Background
In Germany, several laws are being changed recently. One of these laws is to have additional status in the report and an adjustment is made to the fixed assets functions to support this requirement in Exact Globe 2003.
What has been changed
In this implementation, the following transaction types need to be shown in fixed assets reports:
1. Additional Status fields in Assets module2. Transfer 3. Partial sell 4. Decrease depreciation 5. Extraordinary depreciation 6. Special depreciation 7. Specifics for calculation of depreciation
1. Additional Status fields in Assets module Change in asset maintain screen
Two new statuses added Transferred and Written off introduce to asset maintain screen.
One new field Additional status is added in the Write off screen. Once open a written off Asset, Additional status will show at Asset Maintain - Advance section
New Transfer and Written off status checkbox added into the status filter in the affected menu paths as follow:
Assets / Assets / Maintain
Assets / Assets / List
Assets / Assets / Cards
Assets / Reports / Balance list
Assets / Reports / Parents
Assets / Reports / Items
Assets / Statistics / Investments
Changes to asset group
Add in two new fields Depreciation /Revaluation - Special (B/S) and Depreciation - Special (P&L) in Asset groups to handle Special depreciations.
Change on Opening Balance screen
Add a new section in opening balance to show extra information on Special Depreciation: Opening balance, Unallocated and Existing transactions.
Add a new column Special Depreciation for allocation of special depreciation on asset.
2. Transfer
In menu path Assets / Assets / Maintain, a new button Transfer is added. Once user click on Transfer button, a Transfer window will prompt requesting user to fill in details on Asset Transfer . When a transfer is done, it will always based on 100% of the book value.
3. Partial sell
Suggested user to first split the asset using Split function follows by selling the spit asset.
Note: This functionality remains unchanged .
4. Decrease depreciation
Decrease depreciation is a correction on the depreciation done based on the depreciation method defined by the user for an asset.
Add a new button Extra Depr button in the Asset Maintain Screen. When user clicks the Extra Depr button, an Extra depreciations window will prompt allowing user to select Decrease depreciation.
5. Extraordinary depreciation
Extraordinary depreciation is an additional depreciation for a particular period.
This is similar to Decrease depreciation above. In this application, select Extraordinary depreciation in the Extradepreciations windows.
6. Special depreciation
Special depreciation is an additional depreciation method that runs concurrently with the existing depreciation method.
Add a Special depreciation checkbox and a Setting button in the Asset Maintain Screen. User need to check on Special depreciation checkbox to enable the Setting button. User will need to specify the amount of depreciation by using the Setting button.
In menu path Assets / Entries / Process , user can process the budget entries for special depreciation
7. Specifics for calculation of depreciation
Details scenario will show in Example.
Example on how this functionality works:
1. Additional Status fields in Assets module
Change in asset maintain screen
In asset maintain screen, Transferred and Written off are added to the Status selection.
New Transfer and Written off status checkbox added into the status filter in the affected menu path as follow:
Menu path Assets / Assets / Maintain
Menu path Assets / Assets / List
Menu path Assets / Assets / Cards
Menu path Assets / Reports / Balance list
Menu path Assets / Reports / Parents
Menu path Assets / Reports / Items
Menu path Assets / Statistics / Investments
Add two new fields Depreciation /Revaluation - Special (B/S) and Depreciation - Special (P&L) in Asset groups to handle Special depreciations. New validation is added to this screen where both the Depreciation - Special (P&L) CANNOT has the same general ledger account (G/L) used for Depreciation (P&L) . Decrease depreciation and extraordinary depreciation will be booked under the GL accounts defined in the Asset groups.
Go to menu path Assets/ Entries / Opening balance , notice there is additional new section to show extra information on Special Depreciation: Opening balance, Unallocated and Existing transactions. There is one new column Special Depreciation for allocate special depreciation on asset.
Go to menu path Assets / Assets / Maintain , a new Transfer button is added in Asset maintain screen.
Once user clicks the Transfer button, a new Transfer window will prompt requesting user to fill in the details on Transfer to Asset. The transfer value will be based on 100% of the Asset book value.
Once click the Transfer button, a confirmation message will prompt.
Click the Yes button, a message box will prompt requesting user to calculate budget.
Once the transfer process is completed, the status of the transferred asset status will be changed to Transfer .
Open the transferred Asset and the depreciation start date is per the Start date stated in the transfer screen above.
Suggested user to first split the asset using the Split function follows by selling the split asset.
Note: This functionality remains unchanged.
Go to Asset Maintain; create an Asset and notice that a new Extra Depr button is added in the Asset Maintain Screen.
Click the Depreciation button and run depreciation from Year 2003 period 1 to Year 2004 period 12.
Click the Extra Depr button, a new screen Extra depreciations will be prompted and by default, the Decrease depreciation option is selected. Fill in the information same as shown below and click the OK button.
Once calculation process is completed, go to transaction tab in Asset maintain and noticed an additional Actual – Decrease transaction is allocated for period 1 year 2005.
Go to Asset Maintain; create another Asset and notice new Extra Depr button is added in the Asset Maintain Screen.
Click the Depreciation button and run depreciation from Year 2003 period 1 to Year 2005 period 2.
Click the Extra Depr button, a new screen Extra depreciations will be prompted, select the Extraordinary depreciation option. Fill in the information as shown below and click the OK button.
Once calculation process is completed, go to transaction tab in Asset maintain and noticed an additional Actual – Extraordinary Transaction is allocated for period 2 year 2005.
Go to Asset Maintain; create an Asset and a new checkbox Special Depreciation with Setting button is added in the Asset Maintain Screen.
Check the Special Depreciation checkbox, the Setting button is enabled. Click on Setting button, new Special Depreciation screen will prompt. User needs to fill in the number of periods and the Start date of Special Depreciation.
Once completed the above process, click the Depreciation table tab and the following screen is shown. The number of periods shown in the table is defined above. User can now record the special depreciation for each period.
Click the OK button and calculate budgeted depreciation. Now go to transaction tab and noticed that an additional Budget – Special line is added and the budgeted depreciation is allocated for period 1 year 2006.
Click the Depreciation button, the Depreciation screen as below.
Click the Yes button and Process Screen for Period 1 2006 below shows the consolidated depreciation amount consisting of normal depreciation and special depreciation.
Process the depreciation. Go to Transaction tab, the Actual and Actual-Special depreciations are shown separately.
The combinations of the above depreciation types with existing depreciation detailed in the table below:
Depreciation method
Special depreciation (after completion)
Decrease depreciation
Extraordinary depreciation
Linear
since following year:
book value (of this year)* % of depreciation table
since first period of year with decrease depreciation.: budget - decrease depreciation/previous years (periods)
since following period of this transaction:
book value/remaining periods
Degressive
book value * % of depreciation table (= no change)
since first period of year with decrease depreciation: book value previous year + decrease
depreciation, then book value * % depreciation table
book value * % depreciation table
Degressive to Linear
(for linear periods of time)
(degressive periods of time)