Fixed Asset Rotables—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.  Use the basic data that makes sense for your company, customers, and suppliers in order to approximate the results of this exercise.

Main Exercises

Fixed Asset Key Exercises

Introduction: A Rotable is an inventory part that rotates through ownership, usage, and maintenance processes, a site, rotable part, and rotable pool must exist before it can be connected to Fixed Assets. From a physical point of view, individuals in a fixed asset pool are stock in inventory. But from a financial point of view, individuals in a fixed asset pool are fixed assets and not stock in inventory.

Prerequisites: Before proceeding through this exercise, please complete the Rotables - Distribution Basic Data and Requirements Exercise and the Rotables - Fixed Assets Basic Data and Requirements Exercise before starting this exercise.  

Purpose: The purpose of these exercises is to be able to complete the fixed asset processes required for a part that is included in a fixed asset rotable part pool.  Some steps will be within the Inventory processes because the assets are inventory parts before they are fixed assets.  The parts will move into and out of fixed assets as they are moved into and out of the Rotable Pools.

Acquire and Activate an Asset

Create Fixed Asset Object and Connect it to an Inventory Part

Windows:
Rotable Part Pool (Executable that has Fixed Assets included)

  1. Query for the Rotable Pool that you created for fixed assets.
  2. Click on the FA Objects tab.
  3. RMB in the table area and select Create FA Objects from the menu.
  4. Enter a fixed asset Object ID in the pop up window and select the fixed asset Object Group for rotables from the list.
  5. Click OK.
  6. A new line with your FA Object ID will appear in the FA Objects tab.
  7. Highlight the line, RMB click and select Connect Individual from the menu.
  8. Check the box next to the correct part and click OK.
  9. Now, a specific inventory part has been connected to a specific fixed asset object.

Transfer Transactions and Update the General Ledger

Windows:
Tranfer Inventory Transactions

  1. Select your Rotable site from the list if it did not default and click OK.

Windows:
Update GL Vouchers

  1. The window should populate automatically.  Click OK to start the updating routine.

Activate Fixed Asset Object

Windows:
Object

  1. Query for your FA Object ID that you created in the Rotable Part Pool window.
  2. Click the RMB and select Activate Object from the menu.
  3. Click OK.

Import and Activate an Asset

Create Fixed Asset Object and Connect it to an Inventory Part

Windows:
Rotable Part Pool (Executable that has Fixed Assets included)

  1. Query for the Rotable Pool that you created for fixed assets.
  2. Click on the FA Objects tab.
  3. RMB in the table area and select Create FA Objects from the menu.
  4. Enter a fixed asset Object ID in the pop up window and select the fixed asset Object Group for rotables from the list.
  5. Select the Import checkbox option.
  6. Click OK.
  7. A new line with your FA Object ID will appear in the FA Objects tab.
  8. Highlight the line, RMB click and select Connect Individual from the menu.
  9. Check the box next to the correct part and click OK.
  10. Now, a specific inventory part has been connected to a specific fixed asset object.

Transfer Transactions and Update the General Ledger

Windows:
Tranfer Inventory Transactions

  1. Select your Rotable site from the list if it did not default and click OK.

Windows:
Update GL Vouchers

  1. The window should populate automatically.  Click OK to start the updating routine.

Import the Fixed Asset Object

Windows:
Object

  1. Query for the FA Object ID that you just created.
  2. Back date the Valid From date to 1/1/2003 and save.
  3. Switch to the Rotable Pool tab.
  4. RMB click and select Import Pool Object.
  5. Enter data similar to the following:
Acquisition Value Acquisition Date Book Amount Depreciation Year Depreciation period
20000 1/1/2003 Internal 15000 2003 12

Note:  The Acquisition Value - the Amount depreciated = the Inventory Value of the part being connected to the object.  In this example, the part was purchased for $20,000, but $5000 was depreciated during 2003.  The value of the part today should be $15,000.  This should match the Inventory Part cost.

  1. Click OK.

Windows:
Post Imported Object Transactions

  1. Highlight a line, RMB click and select Post Imported Transactions from the menu.
  2. Click OK.

Note:  The Posting Types used for importing a Rotable Fixed Asset are FAP21 - FAP24.

Rotable Fixed Asset Processes

Depreciate Rotable Fixed Asset Objects

Windows:
Depreciation Proposal

  1. Open the window and click the RMB.
  2. Select Create Depreciation Proposal from the menu.
  3. In the Criteria Group Box, enter data similar to the following:
Object Group Book Depreciation Period
Rotable Internal 2 [Enter the period through which the rotables should be depreciated]

  1. Click OK.

  2. RMB click to Approve and then to Post the depreciation. 

Deplete a Rotable Fixed Asset Pool (Scrap Fixed Asset Objects)

Windows:
Rotable Part Pool

  1. Open the window and query for your Rotable Fixed Asset Parts.
  2. Switch to the FA Objects tab.
  3. Highlight the line for the specific part to be scrapped.
  4. Click the RMB and select Allow Scrap from the menu.
  5. The Availability Control ID is optional.  
  6. Click OK.
  7. No transaction has occurred to this point.

Windows:
Object

  1. Query for the FA Object ID that you just modified to Allow Scrapping.
  2. Switch to the FA Objects tab.
  3. Click the RMB and select Scrap Pool Object.
  4. Change the Scrap date if needed and click OK.
  5. A pop-up window will ask if you want to Scrap with regard to depreciation.
  6. Click Yes and the system will verify that the Rotable part has been depreciated through the month that that it is being scrapped.
  7. If depreciation is correct, then a 2nd pop-up window will inform you that the asset has been successfully scrapped.
  8. Click OK.

Notes:  Transactions will be created in inventory (MPL Voucher) and in Fixed Assets.  The asset is not actually scrapped, but placed back into inventory at the assets net value.

Swap Rotable Fixed Asset Objects

Windows:
Rotable Part Pool

  1. Open the window and query for your Rotable Pool.
  2. Switch to the FA Objects tab.
  3. Highlight the Asset to be Swapped with another.
  4. Click the RMB and select Swap Individuals from the menu.
  5. A pop up window will appear.
  6. Enter the object that your selected part is to be swapped to.
  7. Click OK.

Remove Individual Part from Rotable Fixed Asset Pool

Windows:
Rotable Part Pool

  1. Open the window and query for your Rotable Pool.
  2. Switch to the FA Objects tab.
  3. Highlight the Asset to be Removed from the Pool.
  4. Click the RMB and select Remove From Pool.
  5. The Availability Control ID is optional.  
  6. Select an Availability Control ID or not and then click OK.

Replenish a Fixed Asset Pool

Windows:
Rotable Part Pool

  1. Open the window and query for your Rotable Pool.
  2. Switch to the FA Objects tab.
  3. An asset can only be replenished if a Fixed Asset Object has already been removed from the Pool by using RMB Remove From Pool.
  4. Click the RMB and select Replenish FA Pool.
  5. Select a part to be connected to the Fixed Asset Object.