Fixed Assets—Basic Data and Requirements Exercises

Main Exercises

Preparations in IFS/Internal Ledger

Purpose: The purpose of this exercise is to define Internal Ledgers which can be connected to books in IFS/Fixed Assets.

Note: If you do not intend to use several books in Fixed Assets and connect them to Internal Ledgers, you can skip this particular exercise and continue.

Windows:
Define Internal Ledgers

1. Open the Define Internal Ledgers window.
2. Select the Ensure FA Acquisition check box and create a ledger called IFRS.
3. Unselect the Ensure FA Acquisition check box and create a ledger called CALC.

Note: Your User ID will automatically be added to the internal ledgers created. If the internal ledgers are created by another user, this user has to add your User ID to the internal ledger that you intend to use.

Windows:
Internal Code Parts

1. Open the Internal Code Parts window. Your default ledger (IFRS) will automatically be used.
2. Populate. Code Parts B - J will be displayed.
3. Select the code parts you want to follow up in this ledger and save.
4. Right-click and click Change Ledger.
5. Select your second internal ledger CALC.
6. Populate. Code Parts B - J will be shown.
7. Select the code parts you want to follow up in this ledger and save.

Note:  Code Part Account is automatically available in all ledgers and cannot be unselected.

Windows:
Internal Posting Methods

1. Open the Internal Posting Methods window. Your default ledger (IFRS) will automatically be used.
2. Click New, enter %(percentage) in the Account field and select Include in the Handling field to display all accounts for your internal ledger IFRS.
3. Select Keep for all code parts of this ledger, and set Valid From to the beginning of the current year.
4. Save
5. Right-click and click Change Ledger.
6. Select your second internal ledger CALC.
7. Click New and create records for all cost accounts with Include in the Handling field.
8. Select Keep for all code parts of this ledger and, Valid From at the beginning of the current year to set up your Internal Ledger CALC for cost accounts only.
9. Save.

Windows:
IL Authority Classes

1. Open the IL Authority Classes window. Your default ledger (IFRS) will automatically be used.
2. Click New, enter an authority class (e.g. ALL) and a description.
3. Save.
4. Right-click and click Users per IL Authority Class.
5. Enter your user id, the authority class (e.g. ALL) and save.
6. Open the IL Authority Combinations window.Your default ledger (IFRS) will automatically be used.
7. Enter the created authority class, select Yes in field Allowed,  and enter %(percentage) for all code parts.
8. Save.
9. Open the IL Authority Classes window again. Your default ledger (IFRS) will automatically be used.
10. Right-click and click Change Ledger.
11. Select your second internal ledger CALC.
12. Repeat the steps 2 - 6 for ledger CALC.

Preparations in IFS/Accounting Rules

Purpose: The purpose of this exercise is to show you how to enter the setup information in IFS Accounting Rules that you will need to use IFS/Fixed Assets. A code part function has to be defined before starting work in Fixed Assets module. If the fixed assets are to be posted on different accounts and cost centers, the information for these code parts must also be entered.

Note: A code part function must be defined before you begin working in IFS/Fixed Assets. If the fixed assets will be posted on different accounts and cost centers, the information for these code parts must also be entered, along with information on the posting control. In the following exercises, some machines are posted on the same acquisition account but on different cost centers.
 

Windows:

    Company / Fixed Assets Tab
 

1. Open the Company window.

2. Query for the required company.

3. In the Fixed Assets tab select Allow Multiple Acquisition Code Strings check box if there is a requirement to maintain multiple code strings for fixed asset acquisitions.

Windows:
Define Code String

1. Open the Define Code String window.
2. Specify one code part and code part function for Fixed Assets Accounting.
3. Specify that one code part is defined for cost center, according to the following information:

Windows:
Account

1. Open the Account window.
2. Verify or create information for the accounts to be used for acquisition, depreciation, sales, etc. Acquisition accounts must be entered in IFS Accounting Rules before they can be used in IFS/Fixed Assets.

Windows:
Code Part Values

1. Open the Code Part Values window.
2. Create cost centers, if they were not added previously.

Windows:
Posting Control

1. Open the Posting Control window.
2. Verify that the posting control for using the Fixed Assets FAP1 - FAP50 exist, and that the defined accounts are the correct ones.
3. If necessary, add a posting control for code parts other than account. Note: It is necessary to add preposting if you want to distribute depreciations. For instance, add a posting control for the cost center code part for the FAP5 posting control, according to the following information:

4. Save the posting lines.
5. Because posting control is an iterative process, you may need to add posting control detail after the fixed asset basic data has been created. Examples of this are object groups and depreciation methods that can be used to direct postings.
6. Once the object groups have been entered, select the FAP5 row using the Object Group control type. Right-click and then click Details. Enter and save the detail data lines.

Note: To be able to follow up accounting transaction for several books (i.e., depreciation according to plan and according to tax) on the same object within one ledger only, a combination control type must be defined to create book specific code strings. See the extended exercise for Calculator Depreciation. If books are connected to different ledgers, the same posting control can be used for different books as in this case the postings are separated per ledger.

Define Voucher Types

Windows:
Voucher Type

Note: If you plan to maintain more than one book, then you will need at least three different voucher types for fixed assets. One voucher type will be for transactions specific to  each internal ledger, and the others will be for transactions specific to the general ledger (one connected to a Book and one used to create postings independent from books). For each additional internal ledger connected to a book in Fixed Assets, another voucher type must be connected. Once a voucher type has been used, it can no longer be changed. The default voucher type, A, is set as GL, affect IL. It will be used for book independent transactions.

Windows:
New Voucher Type Assistant

For GL Only

1. Open the New Voucher Type Assistant.

2. Enter a new voucher type for the GL only (e.g. AGL) and description Fixed assets accounting - National GAAP.

3. Select Ledger General Ledger (Transactions for your national GAAP will be updated to the General Ledger only). Ledger ID 00 will be set automatically.

4. Click Next.

5. Connect the voucher type AGL to function group A (click List)

6. Enter A in the Voucher Type Source field to copy the default setting for Voucher No Series and User Groups.

7. Click Finish to create the new voucher type for Fixed Assets.

For Internal Ledger - IFRS

1. Open the New Voucher Type Assistant.

2. Enter a new voucher type for your internal ledger IFRS (e.g. AI) and a description.

3. Select Internal Ledger from the Ledger field, and the ledger ID as IFRS (the Internal Ledger IFRS must be defined. Refer to Preparations in IFS/Internal Ledger).

4. Keep the Balance Mandatory field selected because your internal ledger is defined as a full parallel ledger.

5. Click Next.

6. Connect the voucher type AI to function group A, (use the List button.)

7. Enter A in the Voucher Type Source field to copy the default setting for Voucher No Series and User Groups.

8. Click Finish to create the new voucher type for Fixed Assets.

For Internal Ledger - CALC

1. Open the New Voucher Type Assistant.

2. Enter a new voucher type for your internal ledger CALC (e.g. ACA) and description Fixed assets accounting - CALC.

3. Select the Internal Ledger from the Ledger field, and enter the Ledger ID as CALC (The Internal Ledger CALC must be defined. Refer to Preparations in IFS/Internal Ledger).

4. Unselect the Balance Mandatory field as your internal ledger CALC needs not be balanced, only cost transactions are to be created for this internal ledger.

5. Click Next.

6. Connect the voucher type ACA to function group A, (Click List.)

7. Enter A in the Voucher Type Source field to copy the default setting for Voucher No Series and User Groups.

8. Click Finish to create the new voucher type for Fixed Assets.

Preparations in IFS/Fixed Assets

Purpose: The purpose of this exercise is to show you how to enter the setup information in IFS/Fixed Assets. If the default data does not reflect how the object should be treated in the system, you can enter or change this information. 

Prerequisites: In Accounting rules, a code part must be defined and connected to Fixed Assets module.

Depreciation Methods

Windows:
Depreciation Method

1. Open the Depreciation Method window.
2. Check the existing depreciation methods to see whether the method required for the object exists. If the method is unavailable, add a new one. A number of depreciation methods are created from a template or from an existing company when the company is created. These methods represent the most common ways of calculating depreciation in the country for which the company template was created.
3. Click New and specify the new decline depreciation method by entering the following information.

4. Save the data once it is correct for your purposes.
5. Another depreciation method is sum-of-years digits (SYD). Create a new record, and enter an ID and description for this method. Then enter the data listed in the table below.

6. Save your changes.
7. Right-click and then click Specified Depreciation Factor. In the window that appears, enter the factor that will be used to calculate depreciation for each period. For a three-year depreciation method, the factor must be entered for each period in each of the three years, as show in the table below.

Note: Continue adding entries as shown above for each period in Year 1, and then repeat the process for Years 2 and 3. The total factor values for all periods must equal 100% so that all depreciation is taken during the life of the objects.

8. Select the Use Net Value check box.

9. To create your own depreciation method, create a new record, and enter the data that is appropriate for your depreciation method. There are some additional fields that these examples did not use. Consider them, and when you are satisfied that the data is correct for your purposes, then save it.  

Depreciation Calendar

Windows:
Depreciation Calendar

1. Open the Depreciation Calendar window.
2. Check the existing depreciation calendar to see whether the calendar required for the object exists. If the method is unavailable, add a new one.
3. Create a new record and create the new depreciation calendar by entering the calendar name, the period it relates to including the from and to dates for the period defined and the corresponding accounting period for the calendar.
4. Save your changes.

Books

Windows:
Fixed Assets Books

1. Open the Fixed Assets Books window, and populate it.
2. Check to see whether an appropriate book was created that corresponds with the requirements for the object. If not, add one.
3. If you are creating a new book, you need to define certain information. Create a new record, and enter an ID and description for the book. Note: The voucher type controls for which ledger transactions will be created. The table below shows an example of the information that you might enter.

4. Select the data that is required for your book, and save your changes.

Note: Different books allow you to have multiple valuations and depreciation methods for each asset. General ledger, income tax, and insurance books are most common. However, books can be added for any purpose, and each book can have a different set of rules. Also different books allow you to connect different depreciation calendars to be used with each book. Each of the disposal posting methods Gross Cost and Net Cost can only be used for one Book per Ledger.

Acquisition Account

Windows:
Acquisition Accounts

1. Open the Acquisition Accounts window, and populate it.
2. Enter all fixed asset acquisition accounts that have not yet been entered.
3. Add a new row, and enter an appropriate account.
4. Save your changes.

Note: If the acquisition accounts do not appear in the List of Values, then you need to create them in IFS Accounting Rules.

Base Values

Windows:
User-Defined Base Value Types

1. Open the User-defined Base Value Types window, and populate it.
2. Verify that there are appropriate base value types created for the objects to be entered into the system. Replacement and insurance values are two common base values used for fixed assets.
3. Create a new record, and enter a base value type and description.
4. Select the Initiated by Acquisition Value check box if the base value is based on the acquisition value of the object.
5. Save your changes.

Calculation Index

Windows:
User-Defined Base Value Types

1. Open the Calculation Index window.
2. Create a new record, and enter an index ID and description.
3. Enter the valid starting date (valid date from) and an index value that equals the base value of 100(%).
4. Save your changes.
5. Right-click and then click Recalculate Base Value.
6. Click OK. Your index is shown as calculated.
7. Create a new record, and enter a valid starting date one month from now (the date on which the value will be recalculated).
8. Enter the index value to be used for recalculation, e.g., 110, meaning that the object or objects will be increased by 10%.
9. Save your changes.

Note: The index must be connected to each individual object that should be recalculated. Right-click and then click Recalculate to recalculate all objects connected to the index. This action should be done after the objects have been fully updated with all information required.

Object Groups

Windows:
Object Group

1. Open the Object Group window, and populate it.
2. View the existing object groups, and add new ones as necessary.
3. Create a new record, and enter the name and description of the object group.
4. Select an acquisition account from the List of Values.
5. Save your changes.
6. Click the Base Value Types tab, and choose a base value type from the List of Values.
7. Save your changes.
8. Click the Depreciation Methods and Books tab, and select one or more books using the List of Values. Define a depreciation method for the object group using the List Of Values, and enter the estimated life for the object group, using the example below as a guide. 

9. Save your changes.

Note: Because an object group is linked to only one acquisition account, there must be at least one object group for each acquisition account.

Transaction Reason

Windows:
Transaction Reasons

1.  Open the Transaction Reason window, and populate it.

2. View the existing transaction reasons, and add new ones as necessary.

3. Create a new record, and enter the name and description of the transaction reason and select the Acquisition Reason check box.

   Transaction Reason	Description	Acquisition Reason
   PURCHASE	Purchase	Selected

4. Save your changes.

Note: A new FA Object can not be created without an acquisition reason.