || Client >> Information

Parameter 1 = "Inventory Limit"

Each University can decide what they want to be part of inventory.
Some universities might want that assets which a cost higher than 75,00€ are part of the inventory and some others might want that all asset which a cost higher than 800,00€ are part of inventory. Anyway, assets up to 1.000,00 € cost must be part of the inventory by law.

At client level we need a threshold to be created:

Parameter 2 = "Inventory Number Allocation" as a reference list (Manual-Automatic) and "Inventory Number Sequence" new field.

Each University can decide how they want to allocate Inventory Number at Asset Card - Inventory Sub-Tab.

At client level a new reference list field must be created in order to let the system know if the "Inventory Number" is going to be enter manually by the end-user or if the "Inventory Number" is going to be allocated automatically by the system based on a "Document Sequence", see section: 4.1.3.5.

Universities decide which is the scenario to follow here in relation to Inventory Number creation/allocation at Entity/Client level, once an option is taken it will not be changed for a while.

Parameter 3 = "Asset Number Sequence" field to be used for Asset Numbering

A new field named "Asset Number Sequence" needs to be created next to above one to allow the end-user to select the Advanced Number Sequence to be used for Asset Numbering.

Finally, Asset Management people will also need to know:

As an example, find below an explanation about how Universities manage depreciation based on:

Action Method A Inventory limit < cost

(asset part of the inventory)

Inventory limit > cost

(asset not part of the inventory)

Items booked as expense < 150,00 € Asset card = NO Asset card = NO
Depreciation till end of year of purchase >150,00 € < 410,00 Asset card = yes

Economic Life= end of year

Depreciation Rate =100%

Benthien 11:19, 5 April 2011 (UTC):

as one rate, not monthly

Asset card = NO
Capitalizing, depreciation over economic life > 410,00 € Asset card = yes

Economic Life= variable

Depreciation over economic life

Asset card = yes

Economic Life= variable

Depreciation over economic life


Action Method B Inventory Limit < cost

(asset part of the inventory)

Inventory Limit > cost

(asset not part of the inventory)

Items booked as expense < 150,00 € Asset card = NO Asset card = NO
Pool-Account. Depreciation over 5 years > 150,00 € < 1.000,00€ Asset card = yes

Economic Life= 5 years

Depreciation Rate = 20%

Benthien 11:19, 5 April 2011 (UTC):

as one rate per year, beginning: year of purchase

Asset card = NO
Capitalizing, depreciation over economic life > 1.000 € Asset card = yes

Economic Life= variable

Depreciation over economic life

Asset card = yes

Economic Life= variable

Depreciation over economic life

NEW!! Subsidy Account set up as a Default account in the Accounting Schema

Due to the fact that the Subsidy Account is always the same one, it should be possible to set it up as a "Default" account in the application path: Financial Management || Accounting || Setup || Accounting Schema || Accounting Schema >> Defaults

NEW!!! Depreciation Plan setup

There should be a new window in the Application path: Advanced Assets - Depreciation Plan in which Depreciation Method, Depreciation Type and Depreciation Interval will be defined for each Depreciation Plan.

That window will then have 3 tabs, one per each of the variables of a Depreciation Plan to be defined:

There should be another ones setup like:

and

and

End-user will be able to select a previously setup Depreciation Plan for an Asset in the Asset Class to be then linked to an Asset.

Asset Card

An Asset Card will allow the end-user to create and manage Assets.

That window could look like:

Asset Card final2 subsidies.png

Asset Card - Main tab; like a header containing just below fields so the end-user can search by those fields:

Asset (sub-tab) & Inventory (sub-tab) : with the corresponding field which are going to be later on described; only when end-user enters info on this 2 sub-tabs asset number and inventory number are populated in the Asset Card main tab so end-user could search also based on those.

As sub-tabs of the Asset Sub-Tab, below sub-tabs are required:

Asset Cards must be created at application path: Financial Management || Advanced Assets.

More info to take into account in relation to the New ones:

NOTE: We would required below new 2 sub-tabs under "Subsidies" and "Controlling " sub-tabs; "Subsidies Amortization" and "Controlling Depreciation", respectively.

Asset Card Main Tab

This header tab will show below data:

only when end-user enters info on Asset and Inventory sub-tabs asset number and inventory number will be populated in the Asset Card main tab so end-user could search also based on those.

Asset Sub-Tab

Asset Sub-Tab must be created at application path: Financial Management || Advanced Assets || Assets Card - Asset sub-tab:

Once there below information must be entered:

[HIS-25] Asset Accounting Schema

Asset Accounting Schema is a mechanism to configure accounting settings to be used for assets. It includes some configuration fields as depicted in the picture below.

HIS-25-1.png

Asset Class

Asset Group/Category can be found now at application path: Financial Management || Assets || Asset Group || Asset Category.

It is important to remark that both Asset Group and Asset Category must be re-named to "Asset Class", anywhere can be found. Therefore the right application path must be: Financial Management || Advanced Assets || Asset Class.

An Asset Class contains depreciation rules and therefore it must contain 3 new depreciation related fields as shown below:

[HIS-25] The following window

Asset Class1.png

[HIS-25] is replaced by this new window:

HIS-25-2.png

[HIS-25]Accounting information are derived from the asset accounting schema to be selected in the asset class window as shown in the picture above. Since accounting settings are linked to the select accounting schema, the accounting tab is no longer required.

Note: Above "depreciation" related fields must be shown in the corresponding Asset Card - Asset Tab once an asset is related to an Asset Class. Those fields should not be editable as those are coming from the corresponding Asset Class and the end-user is not allowed to change them.

[HIS-25]Besides Asset Class must contain below accounts under the application path : Financial Management || Assets || Asset Group || Asset Category >> Accounting (to be renamed to: Financial Management || Assets || Asset Class || Asset Class >> Accounting

  • Depreciation Account. By example (6630010)
  • Accumulated depreciation -By example (0799900) - must be renamed to "Adjustments Account" this account will summarize (sum-up) the total lost in value of an asset.

Benthien 11:27, 5 April 2011 (UTC):

in addition, the following account-informations are requested (s.a.):

(HIS-25)


Note: Above "depreciation" related accounts must be shown in the corresponding Asset Card, accounting tab as once an asset is related to an Asset Class, the corresponding depreciation accounts must be populated in the Asset Card - Asset Tab - Accounting.

New!!

It is important to highlight that once an Asset is linked to an Asset Class, the end-user may change any of its values including depreciation rules and depreciation accounts, for that specific Asset.

And it is also important to highlight that:

at the time of first creation or over the course of time, however:

Finally, if an asset class do not have any account by mistake, system should not allow any depreciation plan creation (warning!!)

New!! Once the depreciation plan has been run by the end-user for an Asset/Sub-Asset, the system will not allow the end-user to change any of the "Asset Class" related fields listed below:

Asset sub-Tab, fields to be removed

There are several fields which needs to be removed: Quantity and Depreciate, see the screen and explanation below ("Asset card fields to be removed").

Asset sub Tab, fields to be modified

It is important to note that in the case of HIS Depreciation basis amount is the same as Asset Value/Cost
Besides Scrap Value will be fixed to either 0,00 € or 1,00€ otherwise an error will be shown and scrap value must be off-set against the final year's depreciation.
By example there is an asset worth = 100,00€, with an scrap value = 1,00€ and depreciation method is Linear, the depreciation timing is monthly and it has an economic life of 5 months;therefore 100/5=20,00 €/month is the depreciation amount, in this case we will have:

Asset sub Tab, existing fields/button to keep

It is important to highlight that all Fixed Assets must be depreciated but "Under Construction Assets". There is no need to flag "Under Construction Assets" as such because "Under Construction items" will change into Fixed Asset and therefore will be depreciated as soon as the end-user enters an "Start Depreciation Date".

Besides "Create Amortization" process button will run Depreciation for the corresponding Asset based on "depreciation" information setup for the asset.

Create Amortization.png

"Create Amortization" process must be renamed to "Create Depreciation"

This process will also run another process to generate the Amortization Plan of the Subsidies linked to the Asset for which the Depreciation Plan is being created, aame way...therefore: NEW!!!

New!! in case no Subsidy has been linked to an Asset and the Depreciation is run, end-user will not be able to enter a subsidy unless he/she cancel the correspoding depreciation.

Asset sub Tab, new fields
[HIS-25]Asset || Accounting sub Tab, fields changes

When a new asset record is created, the application automatically creates a record in the nested accounting tab by inheriting default values from the relevant asset accounting schema of the asset class.

Inventory sub-Tab

Financial Management || Advanced Assets || Assets Card - Inventory sub-tab

Inventory Sub-Tab must be created at application path: Financial Management || Advanced Assets || Assets Card - Inventory sub-tab:

This tab will contain below fields (new fields) to be filled in manually by the user but Inventory status which will point to a reference list/data; [HIS-02] further, inventory value field is automatically filled in with the asset value of the related Asset tab and it is read-only; however in case the asset record is not yet created, inventory value field is editable:

None of above fields is a "Reference Data/List" but Inventory Status.

Once the Inventory Number is generated it could be printed. For doing that a new process button will have to be added to the Asset Card - Inventory Tab, as shown below:

Print Inventory.png

In order to track what has been printed, a "Printed" flag or something like that is necessary for each inventory data set; in other words the system should know, which inventory number has been exported to the printer. It could also work that "Print Inventory" button changes its name to "Re-print Inventory number"

Once the end-user press "Print Inventory Number" the end-user will get what has been defined or setup in a new window named "Inventory Number Print Template" which must be created at the application path: Financial Management // Advanced Assets // Inventory Number Print.

In that new window end-user should be able to define:

As described above lines exported (including the data/field setup by end-user) must be flag as "Printed" somehow.

New!!! Besides, a new process button named "Set us Discharged" must be created in this Inventory sub-tab so the end-user can change inventory status from "Valid" to "Discharged".

Allocation of the Inventory Number

As described above Inventory Number could be either entered manually by the end-user or automatically by the system; Inventory Number allocation must be setup at client level at the application path: General Setup || Client || client >> Information - Inventory Number (new!)

In case Inventory Number is not allocated manually by the end user but automatically by the system an Inventory Advanced Sequence Number at Client level is required to be choosen, which will be setup in the application path: Financial Management || Advanced Assets || Advanced Sequence Numbers

Advanced sequence number must include a prefix and suffix and besides must be customized by adding below listed parameters:

End-user should be to able to select any of the above parameters to let the system know how inventory number must look like.

Allocation of the Asset Number

Each asset to be capitalized will have a unique "Asset Number" at client level which should always be automatically given by the system and besides it could be customize.

It will be required that an Asset Advanced Sequence Number at Client level is required to be choosen, which will be setup in the application path: Financial Management || Advanced Assets || Advanced Sequence Numbers

That document sequence must include besides a prefix and a suffix, below described parameters.

End-user should be able to select any of the above parameters to let the system know how inventory number must look like.

In the case of a sub-asset scenario, sub-asset will get a Sub-Asset number created as a combination of the main asset number (it belongs to) + a suffix.

Allocation of the Asset Number & the Inventory Number

As described above both, an Asset Number and an Inventory Number are needed because:

Therefore,

Booking sub-tab

Booking Sub-Tab must be created at application path: Financial Management || Advanced Assets || Assets Card - Asset sub-tab - Booking sub-tab:

A new sub-tab named "Booking" must be created in order to display all the Invoices and the booking numbers related to an asset, in other words a new tab needs to show the booking control number for each booking referencing to an asset and besides, for most of the bookings there will be an invoice - and this invoice number can be shown in the same tab:

Benthien 11:32, 5 April 2011 (UTC):

Parent View sub-tab

Financial Management || Advanced Assets || Assets Card - Asset sub-tab - Parent View sub-tab

A new sub-tab named "Parent View" must be created in order to display all the assets (sub-assets or assets) which belong to a main asset (parent view) as a tree.


New!! New Subsidy window

In order to enter Subsidies we need a new table and a new window which must be found at the application path: Financial Management / Advanced Assets / Subsidies.

That new window will have below fields to be "manually" fill-in by the bookeper, by selecting the corresponding Subsidy ID, see "Special Items (Subsidies) section":

Subsidies sub Tab

Financial Management || Advanced Assets || Assets Card - Asset sub-tab - Subsidies sub-tab

A new tab is required in order to allow:

Subsidies could be an amount or could be a % of the Asset Cost and besides it is important to remark that Subsidies must be amortized at the same time and the same way as the Asset/s those ones are related to; therefore below fields needs to be added and manually fill in for each Asset in the Special Items Tab:

For subsidies there is no adjustments account.
The amortization is always directly booked against the subsidy account.

10.000,00 Subsidy Account (3600010) DEBIT
10.000,00 Revenue of liquidation of Subsidies(5370010) CREDIT

System might have into account there is/are special items while running the depreciation plan as the corresponding amortization plan for that/those subsidies must also be created based on Asset/s Depreciation plans and Subsidy Amount.

See Special Items section : http://wiki.openbravo.com/wiki/Projects/assetsmanagement#special_items


It is important to highlight that:

An Investigation Grant or a Subsidy must be linked to an Asset or to several Assets and besides an Asset can have one or several Investigation Grants or Subsidies.

Controlling sub-Tab

Financial Management || Advanced Assets || Assets Card - Asset sub-tab - Controlling item sub-tab

And finally, a new tab is required in order to enter Cost and Activity information, what is also called "Controlling".

This tab must containe info below:

Not editable info:

Info coming from Asset Card - Asset Tab:

Besides a new process button named "Create Depreciation" should be added here in order to run a parallel Depreciation Plan based on controlling information.

New!!! Depreciation Plan lines based on Controlling Information should not be related anyhow with the "normal" Depreciation Plan Lines of the Asset; therefore that parallel depreciation plan lines based on controlling information must be saved in a different sub-tab in the Asset Card named "Controlling Depreciation".

There won't be any booking on this information in OB, in other words this depreciation must not be posted in financial accounting, it is only an information .
Controlling software will pick up these data an book the depreciation in their own system.

New Info. Fields below must be implemented later on, in a second phase once HIS changes Invoice interface/window by adding below fields:

Parent View and Sub-Assets structure

Openbravo Adv Asset Management will support the concept of a "Parent View".

This will be a mechanism for viewing a collection of assets which could have a different relation-ship.

A parent view is not an asset as such but just a view of assets, therefore it can not be depreciated but the assets or sub-assets which belong to it.

Depending on how strong the relationship between assets is "Parent View" concept will be setup in a different way:

It should be possible to link multiple assets or sub-assets to a single asset. The parent view must then be able to present a view of all assets that are linked to it, either in summary or detail.

Both scenarios above will be defined as part of the Parent View definition:

Strong Relation-ship example - A Camera and a lens.

For getting this setup in the system, end-user should enter 2 Assets which means the creation of 2 Asset Cards.

From the Camera Asset Card-Asset Tab, sub-Tab "Parent View"; end-user should be able to see all the assets or sub-assets related to Camera.

Casual Relation-ship example - A Computer and a Graphic Card.

For getting this setup in the system, end-user should enter 2 Assets which means the creation of 2 Asset Cards.

From the Computer Asset Card-Asset Tab, sub-Tab "Parent View"; end-user should be able to see all the assets or sub-assets related to the Computer.

Functional Requirement 2 - Asset Work Flow

Overview

First scenario - An Asset is delivered to an Institute:

Key point of this scenario is that the Asset Card is created after the Asset Invoice is booked.

Benthien 11:39, 5 April 2011 (UTC):

this step (4) should be assisted by a function that gives this informations to asset management. (HIS 08)



Second scenario - an Asset is delivered to a Central Goods Receipts:

Key point of this scenario is that the Asset Card is created before the Asset Invoice is booked.

Assets Invoices Booking

When an asset is delivered anywhere, people who unpack or receive the asset have to validate if it is the right asset and if it is not damage.

Besides, it is important to highlight that:

New!! we can not rule who is going to enter invoices in the system, in other words it is not that only finance people is able to enter invoices in the system as Draft status.

Below Invoice Booking data must be entered while booking an Asset Invoice:

Every time an asset invoice needs to be booked a G/L item must be created previously and as soon as the asset account is known at the application path Financial Management || Accounting || Setup || G/L Item || G/L Item, with below information:

Gl item financial.png

Gl item cuentas.png

For booking an invoice the end-user must navigate to : Procurement Management || Transactions || Purchase Invoice || Header
Once there below information should be entered:

Then end-user must navigate to : Procurement Management || Transactions || Purchase Invoice || Lines
Once there and for getting the above implemented in the system below new fields/ and tab must be created at Invoice line level:

Besides end-user must also filled-in below information:

Invoice Lines 1 final freight.png

Once the Invoice is completed and posted below posting must be shown:

100.000,00 Asset Account (0730010) DEBIT
19.000,00 VAT deductible (2600000) DEBIT
119.000,00 Vendor Liabilities(4400000) CREDIT

Freight / other Asset Cost

In case of freight cost or any other additional cost an additional invoice or an additional invoice line must be entered. The end-user must fill in below information:

Besides end-user must also filled-in below information:

New!!! And set as Yes a new flag named "Freight/Other Costs" which needs to be created at Invoice Line level.

Once the Invoice is completed and posted below posting must be shown:

500,00 Asset Account (0730010) DEBIT
95,00 VAT deductible (2600000) DEBIT
595,00 Vendor Liabilities (4400000) CREDIT

Freight&other type of Cost will increase Asset Cost and therefore the amount/cost to be depreciated.

New!! It is important to highlight that every Invoice line which is booked on an asset account (asset account type) will be added to the asset to do list, the same applies to invoice lines flag as "freight cost", those ones will also be created in the Assset M. To Do List flag as such as for those Invoice Lines flag as "Freight Cost" there will not be any need of Asset Card creation but the Asset Management Team would need to manually allocate the total amount of the freight cost to one or several assets and then, set them manually as verified.

(New!!) And finally, it is important to highlight that while booking a Financial Invoice for an Asset/s, and in case of VAT posting is required the system will take into account if the Organization is a Public Organization, therefore VAT is posted as higher value of the asset.

New!!!) There could be diferent type of cost (not just freight cost) but installation cost or whateve which should be booked on an asset account and besides there could be those cost whatever type they are, come from diferente invoices.

Assets Sales Invoices Booking

Above described changes also applies to Sales Invoices Lines window.

See section: http://wiki.openbravo.com/wiki/Projects/assetsmanagement#asset_disposal

Sales section.

Asset Card Creation

Before Invoice Booking

An asset is delivered to a central goods receipt by example.

It could be that people who unpack or receive the asset is allowed to create an Asset Card before the Invoice is booked, in that case:

Once the Invoice is booked, Asset Management will notice there is an Inventory Number for that invoice which means an Asset Card is created in the system.

Asset Management will have to search for that Asset Card and fill-in Asset related information (Asset Tab) as well as Special Items tab and Controlling tab if applicable. Inventory Status field will be changed to "Valid", if applicable.

After Invoice Booking

An Asset is delivered to an Institute, by example.

It could be that people who unpack or receive the asset is not allowed to create an Asset Card before the Invoice is booked, in that case:

No Assets Invoices

Assets donated which need to have an asset card as rest of the asset, only in this case there will not be any asset invoice at all.

Functional Requirement 3 - Assets Management To Do List

The Asset Management To Do List will help Asset Management team to set up the corresponding Assets to:

For getting the above implemented a new window must be created at the application path: Financial Management || Advanced Assets || Asset To Do List

Once in the Asset To Do List window, Asset Management Team must enter below information:

After that, the end user will press the process button "Asset To Do List Generation". For our example, end-user should select AP Invoice Document Type (Purchase Invoices).

Once the process has been run a new window: Financial Management || Advanced Assets || Asset To Do List - Lines will list every invoice line which is booked on an asset account for the selected Client/Organization.

Lines window will show below data ordered by Invoice Number and Invoice Line number, as an Invoice could have several Invoice Lines containing different Asset/s:

Besides, this new window will have [HIS-08] 3 2 process buttons:

Benthien 11:46, 5 April 2011 (UTC):

correct

Prior to above second process, and once the above List is populated, Asset Management Team will have enough information to create the Asset Card/s for the asset/s of each invoice line shown which have the Asset Card flag set to "No"
For doing that they should navigate to: Financial Management || Advanced Assets || Assets Management To Do List ||
and once there create as many Asset Cards as Assets to be capitalized.

After that Asset Management Team will have to run the "Set as Verified" process as described above.

In case there is an inventory number and therefore Asset Card flag is set to Yes, Asset Management Team will have enough information to find the Asset Card/s already created. For doing that they should navigate to: Financial Management || Advanced Assets || Assets Management To Do List ||
and once there search by the Inventory Number by using the "Asset Selector"

Asset Selector must be implemented by using new Selector and should have below fields:

As described above, for those cases in which Purpose/Product field shown the word "2 assets damage" for the same invoice number, Asset Management will realize there is not need to create an Asset Card for those Assets damaged coming from an invoice; so they will run the proccess "Set as Damage" from the corresponding Asset Management To Do List line.

For those cases of Sub-Assets, Asset Management Team will realize about it by looking at the Purpose/Product field, they will know if an asset is a sub-asset part of another asset (main). If that is the case a new Asset Card needs to be manually created for that sub-asset which should be flag as such and related to the main asset.

Finally, it is important to remark that:

Functional Requirement 4 - Assets Transactions/Movements

Asset addition

End-user must be able to book assets liability invoices or movements like assets purchase or donations.

An asset addition may be caused by:

1.- Purchase

In this case there is a purchase invoice (Document Type=AP Invoice) where an "Asset" account is affected which must be booked in the system.
See section Assets Invoices Booking - http://wiki.openbravo.com/wiki/Projects/assetsmanagement#Assets_Invoices_Booking

A purchase and therefore a purchase invoice could have:

As described above as soon as an asset account is affected, the corresponding Invoice Line has to be shown in the "Asset Management To Do List".

Example (entitled to deduct income tax):

For getting the above done end-user must create prior to invoice booking and once asset account is known, a G/L item for the machine. For doing that he will navigate to: Financial Management || Accounting || Setup || G/L Item || G/L Item
Once there a new G/L Item must be created by entering below data:

After that end-user must navigate to "Accounting" tab and enter below information:

Once the G/L item has been created the end-user must navigate to: Procurement Management || Transactions || Purchase Invoice || Header , in order to book the Asset Invoice.
Once there he will have to create a new record/new invoice and enter below information:

After that end-user must navigate to Lines window and once there create a new line by filling in below data:

A new Invoice line could be entered for the freight cost as described below or same applies in case of a new Invoice (in case of a different vendor):

Once the Asset Invoice is completed and booked, below posting will be shown:

Purchase of the machine

Asset account (0730010) 100.000,-€ DEBIT
VAT deductible (2600000) 19.000,-€ DEBIT
Vendor Liabilities (4400000) 119.000,-€ CREDIT

Freight costs

Asset account (0730010) 500,-€ DEBIT
VAT deductible (2600000) 38,-€ DEBIT
Vendor Liabilities (4400000) 538,-€ CREDIT

2.- Donation/Contribution

There could also be assets donated in that case there will not be any invoice to book in the system and the Asset Management Team will create the corresponding Asset Card for them. This type of asset must be handle same way as any other Asset, in relation to the Asset Card creation but they will not be depreciated at all as those don't mean any cost/expense for the University.

Asset disposal

End-user must be able to book assets disposal invoices or movements like sales, theft or scrapping.

An asset disposal may have different reasons:

1.- Theft and scrapping or damage

Those movements must be manually booked as a lost by using a G/L Journal and therefore the corresponding "Ledger Accounts"

In case of theft:

Cost from asset disposal (6960000) DEBIT
Asset account (0730010) CREDIT
Adjustment Account (0799900) DEBIT

In case of Scrapping, there may arise costs for it.

Cost from asset disposal (6960000) DEBIT
Asset account (0730010) CREDIT
Adjustment Account (0799900) DEBIT

Cost from asset disposal (6960000 ) DEBIT
Bank Account (2800000) CREDIT

After above manual bookings, Asset Management Team should search the Asset Card, they will do that by manually searching the asset card by the inventory number or by the asset number which is on the disposal request. Then, they would need to enter the Disposal Date and get the Inventory Status to "Canceled" in case the asset disposal was part of the Inventory.

2.- Sales

Sales could be booked automatically by using a sales order (Document Type = AR Invoice) or manually booked as a profit by using a G/L Journal and therefore the corresponding G/L item (Asset Account).

a.- In case of manually booked as a profit, end-user must use a G/L Journal and enter below postings:

Customer (5310000) DEBIT
Revenue from asset disposal (5361000) CREDIT
VAT Liabilities (480100) CREDIT

Besides Asset disposal posting of the Net Book Value:

Cost from asset disposal (6960000) DEBIT
Asset account (0730010) CREDIT
Adjustment Account (0799900) DEBIT

And the payment: Bank Account or Cash (2800000) DEBIT
Customer (5310000) CREDIT

After above manual bookings, Asset Management Team should search the Asset Card, they will do that by manually searching the asset card by the inventory number or the asset number which is on the disposal request. Then, they would need to enter the Disposal Date which is not necessary the same date as the invoice date; and get the Inventory Status to "Canceled" in case the asset disposal was part of the Inventory.

b.- In case of Sales:

In case of a sale of an asset, the end-user must navigate to: Sales Management || Transactions || Sales Invoice || Header
Once there the end-user must create a new record/sales invoice and fill in below data:

Once data above has been entered, end-user must navigate to Sales Invoice Lines and enter below information:

Besides end-user must also filled-in below information:

The invoice will be saved in draft status and will be booked as a receivable by completing the sales order in accounts receivable.

After above bookings, Asset Management team would need to search the Asset Cards of the disposal assets.

For getting that done they will have to generate the Asset Management To Do List which will include this time every sales invoice lines containing an Asset card linked.

Asset Management Team will search Asset Card for those disposal asset and they will do that by the Asset Number or the Inventory Number or the business partner or the amount, by example, as Asset Management To Do List will list below information, as described in section:

Besides, while Booking the Asset Sales Invoice an additional posting is required in order to settle the net book value of the Asset being sold.

The net book value must be calculated automatically by the system as the difference between the asset cost (Asset Card - Asset Value field or Asset Account value) and the depreciation amount (Asset Card - Depreciated Amount or Adjustments Account).

Sales Example

Asset disposal (Asset Cost)

10.000,-€ Cost from asset disposal (6960000) DEBIT
90.000,-€ Adjustment Account (0799900) DEBIT
100.000,-€ Asset account (0730010) CREDIT

Sale of asset (Asset Price)

9.250,-€ Customer (5310000) DEBIT
8.000,-€ Revenue from asset disposal (5361000) CREDIT
1.520,-€ VAT Liabilities (4801000) CREDIT

and later on the Payment 9.250,-€ Bank or Cash (2800000) DEBIT
9.250,-€ Customer (5310000) CREDIT

Asset Document Types

Besides Addition (Purchase of an Asset by using an AP Invoice) and Disposal (Sales of an Asset by using an AR Invoice or a GL Journal) of Assets there are few more Asset Movements for which we would need to implement new Document Types in the system, listed below:

There is an existing one, see screen below which shows an existing Document Type "Depreciation" which is linked to:

Depreciation Doc.png

Depreciation business logic is run from the Asset Card and it should be linked to the Depreciation Document Type and its corresponding G/L category in order to keep tracking as well as to have for each Depreciation Line a Movement Key/Document Sequence.

We need to create 3 new ones for Manual Depreciation, Special Depreciation an Appreciation:

Manual Depreciation:

Manual Depreciation booking is same as Depreciation, but it will be manually entered in the system by the end-user as applicable.

Posting should look like:

500,00 Depreciation Account (6630010) DEBIT
500,00 Adjustments Account (0799900) CREDIT


Special Depreciation:

Special Depreciation booking is same as Depreciation, but it will be manually entered in the system by the end-user as applicable.

Posting should look like:

500,00 Depreciation Account (6630010) DEBIT
500,00 Adjustments Account(0799900) CREDIT

Appreciation:

Appreciation booking is the opposite to Depreciation, and it will be manually entered in the system by the end-user as applicable.

Posting should look like:

10.000,00 Adjustments Account (0799900) DEBIT
10.000,00 Depreciation Account (6630010) CREDIT

Storno Depreciation:

Storno booking is the opposite to Depreciationand it will be manually entered in the system by the end-user as applicable.

Posting should look like:

-10.000,00 Adjustments Account (0799900) CREDIT
-10.000,00 Depreciation Account (6630010) DEBIT

MEW!! Financial Accounting implications on Asset Accounting (Asset Card)

It is important to highlight that in the case of any asset account booking that will impact the Asset Card.

more info needed:

...in the past:

For doing that we need a new flag in the Asset Card-Asset Tab, named "Change of the Depreciation Amounts" which will allow that the new process button named "Recalculate Depreciation" :

More information will be added here once the corresponding test cases are provided.

Asset Movements Window

Besides a new window needs to be created under the application path: Financial Management // Assets named "Assets Movements" where the end user could manage and book above described Document Types (Manual Depreciation, Special Depreciation, Storno Depreciation and Appreciation).

In that window the end-user should be able to select/enter below data:

After that end-user should be able to Process that movement.
That would imply that the corresponding lines are created for the corresponding Asset at the application path:

Financial Management || Advanced Assets || Assets || Assets >> Asset Amortization

Financial Management || Advanced Assets || Amortization, in order to get those new movements are later on booked or posted.

Manage depreciation plans

Asset must be depreciated according to a Depreciatio Plan. Depreciation Plan Lines creation do not not imply Depreciation Plan Lines booking as this is a 2 step work-flow:

  1. The Depreciation Plan Lines are generated
  2. The Depreciation Plan Lines are processed as required by bookkeepers, it could be either on a monthly basis or on a yearly basis or on a demand basis.

The depreciation plan must take into account both:

The depreciation Plan for an Asset must be run from the Asset Card once the end user enters Depreciation related information (data detailed above) and a Depreciation Start Data is setup, and then the user can press the button "Create Depreciation".
This process should be linked to the Document Type = "Depreciation".

This process will imply to run as a sub-process "Subsidy Amortization Plan" in case of an Asset having subsidy/ies linked to it and setup under Subsidies Tab.

In case of Subsidies, the amortization is always directly booked against the subsidy account.

10.000,00 Subsidy Account (3600010) DEBIT
10.000,00 (New!!!) Revenue of liquidation of subsidies (5370010) CREDIT

Depreciation Plan must be part of the asset card and can be found here: Financial Management || Advanced Assets || Asset Card|| Assets >> Asset Amortization (to be renamed to Asset Depreciation)

Depreciation Plan.png

In the window above, changes listed below must be implemented:

Depreciation Plan can be booked at the application path: Financial Management || Advanced Assets || Depreciation || Header >> Lines
Once there end-user must press "Process" button and then "Post", as shown in the screen below:

Depreciation Lines 1.png

Depreciation Booking.png

Posting should look like:

188.06 Depreciation Account (6630010) DEBIT
188.06 Adjustments Account (0799900) CREDIT

Depreciation Plan Calculation

It is based on : Depreciation Basis/Economic lifetime

Example:

Rounding depreciation rules:

Way of rounding depreciation might work as explained below:

Asset Cost= 999,35€
Economic Lifetime = 4 years
999.35€/4 years = 249,83€
249,83 x 4 = 999,32 (999,35 - 999,32) -> rest = 0,03€
That rest is added to the first depreciation:
Year 1 = 249,83+0,03 = 249,86
Year 2 = 249.83
Year 3 = 249.83
Year 4 = 249.83

[HIS-11] Process to run depreciations

The user can process more depreciations at the same time. S/he has to select a list of criterion to retrieve which depreciations to be processed, confirm the list of depreciation lines to be processed, and finally run the multiple depreciation process which actualize and post the each depreciation line of the batch.


Benthien 11:53, 5 April 2011 (UTC):

select-criterions are:

NEW!! Depreciation Plan Lines changes

Once the end-user runs the "Depreciation Plan" for an Asset from the Asset Card-Asset Tab window, all the fields in that window should be set us not editable so end-user can not change any of them, but :

As a summary:

  1. If the end-user set as yes the flag "Change of Depreciation Range", he/she will be allowed to change the Depreciation Range (Economic Lifetime field) and run "Recalculate Depreciation Plan" process; therefore the system will recalculate the depreciation plan lines do not post and do not processed once again taking into account the new Economic lifetime of the Asset.
  1. If the end-user set as yes the flag "Change Depreciation Amounts" he/she will be allowed to change the asset cost (Asset Value field) and/or the asset depreciated amount (Depreciated value field) and run "Recalculate Depreciation Plan" process; therefore the system will recalculate the depreciation plan lines do not post and do not processed once again taking into account the new Asset Depreciated value.
  1. If the end-user set as yes both flags he/she will be able to change both the economic life time, the asset Cost and the depreciated value and recalculate the plan lines do not post and do not processed once again according to the new values being entered.

New!! Special Examples

Special example 1 - Post Capitalizing

Depreciation amount starting January = 100.000 / 60 = 1666,67€
January 1666,67 - process and post
February 1666,67 - process and post
March 1666,67 - process and post

The Post capitalizing in April at the price of 10.000,-€ -> this will mean the booking of a new invoice for that particular asset or asset account (G/L item) by example (0730010).

End-user should recalculate the depreciation plan by using "Change of depreciation amounts" flag and by entering a new Asset Value = 110.000,-€ System should take into account that the new depreciation plan lines to be created will have to be as shown below: Depreciation amount starting April= 100.000 + 10.000 - 6666,68 / 60-3

Special example 2 - Post Capitalizing

Depreciation amount starting January = 100.000 / 60 = 1666,67€

January = 1666,67€ - process and posted.

At payment (dated on February) of an asset we pay with a discount 3%. That discount will mean a lower value of the Asset.

Below posting must be booked:

Booking at payment

Vendor Liabilities (4400000) 100.000,-€ DEBIT
Bank account (2800000) 97.000,-€ CREDIT
Profit from discount (5312220) 3.000,-€ CREDIT

Profit from discount (5312220) 3.000,-€ DEBIT
Asset Account (0730010) 3.000,-€ CREDIT

End-user should recalculate the depreciation plan by using "Change of depreciation amounts" flag and by entering a new Asset Value = 100.000,-€ - 3.000,-€ = 97.000.-€

System should take into account that the new depreciation plan lines to be created will have to be as shown below:

Depreciation amount starting February = 100.000 - 3.000 / 60-1 = 1644,06 January 1666,67€ February 1644,06 € March 1644,06 €

Special example 3 - Change of the Depreciation Range

In some cases, if a sub asset is purchased, which increases the depreciation range of the main asset, the checkbox 'change of asset depreciation range ' must be manually checked. Depending on the booking date depreciation would need to be corrected.

For getting the above done the end-user must :

Special depreciation

Special Depreciation is an unscheduled depreciation which is manually booked by the person in the Asset Management team who have high knowledge of the legal situation, which is briefly described below:

Temporarily decrease in value

Permanently decrease in value

In case of discontinuation of the reasons for depreciation an appreciation must be booked.

We need to show this kind of depreciation in a report to the authorities, therefore as rest of transactions/movements, those kind of special depreciation must be linked to an existing Document Type which is named "Special Depreciation".

For getting the above the end-user should navigate to the application path: Financial Management / Advanced Assets / Assets Movements and enter the corresponding Special Depreciation or Appreciation movements by using the corresponding "Document Type"

Low Value Assets

As described in the section: http://wiki.openbravo.com/wiki/Projects/assetsmanagement#Asset_Management_related_thresholds_.26_set_up_at_client_level
there are different type of Low Value Assets:

  1. Items booked as an expense
  2. Low Value Assets
  3. Low Value Pool Assets

There are 2 strategies for low value assets: low value or low value pool assets, nowadays asset owner can chose the one to apply always based on the asset value. See section: http://wiki.openbravo.com/wiki/Projects/assetsmanagement#Asset_Management_related_thresholds_.26_set_up_at_client_level

Items booked as an expense

For getting the above implemented:

Low Value Assets

For getting the above implemented:

Low Value Pool Assets

For getting the above implemented:

New!!

Appreciation

Appreciation is also another Asset Movement which should be done manually by Asset Management Team whenever required.

For doing that the end-user must navigate to:
Financial Management / Assets / Assets Movements and enter the corresponding Appreciation movements by using the corresponding "Document Type" = Appreciation.

Under construction items

Under construction items are items, which are still under construction. It is not possible to depreciate assets under construction, regardless of what:

Manual rebook of Under Construction Items to Final Assets:

100.000,00€ (076000) Production Plan DEBIT
100.000,00€ (095000) Under Construction Item CREDIT

Asset Reporting

(This section is changed dated on Oct 19th once we take final decission of implementing 2 reports as it was planned at the begining, nevertherless this section is going to be better described and few new information is going to be added).

(This section is changed once more dated on Nov 8th due to the fact that we finally implemented just 1 report)

Asset Reporting will help the end-user (Asset Management Team) to get assets related reports in order to better understand about:

There is going to be 1 reports under below application path:

Financial Management // Advanced Assets:
Assets Movements List process

Filters: as drop down boxes and selector buttons

In case end-user do not select any of the filters above but just the mandatory ones: Output Type, Client, Organization, the system will retrieve only those assets which have a/some Special Documents related or Invoices already booked.

Output

Header:

Generic information as just one line report per asset:

Details section, 1 line report per movement:

Net values example:


Asset value = 10.000
Depreciation basis = 10.000
Montly depreciation = 1000
Economic lifetime= 10

Start depreciation = january 2010

Month 1 (January) = 1000 depreciation process and post
Month 2 (Feburary) = 1000 depreciation process and post
Month 3 (March) = 1000 depreciation process and post
Month 4 (April) = 1000 depreciation process and post
Month 5 (May) = 1000 depreciation process and post
Month 6 (June) = 1000
Month 7 (July) = 1000
Month 8 (August) = 1000
Month 9 (September) = 1000
Month 10 (October) = 1000

Report date:
Date from = 01 June 2010
Date To = 30 June 2010
System date = 15 June 2010 (this means that June depreciation is not posted already. It will be posted dated on 30 June 2010)

Adjustments =1000+1000+1000+1000+1000=5000 (depreciation already posted from January to May)

Net value previous period (April) = 10.000-4000=6000

Net value current period (May) = 10.000-5000=5000


Report date:
Date from = 01 July 2010
Date To = 31 July 2010
System date = 15 July 2010 (this means that June depreciation is not posted already. It will be posted dated on 31 July 2010)

Adjustments =1000+1000+1000+1000+1000+1000=6000 (depreciation already posted from January to June)

Net value previous period (May) = 10.000-5000=5000

Net value current period (June) = 10.000-6000=4000

Others Rules and Actions

Storno booking

Assets Management staff must be able to storno in case of an asset booked to the wrong organization; that implies that 2 new documents named "AP Storno" and "AR Storno" must be created.

Storno is = Reverse posting as negative posting

An Storno document is aim to reverse a posting, therefore:

Example: Booking of an asset invoice in the Organization A
Asset Account DEBIT (500,-€)
Vendor Liability CREDIT (500,-€)

Above asset invoice needs to be storno in the Organization A
Asset Account DEBIT (-500,-€)
Vendor Liability CREDIT (-500,-€)

New booking of above asset invoice in the Organization B
Asset Account DEBIT (500,-€)
Vendor Liability CREDIT (500,-€)

Above implies that the corresponding Invoice lines, the storno invoice line for Organization A as well as the new invoice line for Organization B are going to be populated in the corresponding Asset Management To Do List for Organization A and B.

Organization A will have to storno the corresponding depreciation entered for that asset; therefore we will use "Depreciation Storno" document type in the Asset Movement new screen in order to Storno wrong depreciation in the Organization A.

Organization B will have to create the corresponding depreciation for an asset now booked to the right organization by running the process "Create Depreciation"; once the corresponding Asset Card has been created based on the Asset Management To Do List.

Rebooking

Rebooking of assets happens quite often at universities. The reason may be:

Asset Management Team must rebook manually by using a G/L Journal for those case which it is not needed to correct depreciation.

For those cases which there is a need to correct depreciation....¿?¿?¿

Example 1 = Rebooking from asset under construction to asset account

100.000,00€ (076000) Production Plan DEBIT - asset account
100.000,00€ (095000) Under Construction Item CREDIT

Once that manual rebook is done by using a G/L Journal and the asset Account has the right value, depreciation can start by running "Calculate Depreciation" process from the Asset Card; that will take the corresponding Accounts setup for that particular Asset depending on the Asset Class it is linked to (Asset Account and Adjustments Account).

Example 2 = Rebooking from the wrong asset account to the valid asset account

Asset Management realize that a computer, which was purchase in March, was wrongly booked on the office machines account. There was a run of depreciation in May, so we have to correct the depreciation, too. This must be done automatically by checking the valuation account.

Rebooking to the right Asset Account by using a G/L Journal:
50.000,-€ Computer System (0731) DEBIT
50.000,-€ Office machines (0860) CREDIT

Once the Asset Account is corrected, Asset Management needs also to correct the depreciation by running once more "Create Depreciation" process:
833,-€ Adjustment Account Computer systems DEBIT
833,-€ Adjustment Account Office Machine CREDIT

Example 3 = Rebooking from a cost account to an asset account

By mistake the freight costs of a research facility were not booked as part of an Asset Cost but as a cost/expense.
Booking date was January, rebooking date is April - therefore there must be a correction of depreciation as well.

Manual Rebooking by using a G/L Journal:
450,-€ Scientific facilities (0720) DEBIT
450,-€ Freight Cost (6150) CREDIT

Correction of depreciation process:

Subsides (Special items)

Special items refers to Investment Grants; this includes assignments and grants for investment like Subsidies. These are revenues which are intended for financing of investment, for example to purchase research facilities.

Special items for investment grants are a 'equity contra position' (not affecting the net income) to the investment (depreciation of assets). As already explained they must be cleared appropriate to the period in parallel to the depreciation of asset affecting net income.
The clearing of special items takes place at the depreciation run; which means that every time a depreciation plan is run for an asset/s, the corresponding amortization plan must be run in parallel for the special items linked to that asset/s, same way as system behaviour.

The knowledge about Special Items is not at the Asset Management nor in Accounts Payable, these manual bookings will be done by a Balance Bookkeeper. These manual bookings means that the Balance Bookkeeper will link the corresponding Asset/s to the subsidy/ies in the Asset Card - Subsidies sub tab for doing that Balance Bookkeeper will filled-in Subsidy fields, after entering "Subsidy" information in the new Subsidy Window.

Afte the above, Asset/s needs to be purchased of course and the corresponding invoices must be booked in the system.

Subsidies must be booked in the system by using GL Journals and the Booking Number of the GL Journal must be the Subsidy ID.

Subsidy scenario

A University receives 100.000,-€ to buy 2 Assets, Balance Bookkeeper should make sure below steps have been taken:

Step 1 - University gets the money (subsidy)

100.000,-€ Bank DEBIT
100.000,-€ Revenue of Third Party Fund CREDIT

Step 2 - Asset/s can be purchased:

Once the above is done, the asset/s can be purchased as we got the money, for getting that done the end-user should create as many G/L items as Asset Accounts required and get the corresponding Invoice booked in the system for the Asset/s.

By example, an University can buy 2 assets at 50.000,-€ each;
once the invoice is booked below posting will be shown:

50.000,-€ Asset Account 0700301 DEBIT
50.000,-€ Vendor liabilities CREDIT

50.000,-€ Asset Account 0700302 DEBIT
50.000,-€ Vendor liabilities CREDIT

At the time invoices payment:
50.000,-€ Vendor liabilities DEBIT
50.000,-€ Bank Account CREDIT

50.000,-€ Vendor liabilities DEBIT
50.000,-€ Bank Account CREDIT

After that Asset Invoice lines will be collected by the Asset Management To Do List, therefore the corresponding Asset Cards of the Assets (2) can be created.

Step 3 - Manual booking of the Subsidy/ies

After the Asset Card/s have been created, the Balance Bookkeeper will be able to:

100.000,-€ Revenue of Third Party Fund DEBIT
100.000,-€ Subsidy Account (3600010) CREDIT

Step 4 - Depreciation of the Asset

Asset Depreciation must be run for the Asset Card, Asset Tab, Create Depreciation process button, that process will do the below:

After that, bookeeper should manually book depreciation lines and amortization lines:

Asset Depreciation lines Posting - the posting should look like:

2.000,-€ Asset Account DEBIT
2.000,-€ Adjustment Account CREDIT

Subsidy Amortization lines Posting - the posting should look like:

2.000,-€ Subsidy Account (3600010) DEBIT
2.000,-€ Revenue of liquidation of Subsidies(5370010) CREDIT

It is important to highlight that:

Special items are booked manually. Every asset can have several special items depending on the amount of investors. The amount of special item can not be higher than the amount paid by the investor and the cost of the Asset.

These funds become a liability to the donor of the grant, if they are inappropriately used. The investment grants are mapped appropriate to the period of the asset depreciation range of the subsidized asset.


[HIS-11]Process Multiple Depreciations

When the process button of the window Process Depreciations is pressed, the application posts all depreciation lines according to the same business logic which is implemented in the procedure AAM_Depreciation_Post.

[HIS-08]Automatic creation of asset card from to-do list

The following tables describe the mapping between the fields of the entities related to the asset card, and the originating fields used to set the proper values. Only relevant entities and fields are listed.

Tab Asset Card (Header)

Field Value
Client Client of the originating invoice line
Organization Organization of the originating invoice line
Name "Name of the G/L Item" for invoice "INVOICE NUMBER"
Description "Name of the G/L Item" for invoice "INVOICE NUMBER"
Active Yes
Asset No To be set according to the current logic of the Advanced Asset Management Module
Inventory No To be set according to the current logic of the Advanced Asset Management Module
Asset Class Asset Class selected by the user in the pop-up window

When the asset card is created, the ID of the record must be set in the originating asset to-do list in order to create a link between the two objects.

Tab Asset Card || Asset

Field Value
Client Client of the originating invoice line
Organization Organization of the originating invoice line
Name Name of the G/L Item
Asset No Generated according to the logic of Advanced Asset Management module
Active Yes
Depreciation Type Retrieved from the asset class
Depreciation Interval Retrieved from the asset class
Depreciation Method Retrieved from the asset class
Economic Lifetime Retrieved from the asset class
Purchased Date Invoice date of the originating invoice
Depreciation Start Date Last date of the month according to the invoice date (e.g. if the invoice date is any date from 1st Apr to 30th Apr, the depreciation start date will be 30th Apr)
Asset Value Gross Amount of the originating invoice line if the organisation is not commercial (flag "tax not deductible" is not flagged), Net Amount otherwise
Depreciation Basis Equal to the asset value
Currency Currency of the originating invoice
Commissioning Date Invoice date of the originating invoice
Parent View "Empty"

Tab Asset Card || Inventory

Field Value
Client Client of the originating invoice line
Organization Organization of the originating invoice line
Name Name of the G/L Item
Active Yes
Inventory Date Invoice date of the originating invoice
Inventory Value Gross Amount of the originating invoice line
Status Pre-Inventory

Tab Asset Card || Asset || Accounting

Field Value
Client Client of the originating invoice line
Organization Organization of the originating invoice line
Active Yes
Depreciation Account Retrieved from the relevant asset class
Adjustments Account Retrieved from the relevant asset class

Tab Asset Card || Asset || Parent View

Field Value
Name Name of the G/L Item
Summary Level No
Parent View "Main Asset"

[HIS-08]Return from asset card to to-do list

When the user is displayed the asset card window coming from the asset to-do list window, s/he can return at any time to the originating to-do list record, by clicking the Linked Items link on top-right. The picture below displays how the user can return back to the originating record.

HIS-08-2.png

Assumptions & Dependencies

Assumptions

To be added.

Dependencies

To be added.

Design & Technical consideration

Design consideration

...

Technical constraints

...

Technical Requirements

...

Plausibility checks?

User interface

New User Interface

[HIS-11] Process Depreciations

HIS-11-1.png

This is a new window to be navigated from Financial Management || Advanced Assets || Process Depreciations. It allows the user to enter search criterion which are used by the application to retrieve depreciation lines matching these criterion. When the user has entered relevant criterion, s/he can press the "Select Depreciations" button which pops-up the window displaying all "draft" depreciation lines matching entered criterion. The Process button, which becomes available when the user has selected at least one line, when pressed run the depreciation process for all lines (check section Process Multiple Depreciations).

--Benthien 09:52, 5 April 2011 (UTC)-- In this window we have too much Date-requests. It would be enough to enter a "month from..." and a "month to...". Additional to that more select-criterions were required:


Name Type Length Default Constraint Mandatory
Client Combo-Box Default Client linked to the current user's role List of clients allowed for the user's role Yes
Organization Combo-Box Default Organization linked to the current user's role List of organizations allowed for the user's role Yes
Document Number Text Next number in the sequence of document number for depreciation process Read-only Yes
Accounting Date From Date No
Accounting Date To Date No
Asset Class Combo-Box List of available asset classes in the application No
Asset Account Combo-Box List of available asset accounts in the application No
Currency Combo-Box List of available currency in the application No
Select Depreciations Button
Process Button Not visible until at least one depreciation line has not been added to the nested tab.

[HIS-11] Select Depreciations

HIS-11-3.png

This window is popped up when the user presses the Select Depreciations button in Process Depreciations window. The table displays all draft depreciation lines matching criteria entered in Process Depreciations window which are not already listed in another Process Depreciation record. . More specifically, the table will include:

  • Depreciation lines assigned to the selected client
  • Depreciation lines assigned to the selected organization
  • If Accounting Date From is filled, depreciation lines whose accounting date is equal or greater than selected accounting date
  • If Accounting Date To is filled, depreciation lines whose accounting date is equal or lower than selected accounting date
  • If Asset Class is selected, depreciation lines whose asset class of the relevant asset card is equal to the selected asset class
  • If Asset Account is selected, depreciation lines whose asset account is equal to the selected currency (depends on HIS-25)
  • If Currency is selected, depreciation lines whose currency is equal to the selected currency

By default, all displayed lines are selected (checkbox on the left is ticked), but the user can decide to deselect one or more.

When the process button is pressed, the application creates in the nested tab of the Process Depreciations window as many depreciations with relevant lines as the selected lines in this window. If the cancel button is pressed, the window is closed and no action is executed.

Name Type Length Default Constraint Mandatory
Table.CheckBox Check-box Ticked Yes
Table.Name From field AAM-AMORTIZATION.NAME Read-only
Table.Starting From field AAM-AMORTIZATION.STARTDATE Read-only
Table.Ending From field AAM-AMORTIZATION.ENDDATE Read-only
Table.Accounting From field AAM-AMORTIZATION.DATEACCT Read-only
Table.Currency From field AAM-AMORTIZATION.C_CURRENCY_ID Read-only

[HIS-11] Depreciations

HIS-11-2.png

This is a read-only window, data are fed by the Select Depreciations window after the process button is pressed. Being a read-only window, it is not possible to manually add or remove any record.

Name Type Length Default Constraint Mandatory
Name String From field AAM-AMORTIZATION.NAME Read-only
Starting Date Date From field AAM-AMORTIZATION.STARTDATE Read-only
Ending Date Date From field AAM-AMORTIZATION.ENDDATE Read-only
Accounting Date Date From field AAM-AMORTIZATION.DATEACCT Read-only
Currency Combo-Box From field AAM-AMORTIZATION.C_CURRENCY_ID Read-only

[HIS-11] Depreciation Lines

HIS-11-4.png

This is a read-only window, data are fed by the Select Depreciations window after the process button is pressed. Records displayed here are all depreciation lines belonging to the depreciation parent record. Being a read-only window, it is not possible to manually add or remove any record.

Benthien 14:28, 5 April 2011 (UTC):

Please remember, that university often have more than 30.000 assets which have to be depreciated in one process.


Name Type Length Default Constraint Mandatory
Line No Integer From field AAM-AMORTIZATIONLINE.LINE Read-only
Is Subsidy Checkbox From field AAM-AMORTIZATIONLINE.ISSUBSIDY Read-only
Asset String From field AAM-AMORTIZATIONLINE.AAM_ASSET_ID Read-only
Depreciation Percentage Number From field AAM-AMORTIZATIONLINE.AMORTIZATION_PERCENTAGE Read-only
Depreciation Amount Amount From field AAM-AMORTIZATIONLINE.AMORTIZATIONAMT Read-only

[HIS-25]Asset Accounting Schema

HIS-25-1.png

Name Type Length Default Constraint Mandatory
Name Text Yes
Economic Lifetime Integer Must be a strictly positive number Yes
Asset Account Selector This selector must allow to retrieve just accounts of "asset" type Yes
Depreciation Account Selector Yes
Adjustment Amount Selector Yes

New Tables


only display

editable


Several special items are possible. Form of depreciation and rate of depreciation must fit to those of the asset.

All fields in this tab are filled from booking the special item in financial accounting.

Depending on assessment basis, depreciation rate and depreciation range there must be calculated a monthly plan of depreciation.

New Dialogues

Disposal

If this is checked, the dialog 'sales invoice' will open.


Special Items


Rebooking

The dialog of rebooking contains the following fields in two colums (old value - new Value) each

Depreciation and appreciation


User interface change

[HIS-02] Tab Inventory of Asset Card

HIS-02.png

The new field "Inventory Value" is added to the Asset Card tab just below the "Inventory Date" field. Specifications of this new field are in the following table.


Name Type Length Default Constraint Mandatory
Inventory Value Amount Asset value of the related asset tab, if available, otherwise it's empty Read-only if asset value of the related asset tab is set, otherwise it's editable Yes

[HIS-08] Asset to-do list

A new button, Create Asset Card, is displayed in both Purchase and Sales tabs of the Asset to-do list window. The button is visible as long as no asset cards have been linked to the invoice.

HIS-08-1.png

When the button is pressed, the application displays a dialogue window asking the user to select the relevant asset class for the asset card being created.

HIS-08-3.png

When the user confirms, the application automatically creates a new asset card, links this asset card to the current invoice, and the relevant asset card record is displayed to the user.

[HIS-25]Asset Class

HIS-25-2.png

The new field "Asset Accounting Schema" is added to the Asset Class window at the bottom of the window. Specifications of this new field are in the following table. Further, the accounting sub-tab is removed.


Name Type Length Default Constraint Mandatory
Asset Accounting Schema Drop-down list List of asset accounting schemas Yes

[HIS-25]Account tab of Asset

HIS-25-3.png

The new field "Asset Account" is added to the Accounting window tab at the bottom of the window. Specifications of this new field are in the following table. By default, all accounts are set with the values coming from the relevant asset accounting schema, but can be changed by the user.


Name Type Length Default Constraint Mandatory
Depreciation Account Selector Depreciation account of the relevant asset accounting schema List of accounts Yes
Adjustment Account Selector Adjustment account of the relevant asset accounting schema List of accounts Yes
Asset Account Selector Asset account of the relevant asset accounting schema List of accounts of type "asset" Yes

License

License code desription

Openbravo Public Key

Functionality enabled by the license code

Discussion items

Open discussion items

Open items....

Closed discussion items

To be added

Appendix

N/A

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