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Finance Training

Fixed Assets
Course Manual
Contents
1. Fixed Assets Overview
Fixed Assets – What are they?……………………………………… 3
Why do we track them?………………………………………………3
University Policy……………………………………………………..3
Depreciation…………………………………………………………. 4
Fixed Assets Process Overview……………………………………... 6

2. The Departments’ Role


The Departments’ Role……………………………………………… 7
Buying an Asset……………………………………………………... 7
Departmental Access to the Fixed Asset Module…………………… 9
Finding Assets on CUFS……………………………………………. 10
Updating details of your Department’s Assets………………………12
To Amend an Asset’s Assignment…………………………………...14

3. Viewing Information
Viewing Financial Information……………………………………...16
Viewing Asset Assignments………………………………………... 17
Viewing Asset Source Lines………………………………………... 18
Viewing Asset Book Information…………………………………... 19
Viewing the Transaction History of an Asset………………………. 21
Viewing the Depreciation of an Asset……………………………….22
Viewing the Cost History of an Asset……………………………….23

4. Reports……………………………………………………………… 24

5. Fixed Asset Information in the General Ledger…………………... 26

6. Common Queries…………………………………………………… 27

7. Further Help………………………………………………………... 28

8. Appendices
Appendix A: Asset Categories………………………………………29
Appendix B: Glossary of Terms…………………………………….31
Appendix C: Central Finance Function Following
Departmental Involvement……………………………33
Appendix D: Automatic or Centrally Generated
Accounting Entries………………………………….. 34
Appendix E: Enquiries – Exporting to Excel……………………….. 37

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Fixed Assets – What are they?

Definition of a Fixed Asset


An asset is an item that the University owns and uses while providing our
administration, education and research services.

A fixed asset is an asset that we retain for more than a year. Some common examples
within the University are:
• Scientific equipment
• Office equipment, e.g. photocopiers
• Machinery
• Vehicles
• Land and Buildings
• Property held for Investment purposes

It does not include consumable and stock items

Why do we track them…

The University records it fixed assets for several reasons:


• To allow the cost of the asset to be spread (in accounting terms) over its
deemed working life
• It is required by the University's Financial Regulations
• Security-the Asset module allows details of assets to be kept and it states their
location and a responsible employee.
• It provides an insurance listing

University Policy

Due to the large number of fixed assets that the University owns, our policy is to only
recognise within the assets module those that cost over £750 (including any non-
reclaimable VAT).

In addition to this, equipment that costs over £10,000 is capitalised if funded by:
• The University of Cambridge
• Funding Council and other grants
• Research Grants
• Trust Fund or Donations (except generally Works of Art as there are
often conditions on how we can dispose of them)

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Therefore, any items valued between £750 and £10,000 are not depreciated but are
just "expensed".

What’s the difference between “expensed” and “capitalised”?

Expensed This means that the full cost of the item is included in
your departmental accounts during the year of
purchase.

Capitalised These items are treated slightly differently in your


departmental accounts and will be depreciated.

Depreciation

A fundamental accounting concept is that you match your expenditure against the
income that it helps generate. For assets this is done by depreciation.

a) The cost of the asset is capitalised and transferred to the University's Balance
Sheet from the Income & Expenditure Account.
b) Then in each accounting period a depreciation charge is levied on the Income &
Expenditure Account to write off the cost.

Thus we split the cost of these assets out over a number of years to reflect the
contribution they make to the services we provide in future years.

However, all you need to know is that when you purchase the item you enter its full
value into the Accounts Payable module, and code it against your departmental
accounts (using a normal expenses code) in order to generate a cheque for the
supplier. The cost is being spread over a number of years by means of depreciation
and is a function that is carried out centrally by the Finance Division.

University policy on depreciation

Land: Is normally not depreciated

Property: Laboratories are depreciated over 20 years the remainder over


50 years (except investment property)

Equipment: Depreciated on a straight-line basis over 4 years unless funded


by a grant. Grant funded equipment is depreciated over the life
of the grant.

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A bit more information about Property…

Properties that are owned by the University were only brought into the University's
Fixed Asset Register in 1994. At this stage they were all revalued and this is the
starting point for the subsequent depreciation calculations.

Many people may think of this as a strange concept, as we are used to property values
rising instead of diminishing. In this case the depreciation reflects the expense to the
University of maintaining the buildings so that they are in a habitable and useable
state.

For example, it could be expected that after a number of years the wiring system of a
building might become outdated and need replacing. If the building were to be sold at
that point of time then it would realise a lower value.

The depreciation is considered in isolation to the cost of any maintenance work that is
undertaken on a building. These costs would be "expensed" in the year that they
occurred. This is different to construction costs that are incurred when an extension
etc to a property is built; in this case it is seen as an "addition" to the existing asset
and it would be included in the value to be depreciated.

Periodically the University may re-value the property that it holds.

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Fixed Assets Process Overview
Fixed assets arrive in the Fixed Asset Module after month end procedures have been carried out in central finance. Up to this point the invoice
has been entered in Accounts Payable and if the box has been ticked the details are in a holding area called "mass additions" within the system.
This is then reviewed at month end following which the items are posted into the Fixed Asset module

Accounts Payable General Ledger

Fixed Asset Invoice Invoice recorded in GL as


Following Normal GL Interface
processed per its distribution

Fixed asset
Capitalising
journals created

"Mass Addition Table" "Post / Delete Mass Additions"


At Fixed Asset
month Details listed in a holding Items accepted or rejected Module
end area of the Fixed Asset into the Fixed Asset module.
Module.

Monthly processes carried out by Central Finance


The Departments' Role

Department's role in relation to the accounting for fixed assets is very limited. The
majority of the accounting for fixed assets is done centrally by the Finance Division
on your behalf.
There are two main departmental roles:

(i) The initial purchase of the fixed asset in the Accounts Payable module;
(ii) Viewing and updating details of existing assets in the Fixed Asset module.

Buying an Asset
1. When buying a Fixed asset

Enter the purchase invoice into the Accounts Payable module in the normal
way until you get to the distribution window.

Select an appropriate Transaction code (if paying for the item out of a GL
account) or Expenditure Type (for Grants):

Tick the 'Track as Asset' box, if not already ticked


And then the Calculate Tax button.
Not sure if the item is a fixed asset or not?

If in doubt - tick the box. It is easier to remove these details


from their route to the asset register, rather than to enter
all the details later.

Alternatively contact the fixed asset helpdesk : tel 66780

Scenario 1
Buy numerous items that total more than £10,000 but each item individually costs less
than £10,000

The items should be recorded separately (if over £750) but not capitalised. If the
distribution line is the same but you have for example 30 items, just enter one
distribution line and tick the box. The Finance Division will split the 30 items
accordingly.

Scenario 2
Buy one item that is less than £10,000 in value but which is an add-on-part of a larger
capitalised item.

This item should be merged with the larger item's record and capitalised. Merging will
be carried out centrally. All that is required is to e-mail the Fixed Asset Helpdesk
(UFS_FA@admin.cam.ac.uk) with the invoice numbers and a note that the invoice
numbers and a note that the items need merging.

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Departmental Access to the Fixed Asset Module

Departmental users will be able to:

1. Update certain details , e.g. serial numbers


2. Change an asset’s location
3. Change the responsible employee The ‘assignment’
4. View details of their assets
5. Produce reports
6. Review for completeness

Access to the fixed asset module will be achieved through the responsibility:

CAPSA XX: FA Administrator

Please note that the sub-ledger security rules do not apply to the Fixed Asset module.
Although one department might purchase and use an item, all fixed assets are the
property of the University as a whole.

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Finding Assets on CUFS

CAPSA XX: FA Administrator

Navigate: View Financial Information

OR

Navigate: Assets Workbench

1. To recall the details of one of your department's fixed assets enter its asset
number, or:
• your department's Asset Key; plus
• any other details that you know about the item
using the tabbed regions

2. Click on the Find Button

Find by Guidelines
Asset detail Enter descriptive information such as asset number, description
or category as the search criteria.

Hint : where possible query by the unique asset number,


However if you just query by your dept's asset key you will get
a summary of all your department's assets.
Assignment Enter assignment details such as employee name as the search
criteria.
To search using the expense account, enter the book details
first.
Source Line Enter invoice information such as supplier or invoice number as
the search criteria

Lease Not being used by the University at the moment

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What is the Asset key?

Each fixed asset is allocated an 'Asset Key' on the system. This details your
department code and which register of assets it is recorded on.

At present each department only has one register and that is entitled 'Misc'.
Thus NA.MISC is the Department of Engineering's register of assets. This
information is defaulted in upon asset set up.

Note: If you want to be able to split your assets up into subgroups then
further asset keys can be set up centrally, but all alterations (or transfers
between subgroups) will also have to be done centrally.

NB, you will have two buttons entitled ‘Open’ and ‘Assignments’
if you have searched through Assets Workbench
Route.

This window contains many fields and scrolls across to the right.
However, the majority of fields are not utilised at the moment.

Use Folder Tools to customise the screen to display the useful


fields

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Updating details of your Department's Assets

Once an asset has been posted into the Fixed Asset module by central finance
(normally from the Accounts Payable module) departments are able to:

• View the asset details


• Change its location
• Change the responsible employee

CAPSA XX: FA Administrator

Navigate: Assets Workbench

Locate the required asset

Button: Open

We currently have around 33 different asset categories (see Appendix A), and these
summarise the University's assets by the source of their funding and between:

Unique
number
across the
whole
Normally
University
1

Dept ref
number

• Equipment
• Freehold buildings
• Land
• Long leasehold
• Short leasehold

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At this stage you can update the record with further details of the asset:

Field Notes
Tag Number This is an optional field where you can add your own
departmental reference number.

Serial Number Optional : Enter the appropriate details


Manufacturer
Model
Warranty details
Parent Asset This allows you to cross reference one asset to another,
where the new asset is a subcomponent of an existing one.
Select an existing asset number
Property Type Not used by the University at the moment
Property Class
Asset Type • Capitalised
• CIP
Units Normally just 1

When completed click on Done and this will automatically save your amendments.

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To Amend an Asset’s Assignment
You can update the physical location and the name of the person who is responsible
for an asset under "Assignments".

CAPSA XX: FA Administrator

Navigate: Assets Workbench

Locate the required asset

Button: Assignments

1. Once you have located the asset in question enter the Assignments window.
Here, enter '-1' (minus one) in the Unit change box of the first line and then tab
to the next line down.

Enter -1
here

Never change this


account code
Never change this
account code!

2. On the second line enter '1' into the Unit change box select from the list of
values the new employee name for your asset.

3. Copy the Expense Account code from the row above.

DO NOT change the Expense Account Code,


as it affects depreciation. If you feel that it is not correct then please
contact the Fixed Asset Helpdesk to discuss on : 32221 or
UFS_FA@admin.cam.ac.uk

4. Update the location of your asset by using the list of values,

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5. Click on Done

Can't find the location that you want?


Contact the Fixed Asset Helpdesk (UFS_FA@admin.cam.ac.uk)
and they will update the list of values for the location.

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Viewing Financial Information

CAPSA XX: FA Administrator

Navigate: View Financial Information

Locate the required asset

Use the buttons at the bottom of the window to view the required details:

Assignments Shows the location of the asset, the details of the


employee who is responsible for it (a
departmental default is put in) and the GL
account which the depreciation will be charged.

Source Lines Shows details of the supplier, the invoice and


purchase order and the project/grant if
applicable.

Books Shows the financial information regarding the


cost, depreciation and treatment of the asset
within the FA module.

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Viewing Asset Assignments

At present there is only limited information on the system, regarding the physical
location and responsible person, for the majority of the University's assets.

It is hoped that over time Departments will update these details for themselves.

CAPSA XX: FA Administrator

Navigate: View Financial Information

Locate the relevant asset

Buttons: Assignments

At present the location codes displayed are building codes (eg. T32 is
Greenwich House). Departments will be able to add more specific details such
as floors and room numbers themselves.

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Viewing Asset Source Lines

This screen displays information that was recorded in the Accounts Payable module
when the asset was purchased:

• Supplier name and number


• Invoice and corresponding purchase order number
• The purchase price (exc. VAT)

The asset
number

This normally displays the details that were entered in the


description field, of the Distribution window in the AP module.

Occasionally Finance might amend this to something more useful,


if you have just entered "as above" or something in AP.

Assets as at 1st August 2000 uploaded onto the system


Only a description and the original purchase value will be shown.

Assets funded by research grants and capital projects


If the asset was purchased from a research grant/capital project then in theory another
window will display the relevant project number and task, however this is not
operating at the moment.

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Viewing Asset Book Information
The 'Book' window allows you to look at the financial information for each asset.

On the system all departments’ assets are recorded within just one book for the whole
University - CU Book

Recoverable Cost the purchase price including the non- recoverable VAT.

Date in Service The date of the supplier's invoice as entered in Accounts


Payable. For uploaded assets: the date if known for the
purchase of equipment (from Legacy) or the revaluation date
for property.

Method University policy is that all equipment is depreciated on a


straight line basis ( STL )

Life Years University policy is that equipment is depreciated over 4 years


unless funded by a research grant.
Grant funded equipment will be depreciated over the period of
the grant

Basic rate% Used when calculating depreciation using the Reducing balance
Method

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Prorate date The system uses the prorate date to calculate the depreciation
expense for the first and last year of an asset's life.

A hard copy of the majority of this information can be


obtained from using the standard report-
Asset Register Report

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Viewing the Transaction History of an Asset

CAPSA XX: FA Administrator

Navigate: View Financial Information

Locate the required asset

Buttons: BooksÆ Transactions

The original
transferred in
from the
Departments
old register

"Transfer" = an Assignment transfer, eg a change of


employee, location, or charge account

Click on the Details button for further details

This information is also available as a standard report -

Transaction History Report

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Viewing the Depreciation of an Asset

The University policy is that only assets over £10,000 are depreciated.

Depreciation is calculated centrally by the Finance Division, as part of the monthly


close down of the Fixed Assets module.

CAPSA XX: FA Administrator

Navigate: View Financial Information

Locate required asset

Buttons: Books Æ Depreciation

The monthly depreciation charge is then transferred back (as a debit) to the Income &
Expenditure section of the department's accounts using the source of funds ZZZZ and
the transaction code FBBA ( I&E Depreciation).

The monthly
depreciation
charge

In the above example the monthly depreciation is calculated as:

Original cost of the asset - its salvage value = £ 30,309.05 = £631.44 monthly depreciation
It's calculated useful life ('life years') 48 mths

NB. This is using the Straight-line method of depreciation

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Viewing the Cost History of an Asset
This screen shows the originally cost of the asset (an addition to the fixed asset
register) as well as any subsequent additions or mergers.

CAPSA XX: FA Administrator

Navigate: View Financial Information

Locate the required asset

Buttons: Books Æ Costs

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Reports

• Quarterly statement of departmental assets will be sent out from Central Finance

Check for completeness

• There are standard reports available on the system for Fixed Assets, but they are
probably of limited value. The reports which have (UFS) or (CAPSA) after the
name have been modified for University purposes and require your department
code however it is worth remembering that there is no sub-ledger security within
the fixed asset module.

• An alternative is to call up your department's assets in the asset workbench by


defining the asset key as 'your dept code'.% and export this information into
Excel (see Appendix E)

CAPSA XX: FA Administrator

Navigate: Other Æ RequestsÆ Run

Button : OK (to a single request)

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Type of Report Name Info included
Report
Information on Asset Register Report (UFS) • General details about the asset
Individual • Details from the Accounts Payable module
Assets • Depreciation and cost details
• Assignment details
Transaction History Report The same information that is included on the Transaction
History Enquiry window
Summary Annual Additions Report (UFS) • Asset Number
information for • Asset Description
a time period • Date in Service
• Original Cost
Cost Detail Report For each asset number:
• Its beginning and ending balances
• Additions
• Adjustments
• Retirements
• Revaluations
• Reclasses
• Transfers
Departmental Fixed Asset • Asset Number and Description
Report (UFS) • Tag Number
• Details from the Payables invoice
• PO Number
• Depreciation and date in service
Departmental Fixed Asset • As above but with
Report with location (UFS) • Location details
• Responsible employee details
Asset Additions Report • Asset number and description
• Date in service
• Depreciation method and life years
• Cost
• Year to date depreciation
Asset Inventory Report
Asset Retirements Report For each Asset includes dates taken into service and
retired, as well as its net book value, sale proceeds,
removal costs and profit/loss
Cost Summary Report Same information as the Cost Detail Report but
summarised for each transaction code and cost centre
Assets by Category Report • Asset Category
• Asset number and description
• Serial and Tag numbers
• Cost
• Date in Service

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Information per Asset Description Listing • Asset description
Category • Asset number
• Asset category
• Tag number
Listing of all Asset Tag listing • Tag numbers (alphabetically)
information held • Asset number
• Description
• Category

Fixed Asset Information in the General Ledger

All accounting entries for capital assets have a source of funds in the Z range.
Therefore, if you run the Budget-Comparing to Actual (UFS) report in the general
Ledger we recommend that you restrict the range for sources of funds to:

Source of funds 0000 -YYYY

This helps to prevent confusion, and will not distort your view of your actual income
and expenditure in your department with the accounting entries for depreciation.

Interested in the Double entry?


If you would like to understand further the various accounting entries that are made
for each fixed asset process so that you can understand the reports in full, please see
attached Appendix D.

Month End
There are no special procedures, although you may want to
review your department's asset additions for completeness
after the 5th working day in the month.

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Common Queries

Does the cost include VAT?


It includes any non-reclaimable VAT.
Note: only the net cost has the 'track as asset' box ticked. The system decides
if VAT is required to be added.

Purchasing numerous assets that total in excess of £10,000 but individually they
cost less than £10,000…
Split them up into separate assets so they are not capitalised (or request that
central Finance split them).

Purchasing an item that is less than £10,000 but which is part of a larger
capitalised item…
This should be merged with the existing item and capitalised. Let Central
Finance know.

Moving an asset between departments…


Departmental users can update the Assignments screen with employee name
and new location, but you need to let Central Finance know so that they can
update the asset key.

Need a new responsible employee or location added to the list of values…


E-mail the helpdesk (see below) with the required details - the same for
amendments to current entries.

What if I share an asset with another department?


If an asset is shared between a number of departments, then each department's
share will be recorded as a separate asset, with a note cross-referencing them
all. In this situation contact Finance.

What if the asset is funded from more than one source?


Each asset can only be assigned one asset category on the system, so
therefore it would have to split into a number of assets each being allocated to
the appropriate category. A note will cross reference these asset numbers.
Please speak to Central Finance in this situation.

What if I dispose of an asset?


Record any income received in the Accounts Receivable module using the
transaction code LZGA (Fixed Asset Disposals) and then let Central Finance
know the details of the asset, disposal, receipts and where coded.

Which report can I run to see all our department's assets?


There isn't a standard report that departmental users can run that summarises
all their assets - quarterly statements will be sent out by Central Finance.

However, you could run an Enquiry searching on your department's asset key
and then export the results to Excel.

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What should I do with the Quarterly statement that has arrived from Central
Finance?
Check it for completeness and advise Finance of any amendments

Further Help

The Fixed Asset Helpdesk

Tel: 66780
E-mail UFS_FA@admin.cam.ac.uk

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Appendix A: Asset Categories

Segment 1 Segment 2
EQUIPMENT ASSETS UNIVERSITY FUNDED
EQUIPMENT ASSETS RG – OST RESEARCH COUNCIL
EQUIPMENT ASSETS RG – UK-BASED CHARITIES
EQUIPMENT ASSETS RG – CENTRAL GOVT BODIES
EQUIPMENT ASSETS RG – LOCAL AUTHORITIES
EQUIPMENT ASSETS RG – PUBLIC CORPORATIONS
EQUIPMENT ASSETS RG – IND & COMMERCE
EQUIPMENT ASSETS RG – HLTH & HOSPITAL AUTHS
EQUIPMENT ASSETS RG – EUROPEAN COMMISSION
EQUIPMENT ASSETS RG – EU GOVT BODIES
EQUIPMENT ASSETS RG – EU OTHER
EQUIPMENT ASSETS RG – OTHER OVERSEAS
EQUIPMENT ASSETS RG – OTHER SOURCES
EQUIPMENT ASSETS EXPENSED LOW VALUE
EQUIPMENT ASSETS FUNDING COUNCIL
EQUIPMENT ASSETS OTHER GRANTS

FREEHOLD BUILDINGS UNIVERSITY FUNDED


FREEHOLD BUILDINGS RESEARCH GRANTS
FREEHOLD BUILDINGS FUNDING COUNCIL
FREEHOLD BUILDINGS OTHER GRANTS
FREEHOLD BUILDINGS INVESTMENT PROPERTIES

LAND UNIVERSITY FUNDED


LAND FUNDING COUNCIL
LAND RESEARCH GRANTS
LAND OTHER GRANTS

LONG LEASEHOLD UNIVERSITY FUNDED


LONG LEASEHOLD FUNDING COUNCIL
LONG LEASEHOLD RESEARCH GRANTS
LONG LEASEHOLD OTHER GRANTS

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SHORT LEASEHOLD UNIVERSITY FUNDED
SHORT LEASEHOLD FUNDING COUNCIL
SHORT LEASEHOLD RESEARCH GRANTS
SHORT LEASEHOLD OTHER GRANTS

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Appendix B: Glossary of Terms

accumulated depreciation
The total depreciation taken for an asset since it was placed in service. Also
known as life-to-date depreciation and depreciation reserve.

asset key
Each fixed asset is allocated a key on the system. This details your department
code and which register of assets it is recorded on.

asset type
Either expensed, capitalised or construction-in-progress

assignment
Shows the location of the asset, the details of the employee who is responsible
for it (if recorded) and the GL account which the depreciation will be charged.

books
Shows the financial information regarding the cost, depreciation and treatment
of the asset within the FA module.

capitalised assets
Capitalised assets are assets that you depreciate (spread the cost expense over
time).

capital project
A project in which you build one or more depreciable fixed assets.

construction-in-process (CIP) -via the Project module : EMBS


You construct CIP assets over a period of time rather than buying a finished
asset. The system lets you create, maintain, and add to your CIP assets as you
spend money for material and labour to construct them. When you finish the
assets and place them in service (capitalise them), the system then begins
depreciating them.

date placed in service


The calendar date on which you start using an asset-often taken as the date of
the supplier's invoice

depreciate
To depreciate an asset is to spread its cost over the time you use it. You charge
depreciation expense for the asset each period. The total depreciation taken for
an asset is stored in the accumulated depreciation account.

expensed asset
An asset that you do not depreciate, but charge the entire cost in a single
period. Oracle Assets does not depreciate an expensed asset, or create any

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journal entries for it. You can, however, use Oracle Assets to track expensed
assets. The Asset Type for these assets is "Expensed".

fixed asset
An item owned by your business and used for operations. Fixed assets
generally have a life of more than one year, are acquired for use in the
operation of the business, and are not intended for resale to customers. Assets
differ from inventory items since you use them rather than sell them.

parent asset
A parent asset has one or more subcomponent assets. First you add the parent
asset. Then, you add the subcomponent asset and assign it to the parent asset
in the Additions form. You can change parent/subcomponent relationships at
any time.

prorate date
Oracle Assets uses the prorate date to calculate depreciation expense for the
first and last year of an asset's life.

recoverable costs
the purchase price excluding VAT. It does not include the element of non-
recoverable VAT.

source line
Shows details of the supplier, the invoice and purchase order and the
project/grant if applicable.

tag number
Your own departmental reference number.

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Appendix C: Central Finance Function Following
Departmental Involvement

1. Create mass additions – sweeps all invoice data re ticked track as asset items into
a holding area called mass additions within the fixed asset module.

2. Automatic Processes:-
• Assets are categorised (using SOF’s) to allow appropriate analysis
• Asset key is assigned to an asset (required for departmental analysis)
• Default location is assigned
• Default responsible employee is assigned
• Depreciation transaction code is assigned

2. Review mass additions for correct treatment

3. Post / Hold / Delete items


Also at this stage split / merge etc

4. Process mass additions – sweeps assets into the fixed asset register

5. Depreciate additions on a monthly basis.

6. For items omitted to be ticked by departments a manual entry can be carried out.

7. If departments have items that for some reason not previously been included in the
fixed asset module these, once collated, can be uploaded by central finance. Please
contact the Fixed Asset section.

8. Retirements

9. Disposals

10. Revaluations

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Appendix D: Automatic or Centrally Generated
Accounting Entries

Equipment under £ 10,000


Equipment valued between £750 and £10,000 is to be recognised as an asset within
the assets module. These assets will be expensed. No depreciation of these assets will
be carried out.
The assets will be expensed to the department by Payables journal entries created on
transferring the invoice to GL -
DR: Department • Related CC • Appropriate S of F • Expense code
CR: Central payables control account
Any DR code can be used as allowed by users’ security permissions. Asset clearing
and cost accounts should not be accessible to departmental users.
The asset details are recorded in the fixed asset register.

Assets over £10,000


a) Non grant related
Two stages. Firstly the automatic stage: -
AP invoice distribution line:
Users must check the ‘track as asset’ flag.
DR U/Dept/CC/SOF/Transaction code Exxx
CR Central payables control a/c – system default
Puts the acquisition in the Income & Expenditure Account
Secondly there is a manual stage: -
DR U/Dept/0000/ZZZZ/Equipment cost ac (PBAA)
CR U/Dept/0000/ZZZZ/Trans Exxx
Removes the acquisition from the Income & Expenditure Account with appropriate
SoF and creates an entry in the Equipment Cost Account

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b) Grant related

General grant related issues


Grant related assets are sub-divided as follows:
• Research Grants
• Funding Council Grants and Other grants
Invoices for grant funded assets will have project/grant details entered against the
invoice distribution lines, including expenditure type, which enables the transfer to the
Grants module. GL account codes are generated from the project/grant-related details
entered against the invoice distribution line.

(i) Funding Council or Other Grant


Process : Two stages.
• Firstly the automatic stage
AP invoice distribution line:
Users must check the ‘track as asset’ flag.
DR U/Dept/CC/SOF/Transaction code Exxx
CR Central payables control a/c – system default
Puts the acquisition in the Income & Expenditure Account

• Secondly there is the manual stage: -


DR U/Dept/0000/ZZXA or ZZYA/ Equipment cost ac – Funding Council & Other
grants (PBAB)
CR U/Dept/0000/ZZXA or ZZYA/Trans Exxx (trf of asset to BS ac)
Removes the acquisition from the Income & Expenditure Account with
appropriate SoF and creates an entry in the Equipment Cost Account

• A further manual journal is required to create the Deferred Capital Grant and to
strip out the original income (grant received) from the Income and Expenditure
account:
DR U/Dept/0000/ZZXA/Transfer to Deferred Capital Grant – Funding Council (HCAB)
CR U/Dept/0000/ZZXA/Deferred Capital Grant – Funding Council (WNAA)

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(ii) Equipment - category of Equipment:Research Grants – ANY

Process :Two stages.

• Firstly the automatic stage : -


AP invoice distribution line:
Users must check the ‘track as asset’ flag.
DR U/Dept/CC/SOF/Transaction code A-G (a Research Grant Posting)
CR Central payables control a/c – system default
Puts the acquisition in the Income & Expenditure Account

• Secondly there is the manual stage: -


DR U/Dept/0000/SoF(in the Z range)/Equipment Cost (PBAA)
CR U/Dept/0000/SoF(in the Z range)/EZZG
Removes the acquisition from the Income & Expenditure Account with appropriate
SoF and creates an entry in the Equipment Cost Account

• A further manual journal is required to create the Deferred Capital Grant and to
strip out the original income (grant received) from the Income and Expenditure
account:
CR U/Dept/0000/SOF/Deferred Capital Grant – Research Grants (e.g. WNAB)
DR U/Dept/0000/SOF(in the Z range)/Transfer to Deferred Capital Grant– Research Grants (egLZEC)

Depreciation
Basic Process

Creates a charge to the Income and Expenditure a/c and creates a corresponding
balance sheet Land and Buildings depreciation entry
DR U/CC/0000/Z range/I & E Depreciation (eg FBAA)
CR U/CC/0000/Z range/Balance Sheet depreciation (eg PABA)
If the asset was financed by a grant then:-
A further journal is required to release an amount equal to the depreciation from the
Deferred Capital Grant into the Income and Expenditure Account:
DR U/Dept/0000/Z range /Deferred Capital Grant (eg WNAA)
CR U/Dept/0000/Z range/ Deferred Capital Grant Release (eg HCAA)

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Appendix E: Enquiries – Exporting to Excel

' This function is not available on a Mac.

The export function can be used to export data from a query into Excel. First, query the data.

1. Select Export from the File menu

Step 1

2. Via MS Internet Explorer, the lines are exported to MS Excel, where the data will
appear automatically.

3. Select Save As… from the File menu and save the spreadsheet with a Filename of
your choosing and a File Type of Microsoft Excel Workbook.

4. Close the “fndvfile.tsv” spreadsheet file without saving.

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