Blackbaud FundWare Fixed Assets Guide

Transcription

1 Blackbaud FundWare Fixed Assets Guide VERSION 7.50, JULY 2008

2 Blackbaud FundWare Fixed Assets Guide USER GUIDE HISTORY Date Changes October 1998 May 2004 December 2004 November 2005 July 2008 Version 5.8 First version of guide. Version 7.30 Guide updated for style and new interface. Version 7.31 The guide has been edited to reflect new company information. Version 7.40 The Fixed Assets module was rewritten for graphical user interface. The guide has been modified to reflect the changes in interface and functionality. Version 7.50 This guide has been updated with minor corrections and new company information. Copyright 2008, Blackbaud FundWare, Inc. All rights reserved. The Blackbaud FundWare logos, among others, are registered trademarks and/or registered service marks of Blackbaud Fundware, Inc. in the United States and other countries. Other parties trademarks or service marks are the property of their respective owners and should be treated as such. ii

3 TAB L E OF CONTENTS Chapter 1 Introduction Fixed Assets and GASB The Fixed Assets HomePage Activity Reminders Printing Reminders Deleting Reminders Reports Area Some FundWare Basics Opening FundWare Changing Your Password During Login Opening FundWare Multiple Times Opening Additional Instances From the Desktop/Start Menu Opening Additional Instances From the Program Changing the Business Date Changing Your Password From the Software Using the Menu Bar Keyboard Navigation Is Your Menu Bar Too Crowded? How Your Security Rights Impact the Menu Bar Using the Navigator Bar Module Navigator Open Windows Navigator How Your Security Rights Impact the Navigator Bar Customizing Your Display Hiding and Displaying Columns Re-Ordering the Columns Resizing the Columns Sorting the Entries in a Form Help Training and Consulting Services Using This Document Conventions Blackbaud, Inc. iii

4 Blackbaud FundWare Fixed Assets Guide Getting Support Chapter 2 Understanding Fixed Assets What Is the Fixed Assets Parameter? What Are Reporting Types? Cost Transactions Depreciation Transactions Disposal Transactions Reporting Type Example What Are Classes and Cost Centers? Class and Cost Center Examples Example Example Example Example Accounting Created by Posting Accounts What Are Asset Data Items? Data Item Type Auto Add Multi-Occurring Data Items Data Item Example Data Item Example Data Item Example Data Item Example Data Item Example System-Defined Data Items What Are Assets? Example Asset Plane What Is Cost? What Is Depreciation? What Is the Estimated Life? What Is the Salvage Value? Fixed Assets Flow Masking Accounts Chapter 3 Defining the Elements of Fixed Assets Defining the Fixed Assets Parameter iv

5 Table of Contents Editing the Fixed Assets Parameter Removing the Fixed Assets Parameter Defining Reporting Types Editing Reporting Types Deleting Reporting Types Working With Classes and Cost Centers Defining Classes Editing Classes Deleting Classes Defining Cost Centers Editing Costs Centers Deleting Cost Centers Defining Asset Data Items Editing Asset Data Items Deleting Asset Data Items Viewing the System-Defined Data Items Importing Fixed Assets Data Chapter 4 Entering Asset Transactions Using the Asset Summary Acquiring Assets Working Within a Batch Modifying Assets Posting Modifications to General Ledger Adjusting Asset Values Adjusting Your Asset Values Tips for Adjusting Your Asset Cost Values Recording Depreciation Recording Asset Depreciation What Business Date Should You Use? Disposing Assets Posting Disposal Information to General Ledger Purging Disposed Assets Purging Disposed Assets Chapter 5 Producing Fixed Assets Reports Producing Asset Reports Blackbaud, Inc. v

6 Blackbaud FundWare Fixed Assets Guide Tips for Using the Asset Selector Producing the Master Asset Lists Producing the User-Defined Reports List Producing User-Defined Reports Tips for Using the Asset Selector Creating User-Defined Reports Designing Your Report Using Non-Printing Columns Column Widths Defining a New User-Defined Report Defining a New User-Defined Report General Tab Defining a New User-Defined Report Columns Tab Grouping Your Reports Hiding Columns Calculating Columns Editing User-Defined Reports Copying User-Defined Reports Deleting User-Defined Reports Appendix A Depreciation Methods Straight Line Depreciation Example Straight Line Depreciation Double Declining Balance Depreciation Example Double Declining Balance Depreciation Adjustments MACRS Depreciation Methods Tax Year-End Amount to Depreciate Partial-Year Depreciation Calculation Changing Methods Appendix B Troubleshooting Glossary Index vi

7 C H A P T E R 1 INTRODUCTION Fixed Assets (FA) is the asset management and control module in the Blackbaud FundWare system of accounting applications. FA allows you to track an asset through its full life-cycle acquisition, depreciation, and disposal. With Fixed Assets, you can either post asset transactions to General Ledger Project/Grant (GL P/G) or use FA without posting transactions to GL P/G. Accounting for assets and depreciation in the not-for-profit environment presents numerous reporting possibilities. Some organizations record and report depreciation, some do not. Some organizations need to record and report asset cost, replacement cost, or other values associated with their assets. Many organizations need to have an asset database from which they can produce asset reports, yet make no entries to GL P/G. Many state or local governmental entities should now report their assets and depreciation under GASB 34 (Governmental Accounting Standards Board Statement 34). Fixed Assets can help you meet the specific needs of your organization. FIXED ASSETS AND GASB 34 To comply with GASB 34 reporting requirements, state or local governmental entities (i.e., not federal governmental entities) must store the following information for each capital asset (e.g., land, buildings, equipment, machinery): Original value at acquisition, Acquisition date, Asset life, Depreciation amount, Blackbaud, Inc. 1

8 Blackbaud FundWare Fixed Assets Guide Depreciation method. At least once each year, you must calculate the depreciation on your assets. When you produce the Statement of Activities report, you can then include the asset depreciation. THE FIXED ASSETS HOMEPAGE The Fixed Assets HomePage helps you keep an eye on your account balances and upcoming activities and provides you with direct access to produce your reports. The following areas make up the GL HomePage: Activity Reminders area, and Reports area. ACTIVITY REMINDERS The Activity Reminders area allows you to enter a text note and a due date (optional) for module tasks (Figure 1.1). When you open the HomePage, any tasks with due dates earlier than the system date of your computer (i.e., overdue ) will display as red. Figure 1.1 Activity Reminders Area Use the following instructions to use the Activity Reminders area. 2 The Fixed Assets HomePage

9 Chapter 1 Introduction 1. On the Fixed Assets HomePage, enter up to 100 alphanumeric characters in the Activity field (Figure 1.2). Figure 1.2 Example Activity Reminder Depreciate Assets 2. If this task has a due date, enter the date in the Due Date field. Click the dropdown arrow to access the calendar. This field is optional. If you do not have any text associated with a due date, the due date will not be saved when you exit the HomePage. Your entries are saved when you close the HomePage or FundWare. You can edit the text or date information at any time. PRINTING REMINDERS Click Print to print the information in the Activity Reminders area. The report output will reflect the current sorting and displays in a preview window, from which you can print the information. DELETING REMINDERS Use the following instructions to delete a reminder. 1. Highlight the row. 2. Click Delete. The reminder is removed from your display. Blackbaud, Inc. 3

10 Blackbaud FundWare Fixed Assets Guide REPORTS AREA The same categories that you see in Report Manager for the module will also display in the Reports Area of the HomePage (Figure 1.3). Each category can expand and collapse to show or hide the reports contained within. A single click of a report title will display the report parameters screen. Once you enter the details of the report and click OK, your report is produced. Figure 1.3 Reports Area of the Fixed Assets HomePage SOME FUNDWARE BASICS The following sections provide you information and instructions for opening and working in FundWare. OPENING FUNDWARE As you begin using FundWare, certain information is saved by the program and offered as a default. This has been designed to help you save time and steps, but you can change these defaults at any time by entering new information or selecting from the available options (depending on the field). User name The program will enter the user name (or user number) of the last person to log into FundWare on that computer. For security reasons, your password is not automatically entered. You must always enter your FundWare password. Business date Defaults to the current system date (according to your computer s operating system). Division The program automatically selects the division you were working in the last time you were in FundWare. 4 Some FundWare Basics

11 Chapter 1 Introduction If you have only one division (or have security rights to only one division) and do not have security rights to the System Administration area, the program will bypass the division selection window. Or, if you only have security rights to the System Administration area, the program will bypass the division selection window and open directly to the System Administration HomePage. HomePage The program automatically opens to the HomePage of the module in which you were working the last time you were in FundWare. Use the following instructions to open and log into FundWare. 1. Double-click the FundWare icon on your desktop or select Blackbaud FundWare Enterprise or Professional from your Windows Start menu. The Login window displays. Figure 1.4 FundWare Login Window 2. Enter your user name in the User Name text box. You can enter your user number instead of your user name, if preferred. The User Name field will default to the last entry on this computer and the system will move to the Password field. 3. Enter your password in the Password text box. Your password entries will display as asterisks (*) as you type to maintain the privacy of your password. Blackbaud, Inc. 5

12 Blackbaud FundWare Fixed Assets Guide 4. Accept the default business date or enter a new date. You can manually enter the date (moving from day to month to year using the arrow key or mouse) or you can click the down-arrow to select a date from the calendar. Figure 1.5 Selecting the Date 5. Click OK. If your User Name, Password, and Business Date are verified, the Select Division window displays, defaulting to the division you were working with the last time you were in FundWare. Figure 1.6 Selecting the Division If your organization uses the password aging feature, you may receive a message indicating that your password will or has expired. You will be offered the chance to enter a new password at this time. See Changing Your Password During Login on page 7. If you have only one division (or have security rights to only one division) and do not have security rights to System Administration, the program will bypass the Select Division window. Or, if you only have 6 Some FundWare Basics

13 Chapter 1 Introduction security rights to System Administration, the program will bypass the division selection window and open directly to the System Administration HomePage. 6. If necessary, select a different division (or System Administration) from the list. 7. Click OK. FundWare opens to the HomePage of the module that you last accessed. For users upgrading from earlier versions of FundWare, please note that you can only have one division open at a time in each instance of FundWare (a change in functionality). However, you can open the program multiple times for the same or different divisions and/or business dates. CHANGING YOUR PASSWORD DURING LOGIN If your organization uses the password aging feature (defined through System Administration), you may receive a message indicating that your password will or has expired. Figure 1.7 Password Expiring Use the following instructions to change the password at this time. Blackbaud, Inc. 7

14 Blackbaud FundWare Fixed Assets Guide 1. Click Yes to the password expiration message. The Change Password window displays. Figure 1.8 Changing Your Password During Login 2. Enter your password in the Old Password text box. 3. Enter the new password in the New Password text box. 4. Retype your password in the Confirm New Password text box. 5. Click OK. Your password is changed. The next time you log into FundWare, you must use the new password or you will receive an error message. You can also change your password from within the software. See Changing Your Password From the Software on page 11. OPENING FUNDWARE MULTIPLE TIMES Each instance of FundWare (i.e., each time you open the program) represents a single division on a single business date. However, you can open as many instances of FundWare as necessary to meet your needs. When dealing with multiple instances of FundWare, keep the following rules in mind: Each instance of FundWare represents a single user, division, and business date, or represents access to the System Administration features by a single user. You can open as many instances of FundWare as necessary (i.e., for different users, business dates, or divisions). 8 Some FundWare Basics

15 Chapter 1 Introduction You can still change the business date for the current instance of FundWare without opening a new instance. See Changing the Business Date on page 10 for more information. OPENING ADDITIONAL INSTANCES FROM THE DESKTOP/START MENU If you have one or more instances of FundWare open already, you can open additional instances of the program from your desktop or the Windows Start menu. You will be asked to identify the user, password, business date, and division (the same steps as opening the first instance of FundWare). OPENING ADDITIONAL INSTANCES FROM THE PROGRAM You can also open a new division or a new instance of the same division from within FundWare. Because you are opening this division from the program, the system applies the same user and password to the new instance and allows you to select a new division or business date. If you want to open a new instance of FundWare for a new division or a new business date, you can open the program from the desktop or Windows Start menu or from the Change Business Date task. For instructions on changing the business date, or opening a second instance of the program with a different business date, see Changing the Business Date on page 10. Use the following instructions to open a new instance of FundWare for the current user and business date. 1. Select File > Open FundWare from the menu bar. The Open New Instance window displays, automatically selecting the division you were working with the last time you were in FundWare. Figure 1.9 Opening a New Instance of FundWare 2. If necessary, select a different division (or System Administration) from the list. Blackbaud, Inc. 9

16 Blackbaud FundWare Fixed Assets Guide 3. Accept the default business date or enter a new date. You can manually enter the date (moving from day to month to year using the arrow key or mouse) or you can click the down-arrow to select a date from the calendar. 4. Click OK. FundWare opens to the HomePage of the module that you last accessed. CHANGING THE BUSINESS DATE You can change the business date for your current instance of FundWare or open a new instance of the same division with a different business date using the Change Business Date task. When you choose to open a new instance of the same division, the system applies the same user and password to the new instance and takes you directly to the HomePage for the module in which you were last working in that division. 1. Select Edit > Change Business Date from the menu bar. The Change Business Date window displays. Figure 1.10 Changing the Business Date 1 Accept the default business date or enter a new date. You can manually enter the date (moving from day to month to year using the arrow key or mouse) or you can click the down-arrow to select a date from the calendar. 2 Select the applicable option for applying the new business date: Current Instance of FundWare Changes the business date for the current instance of FundWare. This option does not apply any changes to other instances of FundWare and does not open a new instance of the program. The Classic windows will not accept a changed business date. If you have any of the Classic screens open when you attempt to change the business date for the current instance of FundWare, the system will return a message and not allow you to proceed. Close the Classic windows and try again. 10 Some FundWare Basics

17 Chapter 1 Introduction New Instance of FundWare Opens a new instance of FundWare to the HomePage for the module in which you were last working, applying the same user, password, and division but using the new business date. 1. Click OK. The program applies your selection. CHANGING YOUR PASSWORD FROM THE SOFTWARE Use the following instructions to change the password for the current user. 1. Select Edit > Password from the menu bar. The Change Password window displays. Figure 1.11 Changing the Current User s Password 2. Enter your password in the Old Password text box. 3. Enter the new password in the New Password text box. 4. Retype your password in the Confirm New Password text box. 5. Click OK. Your password is changed. The next time you log into FundWare, you must use the new password or you will receive an error message. If your organization uses the password aging feature (defined through System Administration) and your password is nearing or has passed the expiration date, you can also change your password during the login process. See Changing Your Password During Login on page 7. Blackbaud, Inc. 11

18 Blackbaud FundWare Fixed Assets Guide USING THE MENU BAR Each module for which your organization is licensed and to which you have security rights displays in the menu bar. From these menu options, you can access all modulespecific tasks (e.g., General Ledger > Journal Entries > New). In addition, you will use the menu bar to access specific program tasks (e.g., changing the business date): File Open divisions; access Print Manager, Report Manager, or Financial Institutions. Edit Change the business date or your password. View View or close Navigator bar; view full or abbreviated menu names; view logged in users. Window See all currently open windows, switch between these windows. Help Access online help for the current module and program information. KEYBOARD NAVIGATION To help you navigate quickly through the program, FundWare allows you to use your keyboard instead of your mouse to access program tasks. Menu bar You can access any task listed on the menus using a combination of the ALT key and a letter and the arrow keys. Press the ALT key. Press the underlined letter of the item to display the menu. The menu displays. Use the arrow key and press ENTER to select a task. Shortcut menus Access any applicable shortcut menus (normally displayed when you right-click your mouse) from the keyboard by pressing either SHIFT+F10 or the Application key (offered on many newer keyboards, located between the WINDOWS key and the CTRL key, to the right of the spacebar). Shortcut keys Shortcut keys combine the CTRL key with a letter to give you direct access to certain tasks. These shortcuts are listed on the menus with the applicable tasks. Drop-down lists You can access any drop-down list when focus is on the associated field by using a combination of the ALT key and the down arrow key. 12 Some FundWare Basics

19 Chapter 1 Introduction IS YOUR MENU BAR TOO CROWDED? If your organization is licensed for a number of FundWare modules, your menu bar may be too wide to use conveniently. You can change the module names that are listed in the menu bar to display as acronyms, which will decrease the width of the bar: Select View > Abbreviated Menu Names from the menu bar. To change back, select View > Full Menu Names from the menu bar. HOW YOUR SECURITY RIGHTS IMPACT THE MENU BAR Your individual security rights may impact the modules and tasks that you see on the menu bar. If your organization is licensed for a module, but your individual security settings do not allow you to access any tasks in that module, the module will not be listed in the menu bar. If your security settings allow you to access some, but not all, tasks in a module, the restricted tasks will not be listed in the menu bar. USING THE NAVIGATOR BAR The Navigator bar provides you with quick, mouse-driven access to your modules, module tasks, and currently open windows through two areas: Module navigator, and Open windows navigator. You can resize the Navigator bar to meet the needs of your display by using your mouse to click on the right frame of the bar and drag the frame to the position you want. You can also hide or show the Navigator bar using the options on the View menu. Select the option to hide or show the bar, as applicable. These settings will be retained by the system when you close FundWare. MODULE NAVIGATOR The module navigator lists the modules for which your organization is licensed (unless your individual security settings do not allow you to access a module). When you click a module (it just takes a single click), the module expands to display all of the associated module tasks. Blackbaud, Inc. 13

20 Blackbaud FundWare Fixed Assets Guide Accessing any of the tasks within the module takes another single click on the specific item. Some tasks are nested below a title. A single click will expand the title, displaying the related tasks below. Figure 1.12 Module Navigator Expanded Menus If your security settings restrict your access to specific tasks, those tasks will not be listed in the menu bar. 14 Some FundWare Basics

21 Chapter 1 Introduction OPEN WINDOWS NAVIGATOR The open windows navigator lists the windows that are currently open in this instance of FundWare, highlighting the window currently displayed. A single click of an entry in the open windows navigator redisplays the window in your workspace. Figure 1.13 Open Windows Navigator As with all Windows applications, the more FundWare windows that you open concurrently, the greater impact to your processor speed. You can use the Open Windows Navigator to monitor how many windows you have open at any one time. HOW YOUR SECURITY RIGHTS IMPACT THE NAVIGATOR BAR There is no security impact to the open windows navigator. If your security rights allowed you to open a task, then that window will display in the open windows navigator. However, your individual security rights may impact the modules and tasks that you see on the module navigator. If your organization is licensed for a module, but your individual security settings do not allow you to access any tasks in that module, the module will not be listed in the module navigator. Any tasks within a module from which you are restricted will not be listed in the menu bar. CUSTOMIZING YOUR DISPLAY Throughout FundWare, you will encounter forms (similar to a table or spreadsheet) that allow you to customize the display through the shortcut menu (accessed by rightclicking your mouse) or through direct manipulation with your mouse. Most of these settings are retained with your user name. Therefore, the forms display according to your settings wherever you log in to FundWare. (In other words, the program remembers how the form displayed when you closed FundWare. This is how it will display the next time you open the program.) Blackbaud, Inc. 15

22 Blackbaud FundWare Fixed Assets Guide Not all forms provide these options. If you attempt one of the customization options described here and are unsuccessful, it is likely that the option is not offered on that form. HIDING AND DISPLAYING COLUMNS To add or remove a column from a form, hover your mouse over the pane and rightclick. A shortcut menu displays, which allows you to hide or display columns from the form. In this example, the Account column is disabled because this column must always display. The remaining columns are currently displayed in the New Journal Entry form. Figure 1.14 Example Shortcut Menu for the GL New Journal Entry Form The columns currently displayed in the form are indicated with a check mark. Select a column from the shortcut menu to add or remove that column to the detail pane. If you have disabled fields through the module setup (e.g., the Accounts Payable parameter or stage settings), the associated column will not be listed on the shortcut menu. RE-ORDERING THE COLUMNS To re-order the columns in a form, drag and drop the column by clicking the column heading and moving the column to the desired position (holding the mouse button down). 16 Some FundWare Basics

23 Chapter 1 Introduction RESIZING THE COLUMNS To resize a column, hover your mouse over the column border until the icon changes. Figure 1.15 Mouse Icon Click your mouse button and drag the column border until it is the desired width. SORTING THE ENTRIES IN A FORM To resort the entries in a form, click the heading of the column on which you want the sort based. To reverse the sort order, click the column heading again. Figure 1.16 Sorting the Detail Pane Original display. Entries resorted based on Obligation number. Entry order reversed. Sort order is not retained when you close FundWare. HELP If you encounter questions or problems while you are working in the program, you can access the online help from the Help menu (on the menu bar) or by clicking F1 to access the online help for the current module. Blackbaud, Inc. 17

24 Blackbaud FundWare Fixed Assets Guide You can also access PDF files (portable document format) of the guides from your server: FundWare\Data\User Documentation You must have Adobe Acrobat Reader installed to view the files. This program is available from the FundWare CD or as a free download from TRAINING AND CONSULTING SERVICES Blackbaud, Inc. offers a number of options to help you improve your use of FundWare. Regional classes Training classes held several times per month in various cities across the nation. These one- to five-day classes provide a hands-on learning environment and low student-to-instructor ratio. eclasses Interactive training classes offered over the Internet provide you and your staff the opportunity to receive training from FundWare experts without leaving your desk. Onsite custom training sessions and consulting Our training/consulting group offers you onsite services, including: Training your staff using your data. Installing/upgrading and configuring the software to meet the specific needs of your organization. For more information about any of our training or consulting services, please explore our Web site ( or contact our Client Sales department ( ). USING THIS DOCUMENT This manual is organized to reflect the most common uses of the module. It provides you with overview information of FundWare, followed by specific features and functions of the module. 18 Some FundWare Basics

25 Chapter 1 Introduction CONVENTIONS Use Table 1.1 as a reference for conventions used in this document. Indicator ENTER demo user Click OK Table 1.1 Icon Conventions Description A caution or warning that must be heeded. Information contained in a warning should be carefully reviewed to avoid adverse affect on software operation. An example, used to clarify an issue. Keyboard directions are indicated in small capital letters (e.g., Press ENTER). Specific text entries are indicated with italics (e.g., Type demo user for User Name). An item on the screen that requires user interface is indicated in bold. GETTING SUPPORT The following table provides a quick reference for getting the support you need for FundWare modules. Table 1.2 Getting Support Department Contact Description Business Office Technical Support Obtain general information or contact a staff member Get help resolving technical issues with the FWSupport@Kintera.com product. Please have the following information ready when you call: FundWare license number FundWare version number Error message details Knowledgebase support.asp A searchable database where you can type your questions and get a list of possible answers. Requires your license number and web password. Blackbaud, Inc. 19

26 Blackbaud FundWare Fixed Assets Guide Training Ask for the Client Sales department. Products_Services/Training/train.asp Replacement Software Product Management User Education World Wide Web or , Ask for the Client Sales department Table 1.2 Getting Support (Continued) Department Contact Description Contact us for more information on our training options: Regionals Classes from 1 to 5 days in length; held in cities around the country. eclasses Two- to three-hour classes offered over the Internet. Onsite custom training and consulting Our consulting staff can implement FundWare and/or train your employees using your organization s data. Order replacement software. Contact our Product Management department with any suggestions for improving FundWare. Contact our User Education department with suggestions for improving our user guides or online help. Get the latest product and company information, download software and documentation updates, or send . Blackbaud, Inc S. Fiddler s Green Circle, Suite 200 Greenwood Village, CO Some FundWare Basics

27 C H A P T E R 2 UNDERSTANDING FIXED ASSETS With Fixed Assets, you have the power to define how assets are reported for your organization. The system is a very flexible system and is comprised of the following elements: Fixed Assets parameter Controls the overall operation of the module. Reporting types Define the posting of asset transactions to GL P/G. An asset can have one or more reporting types. Classes Define the accounts used in posting to GL P/G, provide additional asset categorization, and can be used as a selection criteria on reports. An asset can be assigned to only one class. Cost centers Define the accounts used in posting to GL P/G, provide additional asset categorization, and can be used as a selection criteria on reports. An asset can be assigned to only one cost center. Asset data items Pieces of information that make up the asset record. Asset data items can be system-defined or user-defined to meet the specific reporting needs of your organization. An asset can have an unlimited number of data items. The assets themselves. Understanding how these pieces work together to build accounting entries is essential to understanding Fixed Assets and using it efficiently. WHAT IS THE FIXED ASSETS PARAMETER? The Fixed Assets parameter defines what fields are available on the asset record at certain points in the process. In addition, you can determine what, if any, of your asset information is posted to GL P/G or if it is solely maintained in the Fixed Assets database. You must define the parameter before you can attempt any other Fixed Assets task. Blackbaud, Inc. 21

28 Blackbaud FundWare Fixed Assets Guide WHAT ARE REPORTING TYPES? At the highest level, you determine if you are posting any asset information to General Ledger through the Fixed Assets parameter. However, your reporting types will determine how, or if, you will record depreciation for the asset and exactly which Fixed Assets transactions are posted to GL P/G (if the Fixed Assets parameter allows posting). Within each reporting type definition, you can use the ledger options to define how Fixed Assets will post each type of transaction (Table 2.1). Table 2.1 Transaction Types and Posting Options Transaction Types Cost Depreciation Disposal Posting Options Transactions are not posted to the financial reporting system (i.e., General Ledger Project/Grant). Transactions are posted to GL P/G, all entries in detail. Transactions are posted to GL P/G, cash entries compressed and asset entries in detail. Transactions are posted to GL P/G, cash entries in detail and asset entries compressed. Transactions are posted to GL P/G, both cash and asset entries compressed. You will probably assign at least one reporting type to each asset. However, you should be aware that if you assign two (or more) reporting types that each post the same information to General Ledger (e.g., both reporting types post cost), the system will post a transaction multiple times. This could cause your General Ledger to balance incorrectly. Once a reporting type is assigned to an asset definition, you must enter specific information about the asset, including: Cost date, Cost amount, Depreciation method, Life of the asset (in months or years), and Salvage value. If your organization uses one primary reporting type for most of your assets, you may choose to auto add the reporting type. This saves you a step as you enter new acquisitions. 22 What Are Reporting Types?

29 Chapter 2 Understanding Fixed Assets COST TRANSACTIONS FundWare creates a cost transaction whenever you: Define a new asset record, or Modify an existing transaction in a way that impacts the assets cost (e.g., remodeling a building usually increases its cost, or value). When you post a cost transaction (including acquisition date and cost) to the accounts defined by the class and cost center assigned to the asset, the system: Debits the asset account, and Credits the cash account. Under special circumstances, you may enter depreciation at the time of asset acquisition. For example, if you have assets which have depreciation, but neither the asset nor the journal entries have been entered, you can enter the cost and depreciation to date when you acquire the asset. DEPRECIATION TRANSACTIONS When you depreciate an asset, the system allocates a portion of the cost of the asset to the accounting periods that benefited from its use. If your organization recognizes the depreciation of an asset, the system posts the transaction (including the depreciation date and amount) to the accounts defined by the class and cost center assigned to the asset. The system: Debits the Depreciation Expense account, and Credits the Accumulated Depreciation account. DISPOSAL TRANSACTIONS When you dispose of (or retire) an asset, the system: 1. Calculates and posts depreciation from the last depreciation date to the sale date to the accounts defined by the class and cost center assigned to the asset. An asset last depreciated in December and sold in June of the next year requires six months of depreciation 2. Posts the disposal transaction (including the disposal date and sale amount, if any) to the accounts defined by the class and cost center assigned to the asset. The system: Blackbaud, Inc. 23

30 Blackbaud FundWare Fixed Assets Guide Debits the Depreciation Expense account, Credits the Accumulated Depreciation account with the current depreciation amount (i.e., calculated since the last depreciation), Debits the Cash account, Credits the Asset account, Finally, the system posts any gains or losses as follows: Debits the Accumulated Depreciation account, and Credits the Disposal account. REPORTING TYPE EXAMPLE A small municipality posts depreciation transactions only on assets in the Water Department, and posts cost and disposal transactions for all other assets. They create two reporting types since the posted transactions are not the same for all assets: Reporting type 10: Depreciation Post cost Post depreciation Post disposal Reporting type 20: General Post cost Do not post depreciation Post disposal Depending on the need to recognize depreciation, the municipality assigns one of the reporting types to each asset. Asset No. 145 Vehicle Cost: $10,500 01/01/2005 Life: 5 yrs Depr: $2,100 01/01/2006 Reporting type 10: Depreciation Asset No. 170 Computer Cost: $4,500 01/01/2005 Life: 3 yrs Depr: $0 00/00/0000 Reporting type 20: General 24 What Are Reporting Types?

31 Chapter 2 Understanding Fixed Assets When the municipality completes the depreciation task, the system will post transaction information for only those assets with a reporting type defined to post depreciation to General Ledger. Since cost and disposal transactions are posted to General Ledger in both reporting types, the customer should only assign one reporting type. If an asset is assigned to both reporting types, a double posting of cost would occur in General Ledger. WHAT ARE CLASSES AND COST CENTERS? The class and cost center masks work together to create the account numbers for cash, asset, accumulated depreciation, depreciation expense, and disposal transactions. Class mask + Cost Center mask = account number The first thing to do when planning your class and cost center definitions is to determine how you structure your account number. For example, many Fixed Assets clients mask the department dimension in their cost center definitions, and mask the GLAs (or object codes) in their class definitions. Table 2.2 gives an example of how account numbers are determined based on these settings. Table 2.2 Example Account Numbers From Class and Cost Center Account Masks Account Type Masks Defined for Class Masks Defined for Cost Center Resulting Account Numbers Cash AXX XX-XX 1110 A XXXX A Asset AXX XX-XX 1510 A XXXX A Accumulated AXX XX-XX 1690 A XXXX A Depreciation Depreciation Expense AXX XX-XX 7610 A XXXX A Disposal AXX XX-XX 5700 A XXXX A If you are upgrading from an earlier version of Fixed Assets, you may be more familiar with the terms Group (now Class ) and Location (now Cost Center ). Blackbaud, Inc. 25

32 Blackbaud FundWare Fixed Assets Guide CLASS AND COST CENTER EXAMPLES A municipality uses the 10-digit system-defined account number structure (XX XX-XX XXXX), where: A is the ID type, XX is the fund, XX-XX is the department and subdepartment, and XXXX is the GLA (or object code). The municipality defines the classes and cost centers listed in Table 2.3. Table 2.3 Example Classes and Cost Centers Account Type Class: Buildings Class: Furniture Cost Center: Administration Cost Center: Water Department Cash AXX XX-XX 1110 AXX XX-XX 1110 A XXXX A XXXX Asset AXX XX-XX 1510 AXX XX-XX 1520 A XXXX A XXXX Accumulated AXX XX-XX 1690 AXX XX-XX 1690 A XXXX A XXXX Depreciation Depreciation AXX XX-XX 7610 AXX XX-XX 7611 A XXXX A XXXX Expense Disposal AXX XX-XX 5700 AXX XX-XX 5700 A XXXX A XXXX EXAMPLE 1 The administration building belongs to the Buildings class and the Administration cost center. It always uses the following accounts: Cash A (AXX XX-XX A XXXX) Asset A (AXX XX-XX A XXXX) Acc Depr A (AXX XX-XX A XXXX) Depr Exp A (AXX XX-XX A XXXX) Disposal A (AXX XX-XX A XXXX) The purchase of a new building for administration for $20,000 creates the following journal entry: DB A (Asset account) $20, What Are Classes and Cost Centers?

33 Chapter 2 Understanding Fixed Assets EXAMPLE 2 The buildings in the water department belong to the Buildings class and the Water Department cost center. They use the following accounts: Cash A (AXX XX-XX A XXXX) Asset A (AXX XX-XX A XXXX) Acc Depr A (AXX XX-XX A XXXX) Depr Exp A (AXX XX-XX A XXXX) Disposal A (AXX XX-XX A XXXX) The new building for the Water Department costing $50,000 creates the following journal entry: Depreciation for a Water Department building for $1,500 creates the following journal entry: EXAMPLE 3 CR A (Cash account) $20,000 DB (Asset account) $50,000 CR (Cash account) $50,000 DB (Depreciation expense account) Depr expense $1,500 CR (Accumulated depreciation account) Acc depr $1,500 The furniture in the Administration department belongs to the Furniture class and the Administration cost center. The following accounts are used: Cash A (AXX XX-XX A XXXX) Asset A (AXX XX-XX A XXXX) Acc Depr A (AXX XX-XX A XXXX) Depr Exp A (AXX XX-XX A XXXX) Disposal A (AXX XX-XX A XXXX) Blackbaud, Inc. 27

34 Blackbaud FundWare Fixed Assets Guide The purchase of new Administration furniture totalling $10,000 creates the following the journal entry: DB (Asset account) $10,000 CR (Cash account) $10,000 Depreciation for the Administration furniture totalling $1,000 creates the following journal entry: DB (Depreciation expense account) Depr expense $1,000 CR (Accumulated depreciation account) Acc depr $1,000 EXAMPLE ACCOUNTING When a reporting type is defined to post to General Ledger Project/Grant, the system determines the account numbers to use based on the class and cost center assigned to the asset. For example, West County has defined an asset record called Snow Plow and assigned class Seasonal and cost center Motor Pool. Additionally, the reporting type used by the asset is defined to post costs, depreciation, and disposal to General Ledger. Table 2.4 explains how account numbers are determined based on these settings. Table 2.4 Example Account Numbers From Class and Cost Center Account Masks Account Type Masks Defined for Class Masks Defined for Cost Center Resulting Account Numbers Cash AXX XX-XX 1234 A XXXX A Asset AXX XX-XX 3210 A XXXX A Accumulated Depreciation AXX XX-XX 1690 A XXXX A Depreciation Expense AXX XX-XX 7610 A XXXX A Disposal AXX XX-XX 6789 A XXXX A When the user first enters the Snow Plow asset (i.e., acquires the asset), the system: Debits the Asset account (A ), and Credits the Cash account (A ). When the user depreciates the Snow Plow asset, the system: 28 What Are Classes and Cost Centers?

35 Chapter 2 Understanding Fixed Assets Debits the Depreciation Expense account (A ), and Credits the Accumulated Depreciation account (A ). When the user disposes the Snow Plow asset, the system: Debits the Cash account (A ), and Credits the Asset account (A ). Finally, the system posts any gains or losses as follows: Debits the Accumulated Depreciation account (A ). Credits the Disposal account (A ). CREATED BY POSTING ACCOUNTS If the combination of the class and cost center account masks result in an account that does not currently exist in the General Ledger chart of accounts, the system will add the account with a description of Created by Posting. You should always check your trace reports closely after posting a transaction. If your trace report indicates that a Created by Posting account has been added to your system, you need to determine if the account is: Incorrect In other words, you did not intend to post to this account, and it should not be in your chart of accounts, or Correct In other words, the account should be part of your chart of accounts, but had not been defined before you posted the transaction. Once you determine the cause of the Created by Posting account, you can correct the Fixed Assets settings or update the account description and attributes, as necessary. WHAT ARE ASSET DATA ITEMS? Asset data items are the pieces of information that make up the asset record and are used when you produce reports, both as selection criteria and as the report content. Blackbaud, Inc. 29

36 Blackbaud FundWare Fixed Assets Guide Some data items, like the Asset Number, are defined by the system and cannot be modified. These system-defined data items listed on a separate tab of the Fixed Assets > Setup > Data Items task (Figure 2.1). Figure 2.1 Summary of System-Defined Data Items However, Fixed Assets also allows you to customize Fixed Assets by creating userdefined data items to fully meet the needs of your organization. The best place to start to determine what user-defined data items you need is with your reports. What information do you need to include in your reports? If that information doesn t currently exist in the system, you ll need to add a user-defined data item. How do you want to filter the information in your reports? You can create userdefined data items that you only use as selection criteria to filter the information in your reports. However, before you begin defining asset data items, you need to understand the following concepts: Data item type, Auto add, and Multi-occurring data items. 30 What Are Asset Data Items?