Fixed Asset Inter Fund Transfer (FAIT)

Purpose

Documents in the Fixed Asset type do not allow modification and cancellation actions commonly found on other documents.  Document codes in the Fixed Asset document type serve to update the Fixed Asset Registry tables, Fixed Asset Journals, and the Fixed Asset Infrastructure Maintenance tables with different information over the life of an asset.  Thus it is the asset that is the ‘living’ record and not the documents that create and maintain it.

The Fixed Asset Inter Fund Transfer (FAIT) document exists to record assets from one Fund or Sub Fund to another Fund or Sub Fund. There can be a change in Responsibility Center COA and/or location information for an asset with the Event Type FA54. The FA54 Event Type uses the Event Category of FAIT.  The Fixed Asset Inter Fund Transfer (FAIT) document can only be used for Assets that have the Responsibility Center Posting flag selected on the Accounting Line. For additional information on the transfer of responsibility within the same fund please refer to the Fixed Asset Transfer (FT) document.

If the asset transferred has responsibility center as the depreciation structure then depreciation is calculated up until the transfer date (record date of the FAIT document) and is recorded for the old COA elements. The following steps are followed for the calculation of depreciation:

• If eligible records are found in the Depreciable Element Change Table (DEPEC) (that is, when the reorganization date is greater than the effective date on the active DEPEC record).

• 1. Calculates Component Depreciation using values from DEPEC.

  2. Updates the DEPEC record (that is, sets it as inactive).

  3. Inserts the calculated Depreciation Amount in Depreciation History (DEPH) using the values of DEPEC.

• Else

• 1. Calculates Component Depreciation using values from the Fixed Asset Registry (FAR).

  2. Apportions the amount to the accounting line level.

For additional details on the depreciation calculation please refer to the “Fixed Assets Depreciation” section.

The following main events occur when processing a FA Inter Fund Transfer document:

• The FA Registry Header is updated for the new responsibility center COA values.

• If the asset is a composite asset and Depreciation is calculated by the FAIT document, then the Last Depreciation Date on the FA Registry Header is updated with the Record Date of the FAIT document.

• The FA Registry Component is updated for the location, sub location and complex/ building and the Last Depreciation date if depreciation is calculated by the FAIT document.

• If the asset is depreciated then the accumulated depreciation and net book value on the FA registry tables are also updated.

• Two Records are inserted to the FA Component Journal – one for the fund from where the asset is transferred and another for the fund to where the asset is transferred to.

• Records are inserted to the FA Accounting Journal.

• If a wildcard value of BLNK is provided for any of the New COA elements, then the value of the COA element on all lines of the FA Registry Accounting (FARACTG) is blanked out.

Auto Apply is a link on almost all of the FA documents. When the FA Number is provided and Auto Apply is clicked, the details of the Fixed Asset Number are pulled into the document from the FA Registry tables of Header, Component and Accounting. The COA values on the accounting line are overlaid by the COA values on the FAR Header when the Responsibility Center Posting (RCP) is selected. If the COA value is BLNK on the FAR Header and the RCP is selected then no value is populated on that COA element.

Structure

The Fixed Asset Inter Fund Transfer (FAIT) document has four sections found on the secondary navigation panel.  Each is broken down into various subsections 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 either because of edits or the fields are protected.  Only those fields to record the transfer 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 and Event Type.

  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 as well as the Custodian. Not all changes are allowed with respect to Fund and Sub Fund. See the field help for the New Fund field for more information on restrictions. Any field that is present on FARHDR and not entered (that is, left blank) on the FAIT for the New COA element will remain on FARHDR and as part of the RC Posting.  If you do not want to retain the Old COA elements you must enter BLNK in the appropriate New RC fields.  New RC fields with BLNK will update the FARHDR with BLNK when the document is finalized.

  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.

  Document Information: This section is common to all documents where fields are shown from whom and when a document was initially created. Two additional fields record who was 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 with this document.  The Auto Apply action is 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 that are recorded for informational reporting on the component.  Many fields have specific labels which correspond to descriptive information recorded for particular types of assets, while others contain a generic ‘Description #’ label that allows for any site-specific use.

  • Acquisition Details: This section contains fields to capture acquisition details. Many are pre-populated with information from the disbursement that led to the creation of a Fixed Asset shell document.

  • Component Location Details: This section contains the same location information as the Header for recording such details at a component level that may be located at a different location as not all components may be physically attached to one asset.  Additional fields exist for this document to record an inventory taken for the component for reporting purposes and for updates to the Infrastructure Maintenance table. The New Location, New Sub Location and New Complex/Building can be manually updated.  If you wish to retain the original location information these fields can be left blank. The New Location and New Sub Location are always validated against the New Responsibility Center Department.

  • 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 informational fields for valuation and replacement reporting needs, other fields that control depreciation, and a field to enter a depreciation amount for the component. The system will automatically populate the Depreciation Amount when the Depreciation Method is Straight Line. Manual entry of an amount is not allowed in that case, but is allowed when the Depreciation Method is Manual. Depreciation amount is calculated or allowed only when the depreciation structure is responsibility center. The depreciation is allotted to the ALs on the basis of the net book value.

• Accounting - Lists the Chart of Account (COA) details for how each asset component was funded. All information at this level is protected and is brought in from the Fixed Asset Registry Accounting Line table or from the Disposition document Header. Accounting lines on the FAIT document are generated only when there is depreciation amount, that is, when the depreciation structure is responsibility center.

  • 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.  Various amounts are displayed that are used in the various Posting Lines created for the Accounting Line.

  • 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.

  The FAIT document generates the following posting lines with the Old COA elements for the fund or sub fund from where the asset is transferred:

  • Debiting the depreciation expense and crediting the accumulated depreciation.

  • Reversal of the accumulated depreciation: Debiting the Accumulated Depreciation and crediting the Depreciation expense with the amount of accumulated depreciation and depreciation catch up.

  • Net Book Value: Debiting the Fixed Asset account and crediting the Asset Offset account.

  The FAIT document generates the following posting lines with the New COA elements for the fund or sub fund from where the asset is transferred:

  • Recording accumulated depreciation: Debiting the Fixed Asset account and crediting the Accumulated Depreciation.

  • Net Book Value: Debiting the Fixed Asset account and crediting the Asset Offset account.