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Projects:AssetsmanagementUserDoc

Contents

Advanced Asset Management Configuration Guide and User Documentation

Introduction

This document describes the “Advanced Asset Management” functionality implemented in Openbravo 2.50 version MP21.

This functionality can be used by any company managing assets.

An asset is a long-term item held for business use, not expected to be converted to cash in the current or upcoming fiscal years; therefore Companies are allowed to depreciate an asset within its economic lifetime
which means that Companies are allowed to partially allocate the asset cost throughout its economic lifetime as a way of reflecting its progressive lost in value as the time goes by.

Companies own assets of several types such as tangible assets (vehicles, computers..), intangible assets (property and rights), low value assets (assets which may be depreciated at their full amount in the year of purchasing)
or low value pool assets (assets which may be depreciated at their full amount in the year of purchasing by using a pool)

Advanced asset management functionality main goal is to allow Companies to acquire, manage and dispose assets.

This document will allow end-user to understand and use “Advanced Asset Management” functionality.

Module/s Installation and Datasets

“Advanced Asset Management” functionality is released as four extension modules:

  1. Advanced Asset Management. This module contains the main “Asset Management” artifacts, from Asset Card creation to Asset Depreciation Plan execution and Asset Depreciation posting.
  2. Advanced Asset Management TODO List. This module allows the end-user to have a list of the assets purchased or sold for which the corresponding actions are required to be done as part of the asset management tasks.
  3. Advanced Asset Special Documents. This module allows the end-user to be able to manually enter in the system other transactions for an Asset than the automatically ones created by the system such as purchase, disposal and depreciation. Those special documents are Appreciation, Manual Depreciation, Special Depreciation and Storno Depreciation, which at the end are additional “Asset related transactions”.
  4. Reports for Advanced Assets Management, which helps the end-user to get a list of every “financial” (invoices) and/or “asset specific” (appreciation, manual depreciation, special depreciation or storno depreciation) movements of an asset

Advanced Asset Management" functionality relies on a core enhacement which is “Financial Invoices”. This feature allows the end-user to enter in the system either purchase or sales invoices by using GL items linked to the corresponding ledger accounts which could be “asset accounts” instead of Products or Services.

Finally "Advanced Asset Management" feature depends on two modules:

Once the 3 Advanced Asset Management extension modules are installed below listed “reference data” must be applied to the Client, in case of creating a new Client from the application path: General Setup // Client// Initial Client Setup

Installation 1b.png

And once Advanced Asset Management modules are installed below listed “reference data” could also be applied at Organization level in case of creating a new Organization at the application path: “General Setup // Enterprise // Initial Organization setup”

Installation 2b.png

It should also be possible to apply same reference data to an existing Client & Organizations at (*) Organization level and at the application path: “General Setup // Enterprise // Enterprise module management”

Installation 3b.png

Configuration Guide

Once “Advanced Asset Management” is installed a new folder named “Advanced Assets” is shown at the application path:

Financial Management // Advanced Assets

together with other changes in the User Interfaces which are also described in the next sections.

“Advanced Asset” new folder contains below listed new windows as shown in the image below:

Menu.png


Advanced Asset Management Setup

Asset parameters at Client level

Assets” related parameters listed below can be found at the application path:
General Setup // Client // Client – Information tab

Asset parameters.png

Default Asset related Ledger Accounts

There is one new “default” account which can be found at the application path:
“Financial Management // Accounting // Setup // General Ledger Configuration – Defaults tab - “Advanced Asset Management” section
where end-user will be able to enter a by default ledger account for the Subsidy amortization booking.

Subsidy default.png

In case an asset, by example a vehicle, gets a subsidy from a subsidy entity, that subsidy must be amortized at the same time and under the same depreciation rules than the asset it's linked to.

Advanced Sequence

Advanced sequence to be used as Asset and Inventory Numbers/Identifiers can be set up at the application path:
Financial Management // Advanced Assets // Advanced Sequence.

It is important to highlight that Asset Reference data will create an advanced sequence for asset management and an advance sequence for inventory management by default, which end user can modify later on. .

An Advanced sequence means that the end-user is the one to decide which are the variables taken into account when the application generates an asset or an inventory number. That number can contain:

Asset sequence.png

Above setup would generate an Asset Number such as:

“Asset-520-2010-A-Computers” where:

A separate setup is required to configure the Inventory Number.

Depreciation Plan

The Depreciation Plan window can be found at the application path:
Financial Management // Advanced Assets // Depreciation Plan.

It is important to highlight that Asset Reference data will create a Depreciation Plan by default, which implies below Depreciation Rules:

above depreciation rules mean that the depreciation amount to be allocated to each month of the economic life time of an asset will be the same.

It is possible to implement new extension modules for new Depreciation Plan or rules such as:

Depreciation Method = “Linear”.
Depreciation Type = “Percentage”.
Depreciation Range = “Monthly”
or
Depreciation Method = “Linear”.
Depreciation Type = “Time”.
Depreciation Range = “Yearly”

Subsidy

Subsidy window can be found at the application path:
Financial Management // Advanced Assets // Subsidy.

This new window allow the end-user to enter Subsidy information such as:

Subsidy 1.png

Inventory Number Print Template

Inventory Number Print Template window can be found at the application path:
Financial Management // Advanced Assets // Inventory Number Print Template.

This new window will allow the end-user to define an “Inventory Number Template”.

The inventory Number can be printed: the end-user can define the inventory number print template to be used by the system in this new window.

Inventory number template.png

End-user can setup the template by selecting the “Inventory fields” which can be found at the Asset Card - Inventory Tab. These values might need to be part of that template, as shown in the screen below

Inventory number template lines.png

Advanced Asset Management

Asset Class

The asset Class window can be found at the application path:
Financial Management // Advanced Assets // Asset Class

the asset Class window allows the end user to create as many Asset Classes as needed.

An Asset Class is a group of Assets with the same depreciation rules, normally establish by the corresponding financial authorities, and depreciation accounting.

Asset class.png

Currently implemented "depreciation rules" are:

Depreciation Method = “Linear”.
Depreciation Type = “Time”.
Depreciation Range = “Monthly”

which means that the depreciation amount to be allocated to each month of the economic life time of an asset will be the same.

Depreciation Accounting information can be entered in the “Accounting” sub-tab. End-user will have to enter below ledger accounts:

Asset Card

Asset Card window can be found at the application path:
Financial Management // Advanced Assets // Asset Card.

Asset Card window allows the end user to create assets by entering an "Asset Name”, its “Description” as well as an “Asset Class”.

Asset card.png

the “Asset No” and “Inventory No” fields will remain empty until the end-user fills in and saves the corresponding asset information in the “Asset sub-tab” of the asset card and/or the corresponding inventory information in the “Inventory sub-tab” of the asset card, respectively.

Once that information is saved, the system will “automatically” provide an Asset Number and an Inventory Number.

Asset Tab

Once an "Asset Card" has been created, the end-user can navigate to the “Asset” sub-tab and fill out at least the Asset mandatory information such as:

End-user will be able to run the process “Create Depreciation” from this window having into account that:

Once the Asset information is saved, the system generates the corresponding “Asset Number” and that asset number will now be shown in the Asset Card of the asset.

Asset card asset number.png

Subsidy sub-tab

Once the end-user has selected the field “Has Subsidy”, a subsidy can be allocated to an asset in the Subsidy sub-tab.

In this window the end-user can enter below information:

Subsidy Account (DEBIT) – default account, see section: “Default Asset related Ledger Accounts
Revenue of liquidation of Subsidies (CREDIT)

Subsidy subtab.png

Subsidy Amortization Plan sub-tab

The subsidy amortization plan sub-tab shows the subsidy amortization plan lines generated by the system when the end-user runs the depreciation plan for an asset in the Asset tab.

In our case the Depreciation basis amount (4.000,00) will be allocated to 5 months at the same amount each month, as shown in the screen below:

Subsidy amortization.png

Depreciation sub-tab

The depreciation sub-tab shows the asset depreciation plan lines generated by the system when the end-user runs the depreciation plan for that asset in the Asset tab.

In our case the Depreciation basis amount (12.400,00) will be allocated to 5 months at the same amount each month, as shown in the screen below:

Depreciation lines.png

Accounting sub-tab

Accounting sub-tabs shows the ledger accounts coming from the Asset Class setup for an asset in the Asset Card to be used while posting asset depreciation:

Depreciation posting looks as shown below:

Depreciation Account (DEBIT)
Adjustment Account (CREDIT)

Controlling & Controlling Depreciation sub-tabs

Controlling sub-tab allows the end-user to setup separate asset controlling information to be also capitalized and therefore depreciated.

Once a new record is created in this window, the system automatically populates below information inherited from the asset sub-tab of the asset, which can be changed by the end-user:

As mentioned above, end-user can create a separate “Controlling Depreciation” in this window by running the process: “Create Depreciation” which can be also found in the controlling window

Controlling depreciation.png

Booking sub-tab

Booking sub-tab will show every single “financial” booking of an asset resulting from an invoice booking or special document such as appreciation, special depreciation, manual depreciation or storno depreciation booking for an asset, as shown in the screen below:

Booking subtab.png

Parent View

It is possible to define a hierarchical relationship between assets by example: a computer and a hard disk or a computer and a printer.

the parent View sub-tab allows the end user to view and print a relationship between assets as shown in the screen below:

Parent view.png

Relationship between assets can be either strong or casual.

Strong Relationship definition

End-user needs to setup first the “main” asset and later on the “sub-asset”.

For setting up the “main” asset (Computer A), end-user will have to flag as “yes” the field “ Summary Level” which can be found in the Asset sub-tab of the Asset card, as shown below:

Summary level.png

For setting up the “sub-asset” (Hard disk A), end-user will have to select the option “Strong relationship” in the field “Parent view” and then select “Computer A” as main asset in the field “Main Asset”.

Once the sub-asset, hard disk is saved it will get an asset number containing the main asset number + a suffix, as shown in the screen below:

Strong relation.png


Casual Relationship definition

End-user needs to setup first the “main” asset and later on the “asset”.

For setting up the “main” asset (Computer B) end-user will have to flag as “yes” the field “Is Summary” as described before but this time for computer B.

For setting up the “asset” (Printer), end-user will have to select the option “Casual relationship” in the field “Parent view” and then select Computer B as main asset in the field “Main Asset”.

Once the related asset (Printer) is saved it will get an asset number.

Casual relation.png

It is possible to setup a “summary” or main asset related to several “sub-assets” and “asset” at the same time.

Inventory tab

As described in section “Asset parameters at Client level” an item can become an asset depending on “Asset Limit” and can also become part of the inventory depending on “Inventory Limit”.

Normally, asset limit > inventory limit which means that all the items which become assets will be part of the inventory.

In case an item/asset is part of the inventory, end-user must fill-in the Inventory Tab of the Asset Card for that Asset.

Inventory Tab contains a huge amount of inventory related information end-user is able to fill-in, having into account that there are only a few mandatory fields which are:

Once, end user saves the information, system will provide an Inventory number as shown in the screen below, in case Inventory Number is setup as "Automatic" at Client level:

Inventory subtab.png

It is important also to note a field named “Inventory Status”. In general:

For more information, see section: “End-user scenarios

Asset To Do List Updater

Asset To Do List Updater can be found at the application path:
Financial Management // Advanced Assets // Asset To Do List Updater

Every financial booking on an asset (asset account) caused by a purchase or a sales invoice of that asset is listed in the “Asset To Do List”, Asset Management team will use to properly manage the asset.
See section “End-user scenarios”.

Therefore, this process allows the end-user to collect for a given “Organization” every financial booking on an asset account caused by either a purchase transaction (AP invoice) or sales transaction (AR invoice) as shown in the screen below.

Asset to do list updater.png

Asset To Do List Updater generates the Asset To Do List for both Purchase and Sales transactions.

Asset To Do List

Asset To Do List can be found at the application path:
Financial Management // Advanced Assets // Asset To Do List.

There are 2 “Asset To Do List” one for Purchase and one for Sales, for which the information is likely the same.

Asset to do list purchase.png

Asset To Do List information automatically retrieved by the system as not editable is:

as shown in the screen below:

ToDoList 1.png

For more information regarding how to operate with the To Do List processes, see section: “End-user scenarios

Depreciation

Depreciation Plan lines of an Asset and Subsidy Amortization lines of a Subsidy, can be found in the Depreciation window at the application path:
Financial Management // Advanced Assets // Depreciation.

End-user can process and post each “Depreciation Plan Line” for a given period (by example: 01-10-2010 to 31-10-2010) which could contain both asset depreciation and subsidy amortization as shown in the screen above, and even more assets for which there is a deprecition plan line within that period range.

Depreciation lines sub.png

Special Documents

Special Documents new window can be found at the application path:
Financial Management // Advanced Assets // Special Documents // Asset Movements

Special documents are “asset related movements” such as:

This new window allows the end-user to create, process and post the asset related movements described above, as shown in the screen below.

Special documents.png

For more information see section “End-user scenarios

User Documentation

An asset is a long-term item such as a building, a vehicle, a computer held for business use, not expected to be converted to cash in the current upcoming fiscal years.

Assets can be purchased, self-made or donated.

Purchased Assets

As described above an asset can be purchased from third parties, a supplier or a vendor.

Purchased Assets from 3rd parties are commonly estimated by their acquisition cost in accessing, having into account that:

A purchased asset will always require a purchase invoice to be booked in the system which should be linked to the asset.

Asset Card creation before Purchase Invoice booking

An Asset Card can be manually created at any time by the end-user by navigating to the application path:
Financial Management // Advanced Assets // Asset Card.

Let's say that people receiving the items or goods are only allowed to receive the goods/items and create the asset card for that particular item/s by filling-in the Inventory tab. Inventory status will be “Pre-inventory” for this scenario.

Scenario inventory tab.png

Once the Asset Card and the Inventory Tab are saved the system will provide people receiving the items with an “Inventory No” which could be written-down in the purchase invoice in order to avoid that the asset management people which is allowed to fill-in the asset information in the asset card later on, can duplicate the asset card. In this example the Inventory No is “Inventory-583-TaxOrg”.

A.- Purchase Invoice booking steps:

B.- Asset To Do List process:

Once the purchase invoice is completed and post, end-user can run the process “Asset To To List Updater” for the corresponding Organization, in our example “TaxOrg” and Document Type Name, in our example “AP invoice-Purchase Invoice”.

Asset To Do List Updater will create a new line in the Asset To Do List window at the application path: Financial Management // Advanced Assets // Asset To Do List // Purchase, for the purchase invoice just posted, in our example: 10000033, as shown in the screen below:

Purchase todolist.png

Above window lets the end-user know that there is an asset card already created for an asset with inventory information filled-in which requires to be verified, which means that asset related information must be filled-in “manually” in the Asset Tab of the Asset Card for that particular asset.

Once “asset “related information is filled-in in the asset tab, the end-user can be back and run for the purchase asset to do list line the process: “Set us Verified”.

That process will mark that line as “Asset Card Verified” which means that the line will not be taken by the purchase to do list anymore and will also change the inventory status to “Valid”.

C.- Purchase Invoices containing more than 1 item:

It is important to note that in case of receiving several items/goods, people receiving those items/goods will have to create as many asset cards as needed and then write down all the Inventory Numbers in the corresponding invoices to allow financial people booking the purchase invoice to link a purchase invoice line with the corresponding asset cards. In other words, it could be that a purchase line for 10 items is linked to 10 asset cards, in that case the “Asset To Do List” will therefore create 10 lines, one for each asset card, for the same purchase invoice.

Asset Card creation after Purchase Invoice booking

Let's say that people receiving the items or goods are not allowed to create asset cards for that particular item/s.
In that case the corresponding purchase invoice/s will be booked in the system by the financial people with no relation at all to any asset card but just containing the correspoding “asset accounts” in the “financial” purchase invoice lines.

The Asset To Do List will capture those financial purchase lines linked the asset accounts, therefore asset team will know the asset for which an asset card needs to be created.

In case the asset is part of the inventory, the inventory number once created can be printed if needed in case additional inventory information needs to be filled in the asset card, inventory tab.

A.- Purchase Invoice booking steps:

Purchase invoice2.png

B.- Asset To Do List process:

Once the purchase invoice is completed and post, end-user can run the process “Asset To To List Updater” for the corresponding Organization and Document Type.

Asset To Do List Updater will create this time 3 new lines in the Asset To Do List window at the application path: Financial Management // Advanced Assets // Asset To Do List // Purchase, for the purchase invoice just posted, in our example: 10000034, as shown in the screen below:

Purchase todolist2.png

Above window lets the end-user know that there are 3 assets for which there is no an asset card.

Once the “asset“ and “inventory” related information if applicable is filled-in in the asset tab and inventory tab of the just created asset card, the end-user can be back and:

That process will mark that line as “Asset Card Verified” which means that the line will not be taken by the purchase to do list anymore and will also change the inventory status to “Valid”.

Purchase Invoice including freight or other type of costs

It could be that a purchase invoice includes both an asset and whatever kind of cost which implies at the end a higher asset cost which therefore should be capitalized and therefore depreciated.

A.- Purchase Invoice booking steps:

If that is the case, those kind of cost must be marked as such in the purchase invoice line, as shown in the screen below; and the account to be used must be the same account as the “asset account” in order to get that the cost are also booked in the asset account.

Cost.png

B.- Asset To Do List process:

Once the purchase invoice is completed and post, end-user can run the process “Asset To To List Updater” for the corresponding Organization, in our example “TaxOrg” and Document Type Name, in our example “AP invoice-Purchase Invoice”.

Asset To Do List Updater will create 2 new lines in the Asset To Do List window one for the asset and the other one for the cost, at the application path: Financial Management // Advanced Assets // Asset To Do List // Purchase, for the purchase invoice just posted, in our example: 10000035, as shown in the screen below:

Purchase todolist4.png

As shown in the screen below, there is no need to link an asset card to a “cost” purchase to do list line.

Todolist costline.png

The end-user will have to “manually” allocated a cost affecting several assets or just one asset while creating the corresponding asset cards. Once that is done “cost” purchase to do list line can be set as verified.

It could also be possible that the cost affecting an asset is booked in a different purchase invoice coming from another supplier, end-user should book those cost in the corresponding asset account in order to allow that those cost are captured by the purchase asset m. to do list in order to be manually allocated later on to the corresponding assets.

Purchase Invoice including a damage asset

Financial people must book in the system purchase invoices which could containing a damage asset which will be returned to the supplier or vendor later on anyway.

A.- Purchase Invoice booking steps:

In order to avoid that an asset card is wrongly created for a damaged asset, financial people will have to “manually” write down in the invoice that an asset or several assets contained in a supplier delivery/invoice to be booked in the system are damage, as shown in the screen below:

Purchase invoice3.png

B.- Asset To Do List process:

Once the purchase invoice is completed and post, end-user can run the process “Asset To To List Updater” for the corresponding Organization, and Document Type Name, in our example “AP invoice-Purchase Invoice”.

Asset To Do List Updater will create 5 new lines in the Asset To Do List window at the application path: Financial Management // Advanced Assets // Asset To Do List // Purchase, for the purchase invoice just posted.

End-user will have to choose one purchase to do list line and set it as damage by running the process “Set us Damage”. That process will remove that line, therefore there will only be the need of creating 4 asset cards for the assets do not damage.

Self-made Assets

Self-made assets are commonly estimated by their development cost.

In that case there will not be any invoice to book in the system and the end-user will have to create the corresponding Asset Card manually for them. This type of asset must be handle same way as any other Asset, in relation to the Asset Card creation and they must be depreciated as those ones mean a cost.

Donated Assets

There could also be assets donated. Donated assets come for free.

In that case there will not be any invoice to book in the system and the end-user will have to create the corresponding Asset Card for them manually. This type of asset must be handle same way as any other Asset, in relation to the Asset Card creation.
Donated assets could be or could not be depreciated.
If a donated asset needs to be depreciated, end-user will have to manually run the "Depreciation Plan" for that asset from its Asset Card.

Subsidies

Subsidies are assignments and grants for investment.
A subsidy entity could provide a company with a subsidy to purchase research facilities, or to invest in I+D+i, or to purchase vehicles or other kind of assets.

These are revenues which are intended for financing of the investments which do not affect the depreciation of the corresponding assets.
Subsidies are required to be cleared within the asset economic lifetime; therefore every time that a subsidy is allocated to an asset,
subsidy amortization plan and asset depreciation plan will be run and post in parallel.

Subsidies work flow:

Depreciation Plan calculation

Asset Depreciation must be execute from the Asset Card, Asset Tab, by running the process button “Create Depreciation”, that process will:

Depreciation Plan example:

Depreciation type=Time
Depreciation Interval= Monthly
Depreciation Method=Linear
Economic Life time = 5
Depreciation Stat date= 25-10-2010
Depreciation basis = 12.400

Depreciation Plan lines calculated by the system will be as shown in the screen below:

Depreciation lines.png

In case of rounding differences those will be allocated to the 1st period/month and in case of a scrap value different to 0, that amount will be deducted from the last period/month as described below:

Depreciation basis = 1895.56
Economic lifetime = 12 months
Depreciation start date = 01-09-2010
Scrap value = 1
1895,56/12= 157,96
rounding:
157,96*12=1895,52
1895,56-1895,52= 0.04 to be added to the first month depreciation

Month 1 (01-09-2010 to 30-09-2010) = 157,96+0,04=158,00
Month 2 (01-10-2010 to 31-10-2010) = 157,96
Month 3 to 11 = 157,96
Month 12 = 156,96
total=158+10*157,96+156,96=1895,56-1,00=1894,56

In case “Full month depreciation” flag is removed from the “Depreciation Plan”, the system will have into account the number of days in order to allocate depreciation amount as described in the example below:

Depreciation basis = 1895.56
Economic lifetime = 12 months
Depreciation start date = 25-10-2010
Scrap value = 1
1895,56/12= 157,96
rounding:
157,96*12=1895,52
1895,56-1895,52= 0.04 to be added to the first month depreciation

Month 1 (01-10-2010 to 31-10-2010) = (30-25+1) * 157,96 / 30 = 31.59+0,04=31,63
Month 2 to 11 = 157,96
Month 12 = 1895.56 – (31,63+157,96*11) = 1895,56 – 1769,19 = 126,37-1,00 = 125,37

In case of an asset which has a subsidy or subsidies linked to it, the subsidy/ies amortization plan lines generated by the system at the same time asset depreciation plan lines are created, will be calculated same way. The amortization amount for each month of the economic life of the asset will be the same.

Depreciation Plan booking

Depreciation and amortization plan lines can be booked in the application path: Financial Management // Advanced Assets // Depreciation

End-user will have to find the Depreciation Line to be processed first and later on post by having into account the period: “Starting Date” and “Ending date”.

A Depreciation Line can contain several assets/subsidies for which depreciation/amortization must be book in the same period.

Depreciation booking.png

Depreciation posting looks as shown below by taking “depreciation account” and “Adjustment account” from the Asset Class of an asset:

Depreciation Account (DEBIT)
Adjustment Account (CREDIT)

Every time a depreciation plan line is processed below fields in the asset card, asset tab change:

Asset fields.png

Every time an amortization plan line is processed below fields in the asset card, subsidy sub-tab change:

Subsidy field.png

Amortization posting looks as shown below by taking the “subsidy account” from the general ledger configuration – defaults tab and the “Revenue of liquidation of subsidies” from the asset card, subsidy sub-tab.

Subsidy Account (DEBIT)
Revenue of liquidation of Subsidies (CREDIT)

Low value Pool Assets

Low value pool assets are long-term assets which are capitalized and book on a “pool” asset account.
There can be as many “pool” accounts as asset class.
This pool account is depreciated only once a year an in one total amount. There is no need to create an asset card for this type of assets.

Low value pool assets can also be purchased, self-made or donated.

Low value pool assets which are purchased must be booked in an asset account as any other asset, setup as “pool account” as shown in the screen below:

Pool account.png

That way those “pool” asset accounts will not be captured by the Asset To Do List as there is no need to create an asset card for those type of assets.

One time depreciation will be manually booked by using a GL Journal by selecting the appropriate account combinations.

Change Depreciation Range

In some cases, there is a need of changing the depreciation range or economic life time of an asset which has started being depreciated.

For getting the above, there is a flag in the asset card, asset tab named “Change Depreciation Range”.
"Change Depreciation Range" flag will allow the end-user to change the economic life time of an asset,
and therefore recalculate its depreciation plan as described below:

Let's say we do have an Asset “Computer HIT 3000” with an economic life time of 15 months which was purchased and therefore started to be depreciated in September 2010 (01-09-2010//30-09-2010). It's depreciation basis is 2.100,00.

Dated on mid March 2011, September / October / November / December / January and February depreciation plan lines have been processed and posted which means:

Dated on 23 March 2011 a sub-asset is purchased for the Computer HIT 3000, by example a new hard disk, which means it is possible and allowed to increase Computer HIT economic lifetime. End-user will have to follow below steps in order to manage this “special” situation:

System will take the asset current value (1.260,00) and will split it into the remaining economic life time which in our example is = 15 – 6 + 2 = 11 (1.260,00/11=114,55), as shown in the screen below:

New depreciation plan.png

Previously months already posted before the economic life time changed will remain as they are. Starting from month 7 up to 17 (11 months) will then take the newly calculated depreciation amount having into account rounding differences.

Asset Disposal

An asset disposal may have different reasons:

In case of an asset theft or damage, end-user needs to manually book the corresponding lost or revenue by using a GL Journal as described below:

Lost posting in case of Asset current value > Asset Sales Price:
Asset Value= 10.000,00
Depreciated amount = 8.000,00
Asset Current value = 2.000,00
Asset sales price = 1.500,00€

1.500,00 € Bank (DEBIT)
500,00 € Cost from Asset Disposal (DEBIT)
8.000,00 € Adjustment Account (DEBIT)
10.000,00 € Asset Account (CREDIT)

Revenue posting in case of Asset current value < Asset Sales Price:

Asset Value= 10.000,00
Depreciated amount = 8.000,00
Asset Current value = 2.000,00
Asset sales price = 5.500,00€

5.500,00 € Bank (DEBIT)
8.000,00 € Adjustment Account (DEBIT)
10.000,00 € Asset Account (CREDIT)
3.500,00 € Revenue from asset disposal (CREDIT)

After above manual bookings, end-user needs to search the corresponding asset card and follow below described steps:

In case of a sale, end-user needs to book a sales invoice at the application path:
Sales Management // Transactions // Sales Invoice.

Once there financial people will have to create a sales financial invoice and select the GL item “Revenue of Asset Disposal” which should be previously created, as shown in the screen below:

Sales invoice.png

The corresponding asset card of the asset being sold must be selected in the “Asset Card” sub-tab at sales invoice line level as shown in the screen below:

Sales invoice2.png

Sales invoice posting looks like, as an example:
3.500,00 € Customer (5310000) DEBIT
3.500,00 € Revenue from asset disposal (5361000) CREDIT

After the sales invoice has been complete and post, asset management team can run the process “Asset To Do List Updater” this time for the document type “Sales Invoice”.

This process will create a new line for the sales invoice in the “Sales” Asset To Do List at the application path: Financial Management // Advanced Assets // Asset To Do List // Sales, as shown in the screen below:

Sales asset todolist.png

Asset team will only have to set that line as “Verified” which implies:

Sales date of disposal.png

Discharged inventory.png

Finally, end user needs to manually book the corresponding Lost or Revenue by using a GL Journal. In our sales examle the asset sale mean a revenue:

Asset Value= 12.400,00
Depreciated amount = 9.920,00
Asset Current value = 2.480,00
Asset sales price = 3.500,00€

3.500,00 € Bank (DEBIT)
9.920,00 € Adjustment Account (DEBIT)
12.400,00 € Asset Account (CREDIT)
1.020,00 € Revenue from asset disposal (CREDIT)

Special Documents

Besides asset “addition” and “disposal” already explained, there are few more “asset specific” actions or movements which asset management teams would require to book for an asset.
A new window has been created in order to allow the end-user to book those kind of asset specific movements.

An asset can be:

Special documents work-flow:

Special documents can be booked at the application path:
Financial Management // Advanced Assets // Special Documents

Once there, asset team can create a new record and select below information:

Once a specific movement, let's say an “Appreciation” is saved, the system will automatically populate the field “Document no” with the corresponding document number as there is a different “Document Sequence” for each document type.

Appreciation.png

End-user can then process and later on post each document type having into account that:

Depreciation posting.png

Appreciation posting.png

Storno booking

It could be that a purchased asset is booked to the wrong organization by mistake.

Financial team will need then to reverse that purchase invoice in the organization which was wrongly booked and book it once again for the correct one.

A reversal can be made by using:

For getting the above done, end user should follow below steps in relation to Storno Purchase Invoice, same would apply to AP Credit Memo:

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

Asset Management To Do List will help end-user to:

Rebooking

Rebooking of assets could happen and the reasons may be:

Rebooking from the wrong asset account to the valid asset account

Asset Management realize that a computer, which was purchased in March, was wrongly booked on the office machines asset account, therefore there is a need of rebooking to the right Asset Account by using a G/L Journal:
50.000,-€ Computer System (073100) DEBIT
50.000,-€ Office machines (086000) CREDIT

Rebooking from the wrong depreciation & adjustment account to the valid ones

Asset Management realize that a computer, which started to be depreciated in March, was wrongly booked on the office machines asset Class, therefore depreciation and adjustment account for office machines were used instead of Computer's ones, therefore there is a need of:

Starting from April system will do the right depreciation posting by using the right accounts setup in the asset card, asset tab, accounting sub-tab.

Rebooking from under construction asset to final asset

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

Asset Reporting

There is a specific "Asset Report" at the application path:
Financial Management // Advanced Assets // Asset Movements List

"Asset Movements List" process helps the end-user to get a list of all the documents related to an "asset account", documents such as:

Asset Movements List process allows the end-user to enter below information in order to generate the report required:

"Asset Movements List" output is described below:

As explained above, the end-user can get above report for a particular "asset", for a particular set of assets belonging to the same "asset class" or for a set of assets owned by the same "asset owner".

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