Capital Assets
1. Management
1.1 Capital Assets
This option allows you to create your capital assets.
A capital asset allows you to account the depreciation of an asset, based on different calculation methods, according to an accounting recognition.
| Fields : | Description : |
|---|---|
| Code : (*) | Enter the code for your capital asset: maximum of 15 alphanumeric characters. |
| English Description : (*) | Enter a description for your capital asset: maximum of 50 alphanumeric characters. |
| Category : (*) | Select the category for the capital asset. The category associated with the capital asset will determine the General Ledger accounts in which the depreciation entries generated for this capital asset will be recorded. These choices come from the "Categories" option in the "Management" menu of the "Capital Assets" module. |
| Method : (*) | Select the method for the capital asset. The method will determine the calculation method for the depreciation entries generated for this capital asset. These choices come from the "Asset method" option in the "Maganement" menu of the "Capital Assets" module. |
| Supplier : | Allows you to link a supplier to the capital asset. This information is used for informational purposes only. |
| Sales rep : | Allows you to link a sales rep of this capital asset. This information is used for informational purposes only. |
| Manufacturing: | Allows you to enter the manufacturer of this capital asset. This information is used for informational purposes only. |
| Model : | Allows you to enter the model of this capital asset. This information is used for informational purposes only. |
| Condition to the acquisition : | Displays the default condition of the acquisition. Use the drop-down menu to change the acquisition condition of the capital asset. This information is used for informational purposes only. NOTE: This condition comes from the one previously selected in the "Condition to the acquisition" field of the "Capital Assets Control" option in the "Management" menu of the "Capital Assets" module. |
| Start Date: (*) | Select the commissioning date of the capital asset. NOTE: This date may differ from the creation date of the capital asset table. |
| Redemption month : | Select the depreciation months when you have checked the "Show period" box in the "Capital Assets Control" option in the "Management" menu of the "Capital Assets" module. If no month is selected, depreciation entries will be generated for all months. NOTE: This field is only displayed if you have checked the "Show Period" box in the capital assets control and when the "AssetAmortOnMonths" configuration is active. |
| Insurance broker : | Allows you to add the insurance broker for your capital asset. This information is used for informational purposes only. |
| Policy number : | Allows you to add the insurance policy number covering your capital asset. This information is used for informational purposes only. |
| Insurances amount : | Allows you to add the insurance amount covering your capital asset. This information is used for informational purposes only. |
| Expiration date : | Allows you to add the expiration date of your insurance policy covering your capital asset. This information is used for informational purposes only. |
| Project : | Select a General Ledger project to use for the capital asset. NOTE: When selecting a General Ledger project, if the category associated with your capital asset contains General Ledger accounts managed by project, this project will be linked in the depreciation entries that will be generated. This field will only be displayed if one of the General Ledger accounts in your category is project-based. |
| Item Code : | Allows you to link an item to your capital asset. This information is used for informational purposes only. |
| Warehouse : | Allows you to link the warehouse in which your capital asset is stored, if applicable. |
| Location code : | Allows you to link the location where your capital asset is stored, if applicable. |
| Serial Nbr : | Allows you to link the serial number of the item linked in the "Item Code" field on this screen. This information is used for informational purposes only. |
| Postponed purchase initial value: | Allows you to enter the initial purchase value of your capital asset. This information is used for informational purposes only. NOTE: By completing this field, the system will automatically calculate the amount for the "Residual Value" field. |
| Already cumulated amortization postponed : | Allows you to enter the accumulated depreciation value of your capital asset. This information is used for informational purposes only. NOTE: By completing this field, the system will automatically calculate the amount for the "Residual Value" field. |
| Amortization table creation date : (*) | Enter the date from which you wish to create the depreciation schedule. This field is mandatory when you click the "Create Capital Asset" button. NOTE: The date may be the same as or different from the commissioning date |
| Residual value (UCC remaining to be amortized or initial purchase value) : |
Allows you to enter the residual value left to depreciate for your capital asset. NOTE: The residual value corresponds to the values added up until the creation date of the depreciation schedule, that is, the value of an asset at the end of its useful life or lease period. This value is therefore equivalent to the acquisition cost minus the depreciation taken during the asset’s use period. Therefore, it is not possible to enter a negative value. |
| Residual period : | Allows you to enter the desired number of remaining periods for the use of your capital asset. NOTE: This field is available only when you are using a straight-line method for calculating depreciation of your capital asset. The number of periods will automatically populate with the period number corresponding to your straight-line method. This field is editable and is used by the system to create the depreciation schedule for your capital asset. |
| TOTAL Qty / UOM : | This field is available only when the asset has a "variable" method. When this field is available, you will be able to enter the desired quantity per unit of measure for this capital asset. NOTE: The units of measure come from the "Global UOM" option in the "Management" menu of the "Inventory" module. Please refer to section 1.3.4 of this document for more information. |
| Disposal date : | Allows you to add a disposal date for the capital asset. The disposal date allows you to dispose of the capital asset, making it inactive, and all depreciation following the disposal date will be removed. NOTE: This field will only be displayed if a depreciation schedule has been created. |
| Deemed proceeds : | Allows you to add the desired disposal amount for the capital asset. This information is used for informational purposes only. The disposal amount is linked to the date entered in the "Disposal Date" field. A new "Gain" or "Loss" field will display the amount of the gain or loss you have on this capital asset. NOTE: This field will be automatically filled if you generate a sales invoice linked to this capital asset. |
(*) Required field
Click the "Save" button to create the capital asset.
The "Print" button allows you to print a report of the depreciation entries that will be generated from this capital asset, according to the list of added values.
The "Specifications" button allows you to add specifications to the capital asset.
NOTE: This button is only displayed when you have record specifications via the "Records Specifications" option in the "Utilities" menu of the "System Management" module, with the value set to "assethdr". All specifications you create are used for informational purposes only.
The "Add Value" button allows you to add one or more values to the capital asset. Once a value is added, it will be displayed in the "List of Added Values" section. Please refer to section 1.1.1.2 of this document for this section.
The "Asset creation" button allows you to generate the depreciation schedule for the capital asset with the depreciation entry amounts, once all added values have been entered. Additionally, the depreciation schedule will be automatically displayed in the "Amortization Schedule" section. Please refer to section 1.1.2 of this document for this section.
NOTE: This button is not displayed if the capital asset is using the "variable" method.
The "Open Asset" button allows you to open the capital asset for which the depreciation schedule was generated in error and for which no depreciation entry was made.
NOTE: This button is only displayed to users with access enabled through the "Access to the "Open asset" button in a closed asset if no depreciation entry has been made" access setting in the "General Ledger Tab" user's access category.
The "Recalculate asset" button allows you to recalculate the depreciation schedule of a closed asset based on the actual unamortized periods, in case the number of periods for your fiscal years has changed since the creation of your depreciation schedule.
NOTE: This button is only displayed to users who have access to the "Access to the "Recalculate asset" button in a closed asset to recalculate the amortization table based on actual unamortized periods." permission in the "General Ledger Tab" user's access category.
The "Modify" button allows you to save changes made to the capital asset, by refreshing the screen.
The "Close" button allows you to close the capital asset screen without making any changes.
1.1.1 Added values list
This section displays the values added to your capital asset.
To add a value to your capital asset, you have several options.
Please refer to the following points for the different options.
| Fields : | Description : |
|---|---|
| Date : | Displays the date to which the added value of the capital asset is linked. |
| Supplier : | Displays the supplier to which the added value of the capital asset is linked. |
| # Inv : | Displays the supplier invoice to which the added value of the capital asset is linked, if applicable. |
| Reference : | Displays the reference for the added value, if applicable. |
| Amount : | Displays the amount of the added value to the capital asset. |
| Cumulative : | Displays the cumulative amount of added values to the capital asset. |
| Note : | Displays the note for the added value, if applicable. |
NOTE: It is also possible to add a residual value via a purchase order or purchase invoice. To do so, you must select a General Ledger account in the purchase order or purchase invoice according to the General Ledger account linked to the "GL Asset" field of an asset category in order to later link the capital asset to the transaction via a new field "Capital Asset #". Subsequently, the capital asset value will be added to the "Added values list" section. It is also possible to add a residual value via the "Fixed assets value modification" option in the "Management" menu of the "Capital Assets" module.
1.1.1.1 Residual value
The "Postponed purchase initial value" field allows you to add the desired value of the capital asset.
The value will automatically be added and displayed in the "Added values list" section.
To modify it, you must delete the value by clicking on the trash icon or add a new value via the "Add value" button.
NOTE: This field can only be filled in once.
1.1.1.2 Add Value
The "Add Value" button allows you to add a value to the capital asset.
| Fields : | Description : |
|---|---|
| Supplier : | Allows you to link a supplier to the added value of the capital asset. |
| # Inv : | Allows you to link a purchase invoice to the added value of the capital asset. |
| Reference : | Allows you to add a reference to the added value of the capital asset. |
| Amount : (*) | Enter the amount of the added value to the capital asset. |
| Date : (*) | Select the date to which the added value of the capital asset is linked. NOTE: By default, this is the asset's service start date. |
| Note : | Allows you to add a note to the added value of the capital asset. |
(*) Required field
Click on "Save" to add the value to the "Added values list" section.
1.1.2 Amortization schedule
This section displays the depreciation entries when the capital asset has been created using the "Asset creation" button.
Please refer to the "Capital Assets Process" documentation in the "Capital Assets" module to create a depreciation schedule.
| Fields : | Description : |
|---|---|
| No. : | Displays the depreciation number of this asset that will be generated. |
| GL Period : | Displays in which General Ledger periods this transaction will be generated. |
| Date : | Displays the date on which this transaction will be generated. |
| Amount : | Displays the amount of the transaction that will be generated. NOTE: If the amount was modified at the time of the depreciation entry, the displayed amount will be the modified amount. |
| Outstanding amount | Displays the residual value of the asset following the generated transactions. NOTE: The residual value corresponds to the equivalent of the acquisition cost minus the depreciations made during the asset"s useful life period. |
| Recorded : | Displays the date of the recorded depreciation transaction, if applicable, i.e., if the depreciation entry was generated via the "Create depreciation entries" option in the "Transactions" menu of the "Capital Assets" module. Please refer to section 2.1 to generate your asset transactions. |
1.2 Categories
This option allows you to create your asset categories and link the General Ledger accounts in which your depreciation transactions generated from your assets will be recorded.
| Fields : | Description : |
|---|---|
| Code : (*) | Enter the code for this asset category: a maximum of 8 alphanumeric characters. |
| Descr. english : (*) | Enter the english description for this asset category: a maximum of 50 alphanumeric characters. |
| GL Asset : (*) | Select the General Ledger account in which the depreciation entries for this asset category related to asset values will be recorded. NOTE: When creating a purchase order, purchase invoice, or sales invoice in the system, you will be able to use this General Ledger account to link the item’s value directly to an asset. |
| GL Asset - Expenses : (*) | Select the General Ledger account in which the expense entries for depreciation on assets of this category will be recorded. |
| GL Asset. – Cumul : (*) | Select the General Ledger account in which the accumulated depreciation entries for assets of this category will be recorded. |
| GL Asset. – Profit on disposition : (*) | Select the General Ledger account in which the gains from value generated following the disposal of an asset in this category will be recorded. |
| GL Asset. – Loss on disposition : (*) | Select the General Ledger account in which the losses from value generated following the disposal of an asset in this category will be recorded. |
| Active : | Check this box to make the category active. Uncheck this box to make the category inactive. |
(*) Required field
Click on "Save".
1.3 Asset Method
This option allows you to create different calculation methods for assets.
1.3.1 Degressive
The "Declining Balance" method allows you to depreciate the asset according to a capital annual percentage based on the asset’s value.
Thus, the largest portion of the asset’s cost value will be depreciated in the early years of its useful life.
Enter the code and description for this asset method, then select the "Degressive" type.
You must enter the desired percentage in the "Percentage" field."
1.3.2 Linear
The "Linear" method allows you to depreciate an asset at a capital rate throughout its useful life.
Enter the code and description for this asset method, then select the "Linear" type.
You must enter the desired number of years in the "Number of year" field.
1.3.3 Non-depreciable
The "Non-depreciable" method allows you to create an asset without depreciating it.
Thus, the asset will not have any loss or gain over its useful life.
Enter the code and description for this asset method, then select the "Non-depreciable" type.
1.3.4 Variable
The "Variable" method allows you to calculate the asset's value loss based on its expected usage conditions.
Thus, the value of the asset will be calculated at the same rate as its consumption.
Enter the code and description for this asset method, then select the "Variable" type.
NOTE: By selecting this type of calculation, you must complete a new field "Total Qty/UOM" when creating the asset to generate depreciation entries.
For example: The asset of a vehicle is created and calculated based on the number of kilometers driven by the vehicle.
In this new field, you can enter the total estimated kilometers for the vehicle’s useful life, for example, "200,000 kilometers". When you create depreciation entries for an asset using the "Variable" method, you will need to input the number of kilometers traveled in the period so the system can calculate the depreciation amount.
1.4 Fixed assets value modification
This option allows you to add a value to an asset when its depreciation schedule has been generated.
| Fields : | Description : |
|---|---|
| Code : (*) | Select the code corresponding to the asset for which you want to add a value. NOTE: By selecting a code, this changes the "Date" field to the first day of the first unamortized period for this asset. |
| Supplier : | Select the supplier to which you want to link the added value of the asset, if applicable. |
| Inv # : | Select the invoice related to the supplier to which you want to link the added value of the asset, if applicable. |
| Reference : | Enter a reference for this added value, if applicable. |
| Amount : (*) | Enter the amount of the added value for this asset. NOTE: The amount can be positive or negative. |
| Date : | Select the date to which the added value of the asset is linked. NOTE: By default, the date displays the first day of the next period to be depreciated. |
| Note : | Enter a note for this value addition, if applicable. |
(*) Required field
Click on "Save" and the added value will be displayed in the list of values for the selected asset.
NOTE: To delete a value, if the added value has not yet started to be depreciated in the list of added values for the asset, you will be able to click on the trash bin icon. You can also modify or delete the purchase order or purchase invoice, if no depreciation entry has been made for this value and the added value originates from a purchase order or purchase invoice.
1.5 Capital Asset Control
This option allows you to configure the asset process.
| Fields : | Description : |
|---|---|
| Condition to the acquisition : | Select the default condition that will be suggested when creating a new asset. |
| Show period : | Check this box if you want to display the "Redemption month" field on the asset screen, allowing you to select the periods in which you wish to depreciate the asset. NOTE: This field is only displayed when the "AssetAmortOnMonths" configuration is active. |
| Create machine : | Check this box to have the system prompt you, when creating the asset, if you want to create a machine for its preventive maintenance. |
Click on "Save".
2. Transactions
2.1 Creating Depreciation Entries
This option allows you to create depreciation entries for an asset.
Select the General Ledger period for which you want to make a depreciation entry.
Check the assets for which a depreciation entry needs to be made, then click the "Complete" button.
| Fields : | Description : |
|---|---|
| Header Section : | This section allows you to filter the depreciation entries to be completed. |
| GL Period : | Select the General Ledger period to display all depreciation entries to be completed up to that period. By default, the current period will be displayed. |
| Category : | This allows you to filter the depreciation entries to be completed by asset category. |
| Detail Section : | This section allows you to display the depreciation entries to be completed. |
| Capital Assets : | Displays the code and description of the asset to which the transaction to be completed is linked. |
| Item Code : | Displays the item code linked to the asset. |
| Serial Nbr : | Displays the item code linked to the asset, if applicable. |
| Total Qty : | Displays the estimated quantity previously entered for the asset when the asset has the "variable" method. |
| Qty compl.: | You must enter the completed quantity for the period for the asset, only when the asset uses the "variable" method. For example: The asset of a vehicle is created and calculated based on the number of kilometers driven by the vehicle. In the asset record, if you have entered that the vehicle’s useful life is "200,000 kilometers" in the "Total Qty/UOM" field, you must enter the number of "kilometers" driven by the vehicle during the period in this field so the system can calculate the depreciation amount based on the completed quantity. |
| Amount : | Displays the amount of the asset transaction to be completed. This amount is modifiable, only if the asset is not using the "variable" method. When the asset uses the "variable" method, this amount is not modifiable and is calculated using a rule of three, based on the completed quantity of the asset"s unit of measure in relation to the total estimated quantity previously defined in the asset record. NOTE: If the amount is modified, the new amount will be displayed in the depreciation table, and the following amounts will be recalculated based on the remaining residual amount to be depreciated. |
| Date : | Displays the date when the asset transaction will be completed. |
| GL Period : | Displays the General Ledger period when the asset transaction will be completed. |
| Reference : | Displays the reference of the asset transaction to be completed. This reference includes the year and period when the transaction will be completed. |
| General Ledger Report: | Select "Summary" in this field will include the reference in the depreciation entry description. For example: "Depreciation Entry – 2022-04000" Select "Detail" in this field will include the asset code in the depreciation entry description instead of the reference. For example: "Depreciation Entry – 03"" |
By clicking the "Complete" button, the transaction will be generated and will be available in the "Amortization adjustement" option in the "Transactions" menu of the "Capital Assets" module. Additionally, if the user selects depreciation entries from closed periods, they will be recorded in a single transaction for the selected General Ledger period.
NOTE: The entries generated by an asset through this option will not be included in the "GL Transactions" option in the "Transactions" menu of the "General Ledger" module.
2.2 Amortization adjustment
This option allows you to view and/or delete transactions generated via the previous option of an asset.
Select the desired depreciation entry.
Double-click on the entry to view it on the screen.
NOTE: If you wish to modify a depreciation entry, you must modify the "Amount" field when creating the depreciation entry.
NOTE: If you have linked a project to the asset via the "Project" field on the asset screen, and the category linked to your asset contains General Ledger accounts managed by project, this project will be linked to the depreciation entries that are generated.
NOTE: You will be able to delete a depreciation entry in order to modify the depreciation of the asset. Only the last entry can be deleted, so you must delete the entries that were generated after the one you wish to delete. An alert will display the transactions to be deleted if applicable.
3. Reports
3.1 Asset Report
This option allows you to print the asset report, in either summary or detailed version, according to various parameters. In the summary version, the code, description, category, method, and service date of the asset will be printed on the report. In the detailed version, all information from the asset record will be printed on the report. Additionally, you can print the report in Excel format.
3.2 Depreciation Schedule
This option allows you to print the depreciation schedule report. You can print the report based on an interval of asset codes, categories, methods, and/or date ranges. This report can be for the list of added values or for the depreciation tables of the desired assets for report printing. The report outputs one page per asset according to the search parameters. Additionally, you can print the report in Excel format.
3.2 Amortization Schedule
This option allows you to print the amortization schedule report. You can print the report based on a range of asset codes, categories, methods, and/or a date range. This report can be for the list of added values or for the amortization tables of the desired assets for report printing. The report generates one page per asset based on the search parameters. Additionally, you can print the report in Excel format.
3.3 Added Value Report
This option allows you to print a report of the added values of an asset or all assets based on a date range. Additionally, you can print the report in Excel format.
3.4 Annual Residual Value Report
This option allows you to print an annual residual value report for an asset or all assets based on a date range. Additionally, you can print the report in Excel format.
3.5 Asset Summary
This option allows you to print the annual asset report for the selected fiscal year in Excel format. You can check the box "Hide depreciated assets not disposed of" to hide undisposed depreciated assets, thus only displaying assets with depreciation in the requested fiscal year. The first tab will show the summary by category and method. Additionally, the "Disposals" section will display the disposal amount and the gain and/or loss, only if the asset has been disposed of. The following tabs will show the assets and their information by category for the selected year.
NOTE: It is possible to take into account the values of the "Postponed purchase initial value" and "Already cumulated amortization postponed" fields from the assets in the asset summary report by enabling the configuration "TakeUCCPostponedInfoInAssetSummary".