Summary

The Life Adjustments process allows the user to modify the life on assets. The entry generated in the general ledger will affect the Accumulated Depreciation account type and the Depreciation Expense account type.

Step by Step

1     Open or create an Adjustments batch.

• Select the Adjustments palette in FA> Adjustments. This will expand the Adjustments palette and display the steps of the Adjustments batch process.
• Modify an existing batch or create a new Adjustments batch.
  • Select a batch number from the drop-down menu at the top of the Adjustments palette to select an existing batch.
  • Select New from the Adjustments batch number drop-down menu to create a new batch. This will open the New Batch window.
  • If there are open batches in the Adjustments process, you can create a new batch without affecting the open batches.
  • Enter a Batch Month and Batch Year. These fields default to the current calendar period and are for reference only.
  • Click the Generate icon to populate the Batch Number field with the next available batch number. Batch numbers are limited to five digits and must be unique within the batch month of the batch year.
    • You can also manually create a new batch by entering a Batch Number and clicking the Save icon  .
• Highlight the batch in the batch number drop-down menu on the Adjustments palette and press DELETE to delete the batch.

2     Open the Adjustments window (FA> Adjustments> Adjustments).

• The Adjustments window will display all of the open adjustments in the batch.
• Highlight an adjustment and click the Delete icon or press DELETE to remove the adjustment from the batch.
• Highlight an adjustment and click the Modify icon   or press ENTER to edit the selected adjustment.
• Click the Create icon drop-down menu and select New Life Adjustment from the list. This will open the Life Adjustment window.

3     Create the Adjustment.

• The Life Adjustments window is used to create a life adjustment on a fixed asset. The Asset section is used to select the asset that will be adjusted and to specify the effective date of the adjustment.
  • Enter the Asset you would like to adjust or click the field label to select an asset from a list.
    • Only active assets can be adjusted. If you select a new asset, an error message will appear when you attempt to save the Value Adjustment window.
    • Fixed assets are created and maintained on the Fixed Asset Maintenance window (FA> Maintenance> Fixed Asset).
      • When fixed assets are initially created, their status is set to New. A new fixed asset must be installed in order to update the asset status to Active. Fixed assets are installed in the Install Assets process (FA> Install Assets).
    • The Asset Description and Install Date will automatically populate after the asset is selected.
  • Enter a Tran Date for the adjustment. This will default to today's date.
  • Enter an optional Tran Description for the adjustment. This will appear on the Transactions tab of the Fixed Asset Maintenance window.
    • This field can be up to 50 characters long.
• The As Of Transaction Date section will display the selected fixed asset details as of the date specified in the Tran Date field above.
• The Adjustment section is used to enter the adjusted values for the asset.
  • Enter the Life Remaining adjustment for the fixed asset.
    • Entering a positive value in this field will increase the resulting fixed asset life remaining by the amount entered. Entering a negative value will decrease this amount. You cannot, however, enter an adjustment amount that will result in a negative life remaining value in the Result section to the right.
• While the Result section will automatically update to reflect the changes made in the Adjustment section, you can alternatively make changes directly in the Results section. This allows you to specify the desired life remaining after the adjustment in the Results section and the Adjustment section will display the adjustment required to achieve that value.
• Click the Save icon the save the value adjustment. This will return you to the Adjustments window.
• Once all of the desired adjustments have been added to the batch, click the Confirm icon   to proceed to the next step.

4     Print the Adjustments Proof List.

• Open the Proof List window (FA> Adjustments> Proof List).
• The Proof List will display the amounts to be adjusted on each asset. The amount will represent the difference between the current accumulated depreciation amount and the new depreciation amount recalculated based on the new life.
  • Example: An asset's useful life was changed from 10 years to seven years. The original cost minus the salvage value is $10,000.00 and the original life is 10 years. After two years, the depreciation would be $2,000.00:
    • $10,000.00 / 10 years = $1,000.00 per year of depreciation. $1,000.00 * 2 years of life used = $2,000.00.
  • When calculating the adjusted depreciation, the original cost minus the salvage value is still $10,000.00, but the life is now seven years. After two years, the depreciation would be $2,857.14:
    • $10,000.00 / 7 years = $1,428.57 per year of depreciation. $1,428.57 * 2 years of life used = $2,857.14.
  • The difference of the new accumulated depreciation of $2,857.14 and the current accumulated depreciation of $2,000.00 is $857.14.
  • If the life is adjusted up, the value displayed on the proof list will be negative.
• Click the Print icon to process the report immediately or enter a date and time in the field next to the Print icon to schedule the report to generate at a later time. You can view the progress of the report on the Job Viewer window (SS> Utilities> Show Scheduled Jobs).
  • Click the Print icon drop-down menu and select Print Preview to preview the report before printing.
  • Click the Print icon drop-down menu and select Excel to export the report data to an Excel spreadsheet as unformatted data.
  • Click the Print icon drop-down menu and select Excel (Formatted) to export the report data to an Excel spreadsheet that includes much of the Springbrook formatting found on the printed version of the report.
  • Once the report is generated, you can also display the report using the View Reports window (SS> Utilities> View Report).

5     Print the GL Distribution Report.

• Open the Print GL Distribution window (FA> Adjustments> GL Distribution).
• Enter the Journal Entry Date for the adjustment. This date will determine the fiscal year and fiscal period the entry will be recorded to the general ledger.
• Select the Report Type you would like to generate.
  • The Summary report will display the Account Number, Account Description and Net change in amount. A report total will also be provided.
  • The Detail report will display everything included in the Summary report as well as detailed Debit and Credit information.
• Check the Subtotal by Dept. toggle if desired.
• The Accumulated Depreciation account and Depreciation Expense account is determined from the distribution on the asset.
• Click the Print icon to process the report immediately or enter a date and time in the field next to the Print icon to schedule the report to generate at a later time. You can view the progress of the report on the Job Viewer window (SS> Utilities> Show Scheduled Jobs).
  • Click the Print icon drop-down menu and select Print Preview to preview the report before printing.
  • Click the Print icon drop-down menu and select Excel to export the report data to an Excel spreadsheet as unformatted data.
  • Click the Print icon drop-down menu and select Excel (Formatted) to export the report data to an Excel spreadsheet that includes much of the Springbrook formatting found on the printed version of the report.
  • Once the report is generated, you can also display the report using the View Reports window (SS> Utilities> View Report).

6     Commit the Adjustments batch.

• Open the Commit Adjustments window (FA> Adjustments> Commit).
• Click OK to commit the batch.