Fixed Asset Depreciation Expense (FE)

Purpose

This document enables you to manually record the depreciation of an existing asset using Event Type, FA03.  The allowable amount of depreciation is limited by the Asset Cost less (Accumulated Depreciation + Salvage Value).  As the term stands, the document will not calculate any depreciation automatically and will not validate the amount entered whether it is correct or not. It is up to the user to calculate the amount correctly and enter it on the document.

Only assets that are not fully disposed can be depreciated. The FE document also ensures that the Component Net Book Value would not be lesser than the salvage value after the depreciation.

The following main events occur when processing a FA Depreciation Expense document:

• The FE document updates the Accumulated depreciation on the FAR tables and the last depreciation date on the FAR Header with the Document record date.  

• The Last depreciation date on the FAR Component is updated with the record date of the FE document.

• The FE document would deactivate any DEPEC record for the Asset component that has an effective date lesser than the record date of the FE document.

• Records are inserted to the FA component Journal.

• Records are inserted to the FA accounting Journal.

Structure

The Fixed Asset Depreciation Expense (FE) document has four sections found in the secondary navigation area.  Each is broken down into various sub sections that contain groups of related fields.  Details on the individual fields can be found in the individual field help files for each field.  Many fields are not editable on this document.  Only those fields used to create and record the depreciation postings are editable.  All others are completed with the Auto Apply action found on the Header and Component Line which bring information into the document from the Fixed Asset Registry tables.

• Header

  Lists general information about the document as well as information that applies to the asset as a whole versus the individual components of the asset.

  • General Information: This section contains descriptive fields and date information common to most document headers.  In addition to these common fields are ones for identifying a Fixed Asset Number, Event Type , Asset System Number and Asset system Description.

  • Extended Document Description:  This section contains the standard extended description field that is associated with the document.  It is not an extended description for the asset as it is not stored on any asset information tables.

  • Responsibility Center: This section contains Chart of Account (COA) fields defined as being responsible for the asset.

  • Composite Asset Information: This section contains many asset definition fields which serve as defaults to the individual Components of the asset.  Many of these fields control depreciation.  A field exists to record an amount of depreciation to record at disposition of a Composite Asset. The depreciation amount is then allocated on the proportion of the component net book value. The system would ensure that the on submission of the FE document the net book value would be lesser than the salvage value of the asset.

  

  • Document Information: This section is common to all documents where fields are shown for who and when a document was initially created.  Two additional fields record who was the last to perform a save on the document and when that occurred.

• Component

  Lists specific attributes of each asset component.  Components may be added during the life of the asset but cannot be added at time of depreciation.  The Auto Apply action is also available on this page to retrieve values from the Fixed Asset Registry table for only the specified components.

  • Component General Information: This section contains descriptive fields which are recorded for informational reporting on the component.  Only Component Number is editable in the case a user wishes to specify a specific component to depreciate instead of depreciating all components. The Asset System Number and Asset System Description are inferred from the FA document when Auto Apply is used.

  • Acquisition Details: This section contains fields captured at acquisition.

  • Component Location Details: This section contains the same location information as the Header for recording such details at a component that may be located at a different location as not all components may be physically attached to one asset.

  • Component Classification: This section contains many of the same fields found on the Header for asset definition that will control depreciation.  Other fields include the Fixed Asset Classification field, which controls how the asset is recorded for accounting purposes, as well as fields to record the Balance Sheet Accounts that will be used for the asset.

  • Cost, Valuation, & Depreciation: This section contains several information fields for reporting needs as well as various amounts accumulated to date before the disposal.  A field exists to record an amount of depreciation to record at disposition of a Component. The depreciation amount is then allocated on the proportion of the net book value. The system would ensure that the on submission of the FE document the component net book value would be lesser than the salvage value of the component.

  

• Accounting

  Lists the Chart of Account (COA) details for how each asset component was funded.  All information at this level is protected and will be brought in from the Fixed Asset Registry Accounting Line table or from the Manual Depreciation document Header based on the Depreciation structured indicator and Responsibility center posting flag on the Accounting line. .

  • General Information: This section contains descriptive fields and date information common to most document accounting lines.  The Event Type field in this section is protected as it defaults from the Header.

  • Fund Accounting: This section contains the COA fields common to the section as found on other documents.

  • Detail Accounting: This section contains the COA fields common to the section as found on other documents.

• Posting

  Lists the system-generated details used to recognize the financial impact of a specific accounting line.  If a fixed asset document has an accounting impact, the system uses the posting line information to update the fixed asset and general accounting journals and other accounting tables such as Balance Sheet Balance (BBAL).  The fields and sections on this page are like those of other documents with the addition of a section to provide the Fixed Asset Number and Component Number.

Tasks

• To create a Fixed Asset Depreciation Expense (FE) document, go to the "Record Depreciation" section of this guide.