Fixed Assets Configuration

Fixed assets, also referred to as tangible assets or property, plant, and equipment (PP&E), represent the long-term assets owned by a business or individual. These assets are essential for operations and are not intended for immediate sale. Instead, they are expected to provide value and contribute to revenue generation over an extended period. Fixed assets include items such as land, buildings, machinery, equipment, vehicles, and intangible assets like patents or trademarks.

Fixed assets are recorded on the balance sheet at their historical cost (the original purchase price plus any costs related to acquisition and installation). Over time, these assets are depreciated or amortized, which means their value is gradually reduced to reflect wear and tear, obsolescence, or loss of value over their useful life.

This article covers the necessary steps for setting up fixed assets, guiding users through the following configurations:

• Fixed Asset Configuration
• Fiscal Calendar
• GL Source
• Asset Books
• Asset Classes
• Major and Minor Asset Groups (Asset Major)
• Asset Book Defaults
• Fixed Asset Issue Types
• Asset Import Formats

Fixed Assets Configuration

1. From the Main Menu, search for and click Fixed Assets Configuration.
2. In the General tab, select the appropriate settings:
   • Depreciation Allocation –
     • If using a fiscal calendar that corresponds to calendar months (for instance, each period start date corresponds to the first day of a month and each period end date corresponds to the end date of a month) AND you wish to allocate annual depreciation evenly throughout the year, then choose “Periodic”.
     • If your fiscal calendar start and end dates do not correspond to the start and end dates of a calendar month (for example, Fiscal calendar is based on a 4-4-5 cycle) OR you wish to allocate annual depreciation based on the number of days in a fiscal period, choose “Daily”.
     • If no value is entered, depreciation will be allocated based on the even annual depreciation throughout the year according to the fiscal calendar months ("Periodic").
   • Create Depreciation Journal Entries by Asset – Define the level of detail for creating depreciation journal entries in the General Ledger module.
     • To create journal entries at a detailed level by fixed asset, check this box. This will result in all accumulated depreciation transactions being grouped by asset and GL account.
     • If this volume of transactions is not desirable, uncheck this box. This will group the depreciation entries by Major and Minor groups within the GL account.
   • Default Asset Type – Used to define the default type when adding a new asset. Valid values are: Capitalized, In Progress, or Expensed.
3. In the Access Privileges tab, review the privileges to determine which users or roles can perform each task.
4. Click OK.

Fiscal Calendar

Create Fiscal Periods for Fixed Assets to record asset transactions. This can be done for an existing Fiscal Year or when adding a new year.

Add Fixed Assets periods to an existing Fiscal Year

1. From the Main Menu, search for and click Fiscal Calendar.
2. Right-click the existing Fiscal Period and click Edit.
3. Click Add. The Add Fiscal Period window opens.
4. In Module, choose Fixed Assets.
5. Verify the year and enter the period number and Start and End Dates for the period.
6. In Status, choose Open.
7. Click OK.
8. Repeat for each period to be added to the year.

Add Fixed Assets to a New Fiscal Year.

1. From the Main Menu, search for and click Fiscal Calendar.
2. Click Add to add a new Fiscal Year. The Add Fiscal Period window opens.
3. Verify the Year, Type, Start Date, and the number of periods to be created.
   • Note: The type will default the start and end dates for the periods. Monthly will set calendar dates, the remaining options will create periods with the relevant number of weeks (eg. 4,4,5) based on the Start Date for the year.
4. Check the boxes for the Modules to include in the new Fiscal Year, including Fixed Assets.
5. Click OK.

GL Source

1. From the Main Menu, search for and click GL Sources.
2. In the source column, look for "FX" code.
   • If the source code "FX" exists under the Source column, no further action is required.
   • If the source code “FX” does not exist, continue with the following steps:
     1. Click Add. The Add GL Source window opens.
     2. In the Source field add FX.
     3. In the Description field add Fixed Assets.
     4. Click OK.

Asset Books

An Asset Book is used to record the values of assets. Only one Asset Book with a code of “000” can be used to record depreciation and to create journal entries. Other uses of Asset Books could be to record a fair market or insurance value of assets.

To add an Asset Book:

1. From the Main Menu, search for and click Asset Book.
2. Click Add. The Add Asset Book window opens.
3. For a GL Book, enter the code “000”. Other books can be added with any 3-digit alphanumeric code.
4. Enter a description. The best practice is to enter “General Ledger” for the GL Book.
5. Click OK.

Asset Classes

Asset Classes are an optional, customizable field used to classify assets for reporting purposes. This master table can be customized to your organization’s requirements.

To add an Asset Class:

1. From the Main Menu, search for and click Asset Classes.
2. Click Add. The Add Asset Class window opens.
3. Enter the details about the asset class:
   • Class – Enter a 6-digit (or up to 6 digits) alphanumeric code for this class.
   • Description – Enter the description for the class.
   • Status – Choose Active. To alter a Class so it is no longer selectable, choose Inactive.
4. Click OK.

Major and Minor Asset Groups

Major Asset Groups and Minor Asset Groups have a dual purpose. They are used to group like assets together for reporting purposes and to determine the GL distribution used when generating journal entries on various asset transactions. Each Major Group has a tab to enter GL distribution for the Major Group and a tab to display any GL distributions already entered for associated Minor Groups and vice-versa. This is a parent/child relationship and any GL distribution defined at a Minor Group will override the GL distribution set at the Major Group.

Add a Major Asset Group

To add a Major Asset Group and define the GL distribution:

1. From the Main Menu, search for and click Major Asset Groups.
2. Click Add. The Add Major Asset Group window opens.
3. Enter the details about the major asset groups:
   • Description – Enter a description for the group.
   • Prefix – Enter the prefix to be added before the asset number for new assets created with this Major. For example, use EQ for Equipment items. This is not a required field. 
   • Status – Choose the status of Active. To prevent an existing Major from being selected in the future, set the status to Inactive. Majors can be deleted if entered in error and not in use.
   • Code – Enter a 6-digit (up to 6 digits) alphanumeric code to identify the Major.
4. If GL distribution is to be defined at the Minor only, click OK to save and exit. If distribution is to be set at the Major, continue with these instructions.
5. On the GL Distributions for Major Groups tab, click Insert Row. For existing Groups, right-click on the existing row and select Insert Row.
6. If using complex GL distribution, use the Sequence to define the order to evaluate rows. The best practice is to have one combination of GL Accounts for each transaction type.
7. Choose the Type of transaction from the dropdown. Each transaction type will have a debit (Dr) and credit (Cr) type available to define both sides of the journal entry.
8. Choose the GL Account in the GL Account Name. This can be typed into the GL Account field if you know the account number.
9. Click OK when each transaction type has been added with its appropriate GL Account.

Add a Minor Asset Group

To add a Minor Asset Group and define the GL distribution:

1. From the Main Menu, search for and click Minor Asset Groups.
2. Click Add. The Add Minor Asset Groups window opens.
3. Enter a description for the group.
4. Choose the Major Group, this Minor is to be related to.
5. Choose the Status of Active. To prevent an existing Minor from being selected in the future, set the status to Inactive. Minors can be deleted if entered in error and not in use.
6. Enter a 6-digit (up to 6 digits) alphanumeric code to identify the Major.
7. Choose the Issue Type (or group of user-defined fields) to be associated with assets in this Minor Group.
8. If GL distribution is to be defined at the Major only, click OK to save and exit. If distribution is to be set at the Minor, continue with these instructions.
9. On the GL Distributions for Minor Groups tab, click Insert Row. For existing Groups, right-click on the existing row and select Insert Row.
10. If using complex GL distribution, use the Sequence to define the order to evaluate rows. The best practice is to have one combination of GL Accounts for each transaction type.
11. Choose the Type of transaction from the dropdown. Each transaction type will have a debit (Dr) and credit (Cr) type available to define both sides of the journal entry.
12. Choose the GL Account in the GL Account Name. This can be typed into the GL Account field if you know the account number.
13. Click OK when each transaction type has been added with its appropriate GL Account.

Distribution Types

Following is a list of the distribution types and their usage:

• Dr Asset Cost: The Asset GL Account records the Asset Cost.
• Cr Asset Cost Clearing: Used when adding Assets. GL Transactions entered into any account defined in Cr Asset Cost Clearing can be used to Import Assets from Accounts Payable.
• Dr Depreciation Expense: The expense accounts for monthly depreciation.
• Cr Accumulated Depreciation: The “negative Asset” GL Account for the accumulated depreciation value. This account should be balanced with the asset cost account. 
• Dr Proceeds & Cr Gain/Loss: Used for Asset retirement/disposal to record any proceeds (for sale of Asset) and net gain or loss from the sale or disposal of an asset.
• Dr CIP Cost & Cr CIP Cost Clearing: As per the Cost and Cost Clearing accounts above but used with the Asset has a Type of In Progress (Construction in Progress).

Asset Book Defaults

To add a new Asset Book Default:

1. From the Main Menu, search for and click Asset Book Defaults.
2. Click Add. The Add Asset Book Defaults window opens.
3. In the Default By section:
   • • Choose the Book, most commonly the GL Book (000).
     • Choose the Major Group.
     • If defining at the Minor level, choose the Minor Group.
4. In the Defaults section, add the values to default into the new asset records:
   • • Check the Depreciate box.
       • Choose the method – A straight line or a declining balance option.
       • Enter the default Life in years in the first box and months in the second. For example, an asset with a life of 2.5 years would have 2 in the years' box and 6 in the months.
       • Salvage % – Enter the percentage of the acquired cost to calculate the default salvage value.
     • Select Convention:
       • Full Month – Calculate a full month of depreciation for the fiscal period corresponding to the in-service date.
       • Full Year – Calculate a fiscal year of depreciation for the first fiscal period and then monthly from then on.
       • Half Year – Calculate half a fiscal year of depreciation for the first fiscal period and then monthly from then on.
       • Mid-Month – Calculate the first month of depreciation prorated on the number of days from in-service to the fiscal period end and then monthly from then on.
       • Next Month – Begin depreciation calculations from the next fiscal period.
       • Next Year – Begin depreciation calculation from the next fiscal year.

Fixed Asset Issue Types

1. Alphanumeric – Free-form text field. These can be used with Validation Tables. There are 50 alphanumeric fields available within each Issue Type.
2. Personnel – A dropdown that displays a list of all Personnel Contacts.
3. Space – A dropdown that displays a list of all Spaces.
4. Supplier – A dropdown that displays a list of all Supplier Accounts.
5. Date –  Used to enter dates with two-digit years. 20 date fields are available within each Issue Type.

1. Contact – A dropdown that displays a list of all contacts for an account.
2. Blank Line – Used to separate information.
3. Customer – A dropdown that displays a list of all accounts.
4. Event – A dropdown that displays a list of all events.
5. Full Year Date – Used to enter dates with a four-digit year format.
6. Job – A dropdown that displays a list of all Jobs.
7. Header –  Creates a header for grouping information in a user-defined field set.
8. Member – A dropdown that displays a list of all member accounts.
9. Numeric – Used to enter a number. There are 30 number fields available.
10. Percent – Used to enter a percentage.
11. Time – Used to enter a time.
12. URL – A text field used to store a URL.

1. From the Main Menu, search for and click Fixed Asset Issue Types.
2. Click Add. The Add Issue Type window opens.
3. Enter a Description and a Code to identify the Issue Type.
4. Set the Status to Active. These can be marked as Inactive when not in use.
5. Check the box for UDF Only.
6. In the Custom Fields section, click Add. The Add Custom Field window opens.
7. Enter a Description for this field. This will be displayed on the Asset record.
8. Choose the Type of field to use (see definitions above).
9. Alphanumeric fields will allow for the selection of a Validation Table and definition of the number of characters (up to 255) to be made available.
10. To allow the check box for Allow Multiple Values, select a Validation Table. For more information on Validation Tables, see the article- Dependent Custom Fields/User Defined Fields (UDFs).
11. For Numeric fields, define the number of decimals.
12. Choose the Display Options to modify how the field displays on the screen. Display Line defines the order in which to display the fields on the Edit Asset screen. This is not controlled by the edit layout.
13.  To allow for only values that apply to the parent field to be displayed for selection in the child field, add Relationships between fields. To create a relationship, there must be an existing field with a Validation Table associated that can be chosen as a Parent Field. The field to create the Relationship must also have a Validation Table. To add a Relationship:
    1. In the Relationships section, click Add.
    2. Select the Parent Value – The options available are the Validation Table values of the Parent Field.
    3. Select the Child Value – The options available are the Validation Table values of the Child Field.
    4. If multiple Child Values apply to a single Parent Value, these must be entered individually.
    5. Check the Default box for a value that should default into the child field based on the parent selection.
14. Click OK to save.

Asset Import Formats

1. Description
2. Useful Life (in years)
3. Major Asset Group
4. Asset Type
5. New or Existing Asset (N for new assets)
6. Owned/Leased

1. From the Main Menu, search for and click Fixed Asset Import Formats.
2. Click Add. The Add Fixed Asset Import Formats window opens.
3. Add the necessary information:
   • Description – The name of the import format.
   • Fixed – Select Yes, No, or Quoted.
   • Delimited – None or CSV.
   • Export/Import File Name – Name of the file.
4. In the Details tab, click Add to add and define the fields to correspond to the fields in your data file. Refer to Add an Asset to the Asset Register for details about the most commonly used fields for Assets.
   • Note - Pay particular attention to date fields and select the correct date format in the Fill Factor field.
5. In the Order field, update the value for each row to determine the order of the columns. This is stored in increments of 10 and will automatically recalculate when values are updated.
6. Click OK.