When you need to record accounting adjustments (increases or decreases) to an existing asset’s accounting lines, you process the adjustment using the Fixed Asset Increase / Decrease (FI) document code. Adjustments may be necessary to account for additional expenditures, accounting adjustments, or accounting reclassifications related to the expense recorded for a specific asset. Such adjustments may be entered using the Fixed Asset Increase / Decrease (FI) document code. Any existing line may be increased or decreased by entering a positive or negative dollar amount. New lines may be introduced and existing lines decreased to zero.
When an increase is processed, the FI increases (debits) the asset balance sheet balance and decreases (debit) and increases (credits) the Expenditure Offset balance sheet account defined on the System Special Accounts (SPEC) table.
Typical scenarios in which this document would be used include:
Construction-in-Progress assets where the asset balance is periodically increased for purchases throughout the construction period
Assets where a purchase relating to an asset was not flagged as an asset and the purchase is not appropriate as a separate asset component
The Retained amount associated with a specific vendor contract was included in the amount capitalized on the asset record, but the retainage was never disbursed due to contract issue. In the event the government elects to keep the retained amount, it is necessary to decrease the asset to reflect the actual payments.
The general steps required to process the FI document are highlighted below:
Using the Document Catalog, create a new Fixed Asset Increase / Decrease document by entering the FI Document Code, a Document Department, Document Unit (optional), and Document ID. Result: A blank document opens.
In the General Information subsection, use the pick list for the Fixed Asset Number to select the appropriate asset you need to increase or decrease. Result: The system fills in the document with the available information on this asset from the Fixed Asset Registry (FAR).
Select Auto Apply to infer all asset components and accounting lines associated with the selected Fixed Asset Number.
Move to the Accounting section of the document. Enter a positive or negative dollar amount to increase or decrease an existing line, or insert a new accounting line for the component and appropriate dollar amount in the Line Amount field.
When you’ve finished making changes, validate and submit this document.
The Event Type associated with this document code causes certain updates to take place when the document is accepted into the system. The Event Type FA07 - Fixed Asset Increase/Decrease is available for Fixed Asset Increase / Decrease (FI) document code. The following actions will take place:
Updates the accounting lines on the Fixed Asset Registry (FAR) and creates new records on the Fixed Asset Component Journal (JFACJ), Fixed Asset Accounting Journal (JFAAJ), and general Accounting Journal (JACTG).
Increase: Debits the Asset Balance Sheet Account and credits the Expenditure Offset for asset on the System Special Accounts (SPEC) table.
Decrease: Credits the Asset Balance Sheet Account and debits the Expenditure Offset for asset on the System Special Accounts (SPEC) table.
The document also updates the balance sheet balances associated with both the old and new asset types on Balance Sheet Balance (BBAL).