When migrating an Asset Ledger to Attaché for the first time, that is, adding existing assets, the most important consideration is the Asset Ledger Start Period.
Firstly, determine the Start Period, before adding existing assets or transactions for them, by checking if any existing assets use the Diminishing Value method for calculating depreciation. If so, a new Asset Ledger must start in Period 0 (the Start Period). Existing assets purchased before the start of the current year that use the Diminishing Value method need to be added in Period 0 because this creates their Opening Written Down Value (WDV). Without that value, depreciation will calculate incorrectly on the Asset cost.
If you want to add existing assets to an existing asset ledger, this article does not apply if those existing assets use the Diminishing Value method of depreciation.
Set the Start Period for the new Asset Ledger
To set the Start Period that the new Asset Ledger will be set up in do the following:
In Asset Management, go to Setups, Asset Management, Options.
Set Current Period to:
Zero (0): If existing assets use the Diminishing Value method of depreciation.
The period before the required Current period: If no existing asset uses the Diminishing Value method of depreciation.
For a new Asset Ledger: the first Current period where no assets use the Diminishing Value method could be either:
The period in which depreciation will first be run, or;
The period after the period when the last Depreciation Schedule is available. This allows easy determination and entry of existing asset values from the old accounting system and so is recommended.
Once the required Start Period is known, ALL existing assets valued at the End Date of the Start Period need to be added to the new Asset Ledger.
Add existing assets manually
Go to Masterfiles, Assets, Maintain.
Select New Asset (F7).
Fill in fields as necessary. The minimum to fill in is:
Asset cost.
GL set code.
Purchase date.
Method for depreciation.
Depreciation rate.
Closing Book Value (as at the End Date of the Start Period).
For Help in determining any additional fields that should be completed:
Press Help (F1) for further details about each field in the Masterfile.
Review other assets to determine any other fields required by the particular company's set up. For example: Department, etc.
Save the asset by pressing Accept (F9).
Select the newly entered asset in the Masterfile and press Auto-activate this asset (F6). Auto-activate should be used so that the depreciation to date, as recognised by the Closing Book Value compared to the Asset Cost, is automatically picked up. Alternatively, Keystroke File Import can be used to bulk add assets to the Start Period.
Once all existing assets have been entered and reports have been run to check all values, etc. are correct, run a Period End on the Asset Ledger to move from the Start Period to the Current Period.
Hints and Tips
Asset Management can be used to automatically post all values for existing assets to new asset accounts in your GL. To do this,
Ensure the Clearing accounts are set up in Set ups, General Ledger, Options.
In Addition, ensure that all GL Accounts exist in the GL.
Use a General Journal to clear all asset values from old asset accounts to the Additions Clearing Account. Asset Management will post the contra entry to the Additions Clearing account for each existing asset added when activated.