Fixed Assets Depreciation
Accounting Models for Fixed Assets
The Fixed Assets Subsystem, in conjunction with the capabilities of the base
ADVANTAGE Financial system, records all the entries necessary to properly
account for and report on fixed assets. It takes into account the GAAP
requirements for the treatment of fixed assets based upon fund type. To ensure
that the accounting entries generated are correct, you may want to review the fund
Type codes entered in Fund (FUN2).
When you implement the system, you will establish many of the General Ledger
accounts to be entered in Fixed Asset Type (FATP) and System Special Accounts
(SPEC). In Fixed Asset Type (FATP), you must enter the asset Account and the
associated Accumulated Depreciation Account for each asset Type. These
codes will be used in the acquisition, transfer, and disposition transactions.
The fields on System Special Accounts (SPEC) that relate to the Fixed Assets
Subsystem are listed below.
RELATED SYSTEM SPECIAL ACCOUNTS (SPEC) FIELDS
Field Name Description
GFAGA Fund This code identifies the Fund code for the Government
Fixed Assets Group Account. The default for the UCCSN
is fund x802 where “x” is replaced with an institution
identifier.
Contribution to Fixed Assets Default investment in fixed assets equity account. The
default for the UCCSN is 2050.
Depreciation Expense The Object code to which the depreciation expense will be
posted in Proprietary Funds. Must be a valid code on
Object Index (OBJT).
Sale of Fixed Asset The Revenue Source code for the sale of Fixed Assets.
Revenue Source This must be a valid code on Revenue Source Index
(RSRC).
Gain/Loss Account The Revenue Source code for accumulating gains (or
losses) on the sale or disposition of fixed assets as
specified on Fixed Asset Acquisition/Disposition Method
(FADM). This code must be valid on Revenue Source
Index (RSRC).
Gain/Loss Object The Object code for accumulating gains (or losses) on the
sales or disposition of fixed assets as specified on Fixed
Asset Acquisition/Disposition Method (FADM). Must be
a valid code on Object Index (OBJT).
In addition to entries in SPEC and FATP, an entry is required on the FUND table
(FUN2) for the Government Fixed Assets Group Account. The Fixed Assets
Subsystem, in conjunction with the capabilities of the base ADVANTAGE
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Fixed Assets Depreciation
Financial system, records all the entries necessary to properly account for and
report on fixed assets. It takes into account the GAAP requirements for the
treatment of fixed assets based upon fund type. To ensure that the accounting
entries generated are correct, you may want to review the Fund Type codes
entered in Fund (FUN2).
Also, the Memo Depreciation field determines whether depreciation will be
booked to the General Ledger. However, it will post to the Fixed Asset Summary
Inquiry and the Fixed Asset Betterment Inquiry windows, as well as the Fixed
Asset Depreciation Ledger, for information and reporting purposes. Set the
“Memo Depreciation” flag to ‘Y’ to prevent the posting of depreciation to the
General Ledger.
Fixed Assets Depreciation
The Fixed Assets Subsystem calculates depreciation offline for each depreciable
fixed asset. The offline depreciation program also updates the online balance
sheet, the offline general journal, and Fixed Asset Summary Inquiry (FAS1 and
FAS2) and Fixed Asset Betterment Inquiry (FBT1, FBT2).
Automatically Computed Depreciation
The Fixed Assets Subsystem automatically computes depreciation using one of
four methods: straight line, sum of the years digits, variable declining, or double
declining balance. These options are set by asset. The assets to be depreciated are
selected by fund, with fund entered into the process as a user defined parameter.
The Memo Depreciation field on Fund (FUN2) is used to determine whether the
calculated entries should be posted to the General Ledger. In this way, you can
post depreciation to enterprise funds, but use memo depreciation calculations for
general fixed assets reports.
All four methods use the latest values of useful life, acquisition date, asset value,
accumulated depreciation, and salvage value to compute current period
depreciation.
The Fixed Asset Depreciation process is run monthly on the first business night of
the month. Current period depreciation is computed by subtracting the previous
accumulated depreciation from the newly computed total depreciation.
In the last period of an asset's useful life, the depreciation taken is the remaining
undepreciated value, if any. If the depreciation computed by one of the methods
exceeds the remaining undepreciated value (which is possible with sum of the
years digits and variable declining balance methods), the asset is depreciated only
to its salvage value.
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Note that each equity share of the asset, and each equity share of each betterment,
is depreciated separately. However, all the computations use the same method,
useful life, and in-service or acquisition date for the betterments as for the asset.
The current period depreciation computed for each equity account is added to the
accumulated depreciation.
One of the following depreciation methods is specified for each asset when it is
acquired, using the Fixed Asset Acquisition (FA) document:
• Straight line (SL)
• Sum of the years digits (SY)
• Double declining balance (DD)
• Variable declining balance (NNN)
• Manually computed (MC)
• Not applicable (NA)
The depreciation program ignores assets with a Depreciation Method of NA or
MC. Depreciation is automatically computed for assets with a depreciation
method of SL, SY, DD or NNN (where NNN is the declining balance rate). When
depreciation is automatically computed, the total accumulated depreciation is
recorded in the following tables and ledgers:
• Fixed Asset Summary Inquiry (FAS1/FAS2)
• Fixed Asset Betterment Inquiry (FBT1/FBT2)
• Fund Balance (FBAL)
• Balance Sheet Account Balance (BBAL)
• Fixed Asset Ledger
The system computes depreciation from the date of acquisition or the in-service
date (based on an option selected on Fixed Asset Type (FATP)), starting with the
first period the asset is in the system. Depreciation computed for the first period is
prorated based upon when during the period the asset was acquired or put into
service.
Depreciation Calculation for Betterments
The depreciation method for a betterment is the same method that is applied to the
base asset; i.e., betterment record 00 in FBT1/FBT2. The useful life for a
betterment is also set based on the base asset.
When a betterment is added to an asset that has had depreciation calculated in
prior periods, the first time depreciation is calculated for the betterment it is
performed at an accelerated rate. That is, if the base asset has had depreciation
calculated up to 25% of its depreciable value 1 then the depreciation calculated on
the betterment will also equal 25% of its depreciable value. Future calculations of
1
Depreciable Value is the Asset Value less Salvage Value.
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depreciation for the betterment will continue to be based on the percentage of
depreciation calculated on the base asset for the remainder of its useful life.
When a betterment is added to an asset that has been fully depreciated, the first
time depreciation is calculated for the betterment it is calculated at 100% of the
depreciable value. (NOTE: There is an AMS bug fix, #80714, that has not
been applied by SCS that would not calculate any depreciation on a
betterment applied to an asset that is fully depreciated.)
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Fixed Assets Tables
Table Name/ID Description
ACQUISITION / Acquisition/Disposition (FADM) defines the valid
DISPOSITION acquisition and disposition method codes.
FADM
CONDITION / LAST The Condition/Last Inventory Date Update (FADU) is
INVENTORY DATE used to update the date of the last inventory and/or
UPDATE condition of a particular asset or all assets at a particular
location.
FADU
FIXED ASSET Fixed Asset Betterment Inquiry (1 of 2) (FBT1) displays
BETTERMENT INQUIRY (1 one entry for each fixed asset and one entry for each
OF 2) betterment to the asset. You can view this inquiry from
two windows. The first window (FBT1) stores all data
FBT1 except the equity distribution. The second window
(FBT2) stores the equity distribution for the original
asset or the betterment.
Information on this window is added and modified by
the Fixed Assets Document Processors. The depreciated
amounts are updated by the Depreciation process. A
disposed asset's betterments are deleted by the
Disposition Purge process.
FIXED ASSET The Fixed Asset Betterment Inquiry (2 of 2) (FBT2)
BETTERMENT INQUIRY (2 displays one entry for each fixed asset and one entry for
OF 2) each betterment to the asset. This window stores the
equity distribution for the original asset or the
FBT2 betterment.
Information on this window is added and modified by
the Fixed Assets Document Processors. The depreciated
amounts are updated by the Depreciation process. A
disposed asset's betterments are deleted by the
Disposition Purge process.
FIXED ASSET BY TAG Fixed Asset by Tag Number Inquiry (FBTT) is an
NUMBER INQUIRY alternate view of Fixed Asset Betterment Inquiry
(FBT1).
FBTT
FIXED ASSET CATALOG Fixed Asset Catalog (FCLG) stores descriptive
information associated with each group, or catalog, of
FCLG commonly used assets to reduce source data entry.
FIXED ASSET GROUP Fixed Asset Group (FGRP) is used to identify and
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Fixed Assets Tables
Table Name/ID Description
describe the kind of fixed asset on a more detailed level
FGRP than the fixed asset type. You must assign every fixed
asset to a fixed asset group.
The fixed asset group is the most detailed level of the
fixed asset type hierarchy. The progression is as follows:
1. group; 2. group class; 3. group category, and 4. type.
For example, within type E (equipment), a group
category could be office equipment, a class within that
could be typewriters, and one group within that would
be IBM Selectric Typewriters.
FIXED ASSET GROUP Fixed Asset Group Category (FGCT) is optional and
CATEGORY used for reporting purposes only. Group categories are
collections of related group classes. The assignment of
FGCT group classes to group categories occurs in Fixed Asset
Group (FGRP).
FIXED ASSET GROUP Fixed Asset Group Class (FGCS) is optional and used
CLASS for reporting purposes only. Group classes are
collections of related fixed asset groups. The assignment
FGCS of groups to group classes occurs in Fixed Asset Group
(FGRP).
FIXED ASSET GROUP Fixed Asset Group Location Inquiry (FAGL) is an
LOCATION INQUIRY alternate view of Fixed Asset Summary Inquiry (FAS1).
This alternate view has different key fields than Fixed
FAGL Asset Summary Inquiry (FAS1) and the window entries
are displayed in a different order. The entries are sorted
by the fixed asset group, location, fixed asset type, and
fixed asset number.
The information on this window is stored in Fixed Asset
Summary Inquiry (FAS1). Consequently, whenever the
Fixed Asset Summary Inquiry (FAS1) is updated, this
window is updated.
FIXED ASSET HISTORY Fixed Asset History Inquiry (FHIS) allows you to track
INQUIRY updates made against each fixed asset.
FHIS Information is added to this window by the Fixed Asset
(FA) document processors if Fixed Asset History on
Systems Control Options (SOP2) is selected [Y].
Inactive fixed asset entries are purged from this window
at a later date by running the Fixed Asset History Table
Purge (FAPH) program.
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Fixed Assets Tables
Table Name/ID Description
FIXED ASSET LOCATION Fixed Asset Location (FLOC) is optional and used for
reporting purposes only. Location codes are used to
FLOC identify the location of a fixed asset; for example, the
room number for a desk, the street address for a parcel
of land, the garage for a vehicle.
Location is the lowest level of a three-level
classification hierarchy. The progression is as follows: 1.
location; 2. location class; and 3. location category.
You must associate every fixed asset with a location
code. Location class and category are optional codes
used to group fixed assets on reports. For example, the
category might be North Greenville, the class, 500 Main
Street, and the location, Room # 567.
FIXED ASSET LOCATION Fixed Asset Location Category (FLCT) is optional and
CATEGORY used for reporting purposes only. Location categories
group related location class codes. The assignment of
FLCT location classes to location categories occurs in Fixed
Asset Location (FLOC).
FIXED ASSET LOCATION Fixed Asset Location Class (FLCS) is optional and used
CLASS for reporting purposes only. Location classes group
related location codes. For example, the location code
FLCS could define the room number and the location class
code could define the street address of the building. The
assignment of locations to location classes occurs in
Fixed Asset Location (FLOC).
FIXED ASSET LOCATION Fixed Asset Location Inquiry (FALC) provides an
INQUIRY alternate view of Fixed Asset Summary Inquiry (FAS1
and FAS2). Location, fixed asset type, and fixed asset
FALC number sort the information on this window.
FIXED ASSET Fixed Asset Reorganization (FARO) lists
REORGANIZATION reorganizations to fund, agency, organization, location,
and complex building as well as the date the
FARO reorganization took place.
FIXED ASSET SUMMARY Fixed Asset Summary Inquiry (1 of 2) (FAS1) displays
INQUIRY (1 OF 2) summary information for all existing fixed assets. All
data that pertains to the entire asset (original asset and
FAS1 all of its betterments) are stored in this window.
Information on this window is added and modified by
the Fixed Asset Document Processors. The Mass
Revaluation process updates Depreciation Method,
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Fixed Assets Tables
Table Name/ID Description
Valuation Amount, and Validation Date. Disposed
assets are deleted from this window by the Disposition
Purge process
FIXED ASSET INQUIRY (2 Fixed Asset Summary Inquiry (2 of 2) (FAS2) displays
OF 2) summary information for all existing fixed assets. Fixed
Asset Summary Inquiry (FAS1) displays all data except
FAS2 the equity distribution. This window displays the equity
distribution of the entire asset (the original asset and all
of its betterments).
Information on this window is added and modified by
the Fixed Asset Document Processors. Disposed assets
are deleted from this window by the Disposition Purge
process.
FIXED ASSET TYPE Fixed Asset Type (FATP) defines the major types of
fixed assets allowed in the Fixed Asset Subsystem. For
FATP each type, a name and short name are defined for use on
reports. You must also define two balance sheet
accounts: the asset account (land, buildings, etc.) and the
accumulated depreciation account.
FIXED ASSET VALUATION Fixed Asset Valuation (FVAL) defines the parameters
used by the Mass Revaluation process. You should
FVAL review and update this window as necessary, whenever
the revaluation function is used.
GENERATED FIXED When a payment voucher (P1, PV, PVA, PVQ, PVV)
ASSET TRANSACTION purchases a fixed asset, it is possible to have a skeleton
INQUIRY Fixed Asset (FA) document automatically loaded to the
Document Listing. The Generated Fixed Asset
FAPV Transaction Inquiry (FAPV) displays the link between
an Fixed Asset (FA) document ID and the
accompanying payment voucher transaction ID. Entries
are automatically posted to this window whenever a
payment voucher automatically creates a Fixed Asset
(FA) document.
This window displays the transaction ID of the payment
voucher which created a given Fixed Asset (FA)
document and the transaction ID of the Fixed Asset
(FA) document(s) created by a given payment voucher.
If Fixed Asset Indicator is Create Multiple Shells [Q]
on the payment voucher, the system will create the
quantity of Fixed Asset document(s) specified in
Quantity on the payment voucher. This window also
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Fixed Assets Tables
Table Name/ID Description
displays the transaction creation date for the Fixed Asset
(FA) document.
MANUAL DEPRECIATION Manual Depreciation Input (MDEP) is used to enter
INPUT depreciation data for a fixed asset. You can manually
enter data into this window; however, it is accepted only
MDEP if Depreciation Method is MC (manually computed) on
Fixed Asset Summary Inquiry (FAS1) for the specified
asset. If information is entered on this window and
Depreciation Method is any other value, an error
message appears.
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Fixed Assets Depreciation
Fixed Assets Subsidiary Ledgers
Ledger ID Description
Current Year Fixed Asset Accumulates detail fixed asset documents, except
Ledger (FALED) depreciation, throughout the current fiscal year. As part
of the Fixed Assets Annual Close, the FALED ledger is
copied to FALEDyy in order to provide reporting for a
given fiscal year.
Current Year Depreciation Contains any detail depreciation posted during the current
(DPCLSLED) fiscal year. As part of the Fixed Assets Annual Close, the
DPCLSLED ledger is copied to DPCLSDyy in order to
provide reporting for a given fiscal year.
Depreciation Year-to-Date Holds summarized depreciation records representing
Ledger (DPCLSYyy) accumulated year-to-date depreciation by asset and
betterment number for a given fiscal year.
Fixed Asset Inception-to- Represents a statement of fixed asset values and
Date Ledger (FAITDLyy) accumulated depreciation from the day the asset was
acquired. Provides inception-to-date reporting through a
given fiscal year.
Depreciation Closed Year- Contains the close year’s detail depreciation records.
to-Date Ledger Provides reporting for any given fiscal year.
(DPCLSDyy)
Depreciation Closed Detail When an asset is disposed of, depreciation is calculated on
Ledger (DPFALED) the asset up to the disposal date. A depreciation record is
written to the DPFALED ledger for the disposed asset.
Records are summarized to DPCLSLED monthly on the
last business night of each month and this ledger is then
reinitialized.
Fixed Asset Disposition Contains detail information on Fixed Asset Disposition
Ledger (FDLED) (FD) documents.
Fixed Asset Disposition As part of the Disposition Purge job, FAS1 and FBT1
archive (DISPyymm) records marked for disposal are archived to the DISP file.
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Fixed Assets Reports
Report Id Description
X002 Fixed Asset This report shows a complete detail of all fixed asset
Transaction Detail Report transactions (including depreciation) entered between a
range of dates specified.
X003 Fixed Asset A report of depreciation by fund and agency. For each
Depreciation Report betterment of each depreciable asset, the acquisition value,
salvage value, current period, year-to-date and life-to-date
depreciation, and net asset valued are shown.
X006 Fixed Asset A report on each asset in order by location category,
Inventory by Location location class and location. A specific location can be
Report specified or all locations can be selected.
X009 Fixed Asset This report shows assets currently on the system that will
Replacement Forecast need replacement within specified dates.
Report
X010 Disposed Assets This report shows all fully disposed assets still on the
Report Fixed Asset Summary Inquiry (FAS1) table as of the date
the report is run.
X012 Fixed Asset This report shows detail for all Fixed Asset Depreciation
Disposition Report (FD) documents within a specified date range, thereby
reporting all disposition information for partial or
complete dispositions.
X015 Fixed Assets This report shows all internal sales and transfers across
Transfer Detail Report funds and agencies for the year. This report can only be
run after a fixed assets annual close.
X021 General Fixed Assets This report shows the equity breakdown of fixed assets by
by Fund Type, Fund, and fund type, fund, and equity breakdown. Only assets
Equity Breakdown Report belonging to funds with fund-type not equal to P, I, E, N,
and A are selected.
Copies of the AMS Fixed Assets User’s Guide and the Fixed Assets User’s Reference are
available on the AMS eAccess web site. http://eaccess.amsinc.com/
A copy of the AMS Fixed Assets Student Guide is available on the SCS web site.
http://bighorn.nevada.edu/admin/fin/advantage/Training/
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