How To Use Pastel Evolution With Fixed Assets

Transcription

1 PASTEL EVOLUTION FIXED ASSETS LEARNING OUTCOME This course will take you through the process of setting up the Fixed Assets Module to assist with the depreciation journals as well as keeping track of all your fixed assets. LEARNING OBJECTIVES Pastel Evolution: Fixed Assets On completion of the course, the student will understand the functionality of: Installation Setting Up Defaults Fixed Assets Setup Ledger Accounts Depreciation Methods Asset Types Block Assets Cost Centres and Departments Locations Capex Budget Creating Capex Orders Creating New Assets Create a Unit of Measure Depreciating Asset Creating a Sub Asset Creating an Asset with Multiple Units Asset Transactions Using the General Ledger Batch Function Other Assets Processing Asset Tracking Fixed Assets Enquiries and Reports Requirements: Ensure that you have loaded and registered the Fixed Assets Module.

2 LESSON OVERVIEW Section A Installation Section B Defaults Section C Ledgers Section D Depreciation Methods Section E Asset Types Section F Block Assets Section G Locations Section H Capex Budgets Section I Capex Orders Section J Other Section K Create Assets Section L Asset Transactions Section M Enquiries Section N Reports 2 Fixed Assets

3 A INSTALLATION Pastel Fixed Assets is a Pastel Evolution module that can be installed as a stand-alone alone program. There are two steps in the installation process: 1. Installing SDK or ensure that you have it installed on your machine. 2. Installing the Pastel Fixed Assets Module. INSTALLING THE SDK The first step in this process is to install the SDK from your Pastel Partner 2009 Installation disk. Details of the installation are given below. 1. Insert the Pastel Partner 2009 installation disc in the disc drive. When the installation Automrun screen opens, close it by clicking on Exit. 2. Open the Windows Explorer by double clicking on My Computer. 3. Right click on the CD drive for example, D:\ and select Explore. 4. From the system tree, double click on the Products folder and then on the SDK folder. 5. In the SDK folder, locate and double click Setup.exe. Fixed Assets 3

4 6. Click Next on the Welcome screen and then read through the Software License Agreement. If you agree with the terms, select the option. If you do not agree with the terms, you will select the second option and the installation will not continue to run. Click on Next once you have accepted the license agreement. 7. In the following screen, select to install User Components and click Next. 8. On the next screen, you will select Install to install the SDK on your computer. The installation wizard will advise you once the process is complete. Click on Finish to close the InstallShield Wizard. i The SDK must be registered before you can integrate with Pastel Fixed Assets. You will do this by reregistering your Pastel Partner 2009 with a new serial number that you will receive when you buy Pastel Fixed Assets. Once you have installed and registered the SDK, you will need to install Pastel Fixed Assets. 4 Fixed Assets

5 INSTALLING PASTEL FIXED ASSETS Pastel Fixed Assets is installed from the Pastel Evolution installation. The whole Pastel Evolution program will be installed on your computer. The Fixed Assets part of Evolution will be activated when you register. Pastel Evolution is installed as follows. ows. 1. Explore the installation disc. Locate the Setup.exe and double click on it, as shown below. 2. In the Customer Information screen, you will enter the name of your organisation and select the country. If you are not sure of the information to be entered in this field, consult your IT Department. Click Next. 3. The next screen is the End User Licence Agreement. Read through the agreement. In order to proceed, you would need to select the I Agree.. option. Fixed Assets 5

6 4. You will now select the location for the Pastel Evolution program. It is best to leave this option as it appears and click on Next. It is advised to tick the box to always check for new versions. This option will automatically check for new version of the software in the location specified at the top. This will enable you to always work / process in the latest version. These new versions usually include things like fixes that were made, new additions or features and other functions. Thus, it is advised to upgrade your software. 5. On the Installation Type screen, you will need to select Server / Stand Alone / Administrator. If you have more than one licence for Pastel Fixed Assets, you will install the server version on the server and then the Workstation version on the users computers. On this screen, the Install Microsoft SQL Server 2005 Express Edition option is greyed out because it is already installed. If the option is active, tick the box to install. 6 Fixed Assets

7 6. Leave the options on the Selected Components screen as they are and click on Next. 7. Pastel Evolution will now request details for the shortcut icons that you want it to create. Select the options that you want and click on Next. 8. The installer will now advise you that it has enough information to install, and ask you to confirm the installation. As the installation runs, a progress indicator will display how far along the installation is. Fixed Assets 7

8 9. When the installation is complete, the following message will be displayed. Once you have installed Pastel Evolution, open it via the shortcut icon on your desktop or your Start Menu. When you open Pastel Evolution for the first time, you will be prompted to create a Common Database. This is where Pastel Evolution stores your registration details. The following steps detail this process. 1. The Login screen will display. On this screen, you will select New to create a new database. 2. When you have clicked on New, the Create Database Wizard displays: 8 Fixed Assets

9 3. In the SQL Server Name list box, choose the server name. If Microsoft SQL Server is running on this computer, choose (local) from the drop-down box. 4. SQL Server access control can originate in Microsoft Windows or in SQL Server itself. If you do not have the necessary skills in your organisation, choose the option to use Windows NT authentication. Anyone who logs into the network will have access to the program. However, they would still need a login name and password, which you set up in the company, before they can access the company. 5. Enter the name of the new database in the New Database Name field. Use letters, numbers and spaces, but no punctuation tion or special characters. Enter the new database name Course Company. Your screen should display as follows: 6. Click Next. 7. The following dialogue should appear: 8. Click Yes. Fixed Assets 9

10 9. The system will then start creating the common database. Click on Finish to start the process. 10 Fixed Assets

11 10. Click on Finish. Pastel Evolution will now display the Registration Screen. Click on Next to start the registration process. 11. In the next screen, you will enter the company name and licence type. The company name must be entered exactly as it appears on your invoice from Pastel. For this training course, you will use the Educational Registration type. Fixed Assets 11

12 12. Click on Next and the following screen will be displayed. 13. When you register your package in practice, you will select Licensed and then Next. You will then be given a PIN Number. Call the number displayed on the screen. A Pastel Consultant will ask your for the PIN Number and in return provide you with the registration code. This registration code is unique and will not work on another computer. 12 Fixed Assets

13 14. The final screen in the registration processes is a confirmation screen. It displays information about your registration, and you should check it carefully to make sure that the details are correct. You are able to print the information for future reference. Click on Finish. 15. When you register using a registration code for only the Fixed Assets module of Pastel Evolution, only the relevant parts of Pastel Evolution will be activated. When you open your company, the screen will display as shown below. Now that you have finished installing and registering the SDK and Pastel Evolution, you are ready to set up the defaults for the integration. i The login screen is case sensitive. Thus, if your password is Admin, you have to type in Admin (with A as uppercase) and not admin (as lowercase), otherwise the system will not recognise it and inform you that you have entered the incorrect password. Fixed Assets 13

14 B DEFAULTS DEFAULTS FOR FIXED ASSETS Before you start using the Fixed Assets Module, there are a couple of questions that you need to answer: 1. At what date will depreciation of your fixed assets start? 2. Have you investigated the laws governing depreciation regarding the different types of assets? i Remember that depreciation of assets is governed by tax laws. Investigate this matter with your local tax representative or Revenue Service. The questions posed will differ from business to business; therefore there are no right or wrong answers for them. It is your duty to investigate the types of assets your business needs to acquire and set up the assets accordingly. Let us work through the following activity. ACTIVITY 1-1 The objective of this activity is to set up your Fixed Asset Module s defaults. Mike s Photo Shop started on 1st March. Up until the month of May, Mike has kept track of his fixed assets using a manual system and would like to record his assets in a register before the financial year end. Mike has budgeted 310, for his business s assets. 1. From your system tree, select Fixed Assets Module Maintenance Defaults. 2. The following screen will display: 14 Fixed Assets

15 3. Now you will set your defaults, starting with the number of Periods in a year. You can choose 6, 12, 26, 52, or 365 which indicates the following: Periods: Explanation: 6 Fortnightly 12 Monthly 26 Bi-weekly 52 Weekly 365 Daily The system breaks the year into equal periods accordingly. Usually this will be left as 12. Once the value has been set and your financial periods are created, you will not be able to change this. 4. You then set whether you want to force the input of a Cost Centre and/or a Location and/or Create Transaction GL Entries. If these options are deselected then Pastel Evolution will not force you to enter them when creating your asset codes. For Mike s Photo Shop, select the Location required option. Option Cost Centre Required Location Required Create Transaction GL Entries Explanation In this field, you decide whether the cost centre field is mandatory for each asset. If it is not mandatory, then some assets can have a cost centre, and others not. If you integrate by cost centre, the system makes the use of cost centers mandatory. If you do analyse by location, you may very well want to ensure that each asset belongs in a location. If you integrate fixed assets to the general ledger, you can choose to generate general ledger transaction entries when you sell and/or dispose of assets. Fixed Assets 15

16 5. On the GL Adjustment Options you select how Pastel Evolution Fixed assets must handle any adjustments that need to be made for earlier periods. Option In Actual Period of Adjustment Individual Adjustments in This period Single Adjustment in This Period Explanation This option posts to every period that changes. For example, if you process depreciation once a year, this option tells Pastel Evolution to make an entry in every period of the year. As opposed to the previous option, this option posts all adjustments to the current period. However, there is a posting line for every period that requires adjustment. This option also posts all adjustments to the current period. However, there is one line entry only, with no breakdown per period. For Mike s Photo Shop you will leave the default i.e. In Actual Period of Adjustment. 6. On the Depreciation Period options, you will select from which date to depreciate the new assets. Usually you would only depreciate the asset from the next period. The options mean the following: Option Purchase Date Next Period Calculated What it Does Period calculation starts from the period of purchase. Calculation starts from the period after the purchase. Depreciation starts either from this period or from next period, depending on the purchase date and the day of the month you enter in the Cut-off Day field. If the purchase date is less than the cut-off day, depreciation begins in the period of purchase. If the purchase date is equal to or greater than the cut-off day, depreciation begins in the next period. 16 Fixed Assets

17 7. For the Take-on balances, you are able to select when Pastel Evolution must start depreciating the take-on assets. When you start using the system, you already have assets and you have probably already posted depreciation into your general ledger. You do not want the system to include the already-posted depreciation in its posting. The system lets you enter take-on depreciation values for your assets. When the system calculates depreciation, it will subtract the take-on values from the depreciation due. For details about the take-on function refer to the data disc for a document on fixed asset take on balances. Here you specify the period in which you start processing. The take-on balances you obtain should be up to the period prior to the period you enter here. 8. If there are no periods set up for the fixed assets, you will need to right click on First Processing Period and select Maintenance. You then need to select Add New from the list that displays. Set up your periods and click OK to save. For more information on setting up periods refer to the Help Files by pressing F1 on your keyboard. 9. Enter the year start date of your business and click OK.. For Mike s Photo Shop, select the year you are in and change the start date to 1 st March in the year you are working in. 10. If you have selected the incorrect dates the system will warn you. i Remember you are setting up the tax year for 1 March for the current year to February of the next year. When you have set these periods and saved them, you will not be able to change it again. 11. If everything was done correctly the system will generate the years. Select the first period and click OK. This will ensure that your asset transaction will be processed in the correct tax year. Fixed Assets 17

18 i You can also set up your periods by going to the Fixed Asset Module Maintenance Accounting Periods. 12. Now, click on the Asset tab. The following screen displays: Here you can set your numbering requirements. It is advisable to tick the box indicating that you want Uppercase Account Numbers Only.. This is just for consistency and eliminating possible duplications. For this activity leave the default settings to manually input account numbers and tick the box to ensure that new accounts are defaulted to uppercase account numbers. 13. In the Asset Tracking Numbering section of the screen, you will set your tracking numbering preferences. The Asset Tracking feature allows you to track your assets and compare the physical count to the system count. This will be discussed in more detail later in this manual. 14. Click on the Supplier tab. The following screen displays: As explained under the Asset tab. For this activity, leave the default settings to manually input account numbers and tick the box to ensure that new accounts are defaulted to uppercase account numbers. 18 Fixed Assets

19 15. If you want to integrate Fixed Assets in Pastel Partner, you will use the options available under this tab. Refer to the help files for more information on integration or call a support consultant at Pastel. 16. Click OK to save your defaults. 17. Your defaults have now been set up for Mike s Photo Shop. End of the activity. We will now commence with setting up your ledger accounts before transacting Fixed Assets. i Before creating any assets, you will now need to set up the general ledger accounts to which your fixed assets transactions should posted to. C LEDGERS It is important to know which ledger accounts will be affected by your fixed asset transactions, especially when processing depreciation. Different depreciation methods require different ledger accounts and so on. Thus, for your own benefit it is advisable to consult with an expert or Revenue service before setting up your ledger accounts. For the purposes of this lesson we will just introduce you to the process on how to set your ledger accounts. i If you do not integrate Fixed Assets to Pastel Partner or Evolution, you do not need to set the ledgers up. Let us complete the following activity: Fixed Assets 19

20 ACTIVITY 1-2 The objective of this activity is to set up Fixed Asset ledger accounts. 1. In the system tree go to your General Ledger Module Maintenance Accounts or you can also go to the Fixed Asset Module Maintenance Ledger Accounts. 2. A list of ledger accounts will appear. 3. Here is a basic structure of the ledger accounts that will be needed per asset of your business, for example, Computer Equipment will need: Computer Equipment as the main asset account (6100) and the following sub accounts: o Computer Equipment: Cost Account [6100>010] o Computer Equipment: Accumulated Depreciation [6100>020] i Remember the numbering system will differ from business to business. The numbering system displayed during this lesson is the defaulted General Ledger Accounts which was selected during the installation process of Pastel Evolution. 4. Look at the following screen as an example: 5. If you are satisfied with the accounts you can leave them as is. If not, click on Add and create the required ledger accounts. 6. When you have created all the required ledger accounts you can advance to the different depreciation methods. End of the activity. 20 Fixed Assets

21 D DEPRECIATION METHODS It is important to have set your defaults and ledger accounts before commencing with the different depreciation methods that your business needs. If you go to Maintenance Fixed Assets Depreciation Methods from the main menu, you will notice that there are already a few methods created by default in Pastel Evolution. They are: Your business might require other types of depreciation methods. The following table outlines the other methods available. Method Straight Line and Equal Allowance Explanation The useful lifespan of an asset is specified and depreciate the asset by an equal amount over time. With the Straight Line method you specify a percentage and with the Equal allowance method you specify a number of years. For example: Y x 10% = 1000 Thus, = 9000 (Balance) Y x 10% = 1000 Thus, balance b/f is = 8000 and so on... Reducing Balance A percentage depreciation is specified and each year the asset is depreciated by that percentage. The next year the depreciation is calculated on the previous year s book value i.e. the original value less the years depreciation. For example: Y x 10% = 1000 Thus, balance is 9000 Y x 10% = 900 Thus, balance is 8100 and so on... Plant & Machinery The useful lifespan of the asset is specified in years and the percentage depreciation per year is specified although the total depreciation over the number of years must equal 100%. For example, 4 years at the following ratio 50:30:10:10. Fixed Assets 21

22 Method Immediate Write off Units of Usage 0% Depreciation Explanation The asset is depreciated 100% at the date of purchase. The asset is depreciated in proportion to the number of units used e.g. Machine hours. No depreciation is calculated but the asset is still tracked. Let us create a few methods. ACTIVITY 1-3 The objective of this activity is to add a new depreciation method. Mike analysed his assets and identified a few depreciation methods that he would need to use in order to correctly process their depreciation. We will now add the methods for Mike. 1. Go to the Fixed Asset Module Maintenance Depreciation Methods. 2. The list will appear as explained earlier. 3. Click on Add.. 4. The following screen displays: 22 Fixed Assets

23 5. Let us create the following methods for Mike s Photo Shop: 12% Reducing Balance. Units of Usage for the Hi Tech Photo Printer of Plant and Machinery for the Photo copier, 5 years with percentages of 30%(year 1), 20%, 20%, 20% and 10% (year 5) also written as 30:20:20:20:10. Fixed Assets 23

24 To edit the year percentages, click on the Edit Year % button. The system will prompt to save the depreciation method. Click Yes. The following screen displays. Enter the specified percentages corresponding with the year number and click OK. 6. All the required methods have been added, now we can commence to entering the different asset types of Mike s Photo Shop. End of the activity. E ASSET TYPES When creating assets in your Pastel Evolution fixed asset register, you will be required to specify an asset type. The asset type determines the book and tax depreciation method as well as the general ledger information. i Book Depreciation refers to the method that the business chose to use. Tax Depreciation refers to the method stipulated by the tax laws of your country. Let us complete the following activity. ACTIVITY 1-4 The objective of this activity is to edit an existing asset type in Pastel Evolution. i It is important to do some research with regard to the different asset types your business acquired or acquires to determine the correct ledger accounts and depreciation method. There is a lot of information about assets on the internet. 1. Select Maintenance Fixed Assets Asset Type from the main menu. 2. A list of the default asset types will appear. 24 Fixed Assets

25 3. Highlight the Furniture Asset Type and select Edit. 4. The details for this asset type will now appear. 5. If need be, you may enter your own description for these types of assets. 6. The Depreciation Ledger Accounts should now be selected from the drop down selections. i If you have selected to integrate using Cost Centres, then the Depreciation Expense account will not be available here. 7. The Depreciation Methods are then selected. i These Tax and book methods can be different. (The next activity will demonstrate this note.) 8. The Revaluation and Insurance percentage fields allow you to make uniform adjustments to all the assets that belong to this asset group. 9. You are able to revalue or devalue assets by a fixed percentage or adjust their insurance values. Revaluing will trigger adjustments depreciation. 10. The insurance cost factor is the percentage value that you want to ensure the asset for. For full value, enter 100%. 11. The residual factor is the value that the asset will retain at the end of its useful life e.g. if it is sold as scrap. Fixed Assets 25

26 12. If you are satisfied with your asset type set up, click OK. End of the activity. ACTIVITY 1-5 The objective of this activity is to set up the rest of the asset types. Setup all the asset types. Take special care when setting up the Machine asset type as Mike would like to use the method as set up for Book depreciation even though for tax purposes he is allowed to use the plant and machinery method. 26 Fixed Assets

27 Use the following screens to assist you in this task. Fixed Assets 27

28 i You will need to specify your company s own requirements per asset type when you create your live fixed assets register. End of the activity. F BLOCK ASSETS This option will be used if you wish to stop depreciation on an asset for a specific period of time. 1. Go to Fixed Assets Maintenance Block Assets. 2. Here are some options to consider when blocking assets: If you wish to block an asset between specific dates, check the From Date and To Date check boxes and enter the relevant dates. If you wish to block depreciation until a specific date, uncheck the From Date, check the To Date and enter the last date to block depreciation in the To Date's field. The block applies from now on. If you wish to block depreciation from a specific date for an indefinite period, check the From Date and enter the date on which the block should start and uncheck the To Date. If you wish to allow book or tax depreciation to continue, but to block the other depreciation, uncheck the From and To of the depreciation that continues. 28 Fixed Assets

29 G LOCATIONS If you want to keep track of where your assets are located within your business, you will utilise this option. Locations are an optional, independent analysis code. You attach this code to an asset. You could use this code to represent floors in an office building, branches, or any other type of analysis you are interested in. You can make the use of location codes mandatory. You do this in the Defaults function as discussed earlier in the lesson. Let us work through the following lowing activity. ACTIVITY 1-6 The objective of this activity is to create locations. 1. Go to Fixed Assets Maintenance Locations. 2. Mike s Photo Shop want to add the following locations: Code: PRI001 REC001 DBN001 CPT001 Location description: Printing Room Reception Durban Branch Cape Town Branch WHS001 Warehouse 1 OFF001 Office 1 3. Click on Add. 4. The following screen displays: 5. Complete the Location Code and Description field for each location listed in the table above. 6. Click OK to save each location. Fixed Assets 29

30 7. Your list should display as follows: End of the activity. H CAPEX BUDGETS The capex budgeting feature is optional. The system lets you track budgets for capital expenditure. You can create a budget per asset type and optionally per cost centre. You can also create timed bands of expenditure you specify by date how much you expect to use. You can also enter a capex order first. When you create the asset, you can then link it to the capex order. The advantage of using capex budgets is that you can produce reports at any stage that show over- and under-budgeted areas. You can also produce a capex budget cash flow forecast. The disadvantage is that it is a lot of work. If you have a much simpler global fixed asset budget, you may prefer to use the budgeting capabilities in your general ledger instead. Let us work through the following activity. ACTIVITY 1-7 The objective of this activity is to create capex budgets. Mike s Photo Shop budgeted to spend the following amounts on the required assets when Mike started the business on the 1 st of March: Vehicles 90, Equipment 45, Furniture 80, Computers 17, [This will be spent in two phases; 10, initially and the balance two months later.] Let us look at the computers first. Up until May, Mike has kept track of the assets manually and now would like you to create the budgets to keep track of the assets. 1. Select Maintenance Fixed Assets Capex Budgets from the menu. 2. Click on Add. The following screen displays: 30 Fixed Assets

31 3. Now enter the Description of the budget as well as the Capitalisation Date and select the Replacement or New option. These will be used for reporting purposes. 4. Select the relevant Asset Type from the dropdown options. 5. The Cost Centre option is optional unless you have specified it to be compulsory in the defaults you set up earlier. 6. Click on Add to create the Capex Phasing. 7. The following warning will appear. 8. Select Yes if correct or No to change any details on the previous screens before continuing. 9. If you selected Yes, you will need to enter the Capex Phasing. Fixed Assets 31

32 10. Enter the Date and the Amount. 11. Select OK when correct. 12. Now click on Add to create the further Capex Phasing budget for the Computers. 13. Your Computer budget should look as follows: 32 Fixed Assets

33 14. If you are satisfied that the budget is correct, select OK. 15. Your Computer Capex Budget is now created and you will be able to allocate assets to this budget and draw reports as the project progresses. 16. Now create the rest (refer to the beginning of the activity) of the Capex budgets for Mike s Photo Shop. End of the activity. I CAPEX ORDERS Now that your capex budgets are created, you may start allocating capex orders to the budgets. If you create a capex budget for an asset type, then, when you create a new asset that belongs to that asset type, you can link the asset to a capex order. If you do this, the system can then produce budget variance reports. ACTIVITY 1-8 The objective of this activity is to create capex orders. 1. Select Maintenance Fixed Assets Capex Order. The following screen displays: 2. Click on Add to enter a new Capex Order. Fixed Assets 33

34 3. Enter the details for the purchase of the first computer. 4. When you are satisfied, click OK. 5. Create an order for all the purchases of the fixed assets of Mike s Photo Shop. Use the following register to assist you in this task. When you have created the order, make a tick next to the asset. This is good practice to ensure that you do not miss anything. Asset Purchase date Value Photo Copier / Scanner (S/N 90867Y90) 1 st March 90, Hi Tech Photo Printer (S/N 8768K0987) 1 st March 50, Multi Function Laminator (S/N 09876T765432) 1 st March 75, HTH Office Desks 1 st March 5, Office Chairs 5 1 st March each Computer SEVO 1 St March 8, Computer WEVO 16 May 6, Office Chairs 4 16 July 300 each Removable drive for Server backups 31 July 1, Note the tick next to the SEVO Computer because we just ordered it. i Remember to enter the correct dates. End of the activity. 34 Fixed Assets

35 J OTHER The following table explains the other options available under the maintenance node of the Fixed Asset Module: Option Cost Centres Departments People Suppliers Take on balances Override Assets Explanation Cost centers are analysis codes. You can use them to represent cost centers, projects, business areas, geographical areas, and so on. Once you create departments, you allocate them to cost centres. Then, when you produce certain reports, you can range by cost centre and/or departments. You can create people in the Fixed Asset Module. You will link these people to an asset or supplier. Create suppliers in the Fixed Asset Module. These suppliers resemble the companies you purchased the assets from. Record the assets take on balances here if you did not make provision for it in the General Ledger Module. Sometimes an asset's life changes dramatically from the original lifespan you intended. For example, it may suffer damage, or it may have been overused. On the other hand, you may wish to extend an asset's life. In these, and other, cases, you want to specify directly how many periods of useful life remain for the asset. The system will then depreciate the remaining value equally over these periods. ACTIVITY 1-9 The objective of this activity is to explore the other options. Take a few minutes to explore and read the help files relating to the abovementioned options available within the Fixed Asset Module. Take note that you already have a list of suppliers and people in the system. End of the activity. Fixed Assets 35

36 K CREATE ASSETS You have now set up all the necessary defaults for Mike s Photo Shop s assets. It is now time to create the newly acquired assets that Mike purchased. CREATE NEW ASSETS We will demonstrate the process to create new assets by working through the following activity: ACTIVITY 1-10 The objective of this activity is to create new assets. The following table outlines the assets that need to be created. Asset Code Purchase date Price Photo Copier / Scanner (S/N 90867Y90) PHO001 1 st March 90, Hi Tech Photo Printer (S/N 8768K0987) HTP001 1 st March 50, Multi Function Laminator (S/N 09876T765432) LAM001 1 st March 75, HTH Office Desks ( each) HTH001 1 st March 5, Office Chairs 5 CHR001 1 st March each Computer SEVO COM001 1 st March 8, Computer WEVO COM May 6, Office Chairs 4 CHR July each Removable drive for Server (SEVO) backups REM July 1, Let us create them now. 1. Go to Maintenance Fixed Assets Assets from the main menu. 2. Click on Add. 36 Fixed Assets

37 3. The following screen displays: 4. Let us create Computer (Server/SEVO) that Mike bought. Refer to the Help Files by pressing F1 for more assistance on these fields if needed. Remember to select the correct Asset Type because that indicates the depreciation method that needs to be used for the asset. Fixed Assets 37

38 5. Click on the Asset Serial Numbers Tab. The following message will display: 6. Click Yes. 7. The system might prompt you sometimes that your periods are incorrect. If this happens, you will have to go and check your Accounting Period set up. 8. In the Asset Serial Numbers Screen, record the asset s serial number if applicable. 9. Under the Book and Tax Depreciation tabs, detail the start date of the depreciation of the asset and other relevant information. The system will automatically calculate the depreciation for the asset. 10. Click on the Finance tab. This tab allows you to record all your financial arrangements regarding the asset. 11. Click on the Image tab. You can insert an actual picture of the asset here. 38 Fixed Assets

39 12. The Incident History tab will only be available if you have the CRM Add on module registered. This tab will detail any activity on the asset account, such as, when they moved the asset to another location etc. 13. Now, create the rest of the assets of Mike s Photo Shop. End of the activity CREATE SUB ASSETS You will create sub assets in cases where you add components to a master asset. Let us do the following activity to grasp this concept. ACTIVITY 1-11 The objective of this activity is to create a sub asset. 1. Go to the Fixed Asset Module Maintenance Assets. 2. Click Add. 3. Create the following asset as displayed in the following screen: Take note of the Master Asset field. This is where you indicate that the asset you are creating is a sub asset of a Master Asset. i Remember the sub asset must be of the same asset type. Fixed Assets 39

40 4. Click OK. i You can link the asset to a Capex Order by selecting the applicable order from the drop down list in the Capex Order field on the screen. i The system will calculate the Depreciation, Insured Value and Scrap Value according to the defaults set up under the Asset Type and Depreciation Types. End of the activity. CREATE AN ASSET WITH MULTIPLE UNITS The following activity ty will demonstrate the process. ACTIVITY 1-11 The objective of this activity is to create an asset with multiple units. Mike bought 5 Office each. 1. Create the following asset as displayed in the next screen: 2. In the field, No of Units is where you indicate the amount of units you bought. 3. You will also notice that you had to enter the full purchase price of all 5 desks, namely (5 x ) in the Purchase Price field. This is a very important part of the process, always remember to enter the full purchase price. 40 Fixed Assets

41 i The system will calculate the Depreciation, Insured Value and Scrap Value according to the defaults set up under the Asset Type and Depreciation Types. 4. Go to the Book Depreciation tab and Tax Depreciation tab respectively and view the calculations. i When you click on any tab after setting up the asset, the system will prompt to say that you have to save the asset before continuing. Click Yes. End of the activity. UNIT OF MEASURE DEPRECIATING ASSETS The following activity will demonstrate how to create a Unit of Measure Depreciating asset. ACTIVITY 1-12 The objective of this activity is to create a unit of measure depreciating asset. Mike purchased a high tech photo printing machine and this machine is meant to be able to print copies. Create this machine for Mike in Pastel Evolution: 1. From the main menu, select Maintenance Fixed Assets Assets. 2. Click on Add. 3. Enter the details of the High Tech Printer as illustrated in the screen below. Fixed Assets 41

42 4. The Asset Type and Capex Orders fields are very important because this is where the units of measure depreciation method is linked to. 5. Thus, check that the Asset Type is linked to both the asset and capex order. 6. Another important factor is to ensure that the purchase date of the asset is the same. 7. Click on the Book Depreciation and Tax Depreciation tabs. You will notice that there is 0 depreciation. This is because this machine depreciates on the amount of photos printed. 8. Click OK. 9. Now, go to Fixed Asset Transactions Asset Transactions Select the PHP001 asset and click on Unit of Usage in the top right hand corner. The following screen displays: 11. The first part of the screen is a summary of the asset. 12. Select the Date of when the units were used. 13. Record a Reference.. This reference must be unique to the transaction. For this activity record the following reference: Photo s printed for Mrs Hunn. 14. Enter the amount of units used. For this activity enter a Tick the Both box indicating that both the book and tax depreciation must be affected. 16. Link a Contact Person to this transaction if you want. 17. We will now have to go back to the Asset to see how this transaction affected the depreciation of the asset. 18. Open the PHP001 asset. Click on the Book and Tax Depreciation tab respectively. 19. Notice that the depreciation was recorded for both. 20. Click OK. i Notice that in the Tax Depreciation tab the residual value is not recorded that is because the Tax Depreciation does not take residual values in consideration only Book Depreciation does. End of the activity. L ASSET PROCESSING ASSET TRANSACTIONS 42 Fixed Assets

43 These are the asset processing options: Notes Revaluations Transfer Sell / Scrap Partial Disposal Divide Unit of Usage Impairments We already had a brief look at how to process units of usage in the previous activity. To access the asset transaction screen, go to the Fixed Asset Module on the topic tree Transactions Asset Transactions. The following table explain each option: Option: Notes Revaluations Transfer Sell / Scrap Partial Disposal Divide Units of Usage Impairment What it does? Lets you add standard notes to assets. Lets you revalue an asset upwards or downwards. Lets you transfer an asset to a new asset type, cost centre, or location. Lets you sell an asset, or scrap it if it is not saleable. Lets you sell or scrap individual units of a multi-unit asset. Lets you divide a multi-unit asset by quantity, or a single asset by a percentage. Lets you enter usage data for the units of usage depreciation method. Lets you record damaged assets. USING THE GENERAL LEDGER BATCH FUNCTION We will now have a look at how to process GL batches in the Fixed Asset Module. i Remember when you are going to process a GL batch in your live company make a backup first before you post the batch. 1. Go to Fixed Assets Transactions. 2. Select the GL Transaction Batch in the work area. 3. Click on Batch Generate Batch. Fixed Assets 43

44 4. Select the date to generate the batch for and click on OK. 5. You can now Save, Clear Batch or Post Batch. 6. If you select to post the batch, a General Ledger Journal Batch will be created and will appear as normal GL transactions. Pastel Evolution s Fixed Assets will automatically create a journal batch in the selected Pastel Partner Company when you process a General Ledger Depreciation Batch. To process this batch and update the journal batch in the Pastel Partner company, click on Save and then click on Post Batch. This automatically creates a journal batch in the Pastel Partner Company that you can process at any stage. The fixed asset module has a new feature were companies can track their assets. This new feature s purpose is mainly to compare the assets on the system with the actual physical assets counted on sites, branches, in offices, etc. Let us have a look at this feature. ASSET TRACKING 44 Fixed Assets

45 DEFAULT SETTING Before we start transacting, let us set the defaults. Go to the Fixed Asset Module...Maintenance...Defaults. Fixed Assets 45

46 The following screen displays: This screen allows you to set your numbering preferences in accordance with the business s need or type of industry. ACTIVITY 1-13 The objective of this activity is set the Asset Tracking Defaults. Leave the numbering to be a manual input when transacting. End of the activity. Now that you have set the defaults, we can start transacting and learn how this feature works. TRANSACTIONS The best way to explain this feature is to use an example of a typical industry that this feature will apply to. WHAT MUST BE IN PLACE BEFORE TRANSACTING? Here is a list of master files that must be in place before you can transact: Accounting Periods Assets and Asset Types Locations Cost Centres Depreciation Methods Departments Take on Balances Suppliers 46 Fixed Assets

47 BAR CODES Another coding / numbering structure that will need to be in place is you business s asset bar-coding. It is compulsory to allocate bar codes to the asset when creating asset tracking transactions. There are various methods to create barcodes, namely: Self Generated, where you allocate bar codes manually on you own system. System Generated, where you have a system like a scanner/pos/etc to generate barcodes for you. It is up to you how you generate the barcodes for assets, as long as it is unique. You cannot create duplicate barcodes! CREATE ASSET TRACKING TRANSACTIONS We will use a Construction Company as an example. To create an asset tracking transactions follow this process: 1. Go to the Fixed Asset Module......Transactions...Asset Tracking. 2. Click on Add. 3. The following screen displays: 4. Complete the screen with a number and reference. The system automatically generates a description but you can edit it to suite your preferences. 5. Click on the Asset tab. Under this tab, select all the assets that you want to include in the tracking as well as the locations that you want to track the assets to. 6. Click OK. Fixed Assets 47

48 7. Now that you have completed the screens the Asset Tracking transaction will display as follows: 8. Click on the Import button on the top. 9. The following screen displays: 10. Click on the icon next to the Import from File field. Find the document that you want to import and select it. i Remember that the document you are importing can either be in.csv or.txt format and to ensure that they import correctly select the File Format s corresponding delimiter by selecting it from the drop down menu. 11. In the file that you are importing, you need to specify what fields they include by selecting it from the Available Fields list on the screen. To select the order click on the available field and click on the green arrow (one arrow). To select the list as it displays click on the green button containing two arrows. 12. You can set a fixed length for your fields as well. To activate the fields tick the radio button. 13. Click OK. 48 Fixed Assets

49 14. You will now return to the Asset Tracking screen. 15. Click on Edit Data and a report rt will display similar to this: 16. This report displays the comparison between the system and imported data (physical count). 17. There are different statuses on the right hand side, the following tables defines each status that the asset comparison can have: Filtered Unmatched Partial Match Matched Unmatched System Matched Partial System Matched Applies to assets in the Asset Register that satisfy the filter criteria specified by the user but not matching Asset on File. Applies to assets in the Asset Register matched according to - the Barcode only. Applies to assets in the Asset Register matched to all available fields. Applies to Assets on File that does not match the Asset Register. Applies to Assets on File that are not matched to assets in the Asset Register that satisfy the filter criteria specified by the user BUT instead is matched for all available fields to Asset in Asset Register that does not that satisfy the filter criteria. Applies to Assets on File that are not matched to assets in the Asset Register that satisfy the filter criteria specified by the user BUT instead is matched according to the Barcode only to Asset in Asset Register that does not that satisfy the filter criteria. Fixed Assets 49

50 18. Click Close or Save and Close. 19. The system will take you back to the Asset Tracking screen and if you are satisfied with the results, click on the Complete button. 20. The following screen displays: 21. Print the required reports from this screen by clicking on the Print Now... button. 22. Select ect the date that you want the transaction to be recorded on the system. 23. Click OK. 24. You will notice that the completed transaction disappears from the Asset Tracking screen. Therefore it is of extreme importance to print the relevant reports for safe keeping. i Please note that this feature is still under construction and cannot be used to its full potential yet. 50 Fixed Assets

51 ASSET TRACKING REPORTS When opening the Asset Tracking feature the following screen displays: The Asset Tracking Reports are only available from this screen. You will notice 4 icons in the top bar of the screen. Report name Icon Description / Purpose Asset Tracking Report Asset Location Variance Report Asset Count Variance Report Asset Counted Value Report This report deals with the difference in number in comparison to system data and scanned uploaded data. This report generates info where the scanned data is different from the filtering defaults This report details the physical count variance of the assets in the system compared to the imported data. This report details the variance in value of the assets in the system compared to the imported data. Fixed Assets 51

52 M ENQUIRIES To enquire about an asset, go to the Fixed Asset Module Enquiries. The following screen displays: Select the asset you want to enquire about from the drop down list in the Asset field. You can now enquire about the asset movements, meaning the transactions processed against the asset, the asset s details, depreciation and if you have CRM registered you can view the it s incident history. 52 Fixed Assets

53 N REPORTS To Access the reports, select the Reports / Fixed Assets option from the main menu. The reports are grouped in sub options by their function. Capex Reports Report Capex Cash Flow Forecast Capex Depreciation Forecast Capex Detail Capex Purchases Capex Summary What it Does This report takes your capex budgets and creates a forecast over time of your capex expenditure. This report takes your capex budgets and uses it to forecast depreciation. This report details budgets and their current expenditure. This report details assets you purchase via capex orders. This report summarises capex activity. Depreciation Reports Report Book Depreciation Tax Depreciation Depreciation Reports Asset Impairments What it Does This report details book depreciation per asset. This report details tax depreciation. This reports contains a detailed summary of the business s asset depreciation. This report details any damage to assets. GL Batch Report Report GL Batch Report What it Does This report details general ledger account postings. Labels Report Asset Barcode Labels Asset Labels Location Barcode Labels What it Does This prints barcode labels for assets. This prints labels for assets. This prints barcode labels in location sequence. Fixed Assets 53

54 Listings Report Accounting Periods Asset Details Asset Type Depreciation Method Ledger Accounts Insured Values Physical Location Asset Consolidation Asset Transaction Capital Gains Tax Deferred Tax Fixed Asset SARS What it Does This lists the accounting periods. This lists asset details. This is a list of asset types. This lists the depreciation methods. This lists the ledger accounts. This report lists assets and their insured values. This lists assets by location. This lists assets that were consolidated. This lists all the asset transactions. This lists the CGT on assets. This lists late tax payments on assets. This lists all the tax paid or due to SARS (South Africa only). Movement Reports Report Book Sold Assets Purchased Revaluations Tax Sold Transferred What it Does This report details book values for sold or scrapped assets. This report details purchases. This report details revaluations. This report details tax values for sold or scrapped assets. This is a report of assets that have been transferred. Other Reports Report Asset Reconciliation What it Does This report is aids in reconciling your assets. Run the depreciation report, which shows depreciation in a period. 54 Fixed Assets

55 PROCESS TO RUN A DEPRECIATION REPORT Follow these steps when you want to run a depreciation report. 1. Access the Fixed Assets...Reports...Depreciation Reports...Book Depreciation report. 2. Uncheck the Purchase Date check boxes. 3. Set the Print Assets as At date to your required date. 4. Preview the report. 5. The system correctly calculates the depreciation, and it takes into account the earlier depreciation. SUMMARY 1. You have learnt how to setup your Pastel Evolution Fixed assets register. 2. You then learnt how to create your asset types, depreciation methods, cost centres and departments. 3. You then learnt how to keep track of your budgeted capital expenditure. 4. You learnt how to process your general ledger batch, perform enquiries and run fixed asset reports.? FORMATIVE ASSESSMENT Draw a diagram depicting a process of how to use the Fixed Asset Module. The solution is be available on the data disc. [10 Marks] Fixed Assets 55