Asset Management Configuration Document Created - 3/6/2003 Current - 3/17/2003. PeopleSoft Financials Release 8.4

Transcription

1 Asset Management Configuration Document Created - 3/6/2003 Current - 3/17/2003 PeopleSoft Financials Release 8.4

2 Table of Contents 1 Background and Overview Asset Management Processes Overview Module Integration Map Security Needs and Philosophy Configuration Assumptions Scope Modifications / Change Orders Table Configuration Details Installation Options Asset Management Asset Management Business Units Asset Management Business Unit / Book Definition Location Detail Calendar Depreciation Journal Source Accounting Entry Definition Journal Generator Template Categories Cost Types Transaction Codes Accounting Entry Template IDs Accounting Entry Templates Asset Books AM_Configuration Guide_ University of Florida Page i Created: 3/6/2003 Printed: 5/9/2003

3 Table of Contents 7.15 Capitalization Limits Depreciation Convention Builder Depreciation Convention Definition Depreciation Schedules Depreciation Limits Depreciation Terms Definition Depreciation Rate User Defined Multi-Shift Codes Tax Classes Tax Credit Status Tax Credits Qualified Investments Business Tax by Location Asset Classes License / Registration Agencies Asset Profiles Definition Asset Profiles Depreciation Asset Profiles Tax Maintenance Types Financing Codes C.A.P. Types Payment Schedules AM_Configuration Guide_ University of Florida Page ii Created: 3/6/2003 Printed: 5/9/2003

4 Table of Contents 7.37 Joint Venture Allocation Retirement Basis Reduction Indexes InterUnit Transfer Definition Units of Production Maintenance Contracts Transaction Groups Allocation Basis Definition Allocation Basis Definition Allocations Define Asset Allocations AM_Configuration Guide_ University of Florida Page iii Created: 3/6/2003 Printed: 5/9/2003

5 1 Background and Overview The University of Florida (UF) is moving from its existing FLAIR accounting system to PeopleSoft Financials 8.4 and will be implementing the Asset Management Module. This document details the configuration data of the Asset Management Control Tables, which contains the non-transactional information such as Asset Categories and Depreciation Conventions, for UF. The key sections of this document include: Asset Management Processes Overview: Examines the key Asset Management processes that will be used by UF. Module Integration Map: Provides an overview of the integration points between Asset Management and other PeopleSoft modules. Security Needs and Philosophy: Lists the security parameters that will be enforced in the UF production environment. Configuration Assumptions: Documents high-level configuration information and assumptions that affect multiple Tables. Scope Modifications / Change Orders: Details any specific changes in project scope or Change Order items. Table Configuration Details: Provides the detailed configuration information for each Control Table in the Asset Management module, including access paths, Table names, and field definitions. For Control Tables with large number of fields, the actual configuration values are omitted in this document. Please see the associated UF configuration documents for a complete listing of all configuration values. Asset Management Configuration Values 2 Asset Management Processes Overview The most common transactions performed by users in the Asset Management module are: Add Assets Transfer Assets Adjust Assets Retire / Reinstate an Asset AM_Configuration Guide_ Page 1 of 95 Created: 3/6/2002

6 Each time a new Asset Management action is performed, an Open Transaction is generated. The system tracks the status of three states for each Open Transaction: 1. Depreciation Calculation 2. Accounting Entry Creation 1. Add all new assets to be booked in current period Add New Assets 3. Reporting The general workflow for each transaction is as follows: Depreciation must be calculated for each Open Transaction before Accounting Entries can be created. This is due to the fact that most, if not all, transactions affect the depreciation amount and/or schedule of the assets involved. 2. Perform any necessary maintenance, including Transfer, Cost Adjustments, and Retirements 3. Calculate Depreciation Schedule for GAAP Asset Book only Maintain Assets (Transfer, Adjust, Retire) Calculate Depreciation Process: DEPRCALC Accounting Entries can be created only for the default Asset Book. Once Accounting Entries have been created, the Report status tracks whether or not a given transaction has been exported to a reporting table. 4. Create Accounting Entries for current period from GAAP Asset Books Create Asset Accounting Entries Process: AMAEDIST In order to improve efficiency and minimize rework due to data entry errors, all asset transactions (including additions, transfer, adjustments, and retirements) should be completed for the accounting prior to running the Depreciation Calculation process. It is recommended that depreciation be calculated only for the Default Asset Book when closing an accounting period. Depreciation for the Tax Asset Books should only be calculated prior to closing the fiscal year, when the tax depreciation information is needed. For the month-end close, the typical steps to be followed are depicted in the diagram to the right. 5. Generate Depreciation Accounting Entries for all existing assets 6. Generate and Post Journal Entries to General Ledger Create Depreciation Accounting Entries Journal Generate Journal Post Process: DEPRCLOS Edit Journal Entries Asset Management Module General Ledger Module AM_Configuration Guide_ Page 2 of 95 Created: 3/6/2002

7 3 Module Integration Map Currently, the Asset Management module is integrated with the General Ledger, Purchasing and the Payables modules. Payables Create/Adjust Asset from Receiving Info Asset Management Asset Accounting Journal Entries General Ledger Purchasing Sample Fields: Asset ID Acquisition Date Cost Location Purchasing: Asset Management can import the asset physical information contained in the Purchasing receivers and PO. Payables: Asset Management can import the asset financial information contained in Payables vouchers. General Ledger: Accounting entries created for the Default Asset Book will be sent to the General Ledger through the Journal Generation and Posting processes. 4 Security Needs and Philosophy The security policy in Asset Management is being implemented as a part of the overall PeopleSoft security configuration. Enforcement of the security policy is maintained on two separate levels: By Function / Menu Item By Business Unit THE DIFFERENT LEVELS OF SECURITY ARE STILL BEING DETEMINED. In addition, every user is assigned to one or more Business Unit lists. Each user can only see and access the Business Units to which they are assigned. AM_Configuration Guide_ Page 3 of 95 Created: 3/6/2002

8 One of the outstanding security issues involves the access to Payables Business Units for importing assets. It has been decided that Asset Management users should be responsible for executing the Payables export process that sends the asset information from the AP vouchers to the Pre-AM table. 5 Configuration Assumptions For this implementation, the only SetID that will be used is UFLOR. The immediate intent is to replicate the functionality of FLAIR, while enhancing the overall AM module design. The Asset Management Team should ensure all locations are entered into PeopleSoft, as the AM team will assume ownership of the Location table. An integration with the existing UF Space System will aid in this requirement. The assets stored in the FLAIR database will be cleansed in the FLAIR system prior to conversion into PeopleSoft. The AM Reporting Team will perform all modifications to reports for Asset Management. 6 Scope Modifications / Change Orders AM_Configuration Guide_ Page 4 of 95 Created: 3/6/2002

9 7 Table Configuration Details 7.1 Installation Options Asset Management Path: Setup Financials/Supply Chain > Install > Installation Options > Asset Management Object Name(s): INSTALLATION_AM Prerequisites / Related Configuration Description This page is used to establish system-wide options for the Asset Management module. The majority of the field values should not be changed UF s Situation and Requirements The Transaction Type and Accounting Entry Template ID fields are left unmodified from the default values. The Last Interface ID and Last Pre-Interface ID fields are left blank to allow the system to restart the numbering. Joint Venture Processing, Group Asset Processing, Child Inherits Parent s Life, and Inflation Processing checkboxes are all left unchecked, as none of these features will be used. A child asset will maintain its own Useful Life durations separate from that of its parent s. AM_Configuration Guide_ Page 5 of 95 Created: 3/6/2002

10 7.1.4 Configured Values The Transaction Types are system defaults and should not be changed. Last Interface ID and Last Pre-Interface ID fields, start with 1. These fields are used to import asset information from the Payables module invoices. The Account Entry Template ID should remain as DEFAULT. Joint Venture Processing should only be selected if any of the General Ledger and/or Asset Management business units will be designated as joint ventures. Group Asset Processing allows for multiple assets to be treated as a single entity for the purpose of depreciation only. This ability is mainly for use by the utilities industry, where assets numbering in the thousands like utility poles can be depreciated in one single journal entry. For all purposes other than depreciation, the components are treated as individual assets. In this implementation for UF, this feature should be disabled. Child Inherits Parent s Life will not be used. The default option is for child assets to inherit the remainder of its parent s useful life at the time of the parent s retirement. UF does not treat assets in this manner. Select the Inflation Processing checkbox to enable adjustments to asset values based on the rate of inflation. Transactions for these adjustments would be recorded with the Inflation Transaction code. Field Name System-Wide Value Last Interface ID 1 Last Pre-Interface ID 1 Account Entry Template ID DEFAULT Joint Venture Processing No Group Asset Processing No Child Inherits Parent s Life No Inflation Processing No Inflation Transactions No AM_Configuration Guide_ Page 6 of 95 Created: 3/6/2002

11 7.1.5 Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 7 of 95 Created: 3/6/2002

12 7.2 Asset Management Business Units Path: Setup Financials/Supply Chain > Business Unit Related > Assets > AM Business Unit Definition Object Name(s): BUS_UNIT_TBL_AM / AM_VAT_BU_DFLTS Prerequisites / Related Configuration Required: Asset accounting books must be defined first on the Asset Book page of the Establishing Asset Processing component before the business units can use them Description This page is used to create Asset Management business units and specify their default processing options. An AM business unit must be created for each General Ledger business unit that contains assets UF s Situation and Requirements UF will maintain one Asset Management Business Unit. UFL01 Assets-University of Florida The Location indicates the physical location of the Business Units. The Last Asset ID Used fields are initially set to 0 for all Business Units. UFL01 Business Unit has two (2) Asset Books defined, which is defined on the organizational structure of the Business Units. o o The Default Book for all Business Units is the ACTUAL book. US Tax (UBIT) Asset Book for the Fed Book will be used for departments that are considered part of UF s Unrelated Business Income Tax calculation. AM_Configuration Guide_ Page 8 of 95 Created: 3/6/2002

13 The InterUnit Account fields are set to 1XXXXX (the AP/AM Clearing Account) for all Business Units. All of the InterUnit Transfer Defaults Options are turned on by default. The VAT Options will not be used. All fields should be blank. The Keep all books in synch field is turned on to maintain consistency across all asset books. The Default tag # from asset ID field is turned off to allow UF to enter the legacy tag numbers of the assets. The Allow duplicate tag numbers fields are turned off to ensure the tag numbers are unique. The Auto Increment Open Trans ID field is turned on to enable easy differentiation of new open transactions. The Open Transaction ID field is left blank Configured Values See the Asset Management Configurations Values document for the list of field values to be configured. The Business Unit code field can only be five characters long. The Asset Books are defined in the Asset Book table. The Location table defines the Location field values. PeopleSoft automatically assigns incremental Asset ID numbers, starting from the Last Asset ID Used. Business Unit, the Last Asset ID Used will be set to 0. Each business unit must have at least one Asset Book defined. A single Asset Book may be used for recording multiple books. Select Keep all books in synch to tell the system to default adds, changes, and retirements made in any one book to all other books in the same business unit. Joint Venture BU will not be used. Select Default tag # from Asset ID to have the system automatically use the Asset ID entered as the tag number. (may use) Select Allow duplicate tag numbers to enable the system to maintain duplicate tag numbers. UF will not use this function AM_Configuration Guide_ Page 9 of 95 Created: 3/6/2002

14 Under InterUnit Transfer Processing Options, select the appropriate type(s) of information to be transferred as part of an InterUnit Transfer. The Open Transaction Processing Options page allows users to use Open Trans ID to track the status of open transaction processing. The Auto Increment Open Trans ID field should be deselected if, for instance, the user would like the processing of multiple depreciation calculations to be grouped under a single Open Trans ID Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 10 of 95 Created: 3/6/2002

15 7.3 Asset Management Business Unit / Book Definition Path: Setup Financials/Supply Chain > Business Unit Related > AM Business Unit Definition Object Name(s): BU_BOOK_DEFN_ Prerequisites / Related Configuration Required: Asset accounting books to be used must be defined on the Asset Book page Required: Initial AM Business Unit Definition page must be completed Description For each Asset Management business unit, at least one Asset Book must be defined. This page specifies the book and accounting entry options for each of these Asset Books UF s Situation and Requirements For the UFL01 AM Business Unit, UF will maintain two (2) sets of books: ACTUAL and UBIT. The Currency type, Calendar, and Capitalization Limit varies depending on the Business Unit and the Asset Book. Store Depreciation By Period should be turned off for each and every Business Unit and Asset Book. The Rounding Rule and Type should be set as Natural Rounding and Currency for all Business Units and Asset Books. The ACTUAL asset book in the UFL01 Asset Management Business Unit will generate journal entries for the corresponding General Ledger Business Unit. The ACTUAL book will therefore be linked to the Actuals Ledger in the Actuals Ledger Group. The Budgets Ledger Group and Ledger not be used at this time, but may be added later. Retirements by Disposition Code will not be required for all Retirement transactions, this may impact the Accounting Entry Templates that may need to be created. AM_Configuration Guide_ Page 11 of 95 Created: 3/6/2002

16 7.3.4 Configured Values See the Asset Management Configuration Values document for the list of field values to be configured. University of Florida The Book Type determines the specific tax processing rules and information tracking capabilities of this asset book for the AM business unit. Check the Book is Required box to add the book to every asset in this business unit. A Currency and conversion Rate Type must be established for the book, even if only a single currency is to be used. The Calendar controls the depreciation and financial processing for the business unit / book. The capitalization cost limit can be specified by actual Amount or be determined from a Capitalization Limit table. Similarly, a minimum can be supplied for leased assets in the Lease Cap field. Group Asset Processing allows multiple assets to be treated as a single entity for the purpose of depreciation only in this book. For this implementation, UF will have this feature disabled. Select Store Depr by Period to ensure that depreciation transactions are stored for each period for the current fiscal year. Please note that depreciation entries for future years are still stored by fiscal year. UF will not use this feature. Select Child Inherits Parent s Life if the default option is for child assets to inherit the remainder of its parent s useful life at the time of the parent s retirement. This will only be displayed if the option is turned on at the General Options level. UF will not use this feature. On the Round Type options page, specify the currency rounding options to be used for the current book. If the current book will be generating accounting entries, check the Create Accounting Entries box. For transaction postings to the General Ledger, enter the name of the General Ledger Unit. Also specify the Ledger Group and Ledger if necessary. The GASB book will be the only book posting to the GL. Select Retirements by Disposal Code to post retired assets to specific books. Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 12 of 95 Created: 3/6/2002

17 7.4 Location Path: Setup Financials/Supply Chain > Common Definition > Location > Location Object Name(s): LOCATION_TBL / LOCATION_TBL Prerequisites / Related Configuration Description For Asset Management, the Location is used to specify the physical location of the asset UF s Situation and Requirements University Property Services will assume ownership of updates to the location table. The locations must be standardized between PeopleSoft s AP and AM Module. The existing Space Management system will be designated as the official system for all university locations. An interface will need to be developed to update PeopleSoft from the Space system. Investigation into the feasibility for the HR system to use these locations will also be needed. AM_Configuration Guide_ Page 13 of 95 Created: 3/6/2002

18 7.4.4 Configured Values See Asset Management Configuration Values for details. The AM Team will enter the locations into PeopleSoft. Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 14 of 95 Created: 3/6/2002

19 7.5 Detail Calendar Depreciation Path: Setup Financials/Supply Chain > Common Definition > Calendars/Schedules > Detail Calendar Object Name(s): DETAIL_CALENDAR1 / DETAIL_CALENDAR Prerequisites / Related Configuration Description Once the detail periods have been defined for calendar, it can be specified whether a particular calendar is to be used for depreciation allocation UF s Situation and Requirements AM will use the calendars that have been established by the GL Team expanding the calendars if needed. A half year convention calendar will be needed for UBIT calculations Configured Values For each period defined in the calendar, review the depreciation amounts automatically allocated and modify as necessary. Check the Used for depreciation box if the calendar will be used to calculate depreciation for assets. Enter any Comments if so desired. For each period in the calendar, specify the Allocation of Yearly Depreciation for each. AM_Configuration Guide_ Page 15 of 95 Created: 3/6/2002

20 7.5.5 Approvals Project Engagement Manager: Date: UF Project Manager: Date: PeopleSoft Center: Date: AM_Configuration Guide_ Page 16 of 95 Created: 3/6/2002

21 7.6 Journal Source Path: Setup Financials/Supply Chain > Common Definition > Journals > Source Object Name(s): SOURCE_TBL Prerequisites / Related Configuration See General Ledger Design document for details Description Journal Source is assigned to a journal during Journal Generation and appears on the journal header line. It identifies the feeder application from which the journal originated UF s Situation and Requirements See General Ledger Design document for details Configured Values See University General Ledger Design document for details Approvals See University General Ledger Design document for required approvals. AM_Configuration Guide_ Page 17 of 95 Created: 3/6/2002

22 7.7 Accounting Entry Definition Path: General Ledger > Journals > Subsystem Journals > Accounting Entry Definition Object Name(s): JRNL_GEN_ACCTG_DEF Prerequisites / Related Configuration See General Ledger Design document for details Description See General Ledger Design document for details. Accounting Entry Definitions are used by Journal Generator to define the process by which accounting entries are passed from the source system, including Asset Management, to the General Ledger. Each entry defines the system source, the accounting entry tables to be used and updated, and the mapping of the source system record data fields to their corresponding journal line fields UF s Situation and Requirements See General Ledger Design document for details. Many of these tables are pre-defined by PeopleSoft, and each have been validated by the AM Team Configured Values See General Ledger Design document for details. AM_Configuration Guide_ Page 18 of 95 Created: 3/6/2002

23 7.7.5 Approvals See General Ledger Design document for required approvals. AM_Configuration Guide_ Page 19 of 95 Created: 3/6/2002

24 7.8 Journal Generator Template Path: General Ledger > Journals > Subsystem Journals > Journal Generator Template Object Name(s): JRNL_GEN_APPL_ID Prerequisites / Related Configuration See General Ledger Design document for details Description See General Ledger Design document for details. Journal Generator uses templates to structure the journals it creates. Each template defines the journal numbering scheme, the data options, and the summarization rules to follow for each journal created using the template. A Journal Generator Template needs to be created for each basic Transaction Type UF s Situation and Requirements See General Ledger Design document for details. No additional transaction types are being built. This means that the default transaction types should be are AM_Configuration Guide_ Page 20 of 95 Created: 3/6/2002

25 already set-up, but should be validated for accuracy. The transaction types used for Journal Generator Templates that were created according to system defaults are: o o o o o o o o Asset Additions (ADD) Asset Adjustment (ADJ) Asset Transfers (TRF) Capital Lease Payables (LPY) Depreciation (DPR) Prior Period Depreciation (PPD) Asset Re-categorizations (RCT) Asset Retirements and Reinstatements (RET) Transactions for which no General Ledger transactions need to be generated, and hence no required Journal Generator Templates, are: o o GL Account # Attractive Assets (Tracking Purposes Only) Transactions to Asset Management BU - AMNUF Configured Values See General Ledger Design document for details Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 21 of 95 Created: 3/6/2002

26 7.9 Categories Path: Setup Financials/Supply Chain > Product Related > Assets > Profile > Asset Categories Object Name(s): CATEGORY_DEFN Prerequisites / Related Configuration Capitalization Limits Asset Classes Description Categories are used to classify assets by type for accounting entry purposes, usually reflect how assets are grouped on the balance sheets. Each asset added to the system must be identified with a category. Categories and transaction types are required for accurate posting to the GL UF s Situation and Requirements UF has established the following asset Categories: Land Artwork-Nondepreciable Buildings Software Furniture & Equipment Livestock Infrastructure Leased Assets Construction WIP Library Resources Artwork-Depreciable Non-Depreciable Separate Asset Classes (sub-categories) should be defined for certain categories. Some examples are shown below. For a listing of the Asset classes refer to the Asset Classes section of this document. AM_Configuration Guide_ Page 22 of 95 Created: 3/6/2002

27 o o Personal Computers Pentium Based Laptops Desks, Credenzas, Tables, (Not Classroom) Categories of Land, Artwork-Nondepreciable and Construction-WIP are considered Non-Depreciable and Tangible. All others are considered Depreciable and Tangible Configured Values See Asset Management Configuration Values for details. The Depreciable Status specifies whether the asset is Depreciable or Non Depreciable. The status entered here will be compared to the status specified for the asset book. Select Leased Assets if the category covers assets that are leased rather than owned Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 23 of 95 Created: 3/6/2002

28 7.10 Cost Types Path: Setup Financials/Supply Chain > Product Related > Assets > Financials > Cost Types Object Name(s): COST_TYPE_DEFN Prerequisites / Related Configuration Categories Transaction Code Description Cost Types represent different components of the cost of an asset (e.g., materials, labor, and overhead). For example, allocating the cost of production to one cost type can differentiate the cost of building an asset and its market value, and the margin of profit to another cost type. Cost Type can be used in conjunction with Asset Category and Transaction Code to determine which accounts the costs are entered in the General Ledger. (For example, Allowance for Adv. Depreciation, Margin, Revaluation, Sales of Assets, etc.) To record the cost details of an asset without affecting the General Ledger, use the Acquisition Details page to categorize the costs as ones that cannot be capitalized UF s Situation and Requirements UF will not be using Cost Types Configured Values 1 - Historical Cost 2 Fair Market Value AM_Configuration Guide_ Page 24 of 95 Created: 3/6/2002

29 Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 25 of 95 Created: 3/6/2002

30 7.11 Transaction Codes Path: Setup Financials/Supply Chain > Product Related > Assets > Transaction Codes Object Name(s): TRANSACTION_CODE Prerequisites / Related Configuration None Description A Transaction Code identifies special asset transactions. These codes are used in combination with Actions to create accounting entries. When defining accounting entry options for a book, the user can elect to distribute by Disposal Code. If this option is chosen, the transaction code will default to the Disposal Code UF s Situation and Requirements UF does not currently plan to use this table. No additional data other than the default set listed below will be entered into the Control Table Configured Values The following standard Actions are pre-defined: Add, Adjustment, Depreciation, Prior Period Depreciation, Transfer In, Transfer Out, Retire, and Reinstate. For each new Transaction Code, enter the Description and the Short Description if desired Approvals Project Engagement Manager: Date: AM_Configuration Guide_ Page 26 of 95 Created: 3/6/2002

31 UF Project Manager: Date: AM_Configuration Guide_ Page 27 of 95 Created: 3/6/2002

32 7.12 Accounting Entry Template IDs Path: Setup Financials/Supply Chain > Common Definitions > Accounting Entry Templates > Template Object Name(s): AMAE_TMPL_ID_PNL Prerequisites / Related Configuration Accounting Entry Templates Description The Accounting Entry Template IDs are typically used in situations with multiple SetIDs to group the Accounting Entry Templates for use within different SetIDs UF s Situation and Requirements For UF s current situation, the only Accounting Entry Template ID needed is Default Configured Values For any additional Accounting Entry Template IDs, enter an appropriate Description. Field Name AET ID 1 SetID* UFLOR Accounting Entry Template ID* DEFAULT Description* Default value for processing Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 28 of 95 Created: 3/6/2002

33 7.13 Accounting Entry Templates Path: Setup Financials/Supply Chain > Common Definitions > Accounting Entry Templates > Accounting Entry Templates Object Name(s): DIST_TEMPLATE_DEFN Prerequisites / Related Configuration Required: Asset Category must exist before Accounting Entry Templates can be created for the category Required: General Ledger Accounts must be created before they can be referenced Accounting Entry Template IDs Description Accounting Entry Template is the primary table used for creating accounting entries from AM, which are the basis for General Ledger journals. Each template defines accounting entry types based on asset category, cost type, transaction type, and transaction code. Each accounting entry type specifies the Accounts used during accounting entry and the Journal Template used for recording actual transactions. For each possible Category / Transaction Type combination, an accounting entry template must be created before the transaction can be utilized UF s Situation and Requirements For each of the pre-defined asset Categories, the basic set of Accounting Entry Templates that should be created include those for the following transactions: AM_Configuration Guide_ Page 29 of 95 Created: 3/6/2002

34 Additions (ADD) Lease Payments (LPY) Retirements (RET) Adjustments (ADJ) Prior Period Depreciation (PPD) Transfers (TRF) Depreciation Expense (DPR) Re-Categorizations (RCT) For UF, Accounting Entry Templates will be created for all transactions types identified. The accounts for PPD transactions are identical to that of DPR. A set of Accounting Entry Templates will need to be created for both Asset Management Business Units Configured Values See the Asset Management Configuration Values document for the list of field values to be configured. An accounting entry template must be established for each Category / Transaction Type combination. The same Accounting Entry Template must be created separately for each Business Unit. Enter the appropriate set of Account Numbers and transaction type (DR or CR) for each transaction Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 30 of 95 Created: 3/6/2002

35 7.14 Asset Books Path: Setup Financials/Supply Chain > Product Related > Assets > Financials > Asset Books Object Name(s): BOOK_DEFN Prerequisites / Related Configuration None Description This page is used to define the set of accounting books to be used by the Asset Management business units. Each AM business unit requires at least one asset book. An unlimited number of asset books can be created for each business unit UF s Situation and Requirements UF will maintain two (2) sets of books: ACTUAL and UBIT (Tax) Configured Values See Asset Management Configuration Values document for the list of field values to be configured. Enter a short Description of the book for use in search boxes. The Country of the Asset Book will determine the specific tax-related fields to be displayed for an Asset Book. Enter Comments to describe its intended use. AM_Configuration Guide_ Page 31 of 95 Created: 3/6/2002

36 Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 32 of 95 Created: 3/6/2002

37 7.15 Capitalization Limits Path: Setup Financials/Supply Chain > Product Related > Asset Management > Financials > Capitalization Limits Object Name(s): DEPR_CAP_LIMIT Prerequisites / Related Configuration Required: Currency Codes must be defined before they can be used on the page Description During Business Unit set-up, each Asset Book in the Business Unit indicates whether it should validate the cost limit against a fixed value or against a step limit table. The step limit table is stored in the Capitalization Limits table. This can be used to accommodate the processing requirements of specific countries UF s Situation and Requirements UF will not use this feature Configured Values For each Cost Limit Code, enter an appropriate Description Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 33 of 95 Created: 3/6/2002

38 7.16 Depreciation Convention Builder Path: Setup Financials/Supply Chain > Product Related > Asset Management > Deprecation > Convention Builder Object Name(s): CONV_BLDR_PNL Prerequisites / Related Configuration Required: Monthly calendars enabled for depreciation scheduling must be configured Depreciation Conventions Depreciation Schedules Description This page is used to generate depreciation conventions based on monthly accounting calendars UF s Situation and Requirements UF requires no additional conventions. The following are conventions will be used: Actual Month (AM) ACTUAL Book Half Year (HY) UBIT Book Configured Values Select a Calendar that has been enabled to generate depreciation scheduling. AM_Configuration Guide_ Page 34 of 95 Created: 3/6/2002

39 Enter a two-letter code for the name of the Convention. Check the System Maintained box to use standard depreciation conventions that are delivered with the system and maintained by PeopleSoft. Select a Period Option, either Mid Period or Days. Days will begin depreciation based on the value specified in the Which Day field. Use Mid Period for mid month and mid quarter conventions. Select a Convention Type, and the system will automatically populate the Which Day, Which Month, and Summary Periods fields. These default values may be overwritten for certain convention types. The following table summarizes how the system determines the Begin Depreciation Date for each Convention Type: Convention Type Mid Month Begin Depreciation Date Which Day defaults to 15; Begin Depreciation Date is day 15 of the calendar period. You can override Which Day. End of Month Uses the end date of the month as the Begin Depreciation Date. You cannot override this. End of Quarter Uses the end date of the quarter as the Begin Depreciation Date. You cannot override this. End of Year Uses the end date of the year as the Begin Depreciation Date. You cannot override this. Following Month Adds one day to the end day of the month and identifies this as the Begin Depreciation Date. You cannot override this. Full Year Uses the current day of the current month as the Begin Depreciation Date. You cannot override this. Half Year Which Day defaults to 1; Which Month defaults to 7, so day 1 of period 7 in the calendar is the Begin Depreciation Date. You can override Which Day and Which Month. AM_Configuration Guide_ Page 35 of 95 Created: 3/6/2002

40 Convention Type Mid Quarter Begin Depreciation Date Which Day defaults to 15; Which Month defaults to 2, so day 15 of the second month in the quarter is the Begin Depreciation Date. You can override Which Day only. User Defined No defaults are provided. Specify Which Day, Which Month and Summary Periods. Select a Calendar Option. Choose the Portion of Calendar option and specify the From Year and the To Year if only part of the selected calendar will be used Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 36 of 95 Created: 3/6/2002

41 7.17 Depreciation Convention Definition Path: Setup Financials/Supply Chain > Product Related > Asset Management > Depreciation > Convention Definition Object Name(s): CONVENTION_DEFN Prerequisites / Related Configuration Required: Monthly calendars enabled for depreciation scheduling must be configured Depreciation Convention Builder Depreciation Schedules Description This page is used to modify previously built depreciation conventions or to enter new conventions and all associated dates manually. The Depreciation Convention Builder may also be used to generate conventions based on monthly accounting calendars UF s Situation and Requirements UF does not require any additional conventions, and will use the pre-defined conventions provided by PeopleSoft. o o Actual Month Half Year AM_Configuration Guide_ Page 37 of 95 Created: 3/6/2002

42 Configured Values The following Depreciation Conventions tied to the default calendar are delivered with the system: Actual Day Full Year Half Year Actual Month Mid-Month Life to Date Following Month Mid-Quarter Modified Half-Year Select a Calendar that has been enabled to generate depreciation scheduling. Enter a two-letter code for the name of the Convention. Check the System Maintained box to use standard depreciation conventions that are delivered with the system and maintained by PeopleSoft. Select a Period Option, either Mid Period or Days. Days will begin depreciation based on the value specified in the Which Day field. Use Mid Period for mid month and mid quarter conventions. For each convention, the From Dates and To Dates define the periods for which depreciation is prorated. The Begin Depr Date determines when depreciation calculations will start Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 38 of 95 Created: 3/6/2002

43 7.18 Depreciation Schedules Path: Setup Financials/Supply Chain > Product Related > Asset Management > Depreciation > Schedules Object Name(s): DEPR_SCHEDULE_DEFN Prerequisites / Related Configuration Depreciation Conventions Description PeopleSoft Asset Management depreciation schedules are based on the percentage depreciation tables found in IRS Publication 534, including: o o o o Declining Balance with Straight- Line Switch: 200%, 175%, 150%, 125% Sum-of-the-Years Digits MACRS (GDS and ADS) ACRS (GDS and ADS) This page is used to review or modify existing depreciation tables or to add new ones. Straight-Line Depreciation does not require the construction of Depreciation Schedules. AM_Configuration Guide_ Page 39 of 95 Created: 3/6/2002

44 UF s Situation and Requirements UF will be using the standard Depreciation Schedules delivered by PeopleSoft. No other custom Depreciation Schedules need to be defined. Additional Schedules will only need to be created as regulatory entities create specific methods of depreciation. Any changes in depreciation performed by GAAP or Tax authorities will be updated in future PeopleSoft releases Configured Values Select the Specific Convention box if a particular depreciation Convention is to be used. Once the box is checked, the Convention may be selected from the existing list. Enter the In Service Period, the Year of Life, and the annual allowed Depreciation Percent as appropriate. The Schedule Periods should reflect the periods set up in the calendar Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 40 of 95 Created: 3/6/2002

45 7.19 Depreciation Limits Path: Setup Financials/Supply Chain > Product Related > Asset Management > Depreciation > Limits Object Name(s): DEPR_LIMIT_DEFN Prerequisites / Related Configuration Depreciation Conventions Depreciation Schedules Description The Depreciation Limits page is used to specify the maximum amount of depreciation that can be expensed for each year of an asset s life. The tax authorities typically specify these limits. PeopleSoft delivers limits based on U.S. tax law UF s Situation and Requirements UF does not currently use Depreciation Limits. Consequently, there will be no Depreciation Limits defined for this table Configured Values The Last Year Using Limit field specifies the year of expiration for the limits table. For each Year of Life, either Amount or Percentage can specify the limits Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 41 of 95 Created: 3/6/2002

46 7.20 Depreciation Terms Definition Path: Setup Financials/Supply Chain > Product Related > Asset Management > Depreciation > Terms Definition Object Name(s): DEPR_TERMS_DEFN Prerequisites / Related Configuration Depreciation Conventions Depreciation Schedules Description The Depreciation Terms page is used to define special terms that will be applied to depreciation in a global environment. Terms stored can be selected when specifying depreciation methods and have enabled global options. These terms will be used to alter depreciation calculations so that they comply with specific country requirements UF s Situation and Requirements There are no special Depreciation Terms in use by UF. All the depreciation terms in the standard PeopleSoft load will meet all UF s business requirements. No additional terms will be defined in this table Configured Values For each Depreciation Term, enter the Depreciation Percent and the Year of Life for which it should apply. Specify terms for as many Year of Life as necessary. The terms defined affect depreciation calculations as follows: AM_Configuration Guide_ Page 42 of 95 Created: 3/6/2002

47 Term Depreciation Special Depreciation * Rate Accelerated Depreciation * Rate Initial Cost * Rate Increase Depreciation * Rate Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 43 of 95 Created: 3/6/2002

48 7.21 Depreciation Rate User Defined Path: Setup Financials/Supply Chain > Product Related > Asset Management > Depreciation > Rate-User Defined Object Name(s): UD_DEPR_RATE_TBL Prerequisites / Related Configuration Depreciation Conventions Description Use this page to create custom depreciation methods UF s Situation and Requirements There are no User-Defined Depreciation Rates identified by UF. No rates will be defined in this table Configured Values For each custom defined Method, enter an Effective Date when the sub-table of Useful Life and the corresponding depreciation Rates are to be used Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 44 of 95 Created: 3/6/2002

49 7.22 Multi-Shift Codes Path: Setup Financials/Supply Chain > Product Related > Asset Management > Depreciation > Multi-Shift Codes Object Name(s): MULTI_SHIFT_DEFN Prerequisites / Related Configuration Other Depreciation Tables Description Multi-Shift Codes are use to increase the amount of annual depreciation up to the legally allowed limits for assets used across multiple production shifts. Codes can be established for each additional shift to indicate the rate by which annual depreciation should increase UF s Situation and Requirements Under UF s current business model, the Multi-Shift depreciation option will not be used Configured Values For each Multi-Shift Code defined, both the Description and the Effective Date fields are required. Enter the percentage rate by which depreciation should be increased for Two Shifts Factor, Three Shifts Factor, and Four Shifts Factor. For each Fiscal Year, indicate the Number of Shifts that will be used. AM_Configuration Guide_ Page 45 of 95 Created: 3/6/2002

50 Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 46 of 95 Created: 3/6/2002

51 7.23 Tax Classes Path: Setup Financials/Supply Chain > Product Related > Asset Management > Taxes > Classes Object Name(s): TAX_CLASS_DEFN Prerequisites / Related Configuration Tax Credit Status Tax Credits Description Tax Class determines the period over which tax depreciation will be expensed. Tax Class is informational only and is not used in any calculations UF s Situation and Requirements PeopleSoft delivers the standard tax guideline classes as defined by the U.S. tax laws. UF does not require any additional guideline classes beyond the ones delivered at this time. The specific tax guideline classes that UF will be using include: Term Depreciation Term Depreciation Office Furniture, Fixtures, and Equipment 01.1 Agriculture AM_Configuration Guide_ Page 47 of 95 Created: 3/6/2002

52 Term Depreciation Term Depreciation Information Systems Cattle Data Handling Equipment, except Computers 01.3 Buildings Airplanes 20.4 Manufacture of Other Food and Kindred Products Automobiles, Taxis 27.0 Printing Buses Comp-based Telephone Cntrl Offc Switching Equip Light General Purpose Trucks 48.2 Radio and Television Station Equipment Heavy General Purpose Trucks Electric Power Generating and Distribution Trailers 79.0 Recreation Boats 99.9 Qualified Technological Equipment Configured Values Standard IRS Tax Classes as stated above Approvals Project Engagement Manager: Date: AM_Configuration Guide_ Page 48 of 95 Created: 3/6/2002

53 UF Project Manager: Date: AM_Configuration Guide_ Page 49 of 95 Created: 3/6/2002

54 7.24 Tax Credit Status Path: Setup Financials/Supply Chain > Product Related > Asset Management > Taxes > Credit Status Object Name(s): TAX_CR_STATUS Prerequisites / Related Configuration Tax Classes Tax Credits Description This page is used to set status for tax credits by country UF s Situation and Requirements UF will not use the Tax Credit Status table. No data will be inserted into the table Configured Values Select the Country for which the Tax Credit Status is applicable. Define the Tax Credit Status code and enter its Description. Provide additional Comments if necessary Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 50 of 95 Created: 3/6/2002

55 7.25 Tax Credits Path: Setup Financials/Supply Chain > Product Related > Asset Management > Taxes > Credits Object Name(s): TAX_CREDIT Prerequisites / Related Configuration Tax Class Tax Credit Status Description This page is used to define new tax credit tables or modify existing tables. PeopleSoft delivers only three business incentive tax credits: Energy Tax Credit, Regular Investment Tax Credit, and Rehabilitation Tax Credit. Any other required tax credits need to be defined manually UF s Situation and Requirements UF currently qualifies for no tax credits. No data will be populated in this table Configured Values The Country field specifies the country for which the tax credit is applicable. Select one of the three pre-defined or the User-Defined Tax Credit Types. For User-Defined Tax Credit Types, Custom Credit Codes may be defined by the users. AM_Configuration Guide_ Page 51 of 95 Created: 3/6/2002

56 The Reduction Type indicates whether a reduction in the cost basis is required: Basis Reduction, Percentage Rate Reduction, or No Reduction. The Effective date and the Status determines when the credit is available. The rate of the credit is entered in Credit Rate, and the corresponding rate that reduces the basis is entered in Basis Reduction Rate. A Basis Reduction Rate of 100% means that there will be no reduction in the Cost Basis of the asset to which Tax Credit Rate is applied Approvals Project Engagement Manager: Date: UF Project Manager: Date: AM_Configuration Guide_ Page 52 of 95 Created: 3/6/2002

57 7.26 Qualified Investments Path: Setup Financials/Supply Chain > Product Related > Assets > Financials > Qualified Investments Object Name(s): QUAL_INV Prerequisites / Related Configuration Depreciation Conventions Depreciation Schedules Description When one or more tax credits are taken for an asset, the basis of the asset may need to be adjusted before additional credits can be calculated. These Qualified Investment Codes are used to determine the portion of the asset s basis qualified for the tax credit. In addition to tax credits, standard Qualified Investment Codes corresponding to a specific tax system and life are included with the delivered TableSet. The eligibility of these codes is based on the code s effective date and the placed-in-service date of the asset UF s Situation and Requirements UF does not own any Qualified Investments. No data will be entered into the table Configured Values When adding a new code, enter a unique ID and the life expressed as periods in Compare Life. This value entered is validated against the asset s useful life. Enter the Effective Date, the Status, and the percentage rate to be applied against the asset s cost in Qual Inv Rate Approvals Project Engagement Manager: Date: AM_Configuration Guide_ Page 53 of 95 Created: 3/6/2002