FIXED ASSET FUNCTIONAL FEATURES:
The Fixed Asset System (FAS) is a computerized general purpose system
designed to perform many day-to-day record keeping activities associated
with the capital assets owned in most business enterprises and institutions.
Capital assets cover real property (land and buildings), personal property
(equipment and vehicles) and intangible property (copyrights, computer
software and patents). Even equipment that is expensed, not capitalized,
can be entered into this system to provide a complete inventory of all
business assets.
The primary purpose of the Fixed Asset System is to document capital
assets and repair information in an online environment so that specific
procedures can be performed in seconds rather than the hours required by
traditional batch methods of computer processing. This system performs the
basic fixed asset functions by providing a complete and accurate record of
all transactions affecting each piece of equipment and property. This
system also maintains an audit trail for verification of previously entered
information.
The specific objectives of this online Fixed Asset System include:
1. Maintain Asset Master Records on each and every capital asset
(e.g. equipment, vehicles, building, property and goodwill) owned
by the company. The basic information in these records include,
asset number, name, description, cost, date acquired, depreciation
method, estimated salvage value and useful life. A single asset
costing as much as $450 million can be processed.
2. Maintain Repair Expense Records on equipment to track failure,
service and repair expense history.
3. Calculate annual depreciation expense schedules for each asset and
store the results in the Depreciation Expense Record. A
"Calc Only" option is available to determine the effect of
different depreciation methods, life, convention codes and bonus
amounts.
4. Provide up to four different "Books" (company, federal, state and
other) to handle different depreciation information associated
with each asset, if required.
5. Print management reports, such as the Asset Master List and
Equipment Repair Report, to provide an audit trail of data entered
into the FA System, as well as provide a complete list of assets
owned and repairs performed.
6. Print generalized fixed asset reports with the capability to
extract specific asset information from the online database, such
as "List the assets acquired between any From-To dates".
7. Print the Fixed Asset Posting Report summarizing general ledger
depreciation expense by account for either manual or automatic
posting. Either annual or monthly posting of depreciation expense
is supported.
8. Print annual IRS Depreciation Worksheet (for Form 4562) to document
the depreciation deduction by year, including any assets sold
during the current year.
9. Enable the user to update the consumer price index (CPI) rates
used in calculating estimated replacement cost (procedure FA06)
for insurance purposes by downloading a file from the Bureau of
Labor Statistics.
10. Provide reporting capability by location, asset group and
maintenance code. The location codes used by this system should
be consistent with the location codes used by other systems within
the company. In a professional service environment (e.g. an
accountant serving several clients), the location code can be used
as the client identifier, so multiple clients share the FA System.
11. Provide online inquiry capability to (1) display all data elements
on a single fixed asset, (2) display all data elements on a single
repair entry, (3) display annual depreciation schedule for an asset
or all assets, (4) display matching asset names, and (5) display
repair costs or asset purchases by month for the last 5 years.
12. Define an asset Active-Flag to allow or prohibit current entry of
service data yet reference that asset for historical reporting
purposes.
13. Maintain the total repair costs on each asset in the Asset Master
Record.
14. Automatically assign voucher numbers to each repair input
transaction for positive control and audit trail.
15. Define expense accounts at the asset level for subsequent use in
posting depreciation to the General Ledger System.
16. Assign a unique 6-digit number plus a 4-digit sub-number to each
asset. The sub-number is used to identify components or
sub-assemblies of an asset and may not have a cost associated with
it.
17. Provide source document control over input transactions to the
computer by establishing batch numbers.
18. Automatically update internal Depreciation Expense Records with the
results of calculation procedure FA03.
19. Support different depreciation methods, such as straight line, 200%
declining balance and 150% declining balance. For older assets the
sum-of-years digits, 125% declining balance, 100% declining balance
and ACRS are available. Also, listed property maximum deductions
for passenger automobiles (LPA) and clean-fuel vehicles (LPF) are
supported. Non-depreciable assets are assigned a depreciation
method of "LAND" or "NONE".
20. Define a Service Type code to classify repairs as regular service,
non-scheduled repair (failure), warranty work or scheduled service
requirements.
21. Print maintenance schedules of equipment due for regular service
or preventive maintenance to minimize downtime. The preventive
maintenance service requirements are stored in the Repair Expense
Record (FA07) with a service type of '1'.
22. Support mid-year convention codes of mid-quarter (1, 2, 3 or 4),
half-year (H) and mid-month (M).
23. Calculate gain or loss on the disposition of an asset, including
the calculation of depreciation expense in the year sold based
upon the month sold and convention code.
24. Handle half-year useful life values, such as 27.5 years for
residential rental property.
25. Adjust annual depreciation expense by the percent of business use,
if less than 100 percent.
26. Provide a system option (System-Option-38) to perform whole dollar
rounding on all depreciation calculations (FA03) and entry of cost,
salvage, bonus, price sold and estimated replacement amounts
(FA01). This system handles dollars and cents.
27. Allow a negative cost to handle any type of depreciation expense
adjustment.
28. Handle one-time setup or conversions of previously purchased
assets (from another system) to allow for the entry of accumulated
depreciation.
29. Provide a bonus amount field to enter one-time deduction, such as
IRS Section 179 deduction. This bonus amount cannot exceed the
asset cost.
30. Provide update control, such as restricting the changing of
depreciation information (method, life, bonus amount and convention
code) once depreciation expense has been posted the General Ledger.
In addition to the above objectives, the Fixed Asset System is designed
to handle multiple companies, multiple asset groups and different locations.
The capability to print custom FA reports is provided by procedure DB12
in the Database Control System. This procedure is a general purpose custom
report writer.
MORE INFORMATION:
To receive additional information on this online accounting software,
please e-mail Bill Legler or go to the Fixed Asset System page.
Version 7.3 - Copyright 2000 by Legler Systems Company. All rights reserved.