Projects:Assetsmanagement

Contents 1 Functional Specifications sign-off 2 Overview & Justification 2.1 Purpose 2.2 Scope and Overview 2.2.1 In Scope: 2.2.2 Overview: 2.3 Justification 2.4 New definitions and acronyms 3 Users & business process description 3.1 User goals 3.2 User Roles and Personas 3.3 Business process diagrams 3.4 Business scenario/s 4 Functional Requirements 4.1 Functional Requirement 1 - Setup and data 4.1.1 Asset Management related thresholds & set up at client level 4.1.2 NEW!! Subsidy Account set up as a Default account in the Accounting Schema 4.1.3 NEW!!! Depreciation Plan setup 4.1.4 Asset Card 4.1.4.1 Asset Card Main Tab 4.1.4.2 Asset Sub-Tab 4.1.4.2.1 [HIS-25] Asset Accounting Schema 4.1.4.2.2 Asset Class 4.1.4.2.3 Asset sub-Tab, fields to be removed 4.1.4.2.4 Asset sub Tab, fields to be modified 4.1.4.2.5 Asset sub Tab, existing fields/button to keep 4.1.4.2.6 Asset sub Tab, new fields 4.1.4.2.7 [HIS-25]Asset || Accounting sub Tab, fields changes 4.1.4.3 Inventory sub-Tab 4.1.4.3.1 Allocation of the Inventory Number 4.1.4.3.2 Allocation of the Asset Number 4.1.4.3.3 Allocation of the Asset Number & the Inventory Number 4.1.4.4 Booking sub-tab 4.1.4.5 Parent View sub-tab 4.1.4.6 New!! New Subsidy window 4.1.4.7 Subsidies sub Tab 4.1.4.8 Controlling sub-Tab 4.1.5 Parent View and Sub-Assets structure 4.2 Functional Requirement 2 - Asset Work Flow 4.2.1 Overview 4.2.2 Assets Invoices Booking 4.2.3 Assets Sales Invoices Booking 4.2.4 Asset Card Creation 4.2.4.1 Before Invoice Booking 4.2.4.2 After Invoice Booking 4.2.5 No Assets Invoices 4.3 Functional Requirement 3 - Assets Management To Do List 4.4 Functional Requirement 4 - Assets Transactions/Movements 4.4.1 Asset addition 4.4.2 Asset disposal 4.4.3 Asset Document Types 4.4.4 MEW!! Financial Accounting implications on Asset Accounting (Asset Card) 4.4.5 Asset Movements Window 4.4.6 Manage depreciation plans 4.4.7 [HIS-11] Process to run depreciations 4.4.8 NEW!! Depreciation Plan Lines changes 4.4.9 New!! Special Examples 4.4.10 Special depreciation 4.4.11 Low Value Assets 4.4.12 Appreciation 4.4.13 Under construction items 4.4.14 Asset Reporting 4.5 Others Rules and Actions 4.5.1 Storno booking 4.5.2 Rebooking 4.5.3 Subsides (Special items) 4.5.4 [HIS-11]Process Multiple Depreciations 4.5.5 [HIS-08]Automatic creation of asset card from to-do list 4.5.6 [HIS-08]Return from asset card to to-do list 4.6 Assumptions & Dependencies 4.6.1 Assumptions 4.6.2 Dependencies 5 Design & Technical consideration 5.1 Design consideration 5.2 Technical constraints 5.3 Technical Requirements 6 User interface 6.1 New User Interface 6.1.1 [HIS-11] Process Depreciations 6.1.2 [HIS-11] Select Depreciations 6.1.3 [HIS-11] Depreciations 6.1.4 [HIS-11] Depreciation Lines 6.1.5 [HIS-25]Asset Accounting Schema 6.2 New Tables 6.3 New Dialogues 6.4 User interface change 6.4.1 [HIS-02] Tab Inventory of Asset Card 6.4.2 [HIS-08] Asset to-do list 6.4.3 [HIS-25]Asset Class 6.4.4 [HIS-25]Account tab of Asset 7 License 7.1 License code desription 7.2 Functionality enabled by the license code 8 Discussion items 8.1 Open discussion items 8.2 Closed discussion items 9 Appendix

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:

• feature HIS-02 (https://docs.google.com/document/d/1ULLeYcbFN2AH0ZfrF3V5kIXs_3vXDqILgyGc79A0JUE/edit?hl=it#)
• feature HIS-08 (https://docs.google.com/document/d/1ZyybKdtoHHHOkjyXUU2fmgH2E3VaIHHvoduE5FPhUvY/edit?hl=it#)
• feature HIS-09 (https://docs.google.com/document/d/1zNZtZZpFILhBMJVQ6h7GRrLn7RlMg-uQRmmuTPjX_IM/edit?hl=it#)
• feature HIS-11 (https://docs.google.com/document/d/1SXAvfikzQnDcj-6thUB7JtCJm-GKD36fESP_-s9AkcU/edit?hl=it#)
• feature HIS-14 (https://docs.google.com/document/d/1uLT5ezLJoEKMIl0_CzV4u6Z50gnuyOG9BaDCau4xUS0/edit?hl=it#)
• feature HIS-25 (https://docs.google.com/document/d/1zWnbMi6ixrvd-cl4PynEDBFyaeuqjhp26Wv7wV2zSUQ/edit?hl=it#)

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:

• Assets types:
  • Fixed Assets, including categorization into:
    • Low Value Assets
    • Low Value Pool Assets
    • Intangible assets (like Property and Rights)
    • Tangible assets (like Buildings and Computers)
    • Under Construction Assets
• Parent View concept
• Sub-Assets and Casual Assets, depending on assets relationship
• Asset data:
  • Asset card creation
• Assets work flow:
  • From an asset delivery to an asset invoice booking
• Assets Management "To do List":
  • List with reference to Asset Booking
• Assets Management Transactions:
  • addition (purchase, donation/contribution)
  • disposal (theft, scrapping, sale)
  • depreciation and special depreciation and low value depreciation
  • appreciation
• Other rules or actions..
  • Book as an expense
  • Special items
  • Storno booking
  • Rebooking

Out of Scope:

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

• Assets types:
  • Rental Assets (Leasing - Note that this might be a future extension therefore it is currently out of scope)

Overview:

1.- Assets types:

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

• Fixed assets are long-term assets held for business use and not expected to be converted to cash in the current or upcoming fiscal year, such as manufacturing equipment, real estate, furniture, computers and vehicles.
  • Low Value Assets are long-term assets. These ones are capitalized and may be depreciated at their full amount in the year of purchasing. They are booked on a special account.
  • Low Value Pool Assets are long-term assets. These ones are capitalized and booked on a pool account. This pool account is depreciated only once a year an in one total amount. No Asset Card will be required to be created for these kind of low value pool assets nor for the Asset Pool. It will be only required to book all the low value pool assets related invoices to a special account which is the "Pool Account" which should be previously create.
  • Under construction Assets are long-term assets which require and additional work to become a Fixed Asset, then they will be capitalized and therefore depreciated based on "Depreciation Start Date" field. All invoices related on an under construction asset will have to be booked for that under construction asset and once under construction asset become an asset, under construction asset will be credit and the asset will be debit, after that depreciation can start based on Depreciation Start Date.

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:

• A strong relation-ship by example a Camera and a lens
  • in case of a strong relation-ship. This Lens must be defined as a sub-asset and it will have a sub-asset number setup as combination of the main Asset_number +Suffix;
• Or we will define a casual relation-ship by example graphic card installed in a computer which could be installed in another one
  • in case of a casual relation-ship. This graphic card is not a sub-asset but an asset so must be handle as a separate asset with an asset number

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

3.- Asset data:

• Each asset must have an "Asset Card" containing asset management related information (historic cost, date of purchase, depreciation plan, depreciation range, asset class...etc), inventory related information (inventory number, location, ....), cost and activity information as well as "Special Items" information if applicable.
  
  • Either the inventory information is entered first or the asset information is entered first.
    • In those cases an asset is both capitalized and part of the inventory, it will have an Asset number and an Inventory number
    • In those cases an asset is just capitalized but not part of the inventory, it will only have an Asset number.

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

• Assets as an Expense are items worth < 150,00€ by example. These ones are booked on an expense account and they are not capitalized nor depreciated and not part of the inventory.
• Special items are assignments and grants for investment (subsidies). These are revenues which are intended for financing of investment. Investment grants are mapped to the period of the asset depreciation range (economic lifetime). There could be more than one grant for investment per asset. An one grant for investment could be partly allocated to several assets.
• Storno = in case of asset booked to the wrong organization
• Rebooking = in case of an asset booked to the wrong asset account.

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:

• Depreciation method = Linear
• Depreciation type = Time
• Depreciation interval = Month
• Acquisition cost = Asset Value = 11.200,00 €
• Scrap value = 0,00 € (scrap value can also be named as "residual value or net book value").
• Depreciation basis = Acquisition Cost/Asset Value = 11.200,00
• Economic lifetime = 36 (months)
• Depreciation amount = 11.200,00 € / 36 months = 311,11 €/month
• The scrap value if any will have to be subtractted from the last Depreciation period.

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

• Scrap value of an Asset is the Asset value after its economic lifetime. Also defined as net book value, residual value or write-down value.
  • For HIS that value will be either 0,00 € or 1,00 €

Users & business process description

User goals

Assets Management feature will allow the end user to:

• create and manage different fixed assets types
• create and manage different type of assets as well as its corresponding Asset Cards
• link assets to an asset class containing depreciation plan setup as well as asset accounting data
• manage assets belonging to a parent view
• manage sub-assets and related asset
• asset card creation before/after asset invoice booking
• asset invoice booking
• verify asset information being entered by non asset management people if any and enter new information
• storno in case of an asset booked to the wrong organization
• rebook in case of an asset booked to the wrong asset account
• book assets liability invoices or movements like assets purchase or donations
• book assets disposal invoices or movements like sales, theft or scrapping
• manage depreciation plans for each assets type
• manage special depreciation
• calculate and book depreciation
• calculate and book special depreciation
• calculate and book low value assets depreciation
• calculate and book appreciation
• calculate and book changes on depreciation range
• change under construction items to fixed assets
• calculate and book special item depreciation
• to get assets related reports to better understand ownership, assets value, assets depreciation previous year, assets depreciation current year...etc...

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:

Depreciation process:

Disposal process:

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:

• "Inventory Limit"- this means the limit up to which an asset will be part of the inventory which means that an Asset Card - Inventory Tab must be properly created and filled-in for that asset, see Functional Requirements below - Asset Work Flow; and besides the corresponding inventory movement is booked in the system.

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.

• "Inventory Number" as a (Manual/Automatic) flag, next to "Inventory Level" threshold.
  • In case an University decides the inventory number is going to be entered by them manually, the option for this field will be "Manual", which also means that there should be a way to track there are no duplicates
  • In case the Inventory number must be allocated automatically by the system a new field named "Inventory Number Sequence" will be promt here, therefore the end-user can select the corresponding "Advanced Number Sequence" to be used for Inventory Numbering.

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:

• The amount above/up to which an asset will be capitalized (for example 150,00€). Any asset with a value/cost below 150,00€ will be booked as an expense and therefore will not be capitalized but could be part of the inventory, depending on Inventory Limit.
  • In case of a sub-asset value/cost below 150,00€ part of a main asset, Asset Management Team will book that invoice for the sub-asset in an asset account regardless it is valued less than 150,00€ - that is the only exception to that rule.
• And the amount above/up to which an asset will be capitalized as a unique item and not as part of a pool, therefore Asset Management team will set up an asset as not part of a Pool Asset and an asset card will need to be created.
  • In case of Pool Asset and Assets part of a Pool, there is no need to create an Asset Card and the depreciation will be booked manually.

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

• Inventory limit
• Inventory Methods for low value assets (method A and B)

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:

• Depreciation Plan Header: here the end user will be able to check that a record has been created for each Depreciation Plan linked to the corresponding Java Class, and under this one end-user will be able to check below listed sub-tabs:
  • Depreciation Method tab: it should be setup as "Linear"
  • Depreciation Type tab: it should be setup as "Time"
  • Deprecition Interval tab: it should be setup as "Monthly"

There should be another ones setup like:

• Depreciation Method tab: it should be setup as "Linear"
• Depreciation Type tab: it should be setup as "Time"
• Deprecition Interval tab: it should be setup as "Yearly"

and

• Depreciation Method tab: it should be setup as "Linear"
• Depreciation Type tab: it should be setup as "Percentage"
• Deprecition Interval tab: it should be setup as "Montly"

and

• Depreciation Method tab: it should be setup as "Linear"
• Depreciation Type tab: it should be setup as "Percentage"
• Deprecition Interval tab: it should be setup as "Yearly"

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

• Client
• Organization
• Asset/Sub-Asset Number
• Inventory Number
• Search Key
• Asset Name
• Asset Description
• Active
• Asset Class

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:

• Controlling (New!)
  • Controlling Depreciation (New!)
• Subsidies (Special Items) (New!)
  • Subsidies Amortization (New!
• Bookings (New!)
• Accounting
• Asset Amortization - NEW : THIS ONE SHOULD BE RENAMED AS "ASSET DEPRECIATION"
• Parent view (sub-tab of Asset sub-tab) (New!)

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

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

• Asset sub-Tab - will only be mandatory filled-in for those items which Asset Cost is > 150,00 € as those assets (not sub-assets) having a value < 150,00 will not be capitalized and therefore will not be considered Assets.
• Inventory sub-Tab - which will only be mandatory filled-in for those items which an Asset Cost > Inventory Limit which besides are going to be capitalized.
• Controlling sub-Tab - which could be filled-in for those items having an Asset Tab.
• Subsidies sub-Tab - which could be filled-in for those items having an Asset Tab which Special item (yes/no) flag checked.
• "Booking" sub-tab to be filled-in by the system automatically as described below.
• Subsidy Amortization sub-Tab, under Subsidies Tab which will show the Subsidy Amortization created and run in paralel to the Asset Depreciation one.

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:

• Client
• Organization
• Asset/Sub-Asset Number
• Inventory Number
• Search Key
• Asset Name
• Asset Description
• Active
• Asset Class

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:

• Client - the Entity to which the Asset belongs to
• Organization - the Organization to which the Asset belongs to
• Document No - or Asset/Sub-Asset Number See section: http://wiki.openbravo.com/wiki/Projects/assetsmanagement#Allocation_of_the_Asset_Number
• Search Key - Asset search key
• Name - Asset Name
• Description - Asset Description
• Active flag
• Product - As HIS is not going to use OB "Product" concept as such, "Product" field will not be filled-in. or removed.
• Asset Category - Each Asset must be linked to an "Asset Class", currently named as "Asset Category".

[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.

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:

• Depreciation Method - reference List (Linear)
• Depreciation Type - reference list (Time/Percentage)
• Depreciation Interval - reference list (Monthly/Yearly)

[HIS-25] The following window

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

[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.):

• balanced sheet account - by example (0799900)
• account for special depreciations - by example (66xxxx)
• account for appreciations - by example (5xxxxc)
• account for sales revenues (asset-sales) - by example (5xxxxx)
• account for expenses by asset sales - by example (6xxxxx)

(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:

• An Asset Class itself may be changed
• or every value of an Asset Class can be changed

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

• the above must not have any effects on existing assets already linked to an Asset Class; that is the reason why the Asset Class values (depreciation rules and depreciation accounts) must be saved at the asset.

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:

• Depreciation Method - reference List (Linear)
• Depreciation Type - reference list (Time/Percentage)
• Depreciation Interval - reference list (Monthly/Yearly)

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").

• Quantity field should be removed because it should always be "1" even in the case of acquiring 50 computers of the same type. Each computer will be an asset and therefore will need an Asset Card.
• There is an existing field/flag named "Depreciate" which shows depreciation related fields/info in case it is selected. That flag must be removed as depreciation related information will be now setup in the corresponding Asset Class without the need of selecting any "Depreciated" flag.
• Depreciation Type this should be renamed to Depreciation Method, and should be move to the Asset Class window.
• Calculate Type must be renamed to Depreciation Type, and should be move to the Asset Class window.
• Amortize must be renamed to Depreciation Interval, and should be move to the Asset Class window.

Asset sub Tab, fields to be modified

• Document number must be renamed to Asset/Sub-Asset Number
• Asset Category must be renamed to Asset Class
• Usable Life - Years or Usable Life - Months must be renamed to Economic Lifetime. There will only be 1 field for the Economic Lifetime, the end-user must enter here Economic lifetime of the Asset as a number of days, or months or years depending on Depreciation Timing value setup. [HIS-25] Economic lifetime is automatically filled in according to the relevant asset accounting schema of the asset class.
• Depreciation amount must be renamed as Depreciation Basis. Depreciation Basis is = Asset Value
• Cancellation date must be renamed to Date of Disposal
• Residual value as Scrap value. Scrap Value is the original capitalized value less all the adjustments
• Annual Depreciation % must be renamed as Rate of Depreciation for those cases of a Percentage Depreciation Type.

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:

• Depreciation amount in February/March/April/May = 20
• Depreciation amount in June = 19 (20-1)

Asset sub Tab, existing fields/button to keep

• Purchase Date
• Depreciation Start Date
• Asset Value (Asset Cost) = this value will be captured in the Asset Account. [HIS-02]In case an inventory record already exists, it is checked if the asset value is equal to the inventory value. If not, the application warns the user of the difference, however the user is enable to save. In this case the inventory value is overridden with the asset value.
• Depreciated Value (Accumulated Depreciation amounts) = this value will be captured in the Adjustments Account.
• Depreciated Plan
• Currency
• Depreciation End Date
• Previously depreciated amount next to "Last depreciation date"
• Fully Depreciated

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" 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!!!

• Asset Depreciation Lines created will be populated in the "Asset Depreciation tab""
• Subsidy Amortization Lines created will be populated in the "Subsidies Amortization tab".

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

• Parent View - Reference List: Empty, Strong or Casual.
  • If the user select "Empty" there will not be any asset relation-ship, so the Asset being created will be a unique asset.
  • If the user select "Strong" there will be an Asset / Sub-Asset relation-ship.
  • If the user select "Casual" there will be an Asset / Asset relation-ship.
• Is Summary" (yes/no) flag - end-user must select this flag in case the asset is a summary asset and can have an asset or a sub-asset as a child related asset. In case it is flag as Yes, system will populate "Asset" combo.
• Asset - End-user should select here the Asset, Asset being created is related to either Strong or Causal way.
  • Sub-Asset Number should be the same as the Asset Number + suffix.
• Change of Depreciation Range (yes/no) flag - end-user will manually select this flag in case a sub asset is purchased which increases the depreciation range (economic lifetime) of the main asset, by example or whenever the economic lifetime of an asset changes for whatever reason after its depreciation plan has been run.
• NEW!!! Change of Depreciation Amount (yes/no) flag - end-user wil manually select this flag in case the depreciation value of an asset changes for whatever reason after its depreciation plan has been run, by example in case of Special Depreciation, Manual Depreciation, Appreciation or Storno depreciation manually entered by the end-user in the Assets Movements new window.
• Special Item (yes/no) flag - end user must select this flag in case of an asset having a special item or donation linked to it. In case this flag is selected "Special Item" new combo must be shown.
• Commissioning date
• Organization unit
• Organization unit Rate of ownership (Numeric field as this one it is supposed to be a %, which should be 100% as an asset is owned 100% by an Organization)
• Last Depreciation date - as recent or last run (date) of depreciation
• Current total amount - as the difference between the asset cost/value and accumulated depreciation amount.

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

• Asset Account - this field must be added to the tab

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:

• Inventory number = this number is the inventory number or serial number either entered manually or automatically by the system according to an advanced sequence number. It could be that this number needs to be printed, see below.
• Inventory date = date when the asset is part of the inventory
• [HIS-02] Inventory value = inventory value of the asset
• Status = Reference list: Valid, Pre-inventory, discharged
  • Pre-inventory - for those scenarios when the Asset Card is created before the Asset Invoice is booked in the system.
  • Valid
    • for those scenarios when the Asset Card is created after the Asset Invoice is booked in the system.
    • in those scenarios when the Asset Card is created before the Asset Invoice is booked in the system, the asset management team would have to be changed from "Pre-Inventory" to "Valid" once they have reviewed the asset card-asset tab.
  • Discharge - for canceled or damage scenarios but not booked for disposal. End-user must run a new process from a new process button named "Set us Discharged", see below.
• Owner = Owner of the asset, that corresponds to an organization.
• Location = Location of the Asset detailing Building, Floor, Room:
  • Building
  • Floor
  • Room
• Factory
• Stocktaking date 1 - date of physical inventory counting
• Stocktaking date 2 - date of physical inventory counting
• Number of labels - number of physical labels print and stacked in the asset
• Electric equipment check (yes/no)
• Inspector
• Check date 1
• Check date 2
• Guarantee
  • Begin of guarantee
  • Guarantee period (month)
  • End of guarantee
  • Begin of Warranty
  • Warranty period (month)
  • End of Warranty
• Maintenance
  • Contract of Maintenance
  • Begin of Maintenance
  • Interval of Maintenance
  • Periodical cost of Maintenance
• Insured value
• Policy Nº
• End of rent/Leasing

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:

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:

• Inventory Table fields to be exported
• field separator
• include
• include header line (field names) yes/no flag

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".

• That process should also remove "future" depreciation lines do not processed, nor posted.

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:

• Sequence 1 (by example a Counter)
• Separator 1 (text field)
• Sequence 2 (by example the Fiscal Year)
• Separator 2 (text field)
• Sequence 3 (by example the Org. Unit)
• Separator 3 (text field)
• Sequence 4 (by example the Asset Class)
• Separator 4 (text field)
• Sequence 5 (by example a Text)
• Separator 5 (text field)

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.

• Sequence 1 (by example a Counter)
• Separator 1 (text field)
• Sequence 2 (by example the Fiscal Year)
• Separator 2 (text field)
• Sequence 3 (by example the Org. Unit)
• Separator 3 (text field)
• Sequence 4 (by example the Asset Class)
• Separator 4 (text field)
• Sequence 5 (by example a Text)
• Separator 5 (text field)

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:

• An asset may be capitalized but not set up as part of the Inventory, that depends on the Asset Value vs Inventory Limit.

Therefore,

• In those cases an asset is both capitalized and part of the inventory, the Asset number and the Inventory number could or could not be the same.
  • By example: Asset A = 410,00 € (Asset A Cost)
  • Item book as Expense < 150,00 -> Asset A will be Capitalized.
  • Inventory Limit = 150,00 € -> Asset A will be part of the Inventory.

• In those cases and Asset is just capitalized, it will only have an Asset number'
  • By example: Asset A = 410,00 € (Asset A Cost)
  • Item book as Expense < 150,00 -> Asset A will be Capitalized.
  • Inventory Limit = 500,00 € -> Asset A will not be part of the Inventory.

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:

• Document Type = reference list (Depreciation, Special Depreciation, Appreciation, Storno Depreciation, AP invoice, AP credit memo, AR invoice, AR credit memo)
• booking number
• booking date
• Invoice number (in case of an invoice)
• Invoice line (in case of an invoice)
• Invoice date (in case of an invoice)

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

• Balanced Sheet account

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":

• Client
• Organization
• Subsidy ID
• Subsidy Entity
• Subsidy Amount
• Subsidy Date - which is the date when the subsidy was booked in the system.

Subsidies sub Tab

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

A new tab is required in order to allow:

• the end-user to manually enter information about the "Subsidy or "Subsidies" linked to an Asset by manually creating as many records as subsidies linked to an Asset, and by getting subsidy information coming from the New Subsidy window.

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:

• Subsidy ID - end- user can select the Subsidy Id to be linked with an asset coming from the subsidy table.
• Subsidy Entity - system will populate the subsidy entity once the end-user has selected a Subsidy ID
• Subsidy Date - - this date is the date when the Subsidy got booked.
• Subsidy Percentage (%) - End-user could enter here a % of the subsidy to be applied to the asset, which would be allocated or capitalized based on the Asset Economic Lifetime and taking into account the "Depreciation Start Date".
• Subsidy Amount - End-user could also enter the Subsidy amount to be applied for an asset which will also be amortized based on the Asset Economic Lifetime and taking into account the "Depreciation Start Date". Besides the system should calculate and fill-in here the Subsidy amount based on Investigation Grant or Subsidy Percentage, if applicable and the Asset Cost.
• Depreciation Method (Linear) - this data should be transferred from the Asset and should not be editable.
• Depreciation Type (Time/Percentage) -this data should be transferred from the Asset and should not be editable.
• Depreciation Interval (Month/Year) - this data should be transferred from the Asset and should not be editable.
• Current Subsidy value - As the difference between the Investigation Grant value and the Investigation Grant amortized.
• (New!!!) Revenue of liquidation of Subsidies - amortization account for the subsidy by example (5370010)

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:

• Client
• Organization
• Asset Class
• Is Summary
• Main asset

Info coming from Asset Card - Asset Tab:

• Purchase Date
• Commissioning Date
• Asset Cost = depreciation basis- it can be editable, therefore end-user can enter a new Asset Cost value if applicable.
• Asset Economic Lifetime - it can be editable.
• Depreciation Method - it can be editable.
• Depreciation Type- it can be editable.
• Depreciation Interval -it can be editable.

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:

• Cost Center
• Cost Category
• Cost Unit or Rate

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:

• A strong relation-ship by example a Camera and a lens
  • In case of a strong relation-ship. This Lens must be defined as a sub-asset and it will have a sub-asset number setup as Asset_number+Suffix;
• Or a casual relation-ship by example a graphic card installed in a computer which could be installed in another one
  • in case of a casual relation-ship. This graphic card is not a sub-asset but an asset so must be handle as a separate asset with an asset number regardless it is part of a parent view.

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.

• "Camera" Asset Card-Asset Tab, must have the "Parent View" field setup as "Empty" and the flag "Is Summary" set as YES; and Let's say that the Asset Number given for the Camera is 546.
• "Lens" Asset Card-Asset Tab, must have the "Parent View" field setup as "Strong" therefore the end-user must select the "Main" Asset which in our case it is the "Camera" in the field "Asset" and finally the system should give a Sub-Asset Number base on the main Asset Number + a suffix = 546.1; which is the Sub-Asset number.
  • It could not be that a sub-asset is moved to a different asset.
  • New!! - regardless there is only 1 level required by HIS which means a sub-asset related to an asset (main asset); design should take into account there could be more than 1 level, therefore there could be a sub-asset related to a sub-asset which it is related to an asset (main asset).

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.

• "Computer" Asset Card-Asset Tab, must have the "Parent View" field setup as "Empty" and the "Is Summary" flag set us YES; and Let's say that the Asset Number given for the Computer is 1520.
• "Graphic Card" Asset Card-Asset Tab, must have the "Parent View" field setup as "Casual"; therefore the end-user must select the "Main" Asset which in our case it is the "Computer"
  • It could be that the Graphic Card is moved to a different asset, in that end-user will have to simply select another main asset, Graphic Card is going to be related to.

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.

• Step 1 - An asset is delivered to an institute.
• Step 2 - The invoice is enclosed and if it is correct it is marked as accurate.
• Step 3 - The invoice is booked at the accounts payable.
• Step 4 - A document is created for asset management and is to be processed by asset management staff.
  • Every time an invoice containing an asset is booked in the system an "Asset To Do List" will get that invoice so Asset Management people can create the corresponding Asset Cards.
  • Asset To Do List will contain info such as: Invoice number, invoice date, vendor, asset account, cost...etc

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)

• Step 5 - An asset card is created and an Asset ID is generated.
• Step 6 - In case the asset is part of the inventory; the inventory number is entered in the Asset Card - Inventory Tab (or it is generated by the system); and after that it is printed and sent to the institute.
• Step 7 - Staff at the institute sticks the inventory number on the asset and fills in information about the asset into the inventory tab of the asset card.

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.

• Step 1 - An asset is delivered to a central goods receipt.
• Step 2 - A new asset card is created and just the inventory tab information is filled-in.
  • Central Goods Receipt people creates the asset card and fill in inventory tab information before the invoice is booked.
• Step 3 - The asset is sent to the institute which had ordered it with the inventory number stacked on it manually.
  • At some universities the Central Receipt of Goods people unpack all delivered goods and forward them to other departments.
• Step 4 - The invoice is booked at the accounts payable, including Inventory Number information.
• Step 5 - A document is created for asset management and is to be processed by asset management staff.
  • Once more the Asset To Do List must be created once again this time it will contain the Inventory Number
• Step 6 - The existing Asset Card is going to be reviewed by Asset Management team. They will find the Asset Card by searching by "Inventory Number" and they will fill in Asset Card - Asset Tab information.

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.

• In case it is not a valid asset - the corresponding Invoice should be booked in the system but the work-flow in case of an asset delivered which is not the right one can not be described as there could be many ways of managing this depending on the university.
• In case it is a damage asset - the corresponding Invoice must be booked, and will be booked to an Asset Account but it should be clearly stated in the Invoice Line field "Description" the word: "DAMAGE"
  • It could be that a delivery consists of 20 computers, 2 of them are damage. In that Case the corresponding Invoice will booked by clearly stating in the Invoice Line field "Description" field that 2 computers of that Invoice Line are damage; therefore Asset Management will only need to create 18 asset cards for the corresponding Asset Value.
  • In general, Asset Management Team will realize that this damage asset is not going to be capitalized and therefore an Asset Card do not need to be created.
• In case it is a valid asset and it is not damage - the corresponding Asset Invoice can be booked to an Asset Account (as a G/L item previously created.

Besides, it is important to highlight that:

• A Draft Asset Invoice can be understood as Asset Invoice do not mark as accurate or approved.
• A Complete Asset Invoice can be understood as Asset Invoice mark as accurate or approved which therefore can be booked.

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:

• Account - this will be a G/L item previously created once the asset account to be booked is known.
• Purpose - this is the product name (by example "Computer A") which do not match any OB "product" as such.
• Inventory Number - for those case when people who unpack or receive an asset is allowed to create an asset card and fill-in Inventory Tab information. Once the Inventory Number is allocated it will be written-down in the invoice. That Invoice Number must be entered here.

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:

• G/L name = Asset Account
• New!!! "Enable in Financial Invoices" = This new flag must be set to "Yes" which means that only those G/L items marked as "Enable in Financial Invoices" will be shown to be selected by the end-user while booking a Financial Invoice in the Invoice Line window. Besides and in case the end-user selects this new flag the fields "Tax" and "Withholding" will be automatically removed from the G/L window and only "Tax Category" new field will be shown there as described in the next sentence.
• It is important to remark that a new field needs to be created for the G/L item which is the Tax Category, therefore it can be later on used to get the appropriate Tax for each Invoice Line.

• Debit/Credit accounts both fields must be filled-in with the asset account for the selected Accounting Schema
  • Asset Accounts should be flag as "Asset" Account Type.

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

• Client
• Organization
• Transaction Document = AP Invoice
• Invoice Date
• Posting / Booking Date
• Business Partner (Vendor or Supplier)

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:

• Financial Invoice Line (yes/no) flag - in case the invoice line is a financial invoice line which means not a product but an account is going to be entered, the end-user needs to get it selected as YES. If that is the case below changes will be implemented.
  • Account - end user must select here the G/L item for which the asset invoice is going to be booked.
  • Product field will be removed
  • Description - text field must be renamed to "Product"for the end user to enter the product name
• Inventory Number Tab - New!!! A new tab needs to be created at Invoice line level for the end-user to be able to select the corresponding "Inventory Number" by selecting the corresponding "Asset Card already created. In case of a line containg 20 assets with an inventory number each, 20 Asset Cards should be selected here.
  • In case end-user enters those inventory numbers per each asset purchased, the system should create as many lines containing the relevant information as inventory numbers created while generating the Asset Management To Do List, see section "Asset Management To Do List".

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

• Invoiced Quantity - Asset quantity to be booked
• Net / Gross Amount - Asset cost excluding or including tax
• Tax - tax rate setup for the G/L item

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:

• Account - GL item/Asset account to which freight cost must be booked.
• Purpose/Product - text field for the end user to enter the freight cost description.
• Inventory Number - text field for the end user to enter the Inventory Number if any.

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

• Invoiced Quantity - freight or other cost quantity
• Net / Gross Amount - net/gross Freight Cost
• Tax - tax rate setup for the G/L item which could be changed.

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:

• they will manually create the Asset Card/s for each Asset received. For doing that they will navigate to: Financial Management || Advanced Assets || Asset Card
• Once there they will create a new record for each Asset Card to be created, and they will manually fill-in Inventory information in the Inventory Tab of the Asset Card.
• Inventory Status field must be setup as Pre-Inventory if applicable, until the corresponding asset invoice is booked and the asset management team has reviewed the Asset Card and change it to "Valid" Status.
• Inventory Number given either manually entered by the end-user or automatically give by the system will be manually filled-in the Asset/s Invoice to be booked later on by the Account Payable team.

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:

• They just send the Asset Invoice to Account Payable for booking.
• Once the invoice is booked, Asset Management Team will create the Asset Cards and fills in information about the asset into the asset tab of the asset card based on the "Asset To Do List", see Functional Requirement 3 below.
• Once the Inventory Number is generated it will be printed and sent to the Institute, staff at the institute sticks the inventory number on the asset/s and then fills in information about the asset into the inventory tab of the asset card. For doing that Asset Management Team will have to Print the Inventory Number by using process button "Print Inventory Number".

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:

• Verified or
• Damaged
• and will also guide Asset Management team through Asset Cards creation

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:

• Client - Client/Entity for which To Do List must be shown.
• Organization - Organization for which To Do List must be shown.
• Document type - Referencer list for the end-user to select the corresponding Document type like:
  • AP invoice - Purchase Invoice
  • AR invoice - Sales Invoice

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:

• Client
• Organization
• Invoice number - this field/column will show the Invoice Number of the Asset/Assets
• Invoice Line number - this field/column will show the Invoice Line number of the corresponding Invoice Number
• Invoice date - this field/column will show the Invoice Date of the Invoice
• Booking date - this field/column will show the Accounting Date of the Invoice.
• Business Partner - this field/column will show the BP of the Invoice.
• Account (Asset Account) - this field/column will show the asset account entered by the end user while booking the invoice, which is the G/L item selected in the Invoice Line.
• NEW!!! "Freight/Other Cost Invoice Line" (yes/no) flag - coming from the Invoice Line.
• Purpose/Product (Product Name or Cost Description) - this field/column will show the purpose/product name entered by the end user while booking the invoice, which is the "Description" Invoice Line Field.
• Inventory Number (if any) - In case there is an Asset Card before Invoice Booking, the corresponding Inventory Number/s must be filled in here, in case there are many Inventory Numbers/s entered for a single Invoice Line, there should be created as many lines here as Inventory numbers entered at Invoice Line level.
  • In case there is an Inventory Number Asset Card flag must be set to YES.
• Invoiced quantity - this field/column will show the invoiced quantity of Assets for an invoice line.
• Asset Card flag (yes/no) - this field/column will be not editable and will show "Yes" value only in case there is an Inventory Number, otherwise it will show "No" value as the Asset Card/s need to be created.
• Asset Card verification flag (yes/no) - this field/column will be not editable and will show "No" value until Asset Management Team run the "Set as Verified" process explained below.

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

• [HIS-08] Create Asset Card - end-user will be able to move to a pre-loaded asset card record already pre-filled with data relevant for the current invoice. When the button is pressed, the application pops up a dialog requesting the user to select the asset class for the asset card being created. The button is no longer visible when an asset card has been set for the relevant invoice.

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

correct

• Set as Damage - end-user will be able to remove an Asset Management To Do List line from the list, not to be shown anymore; in case there is an invoice having by example 20 computes, 2 of them damage. The end-user will write "2 damage" in the purpose field. Asset Management To do will have 20 lines anyway therefore the end-user should remove from the list 2 of them as Damage, line by line by running this process so finally only 18 asset cards are created.

• Set as Verified - once an asset Card has been created and verified for an asset by the end-user, he/she will come to the "To do List" and line by line will use the "Set us Verified" process button which will do few checkings and in case those are OK, will set below 2 flags as "Yes" as applicable:
  • Asset Card Flag
  • Asset Card Verification Flag

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:

• Client
• Organization
• Asset Name
• Inventory Number
• Asset or Sub-asset number

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:

• all those asset invoice lines which have been set to Asset Card verification flag (yes/no) = Yes] - > will not have to be shown once again while running once again the Asset Management To Do List.

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:

• purchase
• donation/contribution

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:

• a new asset - in that case the corresponding Asset Account (G/L item) must be selected in the Invoice Line as described in the section "Assets Invoice Booking"
• additional parts (parts of an asset) - in that case the corresponding Asset Account (G/L item) for which additional parts are going to be added, must be selected in the Invoice Line as described in the section "Assets Invoice Booking".
• cost like freight cost - those cost increase asset cost therefore the same Asset Account (G/L item) of the Asset affected must be selected; regardless it could be VAT rate needs to be changed at Invoice line level.

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):

• Purchase of a machine at the price of 100.000,00 € plus VAT (19%)
• Freight costs are about 500,00 € plus VAT (7%)

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:

• Client
• Organization
• Active flag = Yes
• Name = 0730010 (as the Asset Account, by example)
• Description = Machine XXX
• Tax Category = National Purchase VAT 19%
• Enable in Financial Invoice = Active

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

• Client
• Organization
• G/L item Name = 0730010 (as not editable)
• Accounting Schema
• Debit Account = 0730010 (flag as Asset Account Type)
• Credit Account = 0730010 (flag as Asset Account Type)

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:

• Organization
• Transaction Document = AP invoice
• Invoice Date
• Posting / Booking Date
• Business Partner

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

• Account = G/L item previously created (0730010)
• Purpose/Product = free text to enter the product name
• Inventory Number (if any)
• Net amount = 100.000,00
• Invoiced Quantity = 1
• VAT CATEGORY = the one setup for the G/L Item.
• VAT amount = 19.000,00

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):

• Account = G/L item previously created (0730010)
• Purpose/Product = free text to enter the description of the cost, in our example freight Cost.
• Inventory Number (if any)
• Net amount = 500,00
• Invoiced Quantity = 1
• VAT = the one setup for the G/L Item, regardless it could be changed for this line to "National Purchase VAT 7%"by example
• VAT amount = 35,00

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:

• theft
• scrapping or damage
• sale

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:

• Client
• Organization
• Transaction Document = AR Invoice
• Invoice Date
• Accounting Date (Booking Date)
• Business Partner
  

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

• Account - end user must select here the G/L item revenue from asset disposal.
• Purpose/Product - text field for the end user to enter the product name
• Inventory Number - sub-tab for the end user to enter the asset card of the asset to be sold.

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

• Invoiced Quantity - Asset quantity to be booked
• Net / Gross Amount - Asset sales price excluding or including tax
• Tax - tax rate setup for the G/L item

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:

• Client
• Organization
• (Sales) Invoice number - this field/column will show the Invoice Number of the Asset/Assets
• (Sales) Invoice Line number - this field/column will show the Invoice Line number of the corresponding Invoice Number
• Invoice date
• Business Partner
• Account (Asset Account) - this field/column will show the asset account entered by the end user while booking the invoice.
• Purpose/Product (Product Name or Cost Description) - this field/column will show the purpose/product name entered by the end user while booking the invoice.
• Inventory Number (if any) - In case there is an Asset Card before Invoice Booking, the corresponding Inventory Number must be filled in here only for those cases where Invoiced Quantity is 1; therefore Asset Management team will know they just need to review an existing Asset Card.
• Invoiced quantity - this field/column will show the invoiced quantity or quantity of Assets (by example 20)
• Asset Card flag (yes/no) - this field/column will show "Yes" value as in case of sales invoices there is no need to create but to search existing asset card if any.
• Asset Card verification flag (yes/no) - this field/column will show "No" value until Asset Management Team verify the Asset Card for the disposal Assets, which implies that:
  • Once the Asset Card is found, Asset Management team will have to take below actions in the corresponding Asset Card for each disposal asset:
    • Enter the Disposal Date which is not necessary the same date as the invoice date for each disposal asset.
    • Get the Inventory Status to "Canceled" in case the asset disposal is part of the Inventory.

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 Value (Acquisition Cost) = 100.000.-€
• Adjustments = 90.000,-€
• The net book value amount= 10.000,-€
• Sale of an asset at the price of 8.000,-€ plus VAT (payment in cash).

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:

• Manual Depreciation - not to mix with the one created by the sistem automatically.
• Special Depreciation
• Appreciation
• Storno Depreciation

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

• Document Category = Amortization (to be renamed as Depreciation)
• Table = A_Amortization (to be renamed as A_Depreciation if possible)
• Document Sequence = Depreciation
• G/L category = Standard - it should be a new one "Depreciation" which implements Depreciation business logic.

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:

• Document Category = Manual Depreciation (new!!)
• Table = A_Amortization (to be renamed as A_Depreciation if possible)
• Document Sequence = Manual_Depreciation
• G/L Category = 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:

• Document Category = Special Depreciation (new!!)
• Table = A_Amortization (to be renamed as A_Depreciation if possible)
• Document Sequence = Special_Depreciation
• G/L Category = 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:

• Document Category = Appreciation (new!!)
• Table = A_Amortization (to be renamed as A_Depreciation if possible)
• Document Sequence = Appreciation
• G/L Category = 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:

• Document Category = Storno Depreciation (new!!)
• Table = A_Amortization (to be renamed as A_Depreciation if possible)
• Document Sequence = Storno
• G/L Category = Storno

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" :

• removes the depreciation plan lines do not posted and do not processed
• takes into account the difference between: the Asset Value/Cost (historical and do not changed) and the new Depreciated Amount manually entered by the end-user (taking into account the Special Asset Movement previously process and booked in the new Asset Movements window) in order to create the new Depreciation Plan lines.

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:

• Client - display. End-user must select here the Entity
• Organization - display. End-user must select here the Entity
• Asset Number - display. End-user must select here the Asset Number (Asset Selector)
• Asset Name - System will populate the Asset Name.
• Asset Account - System will populate the corresponding Asset Account.
• Inventory Number- System will populate the Inventory Number if any.
• Text/Description
• Movement Amount
• Document Type (Reference List = Manual Depreciation / Special Depreciation / Storno Depreciation / Appreciation)
• Booking Date
• Document Date

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:

• "Depreciation" related data setup for the Asset in the Asset Card-Asset Tab such as:
  • Asset Cost
  • and the Economic Lifetime
• and the "Asset Class" an Asset is linked to as the "Asset Class" has Depreciation related data such as:
  • Depreciation Method - Linear
  • Depreciation Type - Time
  • Depreciation Interval - Month
  • Asset Account (0730010, by example)
  • Depreciation Account (6630010, by example)
  • Adjustments Account (0799900, by example)

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)

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

• Labels should refer to Depreciation instead of Amortization
• Depreciation Column must contain the Name of the Asset, the Asset Number and the Depreciation Interval for better tracking purpose
• Line No columns do not have the right values, it should be 10-20-30..and so on so forth.
• Depreciation Amount should be calculated based on what's described in this section: Depreciation Plan Calculation and Rounding, see below.

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:

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:

• Depreciation method = Linear
• Depreciation type = Time
• Depreciation interval = Month
• Acquisition cost = 11.200,00 €
• Scrap value = 1,00 € (scrap value can also be named as "residual value or net book value").
• Depreciation basis = 11.200,00
• Economic lifetime = 36 (months)
• Depreciation amount = 11.200,00 € / 36 months = 311,11 €/month
  • We need to do the crosscheck as 311,11 * 36 = 11.199,96
  • The difference is = 11.200,00- 11.199,96 = 0,04 (rest)
  • First month depreciation = 311,11 + 0,04 = 311,15
  • Rest months depreciation = 311,11
  • Last month depreciation = 311.11 - 1.00 = 310.11€

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:

• Date - from..., to..., only months are requested
• asset account(s) - it should be possible, to select more one account
• asset class(es) - it should be possible, to select more one account

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 :

• "Change of Depreciation Range" flag - if the end user selects this one as yes, he/she should be able to update the "Economic Life time" of the Asset to its new value and run the process button "Recalculate Depreciation Plan" which will be populated in case the end-user set this flag to YES.
• and "Change of Depreciation Amounts" flag - if the end user selects this one as yes, he/she should be able to update the "Asset Value" (Asset Cost) and/or the "Depreciated Value" of the Asset to its new values and run the process button "Recalculate Depreciation Plan" which will be populated in case the end-user set this flag to YES.

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

• Purchase of a machine in January at the price of 100.000,- €
• Depreciation range = 60 month
• Post capitalizing in April at the price of 10.000,-€

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

• Purchase of a machine in January at the price of 100.000,- €
• Depreciation range = 60 month
• Post capitalizing in April at the price of 10.000,-€

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 :

• book a new purchase invoice for the sub-asset by selecting the corresponding G/L item previously created in the purchase invoice line.
• After that the corresponding Asset Card for the Sub-Asset will be created based on the "Asset Management To Do List".
• Sub-Asset must be marked as Sub-Asset related to whatever Main Asset, therefore a Sub-Asset number will be allocated by the system.
  • That sub-asset will have an Asset number and a Sub-Asset Number as a combination of the main Asset Number + a Suffix.
• End-user must also manually select the flag "Change of Asset Depreciation Range" for the Main Asset, as well as enter manually the new Economic Lifetime of the Main Asset.
• and finally run "Recalculate Depreciation" process once more. Depending on the booking date and the new Depreciation Range or Economic Lifetime, the depreciation plan would need to be corrected.

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

• for financial assets you may depreciate
• for fixed assets you are not allowed to depreciate

Permanently decrease in value

• for all assets it is a duty to depreciate

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

• Assets at a lower cost than 150,-€ must be booked maybe on an expense account, which means that the corresponding Invoices for those Items will be booked on G/L items pointing to an expense account instead of an asset account.
  • There is no need to create an Asset Card for those items not to be capitalized.
• There could also be sub-asset at a lower cost than 150,-€ which should be part of a main asset, therefore they will be booked on an Asset Account and therefore will be capitalized either as separate low value sub-assets or as part of a pool. Asset Management Team will know how to manage this situations.

For getting the above implemented:

• There is no additional change needed to be implemented in the system.

Low Value Assets

• Low value assets at a lower cost as 410,-€ by example may be depreciated at their full amount in the year of purchasing, Asset Management Team will manually manage this by entering the economic lifetime for those assets. An Asset Card - Asset Tab must be created as those asset must be capitalized but if an Asset card-Inventory Tab must created for it, depends on the Inventory Limit setup at Client level.

For getting the above implemented:

• There is no additional change needed to be implemented in the system.

Low Value Pool Assets

• There are low value assets, which are booked on a pool account one per each asset class. The one amount goes to that pool and at the end of the year that pool is closed and no change is allowed. This pool account is depreciated only once a year and in one total amount.
• Low Value Pool assets do NOT required an Asset Card to be created, therefore:
  • New!! regardless an asset account must be used while booking the corresponding invoice, that invoice (invoice lines) must not be part of the "Asset Management To Do List" because there is not need to create an Asset Card/s.
• Depreciation will be manually booked by the Asset Management Team by using "GL Journals"

For getting the above implemented:

New!!

• Low Value Pool Asset Accounts which must be "Asset Account" type must be flag as "Pool Asset Account" therefore the invoice lines linked to those accounts are not collected by the Asset Management To Do List.

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:

• The end-user will have to create the corresponding G/L item/s (Under Construction items Accounts, by example 095000) for booking all the cost applicable to that under construction items. Those accounts will also be marked as "Asset Account" type.
• Invoice lines referred to "under construction items" must also be part of the Asset Management To Do List, therefore the corresponding Asset Card for those type of Under Construction Items can be created as appropriate.
• Asset Card for those under construction items could also have an Asset Number and/or and Inventory Number as appropriate.
• When the asset is completed it will be possible to:
  • Manually Rebook the asset from the under construction account to the "final" asset account (by example 076000 and depending on the right Asset Class setup by Asset Management Team) by using a G/L Journal.
  • Manually start the depreciation as soon as the end-user enters a "Depreciation Start Date" and run the Depreciation.

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:

• Asset ownership
• Assets value
• Assets depreciation previous period
• Assets depreciation current period
• Assets and Invoices and Special Documents relation-ship.

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

• Output Type
• Client - mandatory and not editable
• Organization - end-user could select an organization. (mandatory)
• Date From - end-user could enter a date from based on what system will retreive special documents and invoices which are dated on (accounting date) after/same date as date from.
• Date To - end-user could enter a date to based on what system will retrieve special documents and which are dated on (accounting date) before/same date as date to.
• Document Type - reference list: AP Invoice, Appreciation, AR Invoice, Depreciation for Advanced Assets, Manual Depreciation, Special Depreciation, Storno Depreciation, Storno Purchase Invoice, Storno Sales Invoice.
• Asset Owner - end-user could select an asset owner.
  • Asset Owner field can be found in the Asset sub-tab or in case there is no, Organization field should be used.
• Asset Class
• Asset Card

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:

• Report Date
• Client
• Organization
• Date From
• Date To

Generic information as just one line report per asset:

• Asset Name
• Asset Number
• Inventory Number
• Asset Class
• Asset Owner
• Org Unit % ownership
• Currency
• Asset Value (depreciation basis)
• Adjustments (adjustmens or depreciations processed and post up to the last depreciation period, by example January 2010 vs report date, by example Date form February 1st - date to February 28th)
• Net Value previous period (Asset value - Depreciated Amount up to previous period) - see an example below
• Net Value current period (Asset value - Depreciated Amount up to current period) - see an example below

Details section, 1 line report per movement:

• Document type
• Document Number// Invoice Number
• Asset Movement Amount // Invoice Line Amount
• Currency
• Booking Number
• Accounting Date
• Account

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:

• What was posted in the Debit side, needs to be posted now negative at the Debit side
• What was posted in the Credit side, needs to be posted now negative at the Credit side

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:

• Rebooking from asset under construction to asset account. See section: http://wiki.openbravo.com/wiki/Projects/assetsmanagement#Under_construction_items
• Rebooking from the wrong asset account to the valid asset account.
• Rebooking from a cost account (freight cost, by example) to an asset account.

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:

• Storno of the depreciation bookings from Jan to March by using "Storno Depreciation" Asset Movement
• New calculation of depreciation plan from January by re-running "Create Depreciation" process once Asset Account is properly setup for the Asset (Asset Class).
• Booking of depreciation from Jan to March, as applicable.

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.

• Subsidies Entities must be created as Business Partner (vendor/supplier) type.

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)

• Subsidies Entity University gets the money from. Subsidies entities should be created as a Business Partner (supplier BP type) at the application path: Master Data Management || Business Partner || Business Partner
• Revenue for the subsidy will be entered in the system by using "Receipt Payment" functionality, that would mean below posting:

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:

• book the Subsidy by using a GL Journal and selecting the corresponding account combinations:

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

• Once the GL journal is posted the Booking Control number of the GL Journal must be the Subsidy ID.

• Create the Subsidy in the application path: Financial Management / Advanced Assets / Subsidies new window, by selecting the corresponding Subsidy ID.

• and after that link the Subsidy to the corresponding Assets in the corresponding Asset Card, Subsidy sub-tabs. In our example Asset X should be linked to Subsidy XXX taking into account that the amount to be applied to that asset is 50.000,-€ by example, same applies to Asset Y

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:

• Create the required Depreciation Lines for the Asset in the "Depreciation" Tab, based on depreciation related info entered in the Asset Tab and also base in the Asset Class the corresponding Asset belongs to.
• Create the corresponding Amortization Lines for the Subsidy/ies linked to the Asset in the "Subsidy Amortization" Tab based on the amortization info entered in the Subsidy Tab.

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.

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

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:

• account and
• asset-class.

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

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

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

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

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

• Asset (Asset Card):
  • Client
  • Organization
  • Asset number (it must be configurable like a number sequence: prefix, number range and post fix)
  • Asset name ¿¿(Every asset is defined as product. In doing so the combination to the particular classification of embedded, account and tax rate is fixed.)??
  • Asset group or Asset Class (e.g. DFG key (DFG = German Research Community)) (display)
    • Asset Account at main ledger to be used for historical value (acquisition cost or development cost) (display)
    • Asset depreciation range (time)
    • Method of depreciation
    • Rate of depreciation
    • Depreciation account
  • "Asset under construction" check box
  • "Current Asset" check box
  • "Special item" check box
  • "Low value Asset" check box
  • Purchase date (display)
  • Commissioning date
  • Asset cost (display)
  • Checkbox embedded asset (for components)
    • number of main asset (respectively summary node asset)
  • Reference to GL journal (display)
  • Position(s) on invoice
  • Current total amount (display) - historical -depreciation
  • Written down value (display)
  • Recent run of depreciation (display) - last depreciation date
  • End of asset depreciation range (display) - end date
  • Day of disposal
  • Document number of invoice in financial accounting
  • BP - vendor, producer, possible invoice no.
  • Org.unit, rate (multiple possible) - % of ownership

• sub asset
  • main asset
  • vendor, producer, possible invoice no.
  • purchase date (display)
  • commissioning date
  • asset cost
  • current amount (display)
  • checkbox change of asset depreciation range
    • new asset depreciation range (changes automatically the end of asset depreciation range in tab asset)
  • day of disposal
  • list with reference to the position of invoice

• inventory
  • inventory number
  • Status (valid, pre-inventory, discharged = canceled, damaged, not book for disposal)
  • inventory date
  • location
    • building
    • floor
    • room
  • person responsible / owner
  • factory- respectively serial No.
  • stocktaking date 1
  • stocktaking date 2
  • number of labels
  • electric equipment check
  • inspector
  • check date 1
  • check date 2
  • guarantee
    • begin of guarantee
    • guarantee period (month)
    • end of guarantee
    • begin of warranty
    • warranty period (month)
    • end of warranty
  • maintenance
    • contract of maintenance
    • begin of maintenance
    • interval of maintenance
    • periodical cost of maintenance
  • insured value
  • Insurance policy No.
  • end of rent/leasing

• cost and activity accounting

only display

• • client
  • asset (description)
  • asset group
  • asset classification
  • DFG key (clasification key known by the asset management people to be entered manually)
  • checkbox embedded asset
    • number of main asset (respectively Dummy-main asset)

editable

• • cost center/project, rate (several possibilities)
  • cost categorie
  • cost unit, rate (several possibilities)
  • purchase date
  • commissioning date
  • asset cost
  • asset depreciation range
  • method of depreciation
  • rate of depreciation
  • depreciation account
  • current value (display)

• special item

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.

• • special item
  • amount
  • form of depreciation
  • rate of depreciation
  • account
  • current value (display)

• depreciation plan

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

• • amount
  • month
  • year
  • book value

New Dialogues

Disposal

• client (display)
• organisation (display)
• reference number
• inventory number
• text
• amount
• VAT
• DR account
• CR account
• booking key
• movement key
• booking date
• document date
• budget center
• budget source
• budget position
• checkbox Sale

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

Special Items

• client (display)
• organisation (display)
• inventory number
• text
• amount
• booking date
• document date
• budget center
• budget source
• budget position

Rebooking

• client (display)
• organisation (display)
• inventory number
• text

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

• account
• budget center
• budget source
• budget position
• form of cost
• cost center
• cost unit

Depreciation and appreciation

• client (display)
• organisation (display)
• inventory number
• text
• amount
• booking key
• movement key
• booking date
• document date
• budget center
• budget source
• budget position

User interface change

[HIS-02] Tab Inventory of Asset Card

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.

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.

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

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

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

Category: Projects ERP