Fixed Asset Features:
The primary purpose of the Fixed Asset System (FA System) by Legler Systems
is to document capital assets and repair information in an online environment, so
specific online procedures can be performed in seconds rather than the hours required
by traditional batch methods of computer processing. This FA system performs
the basic fixed asset objectives by providing a complete and accurate record of
all asset transactions affecting each piece of equipment and property. This
FA system also maintains an audit trail for verification of previously entered
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 recorded as an expense, not
capitalized, can be entered into this FA system to provide a complete
inventory of all business assets.
Specific fixed asset features and objectives of this business software
application are highlighted below:
In addition to the above fixed asset objectives, the Fixed Asset System
is designed to handle multiple companies, multiple Asset-Group codes and
- Maintain a separate Asset Master Record on each and every capital
asset (e.g. equipment, vehicles, building, property and goodwill)
owned by the company. The basic information in these master records
include, asset number, name, description, cost, date acquired,
depreciation method, estimated salvage value and useful life.
Similar assets can be grouped together by an Asset-Group code. A
single asset costing as much as $450 million can be processed
by the FA System.
- Maintain a separate Repair Expense Record on equipment to track
failure, service and repair expense history.
- Calculate annual depreciation expense schedules for each asset and
store the results in the Depreciation Expense Record. A
"Calculate Only" option is available to determine the effect of a
different depreciation method, life, convention code and bonus
- Provide up to four different "Books" (company, federal, state and
other) to handle different depreciation methods associated with
each asset, if required.
- 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.
- 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".
- Print the Fixed Asset Posting Report summarizing general ledger
depreciation expense by GL account code for either manual or
automatic posting to the GL System. Either annual or monthly
posting of depreciation expense is supported.
- Print annual IRS Depreciation Worksheet (Form 4562) to document
the depreciation deduction by year, including any assets sold
during the current year.
- Enable the user to update the consumer price index (CPI) rates used
in the calculation of estimated replacement cost (procedure FA06)
for insurance purposes by downloading a file from the Bureau of
- Provide reporting capability by location, Asset-Group code and
maintenance code. The location codes used by this system should
be consistent with the location codes used by other accounting 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 same FA System.
- 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.
- Define an Active-Flag for each asset to prohibit online entry of new
service data, yet reference that old asset for historical reporting
- Maintain the total repair costs (optional) on each asset documented in
the Asset Master Record.
- Automatic voucher number assignment is done when new equipment repair
transaction are added to the FA System for positive control and audit trail.
This fixed asset feature can be overridden by the setting of
- Define GL expense account codes at the asset level for subsequent use in
posting depreciation expense to the General Ledger System.
Procedure FA09 creates General Journal Records in the GL System or
writes them to a Transfer File for input to an external
general ledger application.
- 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
- Provide source document control over input transactions to the
computer by establishing batch numbers.
- Automatically update an internal Depreciation Expense Record with
the results of calculation done by procedure FA03.
- 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, such as land, are assigned a
depreciation method of "LAND" or "NONE".
- Define a Service-Type code to classify repairs as regular service,
non-scheduled repair (failure), warranty work or scheduled service
- Print maintenance schedules of equipment due for regular service
or preventative maintenance to minimize downtime. The preventative
maintenance service requirements are stored in the
Repair Expense Record (FA07) with a Service-Type code of "1".
- Support mid-year convention codes of mid-quarter (1, 2, 3 or 4),
half-year (H) and mid-month (M).
- Calculate gain or loss on the disposition of an asset, including
the calculation of depreciation expense in the year sold based on
the month sold and convention code.
- Handle half-year useful life values, such as 27.5 years for
residential rental property.
- Adjust annual depreciation expense by the percent of business use,
if less than 100 percent.
- 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 FA System handles dollars and cents (default).
- Allow the entry of a negative cost to handle any type of depreciation expense
- Handle one-time setup or conversions of previously purchased
assets (from another system) to allow for the entry of accumulated
- Provide a bonus amount field to enter one-time deduction, such as
IRS Section 179 deduction. This bonus amount cannot exceed the
- Provide update control to minimize clerical errors, such as restricting
the changing of depreciation method, life, bonus amount and
convention code once depreciation expense has been posted the
General Ledger System.
- Automatically display a master record (Asset Master Record) or a
detail record (Repair Expense Record) when function key F7 is pressed
from procedure FA07, FA10 or FA13. This fixed asset objective enables
the operator to quickly drill down to more information.
- Automatic asset number lookup occurs whenever the asset name initials
are entered as the asset number for fast asset number lookup.
Asset name initials are manually or automatically set in the
Asset Master Record to aid in looking-up or finding an asset number.
For asset number lookup by name, enter the "#" character as the
asset number and when prompted, enter the asset name or asset description.
- Provide system options in the Company Control Record to handle 6-digit dates
or 8-digit dates for data entry and reporting purposes.
- In addition to online processing, batch job processing is supported where
multiple FA report requests are entered online for later batch processing.
- Easily enter notes or comments on a specific asset (FA01) or
repair transaction (FA07) when the Trans-Code is set to "N" to
automatically link to procedure DB17 (General Notes Record) in the DB System.
The capability to print custom FA reports is provided by procedure DB12
in the Database Control System. Computer procedure DB12 is a general purpose
custom report writer.
The FA System procedures that can be run by the user are identified in the
Fixed Asset Menu document.
Asset Master Record:
Information about each fixed asset is stored in the Asset Master Record.
Online entry procedure FA01 is used to add, change (modify), query and delete
the Asset Master Record.
The primary key of the Asset Master Record (FAR) is the Record-Type code,
asset number and sub-number. Five alternate keys are defined for rapid access
to different groups of FAR data.
Repair Expense Record:
Each service or repair transaction is entered as a Repair Expense Record.
Online entry procedure Fa07 is used to add, change (modify), query and delete
the Repair Expense Record. For new repair transactions, the voucher number is
automatically assigned using a sequence number counter in the Company Control Record
(DB03) for voucher number control.
The primary key of the Repair Expense Record (RER) is the Record-Type code,
asset number, asset sub-number and voucher number. Five alternate keys are
defined for rapid access to different groups of RER data.
More Information on the FA Software:
For additional information on this online Fixed Asset software,
e-mail Bill Legler in the SF Bay Area, California
or go to the Fixed Asset System main page.
Version 11.6 (2016). All rights reserved by Legler Systems Company.