Posts Tagged ‘Fixed Assets’
This is a simple one, but one I like a lot. I used to feel apologetic when I demoed the Fixed Assets module; and when it came time to add a new fixed asset I would scroll to the last asset, and then increment the last asset number by 1 for the new asset.
Now the system does it for you. Just Select the option on the Fixed Asset Company Setup:
The Dynamics GP Fixed Assets module can easily depreciate assets and send that information to the general ledger. If you want to see what future asset depreciation will be you can run a depreciation projection report.
There are two steps to running the depreciation projection report:
- Run the projection routine: Routines >> Fixed Assets >> Projection. Specify the date to which you want to run the projection.
- Run the projection report: Reports >> Fixed Assets >> Projection. You can run the report at a summary or detail level, and show either annual or periodic depreciation amounts.
Depreciating the assets is simple. Just navigate to: Routines >> Fixed Assets >> Depreciate. Select the book(s) you want to run the depreciation for, and the “depreciate to” date. If you go back and look at an asset you will see the individual depreciation records created for each period.
Periodically you will want to transfer the Fixed Assets transactions to the general ledger. To do this, run the GL Posting routine: Routines >> Fixed Assets >> GL Posting. I generally specify 0000-000 as the beginning period to ensure that I pick up all transactions in the fixed assets system. You will want to be careful when you specify the Ending Period because this routine will only make one journal entry per run. So if you haven’t run this routine for awhile, you will want to run it separately for each period; starting with the earliest period first.
I have always liked the standard reports in the Fixed Assets module. The reports are basically lists of assets. These are handy to address requirements for financial audits and property tax returns. The Property Ledger is the one I find most useful: Reports >> Fixed Assets >>Inventory >> Property Ledger.
There are also three SmartList objects that are very useful. Each one has dozens of additional fields you can add as desired.
Here is a quick video about Dynamics GP Fixed Assets Depreciation and Reporting: http://youtu.be/Urd-wb54f_k
The Fixed Assets module in Dynamics GP is pretty easy to use. There are basically two screens that contain the asset and depreciation information. The General Information screen contains the descriptive information about the asset. The Asset ID is a unique key field in the database. It needs to be manually entered. You can specify location and custodian information if you want. There are 15 user defined fields available from the “Go To” button where you can record additional information about each asset.
You should set up Class ID’s to improve data entry speed and accuracy. You can also link Account Groups to Class ID’s and set your system up so that a default depreciation method and length of service are also defined when you add a new asset.
The asset book screen contains the depreciation information for each asset. You can specify as many depreciation books as you want. You will have at least one for your internal accounting needs. This one will link to your general ledger.
I recommend that you use the Book Class Setup screen to assign a default depreciation method and length of service for new assets when they are entered into the system.
The Fixed Asset module integrates with both the Purchase Order Processing and the Payables Management modules in Dynamics GP. If you plan on using Payables Management to enter fixed assets, you can set up one or more fixed assets clearing accounts to tie the payables invoice record to the fixed assets record. This will make the payables information for each new asset available to be turned into a fixed asset.
The Fixed Assets module is easy to use, and if you don’t already use it, you should try it out.
The Fixed Assets module has been a standard part of BRL licensing since its inception, and we still have many clients that don’t even use it. This amazes me because when I was a Controller, the fixed-assets-in-a-spreadsheet thing drove me crazy. Invariably the spreadsheets would break, and they wouldn’t total properly, or the calculations for depreciation expense wouldn’t extend gracefully into a new year.
These are the benefits I generally see in using the Fixed Assets module:
- Well integrated into the core financial modules; no duplicate entry required.
- Decent reporting, in that it easily produces lists of assets for insurance listings, tax reporting, audit requests, etc.
- All data is stored in SQL so it will be regularly backed up.
- All calculations are done for you.
- Great audit trail for depreciation and other asset related transactions.
- There are transaction types for typical fixed asset events, and therefore creates a solid audit trail.
- It’s easy to make changes to individual depreciation attributes if needed, and the system will make appropriate transactions to reconcile changes.
The Fixed Assets module is easy to setup and use, and there’s an easy import function built into the module.
The setup may take some planning time to make sure that the various transactions are coded to the proper accounts, and to ease data entry. But once you’ve planned it out, it’s easy to implement.
The import function included in the module is easier and quicker than the Integration Manager approach, so use the Fixed Assets import utility.
You propbably already own the Fixed Assets module, so if you’re not using, go ahead and set it up, import the data, and start using it. You’ll be happy you made the effort.