Asset Functions—Key Exercises

IMPORTANT
It is extremely important that you set up and work within your own company to maintain your data integrity. If you work within any other company, your exercises will not function as intended and the data of other students might be affected. Predictable exercise results require that your data is isolated in your own company.

Basic Data Setup

In order to perform the exercises in this lesson, some basic data must have been set up in the system according to the exercises in the following lesson:

Fixed Assets Accounting Basic Data and Requirements

Required Data

Before you begin the Move Asset and Split Object exercises, you must have completed the following lesson:

Acquisition

Before you begin the Sell Object exercise, you must have completed the following lessons:

Acquisition

Depreciation According to Plan

Main Exercises

Move Asset

Purpose: The purpose of this exercise is to show you how to move an object. Moving an object means changing the code string for the posting of the acquisition value or of acquisition value adjustments, changing the transaction reason and/or the accumulated depreciation. In other words, you move the object's acquisition value and accumulated depreciation from one code string to another. A move always generates a new voucher and one or more accounting transactions. On the other hand, no new object transactions are created because a move is not an event in this respect. Instead, the new accounting transactions refer to the former object transactions. During this exercise, you will move your first machine to another cost center, change the pre-posting information, and then check the transactions using query windows.

Windows:
Object
Accounting Transactions Analysis
Vouchers Analysis

Move Object

Windows:
Object

  1. Open the Object window.
  2. Query for your first machine.
  3. Right-click and then click Move Object. This opens the Move Object window.
  4. Click the General tab in Move Object.
  5. Select the Acquisition Transaction Value Type check box.
  6. Check the posting date in the Posting Information (Voucher Date) field. Change the date if necessary.
  7. Click the Accounting tab.
  8. Enter the new code string value in the New Values section of the window.
  9. Click the Pre-Posting tab and change the code string to match the change in accounting.
  10. Save your changes.

Note: A voucher is created and transferred to the hold table in IFS/Accounting Rules.

Queries

Windows:
Accounting Transactions Analysis
Vouchers Analysis

  1. Open the Accounting Transactions Analysis window, and view the fixed asset transactions.
  2. Open the Vouchers Analysis window, and view the voucher or vouchers that were created in the hold table in IFS Accounting Rules.

Note: The Move Object operation is available only for active objects, i.e., objects in the Active status. The cost side for depreciation cannot be moved. This type of posting is moved using the following sequence of activities: (1) cancellation of transaction, (2) correction of posting rules, and (3) new posting of depreciation.

Split Object

Purpose: The purpose of this lesson is to split an object. In fixed-assets accounting and in the general ledger, a portion of the acquisition value, the acquisition value adjustment or accumulated depreciation are transferred from the original object to the new object in accordance to specified terms. To split an object into more than two parts, you must carry out the splitting process in several stages. When the split takes place, a voucher is created and placed in the hold table in IFS/Accounting Rules.

Part of the value of your second machine will be split to a new object. If the object is to be split when the object is in the Active status, the object must be depreciated through the date to be split before the split can occur. If the object is to be split when the object is in the Investment status, the object is not required to be depreciated before the split. View the transactions in the query windows after the split has taken place.

Windows:
Object
Accounting Transactions Analysis
Vouchers Analysis

Split Object

Windows:
Object

  1. Open the Object window.
  2. Query for your second machine.
  3. Right-click and then click Split Object.
  4. Specify whether the split will be performed based on a percentage or an amount.
  5. If the split is based on a percentage, then enter the percentage, without the percent sign (%), in the Percent field. If the split is based on an amount, then enter the amount in the Amount field and click Calculate. Calculated values for new object can be manually changed. Values for the new object can also be entered manually .
  6. Check the values in the Split Date, User Group, and Voucher Type fields.
  7. In the New Object and New Description fields, enter a new object ID and description.
  8. Click OK.

Note: A voucher is created and transferred to the hold table in IFS/Accounting Rules. The object that will be split must be fully depreciated through the date on which the split takes place. This means that splitting can be performed only with a voucher date at the end of a period.

Queries

Windows:
Accounting Transactions Analysis
Vouchers Analysis

  1. Open the Accounting Transactions Analysis window, and view the fixed-asset split transactions.
  2. Open the Vouchers Analysis window, and note the voucher or vouchers that were created in the IFS/Accounting Rules hold table.

Scrap Object

Purpose: The purpose of this exercise is to show you how to scrap an object. Scrapping an object is performed when a fixed asset is scrapped or sold, and no compensation is received. This removes the object's listing in IFS/Fixed Assets and the posting of the event. In this exercise, you will scrap the remaining portion of your second machine after the split has been performed (see the previous exercise), check the posting types used to scrap an object, and then check the transactions in query windows.

Windows:
Posting Control
Object or Objects
Accounting Transactions Analysis
Vouchers Analysis

Scrap Object

Windows:
Posting Control

  1. Open the Posting Control window, and check Posting Types FAP11 and FAP12.
  2. If you use Net Cost as the Disposal Posting Method for the book, then check posting types FAP26 and FAP27.
  3. If you have performed acquisition value adjustments for one or several books, you have to select the posting types FAP45 and FAP46 as well.

Windows:
Object

  1. Open the Object window, and query for your second machine that is in Active status.  Note: It is also possible to populate and select one or several objects to scrap using the Objects window).
  2. Right-click and then click Scrap Object. The Scrap Object window appears showing information on the latest acquisition event date and the latest depreciation date of the selected object(s).
  3. Modify the suggested scrap date and voucher date if necessary. Note: The scrap date must not be earlier than the latest acquisition event date.
  4. Select a disposal reason from List of Values.
  5. Save your changes.
    6. A message will be displayed whether the selected object(s) should be checked with respect to depreciations.
  6. Click Yes if the object is to be depreciated until the period which is defined per book in the Disposal Principle of the depreciation method, otherwise click No.
    Note: Regardless of the check performed, all depreciations until the period defined in the disposal principle, is not allowed to have depreciations after the period defined in the disposal principle.
  7. If you click Yes and if depreciations are not performed for all, you have to make a decision as to  whether to continue with the scrap, or whether to interrupt the scrap process.
  8. If you click No, or if all depreciations are created until the required period, or if you decide to continue in spite of missing depreciations, the scrap will be posted.

Note:  A voucher is created and transferred to the hold table in IFS/Accounting Rules. The object status is automatically changed to Scrapped. The disposal date of the object is set to the entered scrap date.

Queries and Reports

Windows:
Accounting Transactions Analysis
Vouchers Analysis
Year Disposal Report

  1. Open the Accounting Transactions Analysis window, and view the fixed asset scrapping transactions.
  2. Open the Vouchers Analysis window, and note the scrapping voucher or vouchers that were created in the hold table for IFS Accounting Rules.
  3. Open the Year Disposal Report dialog box.
  4. Select the Accounting Year option and and enter the accounting year and periods.
  5. Select the Scrapping option, enter one of your scrapped object's books.
  6. Select the Include option for parameter Objects without a Book.
  7. Click OK and preview the report.

Sell Object

Purpose: The purpose of this exercise is to show you how to handle the accounting for the sale of an object. This event takes place when a fixed asset is sold and compensation is received. This removes the object's listing in IFS/Fixed Assets and the posting of the event. You cannot perform this action for an object whose compensation amount is zero. Instead, you must perform the steps outlined above in the Scrap Object exercise. In this exercise, you will check the posting types used for a fixed asset sale. Your third machine will be sold.

Windows:
Posting Control
Object
Objects
Accounting Transactions Analysis
Vouchers Analysis

Sell Object

Windows:
Posting Control

  1. Open the Posting Control window.
  2. Check Posting Types FAP7–FAP10. FAP10 is the interim account for the revenue received, the same account, as for FAP10, should be used for the customer invoice. 
  3. If you use Net Cost as the Disposal Posting Method for the book, then check posting type FAP25.
  4. If you need to separate profit/loss postings for one or several books, check that posting types FAP35 - FAP38 are set up properly.
  5. If you have performed acquisition value adjustments for one or several books, you have to select the posting types FAP43 and FAP44 as well.

Windows:
Object
Objects

  1. Open the Object  or Objects window, and query for your third machine.
  2. Right-click and then click Sell Object. The Sell Object window appears displaying information on the latest acquisition date and the latest depreciation date of the selected object(s).
  3. Enter an amount (sales price) and modify the suggested the sales and voucher dates if necessary. Note: The sales date must not be be earlier than the latest acquisition event date.
  4. Select a disposal reason from List of Values.
  5. Save your changes.
  6. A question is raised whether the selected object(s) should be checked with respect to depreciations.
  7. Click Yes if the object is to be depreciated until the period which is defined per book in the Disposal Principle of the depreciation method, otherwise click No.
    Note: Regardless of the check whether all depreciations are performed until the period defined in the disposal principle, you are not allowed to have depreciations after the period defined in the disposal principle.
  8. If you click Yes and not all depreciations are performed, you have to answer whether you want to continue with the sales, or whether you want to interrupt the sales process.
  9. If no check is performed, or if all depreciations are created until the required period, or if you decide to continue in spite of missing depreciations, the sale is posted
     

Note: A voucher is created and transferred to the hold table in IFS/Accounting Rules. The object status is automatically changed to Sold. The disposal date of the object is set to the entered sales date. This process is the fixed asset portion of the asset sale.  A customer invoice must be entered before accounts receivable will reflect the sale.

Queries and Reports

Windows:
Accounting Transactions Analysis
Vouchers Analysis
Year Disposal Report

  1. Open the Accounting Transactions Analysis window, and view the fixed asset transactions for the sale.
  2. Open the Vouchers Analysis window, and note the voucher or vouchers that were created as a result of the sale.
  3. Open the Year Disposal Report dialog box.
  4. Select the Accounting Year option and enter the accounting year and periods.
  5. Select the Both option as the event
  6. Enter one of your sold objects' book.
  7. Select the Include option for objects without a book.
  8. Click OK and preview the report.

Replace Object

Purpose: The purpose of this lesson is to show you how to replace an object. This feature is useful when an object needs a new object ID. For instance, an object under construction is depreciated, and once it is completed, the object ID is to be changed. In this exercise, your fourth machine will be replaced with a new object ID. Depreciation must be taken for all books through the end of the period during which the asset will be replaced.

Windows:
Object
Accounting Transactions Analysis
Vouchers Analysis

Replace Object

Windows:
Object

  1. Query for your fourth machine.
  2. Right-click and then click Replace Object.
  3. Check the replace information.
  4. In the New Object field, enter a new object ID and description.
  5. Click OK. 
  6. A new object is created in the Active status. The object status for the old object changes to Replaced.

Note: A voucher is created and transferred to the hold table in IFS/Accounting Rules. In connection with the completion of an object under construction, you may need to change the object group and code string. These requirements are covered in the move function after the object has been replaced.

Queries

Windows:
Accounting Transactions Analysis
Vouchers Analysis

  1. Open the Accounting Transactions Analysis window, and view the replacement fixed-asset transactions.
  2. Open the Vouchers Analysis window, and note the replacement voucher or vouchers that were created hold table for IFS Accounting Rules.

Rollback of Transactions

Purpose: The purpose of this exercise is to roll back previously entered transactions. The Roll Back Object Transaction window is used to cancel one or more object transactions linked to an object. Only one event at a time can be canceled, and this event is always the most recent one. This means that you may need to perform this function several times.

If the Import event is canceled, then all transactions related to the import are also canceled. In this case, the acquisition transaction, the acquisition value adjustment transactions and transactions related to accumulated depreciation are canceled. The object status is then automatically set to Registered.

If a split of an object is canceled, transactions related to the other object are also canceled. It does not matter which object is used as a basis for the cancellation. The object status for the split-to object is automatically set to Investment.

When you cancel a move, sale, scrap, or replace of an object, the object status is automatically set to Active.

Other functions such as Add investment, Change Acquisition Value, and Change Net Value are canceled via the object operation window.

Postings created while canceling are always the opposite of those originally created. These are created as correction vouchers, i.e., negative debit and credit amounts.

When you cancel an event, the voucher date for the original event is displayed as default. If this voucher date belongs to a closed period, it must be changed. Note that the event is assigned the original date for the transactions in IFS/Fixed Assets.

Windows:
Roll Back Object Transaction
Accounting Transactions Analysis
Vouchers Analysis

Rollback of Transactions

Windows:
Roll Back Object Transaction

  1. Open the Roll Back Object Transaction window, and query for one of your objects.
  2. Select the most recent transaction row linked to the object.
  3. Right-click and then click Roll Back Object Transaction.
  4. Check the values in the Voucher Date, User Group, and Voucher Type fields.
  5. Click OK to confirm the rollback.

Note: A voucher is created and then transferred to the hold table in IFS/Accounting Rules.

Queries

Windows:
Accounting Transactions Analysis
Vouchers Analysis

  1. Open the Accounting Transactions Analysis window, and view the fixed asset transactions.
  2. Open the Vouchers Analysis window, and note the voucher or vouchers that were created in the hold table in IFS Accounting Rules.