Capital asset processings

The following processings are available from the Capital asset table:

Change capital asset no.

This processing is used to change the capital asset number on all rows where New cap. asset no. is filled out.

Starting the processing

  1. Enter the new capital asset number in the New cap. asset no. field for the capital assets that you want to change.
  2. Select the Capital asset rows you want to process.
  3. In the Processing menu, select Change capital asset no..

All foreign keys in all tables that contain the Cap. asset no. field will be updated.

Depreciation

This processing produces a batch of depreciation vouchers for selected capital assets.

Prerequisites

The following settings need to be made in order to produce depreciation vouchers:
Table Field Comment
Company information Capital asset deprec. series Voucher series for depreciation
Posting errors account
Capital asset class Cap. asset class no.
Various accounts for posting of depreciation
Capital asset Cap. asset class no. The capital asset class number defined in the Capital asset class table
End date investment If applicable, also enter End date addition, End date devaluation and End date write up.
Business NXT calculates depreciation for the period after the date in the Date last depreciation field. If this field is not filled in, depreciation is calculated from the first depreciation date that falls on or after the acquisition date. At least one of these fields has to be filled in, in order for depreciation vouchers to be produced. These fields are filled out automatically, but you can override the values, for example to exclude automatic depreciation up to a given date. Depreciation is calculated for each period defined in Depreciations per year in the Capital asset class table by dividing the closing balance for the previous period right before the Date last depreciation with the number of periods remaining until the End date investment/End date addition/End date write up/End date devaluation given for the capital asset.
Note:
If No deprec. < 1/2 month is checked for Accounting processing in the Company information table, depreciation will not be calculated for the acquisition month if the acquisition was made on or after the 16th day of the month.

If you haven't entered end dates in the End date addition and End date write up fields, the end date in the End date investment is used. If you use the end date, it is easy to adapt the size of the depreciation in connection with an extension or reduction of the capital asset's life span.

If you receive additional invoices, for example, for capital asset acquisitions that haven't been finally paid for once they are in use, and the depreciation has already been performed because you execute the whole year's depreciation in January, you can perform a corrective depreciation after changing the date in the Date last depreciation field instead of one more depreciation.

If the end dates shouldn't have been updated, you can update them either manually or by holding down the Ctrl key while clicking on the Activate capital asset processing. The End date investment field is updated if the Depreciation rate and Purch. date fields are specified for the capital asset.

Starting the processing

  1. Select the Capital asset rows you want to process.
  2. In the Processing menu, select Depreciation. You can make the following settings in the dialog:
    Option Description
    Last day of previous month Produces depreciation up to the last day of the previous month (default setting)
    Specific date Today’s date is suggested in the To date field.
    Direct update Deselect this option if you don't want the batch to be updated directly.

Organisational units

The Depreciation processing retrieves the organisational units according to what you have entered in the Capital asset table. If you haven't entered anything, the organisational units will be retrieved from the General ledger account table. The Company information table contains the Master org. unit flags field, where you can enter the organisational unit which is to be the master and then overwrite all other organisational unit values.

See also: Master org. unit flags

Posting the depreciation vouchers batch

Batch

The following information is transferred to the batch head:

  • The value date is set equal to the To date, but is overridden in the vouchers by the relevant depreciation dates if the To date is so far in the future that it covers > depreciation period.
  • The batch is assigned the origin code 11 - Depreciation on capital assets.

Vouchers

The following information is transferred to the vouchers:

  • The voucher date and value date are set equal to the depreciation date.
  • The voucher number and voucher type are transferred from the Capital asset deprec. series that you defined in the Company information table.
  • The cost account for depreciation in the Capital asset class table (or the posting errors account) is debited, and the General ledger account for the capital asset is credited. (Depreciation for devaluation values will have the opposite postings)
  • Organisational units on the capital asset are included in the depreciation vouchers.
  • The value for depreciation is entered in the voucher in the Capital asset proc. field, to ensure that the correct general ledger accounts and balance fields are updated. The values are:
    • 9 - Depreciation on investment
    • 10 - Depreciation on addition
    • 11 - Depreciation on revaluation
    • 12 - Depreciation on devaluation

Calculating depreciation time

The Depreciations per year field in the Capital asset class table shows the number of instances of depreciation per calendar year. If you leave this field blank, depreciation will take place once a year. If you, for example, enter 12, depreciation of one month at a time is produced.

The Date last depreciation will be updated after each depreciation and shall not be changed manually except in very exceptional cases when a manually extra depreciation is required. The field must be updated correctly after such a manual depreciation, since it will affect future depreciation values.

UK companies only:

You must check Depreciate on specified date in the Company information table, the depreciation is performed on the date specified in the Depreciation dialog. You can use this for companies for which the from and to dates in the Accounting period table do not coincide with the first and last day of a month respectively, or if you do not use simple four-week periods when operating with 13 periods a year.

Note:
If you use a 13th period (for year-end dispositions) you must make sure that you set up the to and from dates correctly for periods 12 and 13 in the Accounting period table, to avoid depreciation for period 13:
  • Define period 12 so that it lasts from 1.12 to 30.12.
  • Define period 13 so that it lasts from 31.12 to 31.12.

Calculating depreciation amount

The depreciation amount is calculated as the product of:

  • The basis of depreciation for the accounting period within which the depreciation date falls
  • The depreciation rate
  • The fraction of the year for which depreciation is to be performed
Note:
The depreciation amount is rounded down to the residual value, if this is lower.

Basis of depreciation and accounting period

To calculate the basis of depreciation, you add the sum of CB residual and OB depreciation values.

The system selects the first period within which the depreciation date falls, sorted by year and period number.

Note:
The acquisition month is included in the numerator, unless the acquisition was made on or after the 16th day of the month, and you have selected No deprec. < 1/2 month in the Accounting processing field in the Company information table.

Messages during and after processing

During processing, the capital asset number that is being processed is displayed in the status bar.

After processing, you will be notified about the number of capital asset rows that were processed, and how many could not be processed because they were locked by other processes.

Warnings are displayed if the following information is missing:

  • Accounting periods for any of the depreciation dates
  • Depreciation rates for both capital assets and capital asset class

Updating depreciation vouchers

Depreciation transactions are accumulated in the general ledger account entered in the Accum. deprec. account no. field in the Capital asset class table. If you leave this field blank, the account in the Cap. asset account field in the same table is used, or the general ledger account that is overridden in the Account no. series table.

Finally, the Date last depreciation field in the Capital asset table is updated with the To date for the last period for which depreciation was performed.

Updating the Capital asset table

When updating purchase vouchers (capital asset processing 1 - Acquisition), the Purch. date entered on the capital asset is the Voucher date unless the Purch. date has already been filled in or the Voucher date is earlier.

When updating addition vouchers (capital asset processing 2 - Addition), the Purch. date entered on the capital asset is the Voucher date unless the Purch. date has already been filled in or the Voucher date is earlier.

When updating revaluation vouchers (capital asset processing 3 - Revaluation), the Revaluation date entered on the capital asset is the Voucher date unless the Purch. date has already been filled in or the Voucher date is earlier.

When updating devaluation vouchers (capital asset processing 4 - Devaluation), the Devaluation date entered on the capital asset is the Voucher date unless the Purch. date has already been filled in or the Voucher date is earlier.

When updating depreciation vouchers (capital asset processing 9 - Depreciation on investment, 10 - Depreciation on addition, 11 - Depreciation on revaluation or 12 - Depreciation on devaluation), the date in the Date last depreciation field in the Capital asset table is also updated with the date of the depreciation.

The Capital asset table is updated at the end of each batch update. You receive a message if any of the capital assets are locked by other processes. If the update includes purchase vouchers, you must enter the relevant dates manually for these capital assets.

The Date last depreciation field for capital assets is automatically filled out and should not be changed manually.

Initialize capital asset

This processing initialises capital assets with amounts.

Note:
This processing is used when transferring capital assets from another system and to update the capital asset transactions and balances only. The voucher series for purchase of capital assets will be used and shall temporarily have a voucher type with the voucher type processing Do not produce aut. gen. trans. checked to avoid an update of the general ledger, which is assumed to be transferred separately. The debit/credit control in the Company information must be switched off when updating the batch.

Prerequisites

The following parameters must be filled out:

  • Life span
  • Hist. purchase amount
  • Accr. depr. amount

Starting the processing

  1. Select the Capital asset rows you want to process.
  2. In the Processing menu, select Initialize capital asset.
  3. Choose value date in the dialog.

Initialize end dates

This processing initialises all end dates on the capital assets based on the purchase date and the life span given for the capital asset.

Starting the processing

  1. Select the Capital asset rows you want to process.
  2. In the Processing menu, select Initialize end dates.

Regenerate capital asset balances

This processing regenerates balances for selected capital assets, from transactions.

Note:
This processing is recommended if just a few accounts need to be regenerated, or if the database has reached a size when the regeneration must be split into smaller steps. The balances are processed one-by-one. If you need to regenerate all balances, the processing Regenerate account balances in the Company information table is recommended. See also: Regenerate account balances

Starting the processing

  1. Select the Capital asset rows you want to process.
  2. In the Processing menu, select Regenerate capital asset balances.
  3. Make settings in the dialog.
    Option Description
    From year The first year to be included in the regeneration. If you leave the field empty, everything is regenerated.
    From period The first period to include in the regeneration.

The parameters are validated against the Accounting period table.

Sell or scrap

This processing is used to perform sales or scrapping on capital assets using values on the capital asset.

Prerequisites

In order to perform sales or scrapping, a Capital asset sales/scrap voucher series for depreciation must be defined in the Company information table.

Starting the processing

  1. Select the Capital asset rows you want to process.
  2. In the Processing menu, select Sell or scrap.
  3. Enter the discard date in the Value date field.

A batch is created.

A reversal voucher for acquisitions, additions, write-ups and devaluations and accumulated depreciation is created based on the closing balance for the date’s period. The voucher number is from the Capital asset sales/scrap voucher series field in the Company information table. If the capital asset has been sold for a fee, you can enter the sales amount and VAT code of the capital asset.

The profit or loss is calculated based on the capital asset’s residual value and sales total, and posts this to accounts specified in the Capital asset class table, where you can also specify an income account for the fee.