Banner Finance Fixed Assets Training Workbook

Banner Finance Fixed Assets Training Workbook Release 8.0 - April 2008 Updated 3/24/2009 HIGHER EDUCATION What can we help you achieve?

SunGard Higher Education 4 Country View Road Malvern, Pennsylvania 19355 United States of America (800) 522-4827 Customer Support Center website http://connect.sungardhe.com Distribution Services e-mail address distserv@sungardhe.com Other services In preparing and providing this publication, SunGard Higher Education is not rendering legal, accounting, or other similar professional services. SunGard Higher Education makes no claims that an institution's use of this publication or the software for which it is provided will insure compliance with applicable federal or state laws, rules, or regulations. Each organization should seek legal, accounting and other similar professional services from competent providers of the organization's own choosing. Trademark Without limitation, SunGard, the SunGard logo, Banner, Campus Pipeline, Luminis, PowerCAMPUS, Matrix, and Plus are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. Third-party names and marks referenced herein are trademarks or registered trademarks of their respective owners. Revision History Log Publication Date Summary 4/30/2008 New version that supports 8.0 software. 5/30/2008 Minor formatting changes. 6/26/2008 Minor changes to steps for deleting non-capitalized fixed assets without Dtags 03/23/2009 Two document tag reports were added. Notice of rights Copyright SunGard Higher Education 2005-8. This document is proprietary and confidential information of SunGard Higher Education Inc. and is not to be copied, reproduced, lent, displayed or distributed, nor used for any purpose other than that for which it is specifically provided without the express written permission of SunGard Higher Education Inc.

Table of Contents Introduction... 5 Process Introduction... 7 Set Up... 8 Creating Depreciation Codes... 9 Creating Asset Type Codes... 11 Creating Acquisition Codes... 13 Creating Asset Condition Codes... 14 Creating Asset Title To Codes... 15 Creating Disposal Method Codes... 16 Creating User-Defined Codes for Fixed Assets... 17 Using Commodity Codes to Flag Fixed Assets... 18 Creating Account Codes... 20 Creating Account Codes for Accumulated Depreciation and Depreciation Expense... 21 Creating the Asset Account Codes for Fixed Assets... 24 Creating Capital Expense Account Codes for Fixed Assets... 26 Creating Capital Equity and Gain/Loss Account Codes... 28 Creating a Capitalization (or Plant) Fund Code... 31 Setting System-Wide Fixed Asset Defaults... 33 Overriding System Controls by Fund Type... 35 Overriding System Controls by Fund... 38 Determining the Minimum Value for Fixed Assets... 42 Self Check... 45 Answer Key for Self Check... 47 Day-to-Day Operations... 49 Creating Invoices... 50 Viewing the Invoice s Posting Detail... 56 Creating Fixed Asset Origination Tags... 58 Query Fixed Asset Origination Tags... 61 Converting Origination Tags to Permanent Tags... 63 Assigning Depreciation Information to a Tag... 65 Creating Primary Tags... 68 Deleting Non-capitalized Fixed Assets without Dtags... 73 Removing Erroneous Origination Tags... 75 Displaying Tags... 79 Creating a Fixed Asset Received as a Gift... 80 Capitalizing a Gift... 83 Creating an Asset That Was Expensed to the Wrong Account... 86 Running the Depreciation Process... 90 Displaying the Depreciation Posting History... 92 Disposing or Selling an Inventory Asset (Non-Capitalized Fixed Asset)... 94 Adjusting Fixed Assets... 95 Handling Write-Offs... 99 Adjusting the Value of Fixed Assets... 101 Adjusting Accumulated Depreciation... 103 Updating Past Depreciation for an Asset Master Record... 105 Reclassifying Asset Account Values... 107 Transferring Fixed Assets... 109

Assigning a New Permanent Tag to a Fixed Asset... 111 Fixed Assets Reports and Queries... 113 Summary... 114 Self Check... 116 Answer Key for Self Check... 119 Appendix... 122 Forms Job Aid... 123 Terminology... 125 SunGard 2004-2008 Page 4 Fixed Assets

Introduction Course goal The goal of this workbook is to provide you with the knowledge and practice to maintain Fixed Assets data at your institution. Course objectives In this course you will learn how to set up depreciation methods set up validation forms about information on fixed assets set up commodity codes flagged as fixed asset items set up account codes for fixed assets set up fixed asset fund codes set up system-wide fixed asset defaults determine the minimum value for fixed assets create invoices for fixed assets extract origination tags and document tags from the temporary table create and update a master record for a fixed asset create document tags setup and depreciate an asset perform adjustments on an asset transfer records query and report on records. Page 5

Intended audience Fixed Assets staff. Prerequisites To complete this course, you should have completed the Education Practices computer-based training (CBT) tutorial Banner 8 Fundamentals, or have equivalent experience navigating in the Banner system. Page 6

Process Introduction Introduction The Banner Fixed Assets module is designed to allow the tracking and depreciation of Universities fixed or movable assets. Through the completion of an invoice, the system will temporarily tag the asset and automatically capitalize the tagged item when it has reached or exceeded the minimum capitalization amount. Personnel can then record the asset with a permanent tag; locate it, and process depreciation against it. Flow diagram This diagram highlights the processes used to manage fixed assets. What happens The stages of the process are described in this table. Stage Description Inventory Clerk 1 Receives new asset records 2 Updates new asset records 3 Updates assets that are transferred, sold, lost, or disposed 4 Performs inventory and reports assets list to Finance for audit purposes Page 7

Set Up Section goal This section provides the knowledge and practice to set up various special-purpose account and fund codes and designations for the processing of your fixed asset automatic capitalization. The steps include creating Accumulated depreciation account Depreciation expense account Fixed assets account Capital expenses account Capital equity account Gain/loss account Capitalization fund. Objectives In this section you will learn how to set up depreciation methods set up validation forms about information on fixed assets set up commodity codes flagged as fixed asset items set up account codes for fixed assets set up fixed asset fund codes set up system-wide fixed asset defaults determine the minimum value for fixed assets. Page 8

Creating Depreciation Codes Depreciation methods Before you begin depreciating commodities, you need to determine various useful life depreciation methods; that is, depreciation methods that you will use over the useful life of the item. In Banner, combine a yearly depreciation method (e.g., Straight Line) with a first year option (e.g., Proportional) to create a useful life depreciation method. In Banner, there are 15 valid combinations. Banner form Use the Fixed Asset Depreciation Code Maintenance Form (FTMDEPR) to define these values. Note: The instructor should assign the combinations to the learners to ensure duplicates are not created. Remember, you cannot combine Sum of the Years Digits (Internal Depreciation Code) with Proportional (First Year Option). Page 9

Steps Follow these steps to complete the process. 1. Access the Fixed Asset Depreciation Code Maintenance Form (FTMDEPR). 2. Enter a depreciation method code in the Depreciation Method Code field. 3. Assign a name to the depreciation method in the Title field. SunGard Higher Education suggests that the title should combine the name of the internal depreciation code and first year option. Note: Banner combines the values you select in the Internal Depreciation Code and First Year Option fields to create a useful life depreciation method. 4. Enter an effective date in the Effective Date field. 5. Select a yearly method of depreciating an item in the Internal Depreciation Code field. 6. Select a value in the First Year Option field to specify how Banner should depreciate the item during its first fiscal year. 7. Click the Save icon. 8. Click the Exit icon. Page 10

Creating Asset Type Codes Fixed asset type codes A fixed asset type code is required on all permanent tags for depreciation processing. Examples of some asset types might be: Computer Equipment, Art and Collectables, Vehicles, and Software. Banner form Asset type codes are created on the Fixed Asset Type Code Maintenance Form (FTMASTY). Page 11

Steps Follow the process below to create Asset Type codes. 1. Access the Fixed Asset Type Code Maintenance Form (FTMASTY). 2. Perform a Record Insert Function. 3. Perform a Record Duplicate Function. 4. Enter a two-character code for the asset type in the Code field. 5. Tab to the Description field and type the description of the code. 6. Enter an effective date in the Effective Date field (it should be a previous date). 7. Tab to the Depreciation Method Code field and key in the method you just created or double click in the field and pick from the Depreciation Code list on FTVDEPR. 8. Enter a number in the Useful Life field. 9. Click the Save icon. 10. Click the Exit icon. Page 12

Creating Acquisition Codes Fixed Asset Acquisition codes A fixed asset acquisition code is an optional code used on the permanent tag to state how an organization obtained the asset. Examples would be purchased, gift, constructed, and donated. Banner form These codes can be created on the Fixed Asset Acquisition Code Maintenance Form (FFVACQM). Steps Follow the process below to create Acquisition codes. 1. Access the Fixed Asset Acquisition Code Maintenance Form (FFVACQM). 2. Enter a two-character code for the acquisition code in the Code field. 3. Tab to the Description field and type the description of the code. 4. Click the Save icon. Note: The Activity Date will display the date this code was created. 5. Click the Exit icon. Page 13

Creating Asset Condition Codes Fixed Asset Condition codes A fixed asset condition code is used as an option code for stating the condition of the item when an organization obtains it. Examples of condition codes are New, Used, Slightly damaged, and in need of repair. Banner form The condition codes are created on the Fixed Asset Condition Code Maintenance Form (FFVACON). Steps Follow the process below to create condition codes. 1. Access the Fixed Asset Condition Code Maintenance Form (FFVACON). 2. Enter a two-character code for the condition code in the Code field. 3. Tab to the Description field and type the description of the code. 4. Click the Save icon. Note: The Activity Date will display the date this code was created. 5. Click the Exit icon. Page 14

Creating Asset Title To Codes Fixed asset type codes A fixed asset title to code is an optional code that states whom has title to an item when an organization obtains it. Examples are Institution, Bank, and State Government. Banner form The title to codes can be created on the Fixed Asset Title To Code Maintenance Form (FFVTTST). Steps Follow the process below to create Title To codes. 1. Access the Fixed Asset Title To Code Maintenance Form (FFVTTST). 2. Enter a two-character code in the Title-to Code field. 3. Tab to the Description field and type the description of the code. 4. Click the Save icon. Note: The Activity Date will display the date this code was created. 5. Click the Exit icon. Page 15

Creating Disposal Method Codes Fixed asset type codes A disposal method code is required on all permanent tags when a tag is going to be sold, written off, or donated. Disposal method examples might be Lost, Donated, Discarded, Sold, and Destroyed. Banner form Disposal method codes are created on the Fixed Asset Disposal Method Code Maintenance Form (FFVDISP). Steps Follow the process below to create Disposal Method codes. 1. Access the Fixed Asset Disposal Method Code Maintenance Form (FFVDISP). 2. Enter a two-character code in the Disposal Code field. 3. Tab to the Description field and type the description of the code. 4. Click the Save icon. Note: The Activity Date will display the date this code was created. 5. Click the Exit icon. Page 16

Creating User-Defined Codes for Fixed Assets Introduction The Fixed Asset User Defined System Codes Validation Form (FFVSDAT) enables you to create user-defined codes, assign values to them, and organize them into groups. Banner form Steps The process below demonstrates how to establish unique, user-defined codes within the Fixed Assets module. 1. Access the Fixed Asset User Defined System Codes Validation Form (FFVSDAT). 2. Enter CATEGORY in the Literal field. 3. Enter LG in the Value field. 4. Enter Legacy in the Title field. 5. Enter Legacy in the Short Title field. 6. Click the Save icon. 7. Click the Exit icon. Page 17

Using Commodity Codes to Flag Fixed Assets Commodity maintenance It is possible to use Banner s commodity codes to flag fixed asset purchases for tagging, rather than using capital expenditure account codes. The major difference in using commodity codes is that commodity codes never initiate the automatic capitalization process. So, commodity codes can be used in cases where the tagging of the asset is wanted, but where no capitalization entry is desired. Note: Using commodity codes for flagging fixed assets does not mean that you can no longer use capital expenditure accounts for this flagging as well. You can use commodity codes for some types of purchase and account codes for others. Banner form Commodity codes are created/updated in the Commodity Maintenance Form (FTMCOMM). Page 18

Steps Follow these steps to complete the process. 1. Access the Commodity Maintenance Form (FTMCOMM). 2. Enter NEXT in the Commodity Code field. Banner will assign the next sequential number. Note: Normally you would enter an existing commodity code, and then identify it as a fixed asset. 3. Perform a Next Block function. 4. Enter the description in the Commodity Description field. 5. Select a code in the Unit of Measure Code field. 6. Select a code in the Predecessor Commodity field. 7. Select a code in the Tax Group field. 8. Check the Fixed Asset check box to designate this commodity as a fixed asset. 9. Enter the effective date for this commodity in the Start Date field. 10. Enter 5 in the Useful Life field. The numbers placed in this field indicate the number of years. 11. Perform a Next Block function to move to the Commodity Account area. 12. Specify the chart and/or expense accounts for this commodity. 13. Click the Save icon. 14. Click the Exit icon. Page 19

Creating Account Codes Categories of account codes The information that follows reviews the categories of account codes. Accumulated depreciation and depreciation expense Accumulated Depreciation (internal account type must be 10 asset and class F) and Depreciation Expense (internal account type can be either 40 fund balance, 60 labor, 70 expense, 90 fund addition, 95 fund deduction) are used on assets that are capitalized and are being depreciated. Fixed asset Fixed Asset (internal account type must be 10 asset and class F) accounts will be linked to your capital expense accounts, and will be used by the automatic capitalization process for the debit side of the entry. (The credit side will be capital equity). Capital expense Capital Expense (internal account type can be either 60 labor or 70 expense) refers to the expenditure account codes which, when used on an invoice or a journal voucher with D-tags turned on, will automatically initiate the tagging process and, where the minimum asset amount is met on an invoice, the capitalization process. Capital equity and Gain/Loss Account(s) The Capital Equity account (internal account type can be either 40 fund balance, 90 fund addition or 95 fund deduction) is used on the credit side of the capitalization entries. The Gain/Loss account(s) (internal account type can be either 40 fund balance, 50 revenue, 60 labor, 70 expense, 90 fund addition, or 95 fund deduction) is used for the posting of revenue/expense associated with the disposal of assets. Page 20

Creating Account Codes for Accumulated Depreciation and Depreciation Expense Overview This topic covers creating the account codes for Accumulated Depreciation (internal account type must be 10 asset and class F) and Depreciation Expense (internal account type can be either 40 fund balance, 60 labor, 70 expense, 90 fund addition, or 95 fund deduction). Banner form Creating the account codes is accomplished by using the Account Code Maintenance Form (FTMACCT). Page 21

Steps Procedure 1 Follow the process below to use the Account Code Maintenance Form (FTMACCT) to create an accumulated depreciation account code. Note: You will be linking your accumulated depreciation account to your asset accounts after setting up your fixed asset account codes and creating the asset accounts. Consequently, you may have as many accumulated depreciation accounts as you have asset accounts, if you wish. 1. Access the Account Code Maintenance Form (FTMACCT). 2. Enter B (or the COA code for your institution) in the Chart of Accounts field. 3. Enter 1951 in the Account field (or create a unique account code). If creating your own, record your account code. 4. Enter Accum Deprec-Capital Equipment in the Account Title field. 5. Enter an effective date in the Effective Date field (it should be a previous date). 6. Enter 17 (or the account type code that designates the fixed asset accounts in your chart) in the Account Type field. 7. Enter F in the Account Class field. Note: The accumulated depreciation account codes must have an account class of F - the account code for fixed assets. 8. Enter C in the Normal Balance field to define this account with a credit balance. 9. Click the Save icon. 10. Click the Exit icon. Page 22

Steps - Procedure 2 Follow the process below to define the depreciation expense account code. 1. Access the Account Code Maintenance Form (FTMACCT). 2. Enter B (or the COA code for your institution) in the Chart of Accounts field. 3. Enter 7951 in the Account field (or create a unique account code). If creating your own, record your account code. 4. Enter Deprec Exp-Capital Equipment in the Account Title field. 5. Enter an effective date in the Effective Date field (it should be a previous date). 6. Enter 71 (or the account type code that designates direct expense for your institution) in the Account Type field to define this as a depreciation expense account code. 7. Enter D in the Normal Balance field to define this account with a debit account. 8. Click the Save icon. 9. Click the Exit icon. Page 23

Creating the Asset Account Codes for Fixed Assets Overview The asset accounts are those that will be used for automatic capitalization entries, for posting the (normal) debit side of the capital entry. Each asset account code must be linked to an accumulated depreciation account code and to a depreciation expense account code. The asset account codes, like any other account codes, are established in the Account Code Maintenance Form (FTMACCT). You can have as many asset account codes as you wish (for example, land, buildings, equipment, etc.). You will be creating capital expenditure account codes in a later exercise. For each of these capital expenditure codes, you will be designating which asset account you wish to have the system use for capitalization. Asset accounts must be linked to an internal account type of 10 for assets. The class field for asset accounts must be set to F. Steps Follow these steps to complete the process. 1. Access the Account Code Maintenance Form (FTMACCT). 2. Enter B (or the COA code for your institution) in the Chart of Accounts field. 3. Enter 1950 in the Account field (or create a unique account code). If creating your own, record your account code:. 4. Enter Fixed Asset-Capital Equipment in the Account Title field. 5. Enter an effective date in the Effective Date field (it should be a previous date). 6. Enter 17 (or the account type that designates fixed assets for your institution) in the Account Type field. 7. Enter F in the Account Class field. Note: The asset account codes must have an account class of F. 8. Enter 1951 (or the unique account code you created in the previous exercise) in the Accumulated Depreciation field. Page 24

9. Enter 7951 (or the account code you created in the previous exercise) in the Depreciation Expense field. 10. Enter D in the Normal Balance field to define this account with a debit account. 11. Click the Save icon. 12. Click the Exit icon. Page 25

Creating Capital Expense Account Codes for Fixed Assets Overview The capital expenditure account codes are the flags for fixed assets. The use of one of these account codes on an invoice will automatically cause The creation of an origination tag for each unit purchased by the invoice The posting of a capital entry if the item meets or exceeds the minimum capitalization amount in the System Control Maintenance Form (FOASYSC). Capital expenditure account codes are identified as such by the entry of an asset account code in the Asset field of the Account Code Maintenance Form (FTMACCT) record. Capital expenditure accounts can have internal account types of 60 Labor or 70 Direct Expense. They will NOT have any Account Class designation. Note: The alternative to flagging your fixed assets using account codes is to use the commodity codes defined in the Commodity Maintenance Form (FTMCOMM). Assets that are flagged using commodity codes will not automatically capitalize; only capital expenditure account codes will initiate the automatic capitalization process. Page 26

Steps Follow the steps below to create capital expense account codes for your fixed assets. 1. Access the Account Code Maintenance Form (FTMACCT). 2. Enter B (or the COA code for your institution) in the Chart of Accounts field. 3. Enter 7952 in the Account field (or create a unique account code). If creating your own, record your account code. 4. Enter Cap Expense-Capital Equipment in the Account Title field. 5. Enter an effective date in the Effective Date field (it should be a previous date). 6. Enter 71 in the Account Type field to define this as a capital expenditure account code. 7. Enter 1950 (or the unique fixed asset account code you just created) in the Asset Account field. 8. Enter D in the Normal Balance field to define this account with a debit account. 9. Click the Save icon. 10. Click the Exit icon. Page 27

Creating Capital Equity and Gain/Loss Account Codes Categories of account codes There are two more categories of account codes you will need to create for fixed asset processing. These are: A capital equity account used for the credit side of your automatic capitalization entries. The capital equity account can be an internal account type of 40 fund balance, 90 fund addition or 95 fund deduction. The gain/loss account(s), used for posting gains or losses incurred by the disposal of fixed assets. This account can be an internal account type of 40 fund balance, 50 revenue, 60 labor, 70 direct expense, 90 fund addition or 95 fund deduction. Note: An institution can have the same gain and loss accounts. In this exercise, they are different for easier identification. Page 28

Steps Procedure 1 Follow the process below to create a capital equity account. 1. Access the Account Code Maintenance Form (FTMACCT). 2. Enter B (or the COA code for your institution) in the Chart of Accounts field. 3. Enter 4100 in the Account field (or create a unique account code). If creating your own, record your account code:. 4. Enter Investment in Fixed Assets in the Account Title field. 5. Enter an effective date in the Effective Date field (it should be a previous date). 6. Enter 41 (or an account type code that will designate this as a fund balance account for your institution) in the Account Type field. 7. Enter C in the Normal Balance field to define this account with a credit balance. 8. Click the Save icon. 9. Click the Exit icon. Steps Procedure 2 Follow the process below to create a gain on a disposal/sale account. 1. Access the Account Code Maintenance Form (FTMACCT). 2. Enter B (or the COA code for your institution) in the Chart of Accounts field. 3. Enter 5888 in the Account field (or create a unique account code). If creating your own, record your account code:. 4. Enter Gain on Sale of F/A in the Account Title field. 5. Enter an effective date in the Effective Date field (it should be a previous date). 6. Enter 59 in the Account Type field to define this as a gain on disposal/sale account code. 7. Enter C in the Normal Balance field to define this account with a credit balance. Page 29

8. Click the Save icon. 9. Click the Exit icon. Steps Procedure 3 Follow the process below to create a loss on a disposal/sale account. 1. Access the Account Code Maintenance Form (FTMACCT). 2. Enter B (or the COA code for your institution) in the Chart of Accounts field. 3. Enter 7888 in the Account field (or create a unique account code). If creating your own, record your account code:. 4. Enter Loss on Disp of F/A in the Account Title field. 5. Enter an effective date in the Effective Date field (it should be a previous date). 6. Enter 71 (or an account type code that designates direct expense for your institution) in the Account Type field. 7. Enter D in the Normal Balance field to define this account with a debit account. 8. Click the Save icon. 9. Click the Exit icon. Page 30

Creating a Capitalization (or Plant) Fund Code Capitalization code The capitalization (or plant) fund code is the code Banner uses for posting automatic capitalization entries. The internal fund type for this fund must be 96 Investment in Plant. You may have several such capitalization funds if you choose. The system will determine which capitalization fund to use for a given purchase based on the criteria you set up for the fund that is expensed for that purchase. Banner form The fund code for Capitalization is created on the Fund Code Maintenance Form (FTMFUND). Page 31

Steps Follow the process below to create a capitalization fund code. 1. Access the Fund Code Maintenance Form (FTMFUND). 2. Enter B (or the COA code for your institution) in the Chart of Accounts field. 3. Enter 9601 in the Fund field (or create a unique account code). If creating your own, record your account code:. 4. Enter Investment in Plant Fund in the Title field. 5. Enter an effective date in the Effective Date field (it should be a previous date). 6. Enter 96 (or a fund type code that designates investment in plant for your institution) in the Fund Type field. 7. Select Cap Different or No Cap from the drop-down list in the Capitalization Fund Indicator field. 8. Enter 11005 (or a valid organization code for your institution) in the Organization field. Note: The Organization field identifies the codes that Banner will use for making depreciation, gain, or loss postings. 9. Enter 10 (or a valid Program code for your institution) in the Program field. 10. Click the Save icon. 11. Repeat steps 2-10 and create capitalization fund 9602. 12. Click the Exit icon. Page 32

Setting System-Wide Fixed Asset Defaults Fixed assets system control form You can set up system-wide defaults for the system to use. This is accomplished in the Fixed Assets System Control Form (FFASYSC). These settings will be applied in any case where a capital expenditure is made from a fund that does not have fixed asset overrides established, in Fund Type Maintenance (FTMFTYP) or in the Fund Code Maintenance Form (FTMFUND). Banner form Page 33

Steps Follow these steps to complete the process. Warning: Only one participant may update this form. 1. Access the Fixed Asset System Control Maintenance Form (FFASYSC). 2. Enter B (or the COA code for your institution) in the Chart of Accounts field. 3. Enter an effective date in the Effective Date field (it should be a previous date). 4. Enter 9601 or (your unique capitalization or plant fund code) in the Capitalization Fund field. 5. Enter 4100 (or your unique equity account code) in the Capitalization Equity Account field. 6. Enter 5888 (or the unique gain account code you created in an earlier exercise) in the Gain Account field. 7. Enter 7888 (or the unique loss account code you created in an earlier exercise) in the Loss Account field. 8. Select Depreciation & Post from the drop-down list in the Depreciation/Posting Indicator field. 9. Select Depreciation Expense Account from the Expense/Equity Account Default Indicator field. 10. Enter 11005 in the Organization field. Note: If your depreciation expense, gain and loss accounts were created to be fund additions and fund deductions, then you will still need to complete the defaults for the organization and program. Several adjustment entries in fixed asset require the codes to be filled in. 11. Enter 10 in the Program field. 12. Click the Save icon. 13. Click the Exit icon. Page 34

Overriding System Controls by Fund Type Fund Type Maintenance You can override the set up on the Fixed Assets System Control Form (FFASYSC), through the Fund Type Maintenance (FTMFTYP). The override allows for different capital funds, equity, gain and loss accounts and turn off posting of depreciation by fund type, if necessary. Note: If you do not set up these specifications at the fund type level, the system will use the defaults you set up in your Fixed Assets System Control Form (FFASYSC). Most universities do not need to override FFASYSC. Banner form Page 35

Steps Follow these steps to complete the process. Warning: Only one participant may update this form. 1. Access Fund Type Maintenance (FTMFTYP). Note: The FTMFTYP form is a maintenance form. In this exercise, you will retrieve an existing record rather than create a new one. 2. Perform a query. 3. Enter B (or the COA code for your institution) in the Chart of Accounts field. 4. Enter 21 in the Fund Type field. 5. Execute your query. 6. Perform a Record Insert function. 7. Perform a Duplicate Record function. 8. Enter the current date in the Effective Date field. 9. Enter 9602 (or the unique fund code you created in a previous lesson) in the Capitalization Fund field. 10. Enter 4100 (or the unique equity account code you created in a previous lesson) in the Capitalization Equity Account field. 11. Select Fixed Asset Information from the Options menu. 12. Select No Depreciation from the drop-down list in the Depreciation/Posting Indicator field. Note: We are saying any fund in fund type 21 does not depreciate. 13. Select None from the Expense/Equity Account Default Indicator field. 14. Enter 5888 (or the unique gain account code you created in an earlier exercise) in the Gain Account field. 15. Enter 7888 (or the unique loss account code you created in an earlier exercise) in the Loss Account field. 16. Enter 11005 in the Organization field. Page 36

17. Enter 10 in the Program field. 18. Click the Save icon. 19. Click the Exit icon. Page 37

Overriding System Controls by Fund Fund codes for capital expenditures In this lesson we will set up a fund code to specify a different capitalization fund to be used for capital expenditures. This specification is made using the Fund Code Maintenance Form (FTMFUND). The source fund code is used on the invoices. These are the funds where the capital expense will be recorded, and will include your unrestricted fund(s) and any other funds from which capital expenditures may be made. Note: If you do not set up these specifications at the fund level, the system will use the defaults you set up in your Fixed Assets System Control Form (FFASYSC). Most universities do not need to override FFASYSC. Banner form Page 38

Steps Procedure 1 Follow the process below to create a source fund code when the capitalization fund codes are different from FFASYSC. 1. Access the Fund Code Maintenance Form (FTMFUND). Note: The FTMFUND form is a maintenance form. In this exercise, you will retrieve an existing record rather than create a new one. 2. Perform a query. 3. Enter B (or the COA code for your institution) in the Chart of Accounts field. 4. Enter 1120 (or the fund code that designates the unrestricted fund for your institution) in the Fund field. Warning: Only one participant will be able to make changes to this record. Other participants can choose other existing fund numbers. 5. Execute your query. Note: The system displays the title and additional information for your selected fund. 6. Perform a Record Insert function. 7. Perform a Duplicate Record function. 8. Enter the current date in the Effective Date field. 9. Select Cap Different or No Cap from the drop-down list in the Capitalization Fund Indicator field. 10. Enter 4100 (or the unique equity account code you created in a previous lesson) in the Capitalization Equity Account field. 11. Enter 9602 (or the unique fund code you created in a previous lesson) in the Capitalization Fund field. 12. Click the Save icon. 13. Click the Exit icon. Page 39

Steps Procedure 2 Follow the process below to create a source fund code where the source fund and capitalization code are the same. 1. Access the Fund Code Maintenance Form (FTMFUND). 2. Enter B (or the COA code for your institution) in the Chart of Accounts field. 3. Enter 1115 in the Fund field. 4. Enter Current Unrestricted Fund in the Title field. 5. Enter an effective date in the Effective Date field (it should be a previous date). 6. Enter 11 in the Fund Type field. 7. Enter AL in the Bank field. 8. Select Cap Fund same as Source fund in the Capitalization Fund Indicator field. Note: By doing this, Fund 1115 is now its own capitalization fund. You may do this to override what the capitalization fund is on FFASYSC. 9. Select None in the Multiple Fund Balance Indicator field. 10. Enter 4100 or your unique equity account code you created in an earlier exercise in the Capitalization Equity Account field. 11. The system automatically enters the capitalization (or plant) fund code in the Capitalization Fund field. 12. Select Fixed Asset Information from the Options menu. 13. Select No Depreciation from the drop-down list in the Depreciation/Posting Indicator field. Note: Fund 1115 and your fund code is a source or input fund, which does not have a fixed asset associated with it, so there is no depreciation. 14. Select None from the Expense/Equity Account Default Indicator field. 15. Enter 5888 (or the unique gain account code you created in an earlier exercise) in the Gain Account field. Page 40

16. Enter 7888 (or the unique loss account code you created in an earlier exercise) in the Loss Account field. 17. Enter 11005 in the Organization field. 18. Enter 10 in the Program field. 19. Click the Save icon. 20. Click the Exit icon. Page 41

Determining the Minimum Value for Fixed Assets Implementing the fixed assets module The Finance System Control Maintenance Form (FOASYSC) determines the minimum value for automatic capitalization of a fixed asset and when Banner should create an origination tag, or a document tag. The fields that govern the system-wide operation of the Fixed Assets module are the Min Asset Cap Amount, Fixed Asset Feed Code, and DTAG Feed From fields. The Min Asset Cap Amount is the minimum monetary value for which Banner will automatically create capitalization entries for items purchased using a fixed asset account code. The Fixed Asset Feed Code is used to indicate when you want Banner to assign an origination tag. The choices from the pull-down list are: Invoice Banner creates an origination tag when it posts invoiced documents. Receiving & Invoice Banner creates an origination tag when a fixed asset item is received (though it will still not be possible to permanently tag the item until it is invoiced, as well). The DTAG Feed From is used to indicate is document tag will be issued when a journal voucher, stores issue or direct cash receipt are recorded against a capital expense account. Note: The fixed asset tagging and the automatic capitalization are two separate processes. Every item purchased using a fixed asset account code will tag. Only items exceeding your Min Asset Cap Amount will be automatically capitalized. Page 42

Banner form Finance System Control Maintenance Form (FOASYSC) Steps Follow the process below to set up where a document tag is created and determine the minimum value for fixed assets. Note: For this exercise, the instructor will update this form. 1. Access the System Control Maintenance Form (FOASYSC). Note: The FOASYSC form is a maintenance form, and you are only permitted to change this record as of the current date. 2. Perform an Insert Record function. 3. Perform a Duplicate Record function. 4. Enter the current date in the Effective field. 5. Select Fixed Asset Information from the Option menu. 6. Enter 1000 in the Minimum Asset Capitalization Amount field. 7. Select Invoice from the drop-down list in the Fixed Asset Feed Code field. 8. Check the Journal Voucher check box in the DTAG FEED from section. Page 43

9. Click the Save icon. 10. Click the Exit icon. Note: Changes to FOASYSC will not take effect until you have logged off Banner and logged back in again. Page 44

Self Check Directions Use the information you have learned in this workbook to complete this self check activity. Question 1 What form enables you to create user-defined codes, assign values to them, and organize them into groups? Question 2 When setting up accumulated depreciation account codes, what account class should they be? Question 3 What Banner form do you use to link account codes to a single asset account? Question 4 What form do you use to create a capital expenditure account? Question 5 Is it necessary to have different Gain and Loss Accounts? Page 45

Question 6 What Banner form is used to create a source fund code? Question 7 Automatic capitalization postings are only generated when you use capital expenditure account codes. True or False Question 8 What form is used to define depreciation codes? Page 46

Answer Key for Self Check Question 1 What form enables you to create user-defined codes, assign values to them, and organize them into groups? The Fixed Asset User Defined System Codes Validation Form (FFVSDAT) Question 2 When setting up accumulated depreciation account codes, what account class should they be? The account class must be an F for the accumulated depreciation. Question 3 What Banner form do you use to link account codes to a single asset account? Account Code Maintenance Form (FTMACCT) Question 4 What form do you use to create a capital expenditure account? The Account Code Maintenance Form (FTMACCT) Question 5 Is it necessary to have different Gain and Loss Accounts? No. An organization may have the same account for Gain and Losses. Page 47

Question 6 What Banner form is used to create a source fund code? The Fund Code Maintenance Form (FTMFUND) Question 7 Automatic capitalization postings are only generated when you use capital expenditure account codes. True. A commodity code can flag a fixed asset, but no capitalization posting will occur unless a capital expenditure account code is also used. Question 8 What form is used to define depreciation codes? The Fixed Asset Depreciation Code Maintenance Form (FTMDEPR) Page 48

Day-to-Day Operations Section goal The purpose of this section is to explain the day-to-day or operational procedures to create and maintain fixed assets in the Fixed Asset Module. Objectives In this section you will learn how to create invoices for fixed assets extract origination tags and document tags from the temporary table create and update a master record for a fixed asset create document tags setup and depreciate an asset perform adjustments on an asset transfer records query and report on records. Page 49

Creating Invoices Overview There are two types of invoices: Regular and Direct Pay. Regular invoices are those that are related to a purchase order; direct pay type invoices are those that are unrelated to any purchase order. Either type of invoice will initiate fixed asset tags and the automatic capitalization process if the amount is over the minimum capitalization amount on FOASYSC. Note: You must invoice an item before Banner can create the origination tag. Banner form Invoice/Credit Memo Form (FAAINVE) Steps Procedure 1 Follow the process below to create a direct pay invoice that will buy a boiler for $10,000. 1. Access the Invoice/Credit Memo Form (FAAINVE). 2. Enter NEXT in the Document field. Banner will assign the next sequential number. 3. Select Direct Pay in the field to the right of the Multiple checkbox. 4. Enter a vendor in the Vendor field. 5. Perform a Next Block function. 6. Enter the invoice date in the Invoice Date field. 7. Enter the transaction date in the Transaction Date field. 8. Enter the date you want payment made in the Payment Date field. 9. Enter A1 in the Bank field. Page 50

10. Perform a Next Block function. 11. Enter Boiler in the Commodity Description field. 12. Enter 10,000 in the Approved Amounts field. 13. Perform a Next Block function. 14. Enter 1110 in the Fund field. 15. Enter 11005 in the Organization field. 16. Enter 7952 in the Account field. 17. Enter 10 in the Program field. 18. Tab all the way through the rest of the form. 19. Perform a Next Block function. 20. Click on the Complete button to complete the invoice. 21. Record the Invoice #:. 22. Click the Exit icon. Note: The instructor will run posting (FGRACTG). Page 51

Steps Procedure 2 Follow the process below to create a direct pay invoice that will buy a valve for $600. 1. Access the Invoice/Credit Memo Form (FAAINVE). 2. Enter NEXT in the Document field. Banner will assign the next sequential number. 3. Select Direct Pay in the field to the right of the Multiple checkbox. 4. Enter a vendor in the Vendor field. 5. Perform a Next Block function. 6. Enter the invoice date in the Invoice Date field. 7. Enter the transaction date in the Transaction Date field. 8. Enter the date you want payment made in the Payment Date field. 9. Enter A1 in the Bank field. 10. Perform a Next Block function. 11. Enter Valve in the Commodity Description field. 12. Enter 600 in the Approved Amounts field. 13. Perform a Next Block function. 14. Enter 1110 in the Fund field. 15. Enter 11005 in the Organization field. 16. Enter 7952 in the Account field. 17. Enter 10 in the Program field. 18. Tab all the way through the rest of the form. 19. Perform a Next Block function. 20. Click on the Complete button to complete the invoice. 21. Record the Invoice #:. 22. Click the Exit icon. Note: The instructor will run posting (FGRACTG). Page 52

Steps Procedure 3 Follow the process below to create a direct pay invoice that will buy a heating component for $2,500. 1. Access the Invoice/Credit Memo Form (FAAINVE). 2. Enter NEXT in the Document field. Banner will assign the next sequential number. 3. Select Direct Pay in the field to the right of the Multiple checkbox. 4. Enter a vendor in the Vendor field. 5. Perform a Next Block function. 6. Enter the invoice date in the Invoice Date field. 7. Enter the transaction date in the Transaction Date field. 8. Enter the date you want payment made in the Payment Date field. 9. Enter A1 in the Bank field. 10. Perform a Next Block function. 11. Enter Heating Component in the Commodity Description field. 12. Enter 2,500 in the Approved Amounts field. 13. Perform a Next Block function. 14. Enter 1110 in the Fund field. 15. Enter 11005 in the Organization field. 16. Enter 7952 in the Account field. 17. Enter 10 in the Program field. 18. Tab all the way through the rest of the form. 19. Perform a Next Block function. 20. Click on the Complete button to complete the invoice. 21. Record the Invoice #:. 22. Click the Exit icon. Note: The instructor will run posting (FGRACTG). Page 53

Steps - Procedure 4 Follow the process below to create a direct pay invoice that will buy paper for $1,500. 1. Access the Invoice/Credit Memo Form (FAAINVE). 2. Enter NEXT in the Document field. Banner will assign the next sequential number. 3. Select Direct Pay in the field to the right of the Multiple checkbox. 4. Enter a vendor in the Vendor field. 5. Perform a Next Block function. 6. Enter the invoice date in the Invoice Date field. 7. Enter the transaction date in the Transaction Date field. 8. Enter the date you want payment made in the Payment Date field. 9. Enter A1 in the Bank field. 10. Perform a Next Block function. 11. Enter Paper in the Commodity Description field. 12. Enter 1,500 in the Approved Amounts field. 13. Perform a Next Block function. 14. Enter 2110 in the Fund field. 15. Enter 11005 in the Organization field. 16. Enter 7952 in the Account field. 17. Enter 10 in the Program field. 18. Tab all the way through the rest of the form. 19. Perform a Next Block function. 20. Click on the Complete button to complete the invoice. 21. Record the Invoice #:. 22. Click the Exit icon. Note: The instructor will run posting (FGRACTG). Page 54

Steps - Procedure 5 Follow the process below to create a direct pay invoice that will buy pencils for $100. 1. Access the Invoice/Credit Memo Form (FAAINVE). 2. Enter NEXT in the Document field. Banner will assign the next sequential number. 3. Select Direct Pay in the field to the right of the Multiple checkbox. 4. Enter a vendor in the Vendor field. 5. Perform a Next Block function. 6. Enter the invoice date in the Invoice Date field. 7. Enter the transaction date in the Transaction Date field. 8. Enter the date you want payment made in the Payment Date field. 9. Enter A1 in the Bank field. 10. Perform a Next Block function. 11. Enter Pencils in the Commodity Description field. 12. Enter 100 in the Approved Amounts field. 13. Perform a Next Block function. 14. Enter 2110 in the Fund field. 15. Enter 11005 in the Organization field. 16. Enter 7952 in the Account field. 17. Enter 10 in the Program field. 18. Tab all the way through the rest of the form. 19. Perform a Next Block function. 20. Click on the Complete button to complete the invoice. 21. Record the Invoice #:. 22. Click the Exit icon. Note: The instructor will run posting (FGRACTG). Page 55

Viewing the Invoice s Posting Detail The posting process The Posting Process (FGRACTG) posts invoices (and all other postable documents in Banner). Document Retrieval Inquiry Form Once the Posting Process is complete, purchase orders and invoices can be viewed in detail through the Document Retrieval Inquiry Form (FGIDOCR). Page 56

Viewing the posted invoices The Document Postings Form (FGQDOCP) allows you to view the posted invoices. The Header Information displays a limited summary of the invoice. The Detail Information displays the accounting distribution for the invoice. When you access FGQDOCP, you should see the following: Accounts payable transaction Automatic capitalization entry Expenditure Control entry to match with the Accounts Payable and YTD expense entries YTD Capital expense, which pairs with Accounts Payable and the Expenditure Control entries. Steps Follow the process below to view posted invoices. 1. Access the Document Retrieval Inquiry Form (FGIDOCR). 2. Enter the invoice number in the Document field. 3. Perform a Next Block Function. 4. Select Access Document Postings from the Options menu to go to the Document Postings Form (FGQDOCP), which displays all the transactions posted to a fund and organization. 5. Move the vertical scroll bar to display the transactions. 6. Click the Exit icon to close FGQDOCP and return to the FGIDOCR form. 7. Click the Exit icon. Page 57

Creating Fixed Asset Origination Tags Origination tag extraction process Generating origination tags for each invoiced item will require you to run the Fixed Asset Origination Tag Extraction (FFPOEXT). This process will take all of the tags that have been updated to the FFBOTAG table and create master fixed asset records for these in the FFBMAST table (your fixed asset master file). The Fixed Asset Origination Tag Extraction then clears these records from the FFBOTAG table. The FFPOEXT process produces a report that should be reviewed carefully. This will list all of the tags, which have been or will be created by this process, and indicate whether or not the tagged asset was also capitalized. This report should be used to ensure that tags are being created appropriately, and to correct errors resulting from incorrectly coded invoices. There are five basic things that can occur to the origination tags after they are extracted: 1. An origination tag on the extract that is capitalized will be converted to a permanent tag. 2. An origination tag on the extract will be attached to another capitalized permanent tag. 3. An origination tag that is capitalized will be converted to a permanent tag and then made a component of another capitalized permanent tag. 4. An origination tag that is capitalized needs to be document tagged out because the item is not a fixed asset item. 5. An origination tag that is not capitalized needs to be document tagged out because the item is not a fixed asset item. Page 58

Following the previous exercises your extract should include the following: Boiler for $10,000 that was capitalized Valve for $600 that was not capitalized Heating Component for $2,500 that was capitalized Paper for $1,500 that was capitalized Pencils for $100 that were not capitalized. Note: It is extremely important that the FFPOEXT process be run frequently and regularly. The FFBOTAG table will start accumulating tags as soon as you have turned fixed assets on in the System Control Maintenance Form (FOASYSC). Banner form Fixed Asset Origination Tag Extraction (FFPOEXT) Page 59

Steps Note: The instructor will run the FFPOEXT process. 1. Access the Fixed Asset Origination Tag Extraction Process (FFPOEXT). 2. Perform a Next Block function 3. Enter DATABASE or a printer name in the Printer field. 4. Perform a Next Block function 5. Enter A in Parameter 01: Audit or Update Mode Values field. 6. Perform a Next Block function 7. Click the Save icon. 8. Review the output. 9. Rerun the job in Update mode be repeating steps 2-8 but change the parameter from A to U. 10. After the report is reviewed, click the Exit icon. Page 60

Query Fixed Asset Origination Tags Banner form Fixed Asset Procurement Query Form (FFIPROC) Page 61

Steps Follow the process below to view origination tags by accessing the Fixed Asset Procurement Query Form (FFIPROC). 1. Access the Fixed Asset Procurement Query Form (FFIPROC). 2. Execute a Query. 3. Use the vertical scroll bar to scroll through the list of origination tags. 4. Locate your five invoices. 5. Record the origination tag numbers. There is an origination tag for each item. Origination Tag #: Origination Tag #: Origination Tag #: Origination Tag #: Origination Tag #: Page 62

Converting Origination Tags to Permanent Tags Introduction Banner has assigned origination tags to the invoiced items. Now you must update the items and assign them to permanent tags using the Fixed Asset Master Maintenance Form (FFAMAST). Banner form Steps In this exercise, the Boiler that was invoiced and capitalized for $10,000 is now going to be converted to a Permanent Tag. 1. Access the Fixed Asset Master Maintenance Form (FFAMAST). 2. Enter an origination tag number in the Asset Tag field. 3. Select Convert to permanent tag in the Action field. 4. Perform a Next Block function. 5. Enter NEXT in the Permanent Tag # field or enter your own permanent tag number. Note: Using next, Banner will assign the next sequential number for you. 6. Go to the Asset Type field. 7. Click Search to view a list of values. Page 63

8. Highlight E4 and double-click it to select it. Note: Permanent Tag # and Asset Type are the only two fields you must enter information to create a permanent tag. The remaining fields and windows allow you to enter information specific to the item. 9. Select Acquisition Information from the Options menu. 10. Enter a serial number for this asset in the Serial Number/VIN field. Note: Please take time later to complete other pertinent information in the remaining fields in this window, and to navigate to the other windows. 11. Click the Save icon. 12. Click the Exit icon. Page 64

Assigning Depreciation Information to a Tag Assigning depreciation information After converting the asset to a permanent tag, you need assign the depreciation information to the tag. Banner form The Fixed Asset Depreciation Form (FFADEPR) is used to assign the depreciation information to a tag. Page 65

Fields Use the information in the table to complete the exercises that follows. Field Remaining Periods Accumulated Depreciation Last Depreciation Date Total Net Book Value Last Activity Date Fund Organization Account Program Posting Code Value The number has been reduced by the number of depreciated periods. The amount of depreciation taken to date. The last time this item was depreciated. The Accumulated Depreciation field value is subtracted from the Total Adjusted Cost field value. The last time this item was updated. This is the capitalization fund code, which is automatically populated from the source fund. It cannot be changed. The organization code assigned to the capitalization fund code automatically appears here. You can assign an organization code to the capitalization fund code on the Fund Code Maintenance Form (FTMFUND). The depreciation expense code created on the Account Code Maintenance Form (FTMACCT) is automatically displayed. Banner automatically populates the program code assigned to the capitalization fund code. You can assign a program code to the capitalization fund code on the Fund Code Maintenance Form (FTMFUND). Banner automatically populates the value you entered in the Depreciation/Post Indicator field that you assigned to the capitalization fund code. You assigned a postcode to the capitalization fund code on the Fund Code Maintenance Form (FTMFUND). Page 66

Steps Follow the process below to assign the depreciation information to a tag. 1. Access the Fixed Asset Depreciation Form (FFADEPR). 2. Enter the permanent tag number that you just created in the last exercise in the Permanent Tag field. 3. Perform a Next Block function. 4. Enter the useful life depreciation methodology, which you created on the Fixed Asset Depreciation Code Maintenance Form (FTMDEPR, in the Depreciation Method field. For this exercise, select SL (Straight Line). 5. Select the depreciation frequency in the Frequency field. Select Monthly for this exercise. 6. Indicate the salvage value in the Salvage Value field. For this exercise, enter 100. 7. Enter the date the depreciation can begin in the Start Date field. For this exercise, enter the first of this month. 8. Enter the life expectancy for this item in the Useful Life field. For this exercise, enter 5 if it did not pop in from the Depreciation Code. 9. Click the Save icon. 10. Click the Exit icon. Page 67

Creating Primary Tags Primary Tags In this lesson, you can practice creating primary tag numbers. A primary tag is used to associate a group of assets in one of the following ways. As a component of a primary tag, an asset is merely grouped with other items, but can be assigned its own permanent tag number, and can be adjusted and depreciated independently. As an attachmen to a primary tag, an asset cannot be assigned a permanent tag number of its own (it will be referenced only using the origination tag number) and will be adjusted and depreciated as part of the primary tag. Banner form Fixed Asset Master Maintenance Form (FFAMAST) Page 68

Steps - Procedure 1 In this exercise the Heating Component for $2,500 is going to be made a component of the Boiler. 1. Access the Fixed Asset Master Maintenance Form (FFAMAST). 2. Enter in the heating component s origination tag number in the Asset Tag field. 3. Select Convert to permanent tag in the Action field. 4. Perform a Next Block function. 5. Enter NEXT in the Permanent Tag field or enter your own permanent tag number. Note: Using next, Banner will assign the next sequential number for you. 6. Assign this asset to the Boiler permanent tag you just created in the Primary Tag field. 7. Select Component of in the Subordinate Type field. 8. Enter the item s category in the Asset Type field. 9. Click the Save icon, 10. Click the Exit icon. 11. Access the Fixed Asset Depreciation Form (FFADEPR). 12. Enter the permanent tag number that you just created in the Permanent Tag field. 13. Perform a Next Block function. 14. Enter the useful life depreciation methodology, which you created on the Fixed Asset Depreciation Code Maintenance Form (FTMDEPR) in the Depreciation Method field. For this exercise, select SL (Straight Line). 15. Select the depreciation frequency in the Frequency field. Select Monthly for this exercise. 16. Indicate the salvage value in the Salvage Value field. For this exercise, enter 100. 17. Enter the date the depreciation can begin in the Start Date field. For this exercise, enter the first of this month. Page 69

18. Enter the life expectancy for this item in the Useful Life field. For this exercise, enter 5 if it did not pop in from the Depreciation Code. 19. Click the Save icon. 20. Click the Exit icon. Steps Procedure 2 In this exercise the valve for $600 is going to be made an attachment of the Boiler. Before this can be done the valve must be capitalized first. Non-capitalized items may not be attached to capitalized items. 1. Access the Fixed Asset Master Maintenance Form (FFAMAST). 2. Enter an origination tag number in the Asset Tag field. 3. Select Origination Tag-Update Asset from the drop-down list, in the Action field. 4. Perform a Next Block function. 5. Enter E4 the Asset Type field. 6. Perform a Next Block function. 7. Enter PU in the Acquisition Method field. 8. Enter 20 in the Condition Code field. 9. Enter IN in the Title To field. 10. Perform a Next Block function. 11. Enter the received date in the Received Date Field. 12. Enter B (or the COA code for your institution) in the COA field. 13. Enter 11005 in the Orgn field. 14. Enter the location code for the asset in the Locn field. 15. Perform a Next Block function. Note: The accounting information from the invoice is displayed. 16. Perform a Next Block function: Note: The default capitalization information will appear from FFASYSC. 17. Click the New Sequence icon. Page 70

18. Enter 1950 in the Asset Account field. Note: The accumulated depreciation account will default. 19. Enter 600 in the Cost field. 20. Click the Save icon. 21. Click the Exit icon. 22. Access the Fixed Asset Adjustment Form (FFAADJF). 23. Enter Next in the Document Code field. 24. Select Otag capitalization in the Function Code field. 25. Perform a Next Block function. 26. Enter the reason or justification for updating the asset in the Description field. 27. Enter the acquisition date for this item in the Trans Date field. Remember, adjustments cannot be dated prior to the capitalization date. Note: Any future adjustments cannot be dated prior to this capitalization date. 28. Perform a Next Block function. 29. Enter in the origination tag of the valve, in the Otag field. 30. Perform a Next Block function. 31. Make sure the Asset and Accounting numbers match. 32. Click the Complete icon. 33. Click the Exit icon. 34. Run the Posting Process (FGRACTG). 35. Access the Fixed Asset Master Maintenance Form (FFAMAST). 36. Enter in the valve s origination tag number in the Asset Tag field. 37. Select Origination Tag - Update Asset in the Action field. 38. Perform a Next Block function. 39. Assign this asset to the boiler s permanent tag in the Primary Tag field. 40. Select Attached to in the Subordinate Type field. Page 71

41. Click the Save icon. 42. Click the Exit icon. 43. Access the Fixed Asset Depreciation Form (FFADEPR). 44. Enter the permanent tag number of the Boiler in the Permanent Tag field. 45. Perform a Next Block function. 46. Confirm the attachment s asset depreciation expense distribution matches the boilers Page 72

Deleting Non-capitalized Fixed Assets without Dtags Introduction In some instances an incorrectly coded invoice can cause the generation of fixed asset tags that you do not want. So long as the assets in question have not also been capitalized, they can be simply deleted using the Fixed Asset Deletion Form (FFAFDEL). Note: If you delete the fixed asset using this method and Dtags are marked in FOASYSC, then do not make a journal entry to move the transaction out of the fixed asset expense line or a Dtag will be created. Banner form Page 73

Steps Follow the process below to delete a fixed asset. 1. Access the Fixed Asset Deletion Form (FFAFDEL). 2. Perform an Execute Query function. Any eligible (non-capitalized) tags are displayed. 3. Click on one of the boxes on the right side of your screen in the Delete column. Note: You might get an error or warning, for example, if the item you selected has adjustments or is tagged. Take note of any messages that are displayed in the Auto Hint line. 4. Select Remove from the Record menu to delete all selected assets. Note: you will be asked to select Delete All again 5. Select Remove again from the Record menu to delete all selected assets. Note: A pop up box will appear indicating the record was deleted, Select OK. 6. Click the Exit icon. Page 74

Removing Erroneous Origination Tags Document Tag In FOASYSC, document tags were turned on for journal vouchers. In order for a document, tag to be created a journal voucher must be completed that either debits or credits the capital expense account. For this workbook, that is account 7952. After the journal voucher is created and posted, the FFPOEXT process is run to create the document tag. Document tags are resolved on the form Fixed Asset Dtag Processing (FFADTGP). Banner form Fixed Asset Dtag Processing (FFADTGP) Page 75

Steps - Procedure 1 In this exercise, the paper for $1,500 will be dtagged out of the capital expense account and the capitalization will be reversed. 1. Access the Journal Voucher Quick Form (FGAJVCQ). 2. Using a JE15 rule code, complete this journal voucher: Debit - 2110-11005-7210-10 for $1,500 Credit 2110-11005-7952-10 for $1,500 Note: Record your journal voucher number. 3. Run the posting process FGRACTG. 4. Run the Fixed Asset Origination Tag extract FFPOEXT. Note: The capitalization process was reversed after the extract was run. 5. Write down the Document Tag number attached to your journal voucher. 6. Access the Fixed Asset Dtag Processing form (FFADTGP). 7. Enter in your journal voucher number in the Document field. 8. Verify Journal Entry is selected in the Type field. 9. Verify Pending is selected in the DTag Pending field. 10. Perform a Next Block function. Note: The accounting information defaults in from the journal voucher. Leave it alone since it is correct that we are moving expenditures out of the capital expense account. 11. Select Delete in the Action field. 12. Enter in the paper s Otag number in the Otag field. 13. Select Perform Actions from the Options menu. 14. Click OK in the pop up box indicting the sequences is in balance and to perform the update. Note: You will be brought to the Fixed Asset Master Delete form (FFAFDEL). Page 76

15. The paper s Otag is marked for deletion. 16. Select Delete All from the Options menu. 17. Select Delete All from the Options menu, again. Note: A pop up box will appear indicating the record was deleted. 18. Click the Exit icon. Steps - Procedure 2 In this exercise, the pencils for $100 will be dtagged out of the capital expense account. 1. Access the Journal Voucher Quick Form (FGAJVCQ). 2. Using a JE15 rule code, complete this journal voucher: Debit - 2110-11005-7210-10 for $100 Credit 2110-11005-7952-10 for $100 Note: Record your journal voucher number. 3. Run the posting process FGRACTG. 4. Run the Fixed Asset Origination Tag extract FFPOEXT. 5. Write down the Document Tag number attached to your journal voucher. 6. Access the Fixed Asset Dtag Processing form (FFADTGP). 7. Enter your journal voucher number in the Document field. 8. Verify Journal Entry is selected in the Type field. 9. Verify Pending is selected in the DTag Pending field. 10. Perform a Next Block function. Note: The accounting information defaults in from the journal voucher. Leave it alone since it is correct that we are moving expenditures out of the capital expense account. 11. Select Delete in the Action field. 12. Enter in the pencil s Otag number in the Otag field. 13. Select Perform Actions from the Options menu. Page 77

14. Click OK in the pop up box indicting the sequences is in balance and to perform the update. Note: You will be brought to the Fixed Asset Master Delete form (FFAFDEL). 15. The pencil s Otag is marked for deletion. 16. Select Delete All from the Options menu. 17. Select Delete All from the Options menu, again. Note: A pop up box will appear indicating the record was deleted. 18. Click the Exit icon. Page 78

Displaying Tags Introduction The Fixed Asset List Form (FFIFALV) lists the permanent tags, origination tags, and the primary tags. Banner form Steps Follow the process below to list the permanent, origination and primary tags. 1. Access the Fixed Asset List Form (FFIFALV). 2. Select the Permanent Tag radio button. 3. Perform a Next Block function. 4. Perform an Execute Query function. Note: The permanent tags are displayed in descending order. 5. Click the Exit icon. Page 79

Creating a Fixed Asset Received as a Gift Manually create a fixed asset Use the Fixed Asset Master Form (FFAMAST) form to create a fixed asset record manually. Use the Gifts/Donations option provided in the Action field of the FFAMAST form to manually create the tag. If the gift or donation needs to be capitalized, do this after the permanent tag is created. The Fixed Asset Adjustment form (FFAADJF) needs to be accessed to record the capitalization entry. The Fixed Asset Depreciation Form (FFADEPR) is used to set up the depreciation schedule. Banner form Fixed Asset Master Form (FFAMAST) Steps Procedure 1 Follow the steps below to manually create a fixed asset that was received as a gift but will not be capitalized. 1. Access the Fixed Asset Master Form (FFAMAST). 2. Enter NEXT in the Asset Tag field. 3. Select Gifts/Donations from the drop-down list the Action field. 4. Perform a Next Block function. 5. Enter NEXT in the Permanent Tag# field. 6. Enter a description of this acquisition (for example, Grandfather Clock) in the Asset Description field. 7. Enter EA in the U/M field. 8. Enter B2 in the Asset Type field. 9. Perform a Next Block function. Page 80

10. Enter DN in the Acquisition Method field. 11. Enter 20 in the Condition Code field. 12. Enter IN in the Title To field. 13. Perform a Next Block function. 14. Enter the received date in the Received Date field. 15. Enter B (or the COA code for your institution) in the COA field. 16. Enter 11005 (or a valid organization code for your institution) in the Organization field. 17. Enter the location code for the asset in the Location field. 18. Click the Save icon. 19. Click the Exit icon. Steps - Procedure 2 Follow the process below to manually create a fixed asset that was received as a gift that will be capitalized. 1. Access the Fixed Asset Master Form (FFAMAST). 2. Enter NEXT in the Asset Tag field. 3. Select Gifts/Donations from the drop-down list the Action field. 4. Perform a Next Block function. 5. Enter NEXT in the Permanent Tag field. 6. Enter a description of this acquisition (for example, Oil Painting of Campus signed by Author dated 1945) in the Asset Description field. 7. Enter EA in the U/M field. 8. Enter AC in the Asset Type field. 9. Perform a Next Block function. 10. Enter DN in the Acquisition Method field. 11. Enter 20 in the Condition Code field. 12. Enter IN in the Title To field. Page 81

13. Perform a Next Block function. 14. Enter the received date in the Received Date Field. 15. Enter B (or the COA code for your institution) in the COA field. 16. Enter 11005 (or a valid organization code for your institution) in the Organization field. 17. Enter the location code for the asset in the Location field. 18. Perform a Next Block function. 19. Enter 1110 (or a valid source fund code for your institution) in the Fund field. 20. Enter 11005 (or a valid organization code for your institution in the Organization field. 21. Enter 1950 (or a valid fixed asset account) in the Account field. 22. Enter 10 (or a valid program code for your institution) in the Program field. 23. Enter the value of the gift in the Cost field. 24. Perform a Next Block function: Note: The default capitalization information will appear from FFASYSC. You may change it by clicking the new sequence button on the button of the form and changing the funds and accounts. This will not be done in this exercise. 25. Click the Save icon. 26. Take note of the Origination Tag number and Permanent Tag number. Page 82

Capitalizing a Gift Permanent tag capitalization The Permanent Tag Capitalization function allows you to capitalize an asset that either came through the Procurement Process not capitalized or was entered as a gift/donation. Prior to using this function, you must complete the Capitalization window of the Fixed Asset Master Form (FFAMAST) for the permanent tag. In this exercise, you will be using the action called SCAP PTAG Capitalization on the Fixed Asset Adjustment Form (FFAADJF). This option creates capitalization postings to your ledger. Note: Another option on this form, NCAP No Posting to GL, can be used to flag the item as capitalized without creating ledger postings. This option might be used in the case of converted assets, where the capital entry already exists in the ledger. Banner form Fixed Asset Adjustment Form (FFAADJF) Page 83

Steps In this exercise, you will create the capitalization entry action, which will post to the ledgers, using the Fixed Asset Adjustment Form (FFAADJF). 1. Access the Fixed Asset Adjustment Form (FFAADJF). 2. Enter Next in the Document Code field. 3. Select Ptag capitalization in the Function Code field. 4. Perform a Next Block function. 5. Enter the reason or justification for updating the asset in the Description field. 6. Enter the acquisition date for this item in the Trans Date field. Remember, adjustments cannot be dated prior to the capitalization date. Note: Any future adjustments cannot be dated prior to this capitalization date. 7. Perform a Next Block function. 8. Enter in the permanent tag you just created in the last exercise, in the Ptag field. 9. Perform a Next Block function. 10. Make sure the Asset and Accounting numbers match. 11. Click the Complete icon. 12. Click the Exit icon. 13. Run the Posting Process (FGRACTG). 14. Access the Fixed Asset Depreciation Form (FFADEPR). 15. Enter the permanent tag number that you just capitalized in the Permanent Tag field. 16. Perform a Next Block function. 17. Enter the useful life depreciation methodology, which you created on the Fixed Asset Depreciation Code Maintenance Form (FTMDEPR) in the Depreciation Method field. For this exercise, select SL (Straight Line). 18. Select the depreciation frequency in the Frequency field. Select Monthly for this exercise. Page 84

19. Indicate the salvage value in the Salvage Value field. For this exercise, enter 100. 20. Enter the date the depreciation can begin in the Start Date field. 21. Enter the life expectancy for this item in the Useful Life field. For this exercise, enter 20 if it did not pop in from the Depreciation Code. 22. Click the Save icon. 23. Click the Exit icon. Page 85

Creating an Asset That Was Expensed to the Wrong Account Document Tag There are times when an item is truly an asset but has not been charged to the capital expense account. Since, document tags are turned on in FOASYSC a journal voucher can be created that will debit the capital expense account and credit the operating account. When FFPOEXT is run, a document tag is created that can be turned into an origination tag on the Fixed Asset Dtag Processing form (FFADTGP). If the asset needs to be capitalized then an adjustment needs to be made on FFAADJF to adjust depreciation set up on FFADEPR. Banner form Fixed Asset Dtag Processing (FFADTGP) Page 86

Steps In this exercise, a copier machine for $2.000 was charged to the supplies account and it needs to be moved to the capital expense account, capitalized and then depreciation set up. 1. Access the Journal Voucher Quick Form (FGAJVCQ). 2. Using a JE15 rule code, complete this journal voucher: Debit - 1110-11005-7952-10 for $2,000 Credit 1110-11005-7210-10 for $2,000 Note: Record your journal voucher number. 3. Run the posting process FGRACTG. 4. Run the Fixed Asset Origination Tag extract FFPOEXT. 5. Write down the Document Tag number attached to your journal voucher. 6. Access the Fixed Asset Dtag Processing form (FFADTGP). 7. Enter your journal voucher number in the Document field. 8. Verify Journal Entry is selected in the Type field. 9. Verify Pending is selected in the DTag Pending field. 10. Perform a Next Block function. Note: The accounting information defaults in from the journal voucher. Leave it alone since it is correct that we are moving expenditures into the capital expense account. 11. Select Create in the Action field. 12. Click the Save icon 13. Write down the origination tag number that was assigned 14. Select Perform Actions in the Options menu. 15. Click OK in the pop up box indicting the sequences is in balance and to perform the update. Note: Once you click ok the Dtag has been completed and now is marked resolved. 16. Click the Exit icon. Page 87

17. Access the Fixed Asset Master Maintenance Form (FFAMAST). 18. Enter an origination tag number in the Asset Tag field. 19. Select Convert to permanent tag from the drop-down list, in the Action field. 20. Perform a Next Block function. 21. Enter NEXT in the Permanent Tag field or enter your own permanent tag number. Note: Using next, Banner will assign the next sequential number for you. 22. Enter E1 in the Asset Type field. 23. Perform a Next Block Function. 24. Enter PU in the Acquisition Method field. 25. Enter a date in the Acquisition Date field. 26. Enter 20 in the Condition Code field. 27. Enter IN in the Title To field. 28. Perform a Next Block function. 29. Enter the location code for the asset in the Location field. 30. Perform a Next Block function. Note: The Capitalization numbers will appear from FFASYSC but the cost needs to be inserted. 31. Click the New Sequence button. 32. Enter 2,000 in the Cost field. 33. Click the Save icon. 34. Click the Exit icon. 35. Access the Fixed Asset Depreciation Form (FFADEPR). 36. Enter the permanent tag number that you just created in the last exercise in the Permanent Tag field. Page 88

37. Perform a Next Block function. 38. Enter the useful life depreciation methodology, which you created on the Fixed Asset Depreciation Code Maintenance Form (FTMDEPR) in the Depreciation Method field. For this exercise, select SL (Straight Line). 39. Select the depreciation frequency in the Frequency field. Select Monthly for this exercise. 40. Indicate the salvage value in the Salvage Value field. For this exercise, enter 100. 41. Enter the date the depreciation can begin in the Start Date field. 42. Enter the life expectancy for this item in the Useful Life field. For this exercise, enter 3 if it did not pop in from the Depreciation Code. 43. Click the Save icon. 44. Click the Exit icon. Page 89

Running the Depreciation Process Running Depreciation You have assigned the depreciation expense distribution to permanent tags on the Fixed Asset Depreciation Form (FFADEPR). It is now time to run the Depreciation Process (FFPDEPR) to depreciate the assets for one month. You returned to FFADEPR to view the results of running FFPDEPR. Banner form Depreciation Process (FFPDEPR) Page 90

Steps Note: The instructor will run the FFPDEPR process. 1. Access the Depreciation Process (FFPDEPR). 2. Perform a Next Block function 3. Enter the desired printer name in the Printer field. Note: You can enter DATABASE to write the report to a table for on-line viewing and to enable the saving of the report to a shared folder on a designated network drive. 4. Perform a Next Block function 5. Enter these parameter values. Parameter Value Parameter 01: Asset Type Leave blank. Parameter 02: Depreciation method code Leave blank. Parameter 03: Depreciation frequency Enter M. Parameter 04: Chart of Accounts Enter B. Parameter 05: Depreciation month and year Enter the month and year you are in. Parameter 06: Posting Date (DD-MON-YYYY) Leave alone. Parameter 07: Execution Mode (A/U) Enter A. Parameter 08: Report Type (D/S) Enter D. 6. Click the Save Parameter Set as checkbox. 7. Click the Save icon 8. Select Review Output on the Options menu to review the report. 9. Rerun the job in Update mode by repeating steps 2-8 but change the parameter seven from A to U. 10. Run the Posting Process (FGRACTG). 11. Click the Exit icon. Page 91

Displaying the Depreciation Posting History Document retrieval inquiry Returned to FFADEPR to view the results of running FFPDEPR. Then view the Document Retrieval Inquiry Form (FGIDOCR) to view the accounting distribution for the depreciation. Banner form Document Retrieval Inquiry Form (FGIDOCR) Page 92

Steps Follow the process below to view the accounting distribution for the depreciation. 1. Return to the Fixed Asset Depreciation Form (FFADEPR) to view the updates made to the asset now that the Depreciation Process (FFPDEPR) has been run. 2. Enter the boiler s permanent tag number in the Permanent Tag field. 3. Perform a Next Block function. 4. View the updates in the accumulated depreciation field. 5. Click the Exit icon. 6. Access the Document Retrieval Inquiry Form (FGIDOCR). 7. Enter the depreciation number created from running FFPDEPR in the Document field. 8. Perform a Next Block function. Result: A limited summary is displayed in the Header Information area. The debit side of the transaction is displayed in the Detail Information area. 9. Select Access Document Postings from the Options menu to go to the Document Postings Form (FGQDOCP). Summary information is displayed at the top. 10. Scroll down as necessary to view the transactions. 11. You should see the following: Credit to accumulated depreciation account Debit to the expenditure control An increase in the year to date amount of the depreciation expense. 12. Click the Exit icon. 13. Click the Exit icon, again Page 93

Disposing or Selling an Inventory Asset (Non- Capitalized Fixed Asset) Introduction The Fixed Asset Master Form (FFAMAST) can be used to remove an inventory asset. Using the FFAMAST form to dispose or sell an inventory asset will keep a history of when this item was removed from inventory. No entries are made when this process is used, so if the asset was sold the proceeds would be recorded through a receipt entry in Banner. Steps Follow the process below to dispose of or selling an inventory asset 1. Access the Fixed Asset Master Form (FFAMAST) 2. Enter permanent tag number in the Asset Tag field. 3. Select Disposal of Uncapitalized Tag in the Action field. 4. Perform a Next Block function. 5. Perform another Next Block function. 6. Enter the disposal method in the Disposal Method field 7. Click the Save icon 8. Click the Exit icon. Page 94

Adjusting Fixed Assets Introduction The Fixed Asset Adjustment Form (FFAADJF) allows you to process many different kinds of accounting adjustments to your fixed assets. Note: The Fixed Asset Adjustment Form (FFAADJF) creates documents that require posting before their effects can be viewed in the ledger. The Posting Process (FGRACTG) must be run manually if it is not running in background. Banner form Accounting adjustments Review the descriptions that follow for the types of adjustments you can make. Note: This and several of the subsequent lessons will explore some of these options. You are encouraged, however, to experiment with all of them and carefully examine the resulting postings. Page 95

DISP Sale of Asset Records the sale for an asset. When selling an asset even if it is less than the cost, the fixed asset module will record the entry as a credit to the gain account (unless the account is changed) and a debit to cash. In addition, there will be a credit to the asset account and a debit to the equity account. WOFF Write-off Write offs are used only on capitalized assets and it will reverse capitalization entries for a fixed asset (credit to the asset account and a debit to the equity account). If depreciation had already occurred, then the accumulated depreciation would have been debited, the asset account credited and the difference recoded in the loss account. WRIT Write Up/Down Permits adjustment of the capitalized value of a fixed asset. A write up of a capitalized fixed asset will debit the asset account and credit the equity account. If a write down were performed, then there would be no entry to the asset or equity account but a credit to the accumulated depreciation and debit to depreciation expense. SCAP PTAG Capitalization Creates a capitalization entry for a fixed asset. SCAO Otag Capitalization Creates a capitalization entry for a fixed asset that has not been assigned a permanent tag (for example, Attachments to primary tags). ADPR Depreciation Adjustments Permits adjustment of the accumulated depreciation of a capitalized fixed asset that has already had depreciation started on it. DEPP Record Past Depreciation Permits the updating of accumulated depreciation amounts within the Fixed Assets module (this option does not create ledger postings). GLAS GL Change Asset Account Permits transfer of the asset from one asset account to another. Page 96

GLEQ GL Change Equity Account Permits transfer of the asset from one equity account to another. GLCF GL Change Fund Code Permits transfer of the asset from one capitalization fund to another. GLFE GL Change Fund and Equity Permits modification of both the capitalization fund and equity code. GLCE GL Change Cap Amount/ Account Permits change of the asset amount and account. NCAP No Posting to GL Permits you to record that assets are capitalized without creating ledger postings (for example, for converted assets). RCAP Reverse Cap for PTAG Can be used to reverse capitalization entries for items that should not have been capitalized, but have been permanently tagged. RCAO Reverse Cap for Otag Can be used to reverse capitalization entries for items that should not have been capitalized, and have not been permanently tagged. Steps Follow the process below to utilize the Fixed Asset Adjustment Form (FFAADJF) to process a DISP Sale of Asse transaction. 1. Access the Fixed Asset Adjustment Form (FFAADJF). 2. Enter NEXT in the Document Code field. 3. Select Sale of Asset in the Function Code field. 4. Perform a Next Block function. Page 97

5. Enter the reason for updating the asset In the Description field. 6. Enter today s date in the Transaction Date field. Note: Adjustments cannot be dated prior to the capitalization date. 7. Select Document Text from the Options menu if you want to add text. 8. Perform a Next Block function. 9. Enter one of the permanent tag numbers you created in the Ptag field. The tag s Description and Net Book Value are automatically displayed. 10. Enter a disposal method in the Disposal field. 11. Enter the selling price that is greater than the asset s worth in the Amount field. 12. Perform a Next Block function. 13. Perform another Next Block function. Note: The revenue distribution will default. 14. Change the Fund from 9601 to 1110. 15. Enter A1 in the Bank field. 16. Enter 100 in the Amount Percent field. 17. Tab to the Revenue field and the sale price will appear. 18. Select Access completion from the Options menu. 19. Click the Complete button. 20. Click the Exit icon. 21. Run the Posting Process (FGRACTG). Page 98

Handling Write-Offs Overview This function handles write-offs with or without accumulated depreciation. Write offs are used only on capitalized assets and it will reverses capitalization entries for a fixed asset (credit to the asset account and a debit to the equity account). If depreciation had already occurred the accumulated depreciation would have been debited, the asset account credited and the difference recoded in the loss account. Banner form Fixed Asset Adjustment Form (FFAADJF) Page 99

Steps Follow these steps to complete the process. 1. Access the Fixed Asset Adjustment Form (FFAADJF). 2. Enter NEXT in the Document Code field. 3. Select Write Off in the Function Code field. 4. Perform a Next Block function. 5. Enter the reason for updating the asset in the Description field. 6. Enter today s date in the Transaction Date field. Note: Adjustments cannot be dated prior to the capitalization date. 7. Select Document Text from the Options menu if you want to add text. 8. Perform a Next Block function. 9. Enter one of the permanent tag numbers that you created in the Ptag field. Note: Don t enter the permanent tag number that you recorded as a Sale of Asset value in a previous exercise, since you can t write off an asset that is sold. Its description and net book value will be displayed. 10. Enter a disposal code in the Disposal field. 11. Perform a Next Block function. 12. Click the Complete button. 13. Click the Exit icon. 14. Run the Posting Process (FGRACTG). Page 100

Adjusting the Value of Fixed Assets Overview This function allows you to adjust the value of an asset up or down, whether accumulated depreciation is involved or not. A write up of a capitalized fixed asset will debit the asset account and credit the equity account. If a write down were performed, then there would be no entry to the asset or equity account but a credit to the accumulated depreciation and debit to depreciation expense. Note: This function is available only for capitalized assets. Banner form The Fixed Asset Adjustment Form (FFAADJF) is used to adjust the value of fixed assets. Page 101

Steps Follow the process below to adjust the value of a fixed asset. 1. Access the Fixed Asset Adjustment Form (FFAADJF). 2. Enter NEXT in the Document Code field. 3. Select Write Up/down adjustments in the Function Code field. 4. Perform a Next Block function. 5. Enter the reason for updating the asset in the Description field. 6. Enter today s date in the Transaction Date field. Note: Adjustments cannot be dated prior to the capitalization date. 7. Select Document Text from the Options menu if you want to add text. 8. Perform a Next Block function. 9. Enter one of the permanent tag numbers that you created in the Ptag field. Note: Don t enter the permanent tag number that you recorded as a Sale of Asset value in a previous exercise, since you can t write off an asset that is sold. Its description and net book value display. 10. Enter the amount that you want to write up/down (the delta amount) in the Amount field. For a write-down, precede the amount with a - (minus) sign. For this exercise, enter 100. 11. Perform a Next Block function. 12. Click the Complete button. 13. Click the Exit icon. 14. Run the Posting Process (FGRACTG). Page 102

Adjusting Accumulated Depreciation Depreciation Adjustment function Permits adjustment of the accumulated depreciation of a capitalized fixed asset that has already had depreciation started on it. Banner form Fixed Asset Adjustment Form (FFAADJF) Page 103

Steps Follow the process below to adjust accumulated depreciation. 1. Access the Fixed Asset Adjustment Form (FFAADJF). 2. Enter NEXT in the Document Code field. 3. Select Depreciation adjustment in the Function Code field. 4. Perform a Next Block function. 5. Enter the reason for updating the asset in the Description field. 6. Enter today s date in the Transaction Date field. Note: Adjustments cannot be dated prior to the capitalization date. 7. Select Document Text from the Options menu if you want to add text. 8. Perform a Next Block function. 9. Enter one of the permanent tag numbers that you created in the Ptag field. Its description, net book value, salvage value, and net depreciable value are displayed. 10. Enter the amount by which you want to depreciate the asset, that is, the net difference in the Amount field. For a write-down, precede the amount with a - (minus) sign. For this exercise, enter 100. 11. Perform a Next Block function. 12. Click Complete to complete the adjustment. 13. Click the Exit icon. 14. Run the Posting Process (FGRACTG). Page 104

Updating Past Depreciation for an Asset Master Record Record past depreciation function The Record Past Depreciation function allows you to update an asset s master record (displayed on the Capitalization window of the Fixed Asset Master Form (FFAMAST) and depreciation maintenance record (displayed on the Fixed Asset Depreciation Form (FFADEPR) for past depreciation already recorded in the ledgers. This function is only available for capitalized assets that have not been previously depreciated or adjusted in the Fixed Assets module. It will not create postings to the ledgers. You may use the Depreciation Process (FFPDEPR) to post past depreciation to both the ledgers and the Fixed Assets module. Banner form Fixed Asset Adjustment Form (FFAADJF) Page 105

Steps Follow the process below to update past depreciation for an asset master record. 1. Access the Fixed Asset Adjustment Form (FFAADJF). 2. Enter NEXT in the Document Code field. 3. Select Record Past Depreciation in the Function Code field. 4. Perform a Next Block function. 5. Enter the reason for updating the asset in the Description field. 6. Enter today s date in the Transaction Date field. Note: Adjustments cannot be dated prior to the capitalization date. 7. Select Document Text from the Options menu if you want to add text. 8. Perform a Next Block function. 9. Enter one of the permanent tag numbers that you created in the Ptag field. Its description, net book value, salvage value, and net depreciable value are displayed. 10. Enter the amount of prior depreciation in the Amount field. 11. Perform a Next Block function. 12. Click Complete to complete the adjustment. 13. Click the Exit icon. Page 106

Reclassifying Asset Account Values Reclassification of capitalization values The GL Change Asset Account function deals with reclassification of capitalization values for both the General Ledger and the Fixed Assets modules. This function reverses the asset balance in the original account and records the balance in the new asset account. Banner reclassifies any accumulated depreciation for the asset to the accumulated depreciation account associated with the new asset account. Prior to using this function, you must complete the Capitalization window of the Fixed Asset Master Form (FFAMAST) for the asset. You must enter the fund, asset account, equity account, and cost amount for each account distribution on the master record. Banner form Fixed Asset Adjustment Form (FFAADJF) Page 107

Steps Follow the process below to reclassify asset account values. 1. Access the Fixed Asset Adjustment Form (FFAADJF). 2. Enter NEXT in the Document Code field. 3. Select GL Change- Asset Account in the Function Code field. 4. Perform a Next Block function. 5. Enter the reason for updating the asset in the Description field. 6. Enter today s date in the Transaction Date field. Note: Adjustments cannot be dated prior to the capitalization date. 7. Select Document Text from the Options menu if you want to add text. 8. Perform a Next Block function. 9. Enter one of the permanent tag numbers that you created in the Ptag field. Its description, net book value, salvage value, and net depreciable value are displayed. 10. Enter the new asset account code in the Account field. 11. Perform a Next Block function. 12. Click Complete to complete the adjustment. 13. Click the Exit icon. 14. Run the Posting Process (FGRACTG). Page 108

Transferring Fixed Assets Transferring Assets Use the Fixed Asset Transfer Form (FFATRAN) to record the new location/owner of a fixed asset. Through this form, you can track the movement of a fixed asset from one location to another. Banner form The Fixed Asset Transfer Form (FFATRAN) Page 109

Steps Follow the process below to transfer a fixed asset to new location and/or owner. 1. Access the Fixed Asset Transfer Form (FFATRAN). 2. Enter a permanent tag number in the Permanent Tag# field. 3. Perform a Next Block function. The origination tag number and description are displayed. Note: The system lists an asset s transfer history in descending chronological order. The current location and accountability information for the asset are displayed in the To column. 4. Select Transfer Information from the Options menu to transfer an asset. Note: The system moves the current location and accountability information in the From column. 5. Enter the new location in the To column to transfer the asset. 6. Type the reason for the transfer in the Transfer Reason field. 7. Click the Save icon. 8. Click the Exit icon. Page 110

Assigning a New Permanent Tag to a Fixed Asset Overview There may be occasions when you need to reassign another permanent tag to an asset. If you know the original permanent tag, reassigning a new permanent tag is easy to do. Go to the Fixed Asset Transfer Form (FFATRAN) and display the old permanent tag number, and then reassign a new tag. It may be more difficult if you do not know the old permanent tag. To obtain the old tag number, you need to know something about the asset, such as the serial number. You can query on this information to obtain the permanent tag number in FFIPROC. Banner form Fixed Asset Transfer Form (FFATRAN) Page 111

Steps Follow the process below to assign a new permanent tag to a fixed asset. 1. Access the Fixed Asset Transfer Form (FFATRAN). 2. Enter in a permanent tag number in the Permanent Tag field. 3. Perform a Next Block function. 4. Select Transfer Information from the Options menu to automatically transfer the information in the To section into the From section. 5. Enter the new tag number in the Permanent Tag field. Note: You cannot use the next feature here. You must enter an unused number. 6. Enter in a location code in the Location field. 7. Enter in the reason for the permanent tag change in the Transfer Reason field 8. Click the Save icon. 9. Click the Exit icon. Page 112

Fixed Assets Reports and Queries Available query forms and delivered reports These queries and reports are used frequently in the Fixed Assets Module. Form Description Banner Name Fixed Assets Adjustment Query FFIADJF Fixed Assets Master Query FFIMAST Fixed Assets Procurement Query FFIPROC Fixed Assets Adjustment List FFIADJL Fixed Assets Adjustment History FFIADJH Fixed Assets Master Record Report FFRMAST Fixed Assets / Asset Group Report FFRAGRP Fixed Asset Procurement Report FFRPROC Fixed Asset Property Report FFRPROP Fixed Assets Dtag Transaction Report FFRDTGT Fixed Assets Dtag Aging Report FFRDTGA Page 113

Summary Let s review As a result of completing this workbook, you have set up account codes for fixed assets set up fixed asset fund codes set up system-wide fixed asset defaults determined the minimum value for fixed assets created invoices for fixed assets extracted origination tags from the temporary table created and updated a master record for a fixed asset created document tags setup and depreciated an asset performed adjustments on an asset transferred records queried and reported on records. Page 114

Quick Reference Your instructor may refer to forms, processes, reports, and tables using a seven-character name, rather than the object s proper name. This quick key is provided for your convenience. Proper Name of Form Invoice/Credit Memo Fixed Asset Adjustment Fixed Asset Depreciation Fixed Asset Master Maintenance Fixed Asset System Control Maintenance Fixed Asset Transfer Fixed Asset Dtag Processing Fixed Asset Procurement Query Fixed Asset User Defined System Codes Validation Document Retrieval Inquiry System Control Maintenance Account Code Maintenance Commodity Maintenance Fund Code Maintenance Fixed Asset Type Code Maintenance Seven Characters FAAINVE FFAADJF FFADEPR FFAMAST FFASYSC FFATRAN FFADTGP FFIPROC FFVSDAT FGIDOCR FOASYSC FTMACCT FTMCOMM FTMFUND FTMASTY Page 115

Self Check Directions Use the information you have learned in this workbook to complete this self check activity. Question 1 Which Banner form is used to create an invoice? Question 2 All accounts payable transactions may be viewed on FGIDOCR. True or False Question 3 Tags can be capitalized or not be capitalized. True or False Question 4 Which Banner form do you use to create a permanent tag? Which two fields on this form are required to create a permanent tag? Question 5 Can manually created tags be deleted? Question 6 How is the accounting and depreciation for an attachment handled? How is accounting and depreciation for a component handled? Page 116

Question 7 What form do you use to view updates to the asset after the Depreciation Process (FFPDEPR) has been executed? Question 8 The Header area on FGIDOCR displays limited summary information; however, the lower area displays debit information for the transaction. True or False Question 9 The Fixed Asset Adjustment Form (FFAADJF) allows you to dispose of assets that have not been capitalized. True or False Question 10 What form do you use to convert an asset that was entered as a gift or donation? Question 11 What Banner function is used to adjust accumulated depreciation up or down for depreciable assets? Page 117

Question 12 After you update past depreciation, it will create a posting to the ledgers. True or False Question 13 The GL Change Asset Account Function does not capitalize values on the general ledger. True or False Question 14 You can use the Fixed Asset Transfer form (FFATRAN) to track the location/owner of a fixed asset, and to assign a permanent tag to an asset. True or False Page 118

Answer Key for Self Check Directions Use the information you have learned in this workbook to complete this self check activity. Question 1 Which Banner form is used to create an Invoice? The Invoice/Credit Memo Form (FAAINVE) Question 2 All accounts payable transactions may be viewed on FGIDOCR. True Question 3 Tags can be capitalized or not be capitalized. True. You can choose to tag certain items that may have a unit cost below your capitalization limit. Question 4 Which Banner form do you use to create a permanent tag? The Fixed Asset Master Maintenance Form (FFAMAST) Which two fields on this form are required to create a permanent tag? The Permanent Tag # and Asset Type are the only two fields you must enter information to create a permanent tag. Page 119

Question 5 Can manually created tags be deleted? Yes, but only if they are not capitalized and have no adjustment transactions (e.g., depreciation). Otherwise, they must be written off and disposed. Question 6 How is the accounting and depreciation for an attachment handled? Accounting and depreciation are included in the primary tag. How is accounting and depreciation for a component handled? A component is accounted and depreciated separately. Question 7 What form do you use to view updates to the asset after the Depreciation Process (FFPDEPR) has been executed? The Fixed Asset Depreciation Form (FFADEPR) Question 8 The Header area on FGIDOCR displays limited summary information; however, the lower area displays debit information for the transaction. True Question 9 The Fixed Asset Adjustment Form (FFAADJF) allows you to dispose of assets that have not been capitalized. False. This option creates capitalization postings to your ledger. Question 10 What form do you use to convert an asset that was entered as a gift or donation? The Fixed Asset Master Maintenance Form (FFAMAST) Page 120

Question 11 What Banner function is used to adjust accumulated depreciation up or down for depreciable assets? The Depreciation Adjustment function on form FFAADJF Question 12 After you update past depreciation, it will create a posting to the ledgers. False. You must use the Depreciation Process (FFPDEPR) to post past depreciations to both ledgers. Recording Past depreciation assumes that the posting has already occurred and only updated the Fixed Asset Modules. Question 13 The GL Change Asset Account Function does not capitalize values on the general ledger. False. The GL Change Asset Account function capitalizes values for both the General Ledger and the Fixed Assets module. Question 14 You can use the Fixed Asset Transfer form (FFATRAN) to track the location/owner of a fixed asset, and to assign a permanent tag to an asset. True SunGard 2004-2008 Page 121 Fixed Assets

Appendix Page 122

Forms Job Aid Form Full Name Use this Form to... FAAINVE Invoice/Credit Memo Form enables you to create invoice documents. FFAADJF Fixed Asset Adjustment Form enter an unlimited number of tags for the same function type on a single adjustment document. FFADEPR Fixed Asset Depreciation Form specify the asset depreciation methodology and account distribution for recording depreciation. FFADTGP Fixed Asset Dtag Processing create a fixed asset tag, update an existing asset tag, inactivate a permanent tag, delete a tag, and offset one document tag (Dtag) against another Dtag. FFAMAST Fixed Asset Master Maintenance Form create fixed or moveable asset records, to convert origination tags to permanent tags, or to update existing asset records. FFASYSC Fixed Assets System Control Form define funds and accounts that default into transactions needed to support accounting in the Fixed Assets module. FFATRAN Fixed Asset Transfer Form change a permanent tag number, user status code, condition code, or title-to code. FFIFALV Fixed Asset List Form query fixed assets. FFIPROC Fixed Asset Procurement Query Form query purchase order, invoice, and receiving data for fixed assets. FFPDEPR Depreciation Process calculates depreciation for any open periods from the Last Depreciation Date up to the Depreciation Date you specify in the process parameters. FFPOEXT Fixed Asset Origination Tag Extraction create origination tag entries for the Asset Master record from the Procurement module and prevents origination tags from being generated before the invoice has been approved or when a transaction rolls back in posting or matching process. Page 123

Form Full Name Use this Form to... FFVACQM FFVDISP FFVSDAT FFVTTST Fixed Asset Acquisition Code Maintenance Form Fixed Asset Disposal Method Code Maintenance Form Fixed Asset User Defined System Codes Validation Form Fixed Asset Title To Code Maintenance Form create and maintain a set of codes that describe how your assets are acquired. establish and maintain a list of codes to identify asset disposal methods. create user-defined codes, assign values to them, and organize them into groups. create and maintain a list of codes to represent the legal title for an asset. FGIDOCR Document Retrieval Inquiry Form query all transactions processed by the system. Information displayed includes the Transaction Date, Description, Amount, and the accounting distribution. FOASYSC Finance System Control Maintenance create and maintain global database values. Form FTMACCT Account Code Maintenance Form establish an object of expenditure accounts. FTMASTY Fixed Asset Type Code Maintenance create and maintain codes that identify assets by type or group. Form FTMCOMM Commodity Maintenance Form create and maintain commodity codes and default account relationships. FTMDEPR Fixed Asset Depreciation Code Maintenance Form create and maintain a list of user-titled depreciation methods and associated first-year option codes. FTMFTYP Fund Type Maintenance Form establish fund types linked to user-defined fund codes. FTMFUND Fund Code Maintenance Form establish fund codes for a specific chart of accounts. Page 124

Terminology Attachment An origination tag record can be designated as an attachment to indicate an integral relationship between the parent and subordinate asset. Component Associate one Permanent tag record to another by appointing the subordinate record as a Component of the primary record. Extract A process that moves temporary fixed asset tags from the Otag table (FFBOTAG) into the asset table (FFBMAST). Otag This is the temporary tag or origination tag that Banner will assign to an item when an invoice is paid to a fixed asset expense account. Ptag This is the permanent tag that asset management personnel will assign to a temporary tag. Dtag This is a document tag that can be created when journal entries, stores issues, or a cash receipt are entered against the fixed asset or capital expense accounts. Dtags are converted into Otags. Page 125