Summary

The Utilities menu is where you set up default information and define the way you want the Fixed Asset module to work.

Step by Step

1     Open the Fixed Asset Setup window (FA> Utilities> Setup).

2     Set up the Asset Defaults section.

• The Asset Defaults section is used to establish defaults for new assets.
• In the Depreciation Frequency field, select either Yearly or Monthly as the default depreciation frequency.
• In the Life Units field, select either Years or Months as the default life measurement.
• Check the Half Year Convention toggle to record six months of depreciation the first year the asset is acquired and six months of depreciation the last year of the assets life. The depreciation will be computed this way regardless of the actual date the asset was acquired.
  • This method is only available if Yearly is selected in the Depreciation Frequency field.
• Check the GL interface enabled toggle if the General Ledger module will interface with the Fixed Assets module.
  • Interfacing the GL module to the FA module allows you to track GL account numbers on fixed assets when transactions are generated in FA processes.
  • If the GL interface enabled toggle is checked many of the batch processes in the Fixed Assets module will have a step titled GL Distribution added to the palette. The GL Distribution report will display the journal entries created by the process and will also display the journal entry date.

3     Set up the Default Accounts section.

• The Default Accounts section is used to select the default GL accounts that will be used in Fixed Asset module transactions. The default GL accounts entered in these fields will be overridden if there are GL accounts attached to the asset record.
• There are two ways to attach GL accounts to an asset record: manually attaching GL accounts to the asset using the Fixed Asset Maintenance window, or manually attaching GL accounts to an asset class and then attaching the class to an asset using the Fixed Asset Maintenance window. 
  • GL accounts can be manually attached to an asset using the Fixed Asset Maintenance window (FA> Maintenance> Asset> Select an asset> Accounts tab).
  • You can also attach GL accounts to an asset class using the Edit Asset Classes window (FA> Maintenance> Class> Open a class> Distribution section). When you attach the account class to the asset record using the Fixed Asset Maintenance window (FA> Maintenance> Asset> Select an asset> General tab> Class field), the GL accounts on the class will populate on the asset as if you manually entered them onto the asset.
• The Asset Account is the GL account that represents the value of the asset.
  • The asset account is credited during the disposal of the asset (FA> Disposal).
  • The asset account will be debited during the Install Assets process (FA> Install Assets).
  • The asset account will be debited/credited during the Value Adjustment process (FA> Adjustments) for the difference of the original cost.
• The Accumulated Depreciation Account is a contra-asset account that represents the accumulated decline in the value of the asset.
  • The accumulated depreciation account is credited during the Calculate Depreciation process (FA> Calculate Depreciation) to increase amount of accumulated depreciation.
  • The accumulated depreciation account is debited during the Disposal process (FA> Disposal) to reverse the accumulated depreciation on the asset.
  • The accumulated depreciation account is debited/credited during the Depreciation Adjustment process depending on if the depreciation adjustment either increases or decreases the accumulated depreciation on the asset.
  • The accumulated depreciation account will be debited/credited during the Life Adjustments process (FA> Adjustments) depending on if the modified life of the asset will distribute the depreciation over a longer or shorter period of time.
  • The accumulated depreciation account will be debited/credited during the Value Adjustment process (FA> Adjustment) for the amount of the recalculated depreciation.
  • Debit/Credit Salvage Value Adjustment for the amount of the recalculated depreciation.
• The Depreciation Expense Account is the reduction in value of the asset during a fiscal period/year.
  • The depreciation expense account is debited during Calculate Depreciation process (FA> Calculate Depreciation) to expense the reduction in value of the asset.
  • The depreciation expense account is debited/credited during the Depreciation Adjustment process (FA> Adjustment).
  • The depreciation expense account is debited/credited during the Life Adjustment process (FA> Adjustment) depending on if the modified life span of the asset will distribute the depreciation over a longer or shorter period of time.
  • The depreciation expense account is debited/credited during the Value Adjustment process (FA> Adjustments) for the amount of the recalculated depreciation.
  • The depreciation expense account is debited/credited during the Salvage Value Adjustment process (FA> Adjustments) for the amount of the recalculated depreciation.
• The Disposal Account is the value of the asset when it is disposed of (asset less accumulated depreciation).
  • The disposal account is debited/credited for the net of the asset account and accumulated depreciation during the Disposal process (FA> Disposal).
• The Gain/Loss Account is the value of the Sale Price recorded when a fixed asset is disposed of.
  • The gain/loss account will be debited during the GL Distribution step of the Disposals process.
• The Fixed Asset Investment Account represents improvements/investments into existing assets.
  • The fixed asset investment account will be debited/credited during the Value Adjustment process for the difference of the original cost.
• Click the Save icon when the setup is complete.

4     Track any changes made to the FA Setup window.

• Click the Audit Trail icon to open the Audit Trail window.
• Use the Search Criteria section to sort the displayed audit trail.
• The Audit Trail History section will provide details about any changes made to the setup window including the date of the change, type of change made, user that made the change, and data table that was edited.