Fixed Assets Interface

Added to NDS Applications, version 7.5.4, 8.4

Listed below for the Fixed Assets Interface is the posting type, the posting type description, the transactions used for the posting, and the calculation for the posting.

NDS will automatically generate simplistic postings for assets as described below. Postings should be suppressed and handled manually if accounting for assets in a particular industry or category requires more complex entries according to FASB guidelines. Posting information is tracked in the asset tracking system except for depreciation postings.

Fixed Assets Interface used Two-sided entries

DEPR Depreciation Depreciation calculations (based on asset life and depreciation method) and postings are created in program FAMC Fixed Assets Master Control.

Calculations are stored by fiscal year/period and are used to generate posting entries program GLGM, Generic Interface Transaction Maintenance. Calculations can be viewed in program FAMM, Fixed Assets Master Maintenance, and the depreciation that has not been posted can be viewed in program FAMM, Fixed Assets Master Maintenance, and maintained in program FAMP, Maintain Fixed Assets Postings.

Example:
 Depreciation Expense  $100
 Asset Depreciation  $100 (contra account to asset account)

DSPSD Asset disposed of permanently A simplistic disposal posting is generated when an asset is disposed of permanently and removed from books after retirement, as determined by the disposal method being set and disposal date being set.

The retired assets account will have contained the book value at time of retirement and needs to be cleared. The disposal amount is entered at the time of disposal and also stored in the asset master.

The posting template should be set up for each disposal method generally used by the company.

When the system creates the journal, it will actually be a triple entry journal. The system will credit the retired assets account (retrieve the credit account from the LVSVC posting template) in addition to making the 2 sided journal entry from the DSPSD posting.

Example:
An asset was retired when it had a book value of $100. It was sold for $300, $200 more than the book value, and flagged as disposed in program FAMC, Fixed Assets Master Control. When the disposal date is set, the asset's disposal value is kept in the asset master record and the following 3 entry journal would be created:

 Retired Assets Account    $100
 Cash     $300
 Gain/Loss on Disposition of Asset $200

The account number for the disposal amount will be derived from the debit account in the DSPSD posting template. The account number for the difference between disposal and book will be derived from the credit account on the DSPSD posting template. The retired assets account will be derived from the debit account on the LVSVC posting template.

INSVC Asset placed into Service Asset is created or the Book Basis value changes for the asset.

This posting posts the book basis less the salvage value of the asset to the asset account. The offsetting account should be a reconciliation account where the actual transaction details are posted to and reconciled on a regular basis (e.g. AP vouchers if asset was purchased).

Example:
INSVC posting:
 Assets-Office Equip   $100
 Asset Reconciliation - New Asset $100

APVM invoice:
 Asset Reconciliation - new Assets $100
 A/P liability    $100

LVSVC Asset retired from service Asset is retired from service as determined by the date retired changing from null to not null.

This posting posts the difference between the depreciation to-date for an asset and its book basis. The asset account would be credited and an asset reconciliation account would be debited.

Example:
The entry could be something like this for an asset that had a book value of $100 at time of retirement:

 Retired Assets Account  $100
 Asset Account   $100

RCALC Depreciation Method Recalculation Postings are generated when a change in depreciation method or life causes a difference between the previous to-date depreciation booked and the new to-date depreciation that would have been booked had the change in asset life/depreciation method been in place at the time the asset was placed in service.

The previous depreciation records are deleted. New depreciation records are calculated based on the current life and depreciation method.

When changing the tax life or depreciation method, the tax depreciation records will be removed and the asset tax depreciation is recalculated with the new tax depreciation method and/or life. No postings are generated because tax depreciation is strictly an estimated amount for informational purposes. With changing tax laws, it may or may not match depreciation amounts calculated under IRS rule.

Example:
If an asset had a to-date depreciation booked of $150 and a change in life meant it would have had a to-date depreciation booked of $200 then the $50 difference would be posted to debit and credit accounts from the posting template for RCALC

 Catchup Depreciation Expense $50
 Asset Depreciation  $50 (contra account to asset account)

Fixed Assets Post Types and Parameter Items