Fixed Assets

The Fixed Assets module in the FLEX system provides credit unions with comprehensive tools to manage their fixed assets, including adding, deleting, viewing, and maintaining asset records. This module automates monthly depreciation posting and updates asset book values, while maintaining a historical record of all postings.

Accessing the Fixed Assets Module

Users can access the Fixed Assets module through the FLEX Main Menu:

  • Navigate to the GL/Accounting section.
  • Expand the Fixed Assets option.
  • Select Fixed Assets from the sub-menu.

Main Fixed Assets Screen

Upon accessing the Fixed Assets module, the main screen displays a list of all existing fixed assets.

Key Features of the Main Screen:

  • Asset Listing: Displays a table of fixed assets with key information.
  • Action Buttons:
    • Add: To create a new fixed asset record.
    • Copy: To duplicate an existing fixed asset record.
    • Multi Copy: To create multiple identical fixed asset records.
    • Edit: To modify an existing fixed asset record.
    • Delete: To remove a fixed asset record.
    • History: To view the posting history for a selected asset.
    • Audit: (Functionality not detailed in provided documentation)
    • Post Depreciation: To initiate the monthly depreciation posting process.

Filtering and Searching Fixed Assets:

The main screen includes filtering options to narrow down the displayed asset list:

  • From Asset # / To Asset #: Filter by a range of asset key numbers.
  • Description: Filter by asset description.
  • GL Account: Filter by associated General Ledger account.
  • Branch: Filter by the asset’s branch location.
  • Search Button: Applies the specified filters.
  • Clear Button: Clears all active filters.

Asset List Columns:

The asset list table includes the following columns:

  • Key: Credit union-defined unique identifier for the asset.
  • Description: A brief description of the asset.
  • G/L: The General Ledger account associated with the asset.
  • Book Value: The current depreciated value of the asset.
  • Original Cost: The initial purchase cost of the asset.

Add/Edit Fixed Asset Screen

The “Add/Edit Fixed Asset” screen allows users to input and modify detailed information about each fixed asset.

General Information Fields:

  • Asset Key:
    • Required Field.
    • Credit union defined key number for the asset.
    • Used for sorting and categorizing assets for reporting.
    • Example: 10001 for buildings, 20001 for furniture.
  • Description: Enter a credit union-defined description of the asset.
  • Serial #: Enter the asset’s serial number, if applicable.
  • Property Tax: Check this box if the asset is subject to property tax (informational only).
  • Group/Dept: Enter the department number associated with the asset, if applicable.
  • Quantity: Enter the quantity of items associated with this fixed asset, if applicable.
  • Branch: Select the branch number where the asset is located, if applicable.

Value and Life of Asset Fields:

  • Original Cost: Enter the initial cost of the fixed asset.
  • Current Value: Enter the current book value. For new assets, this may be the same as the original cost.
  • Estimated Life (months):
    • Enter the estimated useful life of the asset in months.
    • The system uses this to calculate monthly depreciation (Original Cost / Estimated Life).
  • Remaining: System-calculated field showing remaining months until the asset is fully depreciated, based on current value and calculated depreciation.
  • Date Placed in Service: Enter the date the fixed asset was put into service.
  • Estimated Salvage:
    • Enter the estimated salvage value of the asset.
    • Depreciation will continue until the current value reaches this estimated salvage value.
    • If left blank, depreciation continues until the current balance is zero.

Depreciation Definition Fields:

  • Depreciation Method: Currently, only Straight Line is supported.
  • Depreciation Frequency: Select how often depreciation is posted:
    • M: Monthly, on the last day of the month.
    • 1: Monthly during the month, on the same day each month based on the Next Depreciation Date. (Note: 29th, 30th, or 31st are not valid days for this option).
  • Calculated Depreciation Amount:
    • System-calculated field (not maintainable).
    • Calculated as Original Cost / Estimated Life (months).
    • Can be overridden by the “Forced Depreciation Amount” field.
  • Forced Depreciation Amount:
    • Enter a specific amount to be depreciated if different from the system’s calculation.
    • Overrides the “Calculated Depreciation Amount” if entered.
  • Next Depreciation Date:
    • Enter the next date depreciation is due to post to the General Ledger.
    • Typically a month-end date.
    • Depreciation will not post if this date is after the Journal Entry Effective Date used in the “Post Depreciation” option.
  • Out of Service Date: Optional field to record when the asset was taken out of service.
  • Actual Salvage Value: Optional field to enter the actual salvage value when the asset is removed from service.

General Ledger Interface Fields:

  • Fixed Asset Account:
    • Enter the General Ledger account for the original cost of the fixed asset.
    • No GL posting occurs to this account when depreciation is posted.
  • Depreciation Allowance:
    • Enter the General Ledger account for the depreciation allowance.
    • This account will be credited when depreciation expense is posted.
  • Depreciation Expense 1-12:
    • Enter General Ledger accounts for depreciation expense. Up to 12 different accounts can be used.
    • If multiple accounts are specified, enter the percentage of total depreciation that will post to each.
    • These accounts will be debited when depreciation expense is posted.
  • Total: If allocating depreciation expense to multiple GL accounts, the sum of all percentages must equal 100%.

Notes Field:

  • Notes: An optional line for adding comments or additional notes to the asset record.

Copying Fixed Assets

Copy:

  • Select an asset from the main list and click Copy to create a single duplicate record.

Multi Copy:

  • Allows creation of multiple identical fixed asset records.
  • Steps:
    1. Highlight the fixed asset to be copied on the main screen.
    2. Click the Multi Copy button.
    3. In the “Copy Fixed Asset Multiple Times” dialog, enter the # Of Duplicate Records.
    4. The system will create the specified number of new asset records identical to the source.

Viewing Fixed Asset History

  • To view the posting history for a specific asset:
    1. Select the desired asset from the main Fixed Assets screen.
    2. Click the History button.
  • The “Fixed Asset History” screen displays:
    • Transaction Date
    • Effective Date
    • Asset Key
    • Description
    • Transaction Code (TC)
    • Amount
    • Teller
    • Branch
    • Offset Account
  • Two or more entries typically display for each posting, including General Ledger debits and credits.

Posting Depreciation

The “Post Depreciation” function initiates the process of creating journal entries for monthly depreciation.

Steps to Post Depreciation:

  1. From the main Fixed Assets screen, click the Post Depreciation button.
  2. The “Post Depreciation” dialog will appear.
  3. Journal Entry Effective Date:
    • Enter the effective date for the journal entries.
    • Any fixed assets with a “Next Depreciation Date” on or before this date will be included in the posting.
    • A future effective date can be used to post items ahead of schedule.
    • Recommendation: FLEX strongly recommends running a worksheet (see below) and verifying data before selecting the “Yes, Post” option.
  4. Update Files? Select one of the following options:
    • Yes, Post: Posts the depreciation journal entries to the General Ledger.
    • No, Generate Worksheet Only: Generates a report showing the depreciation entries without actually posting them. This is crucial for review and verification.
  5. Post to Pending?: This option only displays if the previous month’s General Ledger is still open. If selected, journal entries will post to the current (pending) month.

Reports Generated After Posting Depreciation:

Upon successful depreciation posting, two reports are generated:

  • Fixed Asset Journal Entries:
    • Shows all entries made to General Ledger accounts during depreciation posting.
    • Includes the total amount of depreciation posted.
  • Fixed Asset Posting:
    • Lists depreciation posting details for each asset.
    • Displays the new book value of each asset after the posting.