SunSystem 5.4.1/Fixed Asset
Neeka Limited
Fixed Asset Module SunSystems 5.4.1 I- Login into SunSystems - Double click on the SunSystems navigator Icon - Insert User Information: User Name and Password.
- The main form of SunSystems appears as below
II- LES : Ledger Setup 1
SunSystem 5.4.1/Fixed Asset
Neeka Limited
Ledger Setup contains the rules relating to the management and processing of standard transactions for each Business Unit, across all ledgers. The company is able to define the general rules for the ledger, as well as those relating to transactions, rough book accounting and dual base currency accounting. - Type “LES� for Ledger Setup in the SunSystem command box
LES
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
The Ledger Setup form appears as below:
The Ledger contains 8 tabs used to define various rules: 1. The General Tab The General Tab is divided into 4 frames: 1.1 Ledger validity Here the user can define the range of period that transactions can be posted to. Current Period: Current period is displayed in the format PP\YYYYY. Here you specify what period is the current period initially.
Open Period: The Open Period is displayed in the format PP\YYYYY 3
SunSystem 5.4.1/Fixed Asset
Neeka Limited
The Open period fields are used to define the range of period that the user may post journals to. For example in the period range above, the user may post journals only from period 02/2009 to 13/2015. However, if both fields are left blank the user may post journals to any period (no restriction). If only the first field of the Open Periods is defined than the user is restricted to posting in that particular period only.
Open Dates: The Open Dates is displayed in the format DD/MM/YYYY The Open Dates Fields are used to define the range of date that the user may post to. For example in the date range above, the user may only post from 01 January 2009 to 31 December 2015. However, if both fields are left blank the user may post journals at any date (no restriction). If only the first field of the Open Date is defined than the user is restricted to posting in that particular date only. 1.2 Provisional Posting Here the user can set whether provisional (rough) posting is allowed or not. Mandatory: The user must do provisional posting. Optional: The user can choose to do or choose not to do provisional posting. Prohibited: The user is not allowed to do provisional posting. Any attempt to do provisional posting is prohibited by the system. 1.3 Asset Timing Code Rule Click on the ellipses to choose the depreciation timing rule to be used for assets in this ledger.
Choose and click on the Timing Rule Code (which is M12 in the picture above) and click OK. Exclude Final Value From Calculation: If this check box is checked then the final value (scrap value) of the asset will not be included in the depreciation calculation. 4
SunSystem 5.4.1/Fixed Asset
Neeka Limited
Assets in Second Base/Reporting Currency: If this check box is checked than the asset values will be stored in base currency and also in second base or reporting currency. Use Asset Quantity: If this check box is checked, asset quantities can be recorded when making fixed asset postings to the ledger. Lock Calculated Depreciation: If this box is checked, when there is a change in the depreciation rate or final value of an asset than any depreciation calculation made before the change will be left intact, and no compensation will be made in the following periods.
Full Year Deprctn in 1st Year: If this check box is checked, a full year's depreciation value is calculated in the fiscal year its depreciation starts, even if it starts part way through the year. For example, Let say we use the straight line method, the yearly depreciation rate is 20%, and we have 12 periods each fiscal year. Let say an asset (a car) is bought in the 7 th period of the fiscal year. In calculating depreciation for that 1 st fiscal year, the 20% depreciation rate will be divided by the remaining periods left which is 20% / 6 = 3.33%. In doing so, a full year depreciation of the asset is allocated to the first fiscal year, even though depreciation starts mid-year and there were only 6 periods left in that fiscal year. If you leave this box unchecked, assets purchased part way through the year will have less than a full year's depreciation posted in their first year. Full Year Deprctn in 1st Year: If this check box is checked, a full year's depreciation value is calculated in the fiscal year its depreciation starts, even if it starts part way through the year. In this case, the amount calculated for the year is distributed across the remaining eligible periods that year. (Eligible periods are those specified in the depreciation timing rule identified in the Timing Rule Code described above). You might require this option if you are using any of the enhanced depreciation methods, where depreciation is normally calculated for entire years. However, it is not strictly necessary to set this option in order to use the enhanced depreciation methods. Leave this check box unchecked to calculate the depreciation for every asset from the period in which it is purchased. In this case, assets purchased part way through the year have less than a full year's depreciation posted in their first year. Apply Advanced Depreciation: Check this check box to allow assets to be included in the advanced depreciation calculation. III- FAS: Fixed Asset Register
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
The fixed asset register module is a tool, which allows you to record details of your fixed assets. It will automatically depreciate them according to various rates and percentages and, because the module is fully integrated with ledger accounting, all relevant general ledger postings will also be created. Powerful analysis capabilities allow you to report and inquire on your assets in many ways and, when the asset is no longer in use, the module can automatically generate ledger accounting disposal transactions. In short, the module manages the entire life cycle of your fixed assets. - Type “FAS� for Fixed Asset Register Record in the SunSystem command box
FAS
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
The Find Form List will appear as Below:
Click here
Click OK
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
- The Fixed Asset Register Module appears as below: Click here to choose a fix asset code
- Choose an asset code - Click Amend to be able to edit data of the fixed asset
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
The Fixed asset model is divided into many tabs. 1. The General Tab 1.1 Asset Status Here the user can set the status of the fixed asset. Active: the asset is actively in use. Suspended /Held: indicates that the asset is no longer in use. A warning message will be displayed if the asset is used in Ledger Entry, Ledger Import, or Asset Status Report. Ready for Disposal: The asset is highlighted for disposal in Asset Disposal. Transactions cannot be posted to assets with this status. 1.2 Disposals Disposed: If this check box is checked, it means that the asset is disposed. This field is updated automatically by the system and cannot be amended by the user. Disposal Period: This field records the period for disposal of the asset. If this field is blank at the time of disposal the system automatically populates the field. 1.3 Register Override
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
Final Value Calculation: If this option is ticked, final value will not be excluded from calculation even if you have ticked the “This option overrides the Exclude Final Value from Calculation� option on Ledger Setup. Reporting Conversion Control: Select the currency control option to be used for postings to this asset in the reporting currency. Three options are available: Ledger Default - uses the Value 3 Currency Post Rule option set in Business Unit Setup (BUS) to determine whether or not reporting currency values are required on transactions posting to the asset. Mandatory - make the reporting currency value mandatory on transactions posting to this asset. Prohibited - prevent a reporting currency value being entered on transactions for this asset. 1.4 Depreciation Accounts: Balance Sheet The balance sheet account for depreciation postings for this asset. If this is left blank, the account entered in Depreciation Calculation (FDC) is used. Profit and Loss The profit and loss account for depreciation postings for this asset. If this is left blank, the account entered in Depreciation Calculation (FDC) is used. 1.5 Advanced Depreciation Account Balance Sheet The balance sheet account for advanced depreciation postings for this asset. If this is left blank, the account entered in Calculate Advanced Depreciation (FAA) is used. Profit and Loss The profit and loss account for advanced depreciation postings for this asset. If this is left blank, the account entered in Calculate Advanced Depreciation (FAA) is used. 1.6 Depreciation Period Start Period The period in which depreciation should commence for the asset. End Period The projected final depreciation period for the asset. You can leave this blank if the life of the asset is determined by the depreciation method. Last Period This displays the last period in which the asset was depreciated either by Depreciation Calculation, or manually using Ledger Entry or Ledger Import. 10
SunSystem 5.4.1/Fixed Asset
Neeka Limited
2. The Analysis Tab Select all relevant analysis codes for the asset.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
3. Value 1 Depreciation All of the asset values displayed on this tab are expressed in the base currency and cannot be updated by the user. The base currency is defined in Business Unit Setup (BUS).
3.1 Asset Balances Base Gross Value: The original value of the asset, including any additions, revaluations, or disposals. Any asset ledger entry with an asset indicator of “initial” or “value” will be calculated into this field. Base Depreciation Value: This is the sum of all transactions with asset indicators of Initial or Value. The value reflects changes made in Ledger Entry, Ledger Import or Asset Disposal. It displays the sum of all depreciation calculated and posted by Depreciation Calculation, and also posted by Ledger Entry and Ledger Import against the asset using a journal type that has its Asset Depreciation Type set to either Standard or Reduction. Base Advanced Value: The total advanced depreciation for the asset (if you use advanced depreciation). 12
SunSystem 5.4.1/Fixed Asset
Neeka Limited
Base Net Value: This field equals the “Base Gross Value” minus the “Base Depreciation Value”. 3.2 Depreciation Settings Base Depreciation Method: Here the user selects one of the depreciation methods according to the user’s company practice. Base Percentage: This is the percentage used to depreciate the asset each period. Note: For the straight line method, if the end period (on the general tab) is specified, you must not give the base percentage because the system can derive the base percentage by dividing the remaining asset value over the remaining life. And vice-versa, if you give the base percentage, you must not give the “end period” on the general tab. Base Final Value: This is final value (scrap value) of the asset in base currency. Base Posting Final Value This is used by the Japanese depreciation method only. It is the posting final value for the asset in base currency. Base Table Code The depreciation table is used if the depreciation method is Table Depreciation. These tables are defined Depreciation Tables Setup (FDT). Base Table Column If the Depreciation Table method, this is the column of the table of rates to be used to depreciate the asset. Base Days for First Period: This option allows you to start depreciating an asset half-way through the first period. Enter the number of days in the first period in the life of the asset. For example, if the period has 30 days, enter 30. Base Active Day: The number of day that the asset was active in the first period in which the asset will be depreciated. Note: Suppose you bought an asset during the mid of period one and do not want the asset to incur full depreciation charge for the first period. Then you must specify the numbers of days in the first period (For Example 30) and enter the number of days remaining until the period ends (for example 15). The depreciation charge for the first period will be multiplied by 15/30. 3.3 Advanced Depreciation Settings This frame is relevant if you use the advanced depreciation method. 3.4 Reduction Settings This frame is relevant if you use the advanced depreciation method. 4. The Value 2 Depreciation Tab 13
SunSystem 5.4.1/Fixed Asset
Neeka Limited
The value 2 tab display the asset values calculated in the transaction currency. This allows the asset value to be maintained and depreciated in a second currency. For example, you might have USD (US Dollars) as base currency, RIEL as transaction currency, and you might want to maintain and calculate depreciation in both currencies. Then you can maintain depreciation in USD using the Value 1 Tab, and maintain depreciation in RIEL using the value 2 Tab. All fields in this Value 2 Tab have the same meaning as in the Value 1 Tab, except that it is expressed in transaction currency.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
5. Value 3 Depreciation
The value 3 tab display the asset values calculated in the second base or reporting currency. This allows the asset value to be maintained and depreciated in another currency. For example, you might have USD (US Dollars) as base currency, EUR (EURO) as the reporting t currency, and you might want to maintain and calculate depreciation in both currencies. Then you can maintain depreciation in USD using the Value 1 Tab, and also maintain depreciation in EUR using the value 3 Tab. All fields in this Value 3 Tab have the same meaning as in the Value 1 Tab, except that it is expressed in reporting currency.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
IV. Asset Note
Click here
To access the Asset Notes Form click on the Asset Notes button on Fixed Asset Records Form.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
The Asset Notes Form appears as below:
Click amend
The Asset Notes Set Up gives you the ability to record extra information about the assets. 1. The General Tab The general tab lets you record general data about the asset. 1.1 Identification This frame lets you record information that may help you in identifying the asset. Serial Number: The Unique code for the asset. Description Fields 1-10: Here you can enter up to 10 descriptions for this particular asset. 17
SunSystem 5.4.1/Fixed Asset
Neeka Limited
Maintenance Frequency If the asset is subject to a maintenance program enter the frequency upon which maintenance is undertaken. Maintenance Description What type of maintenance program is the asset subject to. Location Address Enter the address code where the asset usually resides. The address must exist on the address table. Location – Employee Enter the employee code for the employee who is responsible for this asset. The employee code must exist on the employee table. 2. The Asset Purchase Tab
This tab is to store data relating to the Purchase of the Asset. 3. The Insurance Tab 18
SunSystem 5.4.1/Fixed Asset
Neeka Limited
This tab stores data relating to the insurance of the asset.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
4. The Disposal Tab
Enter and maintain data relating to the disposal of the asset.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
5. The Asset Finance
This tab is for storing data relating to any finance contract that was taken out to acquire this asset.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
6. The User Details Tab
Here you can store up to 10 user defined dates, values, currencies and periods.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
V. Asset Posting Preset Asset posting preset allows you to divide or allocate depreciation cost of a particular asset to different departments. For example, if the Admin and Sale Department share a car on a 40-60 basis, than depreciation cost can be allocated 40% to the Admin department and 60% to the Sale Department.
To access the Asset Posting Preset From click on Asset Posting Preset on the Fixed Asset Record Form.
Click here
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
The Asset Posting Presets form appears as below
Asset Subcode: A code used to identify and allocate cost for a department. Description: Here provide a relevant descript of the asset. Factor: The factor that is used to allocate depreciation cost. Lookup: Provide a Lookup code for the asset. Department/Division: This is the Department/Division that the depreciation cost should be allocated to.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
For example, let say the Finance (44) and Admin Department (43) share a car on a 60-40 basis. Here is what the Asset Posting Presets form may have looked like.
Notice that the amount of the factors in all lines should sum up to 1.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
VI. Recording the Initial (Gross) Value
After you have keyed in data about a fixed asset in Fixed Asset Record Register Form (FAS), you will need to update its initial value by entering the proper ledger entry. For example, we will create a record for a Toyota Camry Car with the following details in FAS: + Asset Code: HO-CAR40 + Start Period for depreciation: 02/09 + Depreciation Method: Straight Line + Annual Deprecation Rate: 6% + Final Value (scrap value): 1000 USD 1. The FAS screen should appear as follow.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
Note that there is no value yet in the Asset Balances frame. 2. Now we will update the initial (gross) value of the asset in the ledger entry Enter Ledger Entry (LEN) and choose Journal type Fixed Asset
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
1. LEN
2. Click here
3. Choose Fixed Asset
The Ledger Entry Form for Fixed Asset appears as below:
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
Let say we bought the car at the cost of 10,000 USD from our supplier. We’ll have to make the following journal entry: Debit Credit ----------------------------------------------------------------------------------------------------------------Vehicle 10,000 USD Supplier 10,000 USD
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
On the Asset Details tab: Asset Code: Select the Asset Code of the fixed asset. Asset Indicator: Set the Asset Indicator to Initial. Marking the asset indicator as initial means that this is the first cost of acquiring the asset which in our case is the cost of purchasing the car. Other asset indicators are as follow: + Asset Value: To indicate that this posting reflects additional cost that might incur in the process of acquiring and putting to use the asset and therefore must be added into the cost of the asset. + Depreciation: to identify that this posting is to be added to the accumulated depreciation value of the asset. This is assumed that depreciation is being entered manually and that Depreciation Calculation (FDC) is not being used. + Unused: To identify that no asset record should be updated for this line of the journal.
Click here to go to the 2nd journal line
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
The supplier is credited by 10,000 USD for the cost of the car.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
Note that for journal line 2 we do not specify the asset code or the asset indicator because no asset record is being updated for this particular journal line.
Click here to post the journal
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
Notice that in our Fixed Asset Records the Asset Balances has been update to reflect the cost of acquiring the car (initial value).
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
VII. Depreciating the Asset (FDC) You can automatically run depreciation cost using Fixed Asset Depreciation Calculation (FDC). To be able to use Fixed Asset Depreciation Calculation (FDC), the following criteria must be satisfied: + A Base Depreciation Method must be selected other than “Manual” or “No Depreciation”. If you choose “Manual” you must do and post depreciation cost manually in the ledger entry. If you choose “No Depreciation”, than depreciation cost will not be updated for the asset. This might be the case for assets such as land where there is no depreciation cost.
+ The asset status must be set to “active” and not be in “suspended/held” or “ready for disposal” mode.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
To access the Fixed Asset Depreciation Calculation form type FDC in the SunSystems Function bar.
FDC
The Fixed Asset Depreciation Calculation form appears as below.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
Note: For asset class is use to classify by group of asset code. The steps to calculate depreciation is outlined as below: 1. In the Asset Code fields, if you want to calculate depreciation for just one fixed asset enter the asset code in only the first field. If you want to calculate depreciation for a range of asset, you must enter asset code in both fields. 2. In Analysis Dimension, if you select a dimension, only assets with these analysis codes linked to them will be included in the depreciation run. Otherwise, leave this field as “unused� to select all assets, regardless of the analysis dimensions. 3. In Analysis Code, if you select an analysis dimension, you specify the analysis code here. For example, if you select Analysis Dimension 1 which corresponds to department/div then you must enter the analysis code of the various departments. See the picture below for clarification.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
4. Depreciation Period: Enter the depreciation period to calculate depreciation for. The system will run depreciation calculation between the last period for depreciation and the period selected here. For example, if the last period of deprecation is 12/08 and the selected period is 02/09, FDC will run depreciation from 01/09 until 02/09. 5. Post Transactions: If you wish to report on the depreciation calculations without posting them, select No. Select Yes to calculate and post the depreciation. 6. Posting Period: Select Single to post all of the calculated depreciation to the period specified in the Depreciation Period field. Select Historic to post the calculated depreciation to the period to which it relates. 7: Suppress Transactions: Select Yes if you only want to print the asset transactions generated during this run. Select No if all of the asset transactions are to be printed, including any previous depreciation, asset and disposal transactions. Balance Sheet and Profit and Loss: If you haven’t specified the depreciation accounts in the Fixed Asset Record (see screen below), then the system will the depreciation accounts here. 37
SunSystem 5.4.1/Fixed Asset
Neeka Limited
Normally, depreciation is posted to the balance sheet account on the fixed asset record in Fixed Asset Records. If this account is blank in Fixed Asset Records, then the account entered in this field is used. 8. Click Print to run depreciation. Note that in the example below “Post Transaction” is set to “No”. Some user might prefer this because they might want to view the report first before posting to the ledger. Click Print then ‘OK’
Click print
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
The report appears as below.
Depreciation for period 05/12 = 45 USD
If we are satisfied with the report, we can run the Fixed Asset Depreciation Calculation (FDC) again but with “Post Transaction” is set to “Post Provisional” or “Yes” to post the entry into the ledger.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
Journal Number 789
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
To check the posting we can go to Journal Inquiry (JNQ) for Journal Number 789
789
Note that the proper journal entry has been created.
Furthermore, if we go to the Fixed Asset Register (FAS) we can see that the accumulated depreciation for the asset has been updated to reflect the transaction post from the Fixed Asset Depreciation Calculation (FDC).
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
The depreciation value of 45 USD is calculated s follows: 1. Asset Cost or Base Value= 10,000 2. Depreciation Method = Straight Line 3. Depreciation Rate = 6% 4. Depreciation Period 05/2012 to 05/2012 = 1 period 5. Total period for depreciation in a year = 12 5. Final value = 1,000 6. Calculation: Annual depreciation = (Base Value – Final Value) * Depreciation Rate = (10,000 – 1,000) * 6% = 540 Depreciation for 1 period (05/2012) = 540 /12 = 45
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
VIII. Asset Disposal Asset Disposal (FAD) can automate the procedures for disposing of a selected asset or group of assets. It generates the relevant disposal postings, and reports the postings. There are three stages involved in the disposal of an asset:
1. If you are selling the asset, you should use Ledger Entry (LEN) to manually post any sales proceeds for the asset. In the example below, a journal is created for the sale of the car at 7000 USD.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
2. You must identify the asset to be disposed of by setting the asset status to Ready for Disposal. You can do this manually using Fixed Asset Set up (FAS).
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
You can also mark an asset for disposal using the Asset Disposal Selection Form (FAE).
Click process to mark the select asset for disposal
3. You must then use Asset Disposal (FAD) to dispose of the assets by generating transactions that reduce the asset values to zero. You can use Asset Disposal to: • Report on assets selected for disposal. • Reverse transactions on an asset record so that the asset's net value is zero.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
The Asset Disposal Form appears as below.
1. Asset Code From/To: The asset code, or range of assets codes, to be disposed of providing the asset status is set to Ready for Disposal. 2. Analysis Dimension: You can select assets for disposal according to their analysis dimensions. Leave it blank to select all dimensions. 3. Analysis Code From/To: These fields restrict your choice to selected analysis codes within the asset analysis dimension you have selected. Leave these blank to select all codes. 46
SunSystem 5.4.1/Fixed Asset
Neeka Limited
4. Disposal Period From/To: The period, or range of periods, for which you want to dispose the assets. 5. Profit and Loss Disposal Account: The profit and loss account to which the disposal transactions are posted. 6. Post Transactions: Select No to report on the disposal transactions but not post them. Select Yes to post the transactions. You might want to select “No� if you want to just preview the transaction first. 7. Remove Asset Details: This field is displayed only if you selected to post the disposal transactions. Options available are: No: select this if the asset details are not to be removed Remove Transactions: select this to remove transaction details for the disposed asset from the Fixed Assets Register. They are still accessible in Financials for account inquiries and reports. Remove Transactions and Assets: select this to remove transaction and asset details from the Fixed Assets Register. 8. Disposal Suspense Account: The account to be used if any of the transactions generated by disposal have memo type accounts. If we look at the report we see that a number of reversal entries have been made to reverse to value of the disposed asset to zero.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
In Fixed Asset Records, note that the Disposal status has been set to “Disposed� and the disposal period is updated.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
IX. Asset Inquiry Asset Inquiry allows you to see transaction made against a fixed asset or a group of fixed asset. You can refine and filter the result by Asset Code, Accounting Period, Transaction Date, Asset Sub Code, Journal Type, Journal Source, Account Type, Journal Class Code, and Second Reference.
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SunSystem 5.4.1/Fixed Asset
Neeka Limited
Here is the Asset Inquiry for the Asset Code FF0001 that was disposed in the previous example. Note: A number of transaction lines have been made to reverse the asset value to zero.
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