Fixed Assets
Asset Department Master:
1. To create an Asset Department.
2. You can add a departments and its units.
Asset Category:
1. ID is the prefix for an asset id.
2. Category name
3. Years : This is required to calculate the depreciation.
Asset Entry:
1. Asset Entry module is to capture the fixed assets at the time of Go Live.
2. Since the Asset values are loaded into the accounts directly from balance sheet,
This module will help us to capture the asset items and no financial transaction
will happen at this point.
3. If we load these items when we go live then there is no need to have this
module.
Location : Location of the asset to track where it is located.
Asset category : category of an asset, from this we populate life from the master.
Class : Further classification of the category.
Department and Unit : Further to location it helps to tract the exact asset location.
Asset name : Name of an asset like laptop with model number or vehicle with
registration number.
Purchase price : Item purchase/Net book value
Salvage : To capture, at what point you like to stop the depreciation and sell as scrap
material.
Acquisition Date : purchase date
Life : Asset life from category master
Depreciation Start From : From when we start depreciation.
Asset Ledger : Asset/Asset Category ledger
Depreciation Ledger : Actual depreciation expense account.
Accumulated Depreciation Ledger : Control account to handle the depreciation.
Gain/Loss Ledger : When we do a disposal/scrap sales of an assets gain/loss will be
captured under this account.
Asset Register:
1. It shows list of all the assets already registered and also the asset purchases
made and pending for assetization.
2. This an important step to be done after an asset purchase.
3. By doing this we can tag the ledger and put the asset in a right place in the
system records.
Depreciation Process:
1. You can choose the month and year of depreciation and search.
2. It shows list of all the assets with the depreciation value.
3. Formula for Depreciation = (Purchase Cost - Salvage) / (Life * 12)
4. User can choose all the assets and process the depreciation.
Dr Depreciation ledger mapped in the asset master. Cr Accumulated Depreciation
ledger mapped in the asset master.
Asset Entry List:
1. User can find list of assets in the system and they are allowed to modify the
details.
Fixed Assets:
1. Shows list of assets where you can perform various actions against an asset.
2. Recording : Similar to assetization process.
3. Transfer : To Transfer an asset from one department to another.
4. Disposal : To dispose an asset as a scrap sales.
5. Impairment : when the NBV of an asset is excess than the recoverable amount,
We will expense it out with the impairment value/amount.
6. Revaluation : To match the current value of a long lived asset we use asset
revaluation.
Disposal : Dr Accumulated Depreciation mapped in the asset master. Cr Asset ledger
mapped in the asset master. Dr/Cr Disposal and Gain/Loss ledger as per the asset
resale value and net book value. Ex. If resale value is more than NBV then it is a gain.
Impairment : Dr Accumulated Depreciation mapped in the asset master. Cr Asset
ledger mapped in the asset master. Dr/Cr Impairment and Gain/Loss ledger as per
the asset impairment value and net book value. Ex. If impairment value is more than
NBV then it is a gain.
Revaluation - upwards : Dr Asset mapped in the asset master. Cr Revaluation ledger
selected in the form.
Revaluation - downwards : Dr Revaluation ledger selected in the form. Cr Asset
mapped in the asset master.
All other modules are reports :
1. Acquisition List Report -> Shows all the asset acquisitions as per the selected
date range.
2. Book Value Summary Report -> To see category wise Acquisition, Depreciation
and Book value.
3. Book Value Detailed Report -> To see detailed ie., asset wise Acquisition,
Depreciation and Book value.
4. Depreciation Detailed Report -> To see asset wise detailed depreciation's posted
in the system.
5. Posting Group net change report -> To see category wise Asset, Depreciation
and Accumulated Depreciation figures from ledger.
