On this tab the following fields can be viewed:

 

hmtoggle_plus1Accept New Beneficiary

When this option is selected, the Beneficiary field is disabled.

 

When this option is selected and the status is Accepted A, a message indicating that a new beneficiary has already been accepted, is displayed.

 

hmtoggle_plus1Accumulated Depreciation Account

This field is used to specify the Accumulated Depreciation Account to be used.

It displays the Account, Cost Centre and Division code from the Account table and the account code and description from the Account Codes table where:

 

The account code application equals Allow Asset Accum Depreciation,

The account code status is Active A and the status change date is less than or equal to the current date, or

The account code status is Suspended S and the status change date is greater than the current date, and

The account is an Income Statement or a Balance Sheet Account.

 

When an existing asset is selected, and the user clicks on a record in the Depreciation list box, this field displays the Accumulated Depreciation Account of the selected asset from the Asset Depreciation table.

 

If this account is blank, the Depreciation Run will derive the Accumulated Depreciation Account from the account code on the Depreciation Model and the Cost Centre/Division on the same depreciation beneficiary record.

 

This account does not need to be an account of the Cost Centre/Division or the Beneficiary's Cost Centre/Division on the same depreciation record. If the division differs, inter-divisional journals will be processed.

 

hmtoggle_plus1Apply

When an asset is transferred to a new cost centre or division, a financial history record will be inserted for the transfer record. This transfer record will also process the following journal:

 

Debit           Old division/cost center's Accumulated Depreciation Account       Total depreciation amount

Credit          New division/cost center's Accumulated Depreciation Account     Total depreciation amount

Debit           Old division/cost center's Asset Control Account                                   Take-On Value

Credit          New division/cost center's Asset Control Account                               Take-On Value

 

When a new depreciation record is created and the Depreciation Model is changed (different from the previous record) or the specified Accumulated Depreciation Account is changed, the following will be processed:

A transfer record will be inserted in the Asset Financial History table.

A journal will be processed to the following accounts:

Debit           Old Accumulated Depreciation Account               Total depreciation amount

Credit          New Accumulated Depreciation Account            Total depreciation amount

 

 

hmtoggle_plus1Beneficiary

When an existing asset is selected, this field defaults to the current Received By person on the Asset Depreciation table.

 

When inserting a new depreciation record, this field is populated with the Surname, First Name, Middle Initial, and the Employee ID from the Employee Master table where the status is Active A.

 

When the Depreciation Status options, Accept New Beneficiary or Reject New Beneficiary is selected, this field is disabled.

 

The depreciation beneficiary does not have to be in the same cost centre/division as the cost centre/division selected.

 

hmtoggle_plus1Change

The user must be the Asset Controller and have a security profile linked to the function Asset Information with an access allowed of Change.

 

When the Change button is clicked, the latest record is updated with the following fields: Once-off Depreciation Amount (Initial Value), Expected Salvage Value, Depreciation Model, Tax Depreciation Model, Cost Centre, Division Code, Comments, Depreciation Account, and the Accumulated Depreciation Account on the Asset Depreciation table are updated for the selected asset number and financial period.

 

Only the Asset Controller can change the details of the depreciation record, thereby influencing the Accounts to be journalised, the Depreciation Models, the Expected Salvage Values, and the cost centre/division.

 

If the Asset Controller changes the cost centre/division, the asset is effectively transferred to another cost centre/division, and thereby is assigned a new Asset Controller.

Transfer journals will be created.  See training course for details.

 

If the Accumulated Depreciation Account is specified, only the Asset Control Code will be transferred from the current division or cost centre to the new division or

cost centre (i.e. no accumulated depreciation transfer journals will be written). The current division's Asset Control Code is debited with the Take-On Value.

 

It is possible to delete future depreciation records.

 

hmtoggle_plus1Comments

It is an alphanumeric field with a maximum length of 100 characters (optional).

 

The comments may be changed every time the user accepts or rejects responsibility.

 

hmtoggle_plus1Cost Centre

This field is used to indicate the Cost Centre that benefits from the use of the asset.

 

When an existing asset is entered, and the user clicks on a record in the Depreciation list box, this field displays the cost centre of the selected asset from the Asset Depreciation table.

 

When adding a new asset, it is populated with the cost centre, and the cost centre description from the Cost Centre table.

 

hmtoggle_plus1Depreciation Account

This field specifies the Depreciation Account to be used.

It displays the Account, Cost Centre and Division code from the Account table and the account code and description from the Account Codes table where:

 

The account code application equals Asset Depreciation,

The account code status is Active A and the status change date is less than or equal to the current date, or

The account code status is Suspended S and the status change date is greater than the current date, and

The account is an Income Statement or a Balance Sheet Account

 

When an existing asset is selected, and the user clicks on a record in the Depreciation list box, this field will display the Depreciation Account of the selected asset from the Asset Depreciation table.

 

If this account is blank, the depreciation run will derive the Depreciation Account from the account code on the Depreciation Model and the cost centre/division on the same depreciation beneficiary record.

 

This account does not have to be an account of the division and/cost centre or an account of the Beneficiary's cost centre/division on the same depreciation record.  If the division differs, inter-divisional journals will be processed.

 

hmtoggle_plus1Depreciation List Box

This list box displays the From Period, Beneficiary, Requested By, Depreciation Model Code, Depreciation Model, Tax Depreciation Model Code, Tax Depreciation Model, Cost Centre, Division, Status, Date, Depreciation Account, Accumulated Depreciation Account, Initial Allowance, Expected Salvage Value, Tax Initial Allowance, Tax Expected Salvage Value, Comments, Total Life and the Tax Total Life.

 

The From Financial Period, Once-off Depreciation Amount, Expected Salvage Value, Depreciation Model, Cost Centre, Division Code, Received Date, Depreciation Status, Depreciation Account, Accumulated Depreciation Account, Comments, and Tax Depreciation Model are obtained from the Asset Depreciation table.

 

The Depreciation Model Description and Tax Depreciation Model Description is obtained from the Asset Depreciation Model table, and the Surname, First Name, and Middle Name of the Sent By and Received By person from Employee Master tables for the selected asset number, and financial period specified.

 

If the cost centre and/or division is changed, the asset is transferred, and the transfer journals are generated.

 

hmtoggle_plus1Depreciation Model Code

This model reflects  the accounting views the depreciation of the asset. The total useful life is specified on the Depreciation Model, and this will also be applicable to the selected asset.

 

This field displays the Depreciation Model Code of the selected asset from the Asset Depreciation table when an existing asset number is selected, and the user selects a record in the Depreciation list box.

 

When adding a new asset, it is populated with the depreciation model code and description from the Asset Depreciation Model table.

 

When selecting a Depreciation Model, ensure that the division has valid accounts defined for the Depreciation and Accumulated Depreciation Account Codes on the selected model.

 

NOTE: If the Asset Control Code is a divisional account, only Depreciation Model Codes where the Accumulated Depreciation Account code is a divisional account will be populated.

             If the Asset Control Code is a cost centre account, only Depreciation Model Codes where the Accumulated Depreciation Account code is a cost centre account will be populated.

 

If a cost centre was selected, ensure that the cost centre has a valid account defined for the Depreciation Account Code on the selected model, and the cost centre's division has a valid account for the Accumulated Depreciation Account Code on the selected model.

 

When an asset's depreciation model is changed during the lifetime of the asset, the following will be processed automatically:

A transfer record with the new model and the From Financial Period will be inserted in the Asset Financial History table.

A journal will be processed to the following accounts:

Debit           Old model's Accumulated Depreciation Account (or old specified account)

Credit          New model's Accumulated Depreciation Account (or new specified account)

 

hmtoggle_plus1Division

This field is used to indicate the Division to which the asset belongs.

 

When an existing asset is selected, and the user clicks on a record in the Depreciation list box, this field displays the division of the selected asset from the Asset Depreciation table.

 

When adding a new asset, it is populated with the division code, and the division description from the Division table.

 

hmtoggle_plus1Expected Salvage Value

When a line is selected in the Depreciation list box, this field displays the Expected Salvage Value of the selected asset from the Asset Depreciation table.

 

This value is used in depreciation calculations.  It is deducted from the current asset value before depreciation.  An asset can not depreciate to a value lower than the salvage value.  

 

Salvage value is the same as Residual value.

 

hmtoggle_plus1From Financial Period

This field is used to indicate the financial period from which the depreciation is to be calculated. This field is mandatory.

 

When adding a new asset, this field will default to the current financial period.   The user can select another financial period from the Financial Period table.

 

You can only insert a record with a financial period greater than the last depreciation beneficiary record.

 

When creating the first depreciation beneficiary record, the financial period must either be the current financial period or earlier.

 

hmtoggle_plus1Initial Depreciation Allowance

When a line is selected in the Depreciation list box, this field will display the Initial Depreciation Allowance value of the selected asset record from the Asset Depreciation table.

 

This value is depreciated only as a once-off amount during the asset's first depreciation run. The Initial Depreciation Allowance only applies to the normal depreciation, and not to the tax depreciation.  It is first subtracted from the Take-On Value and the applicable depreciation model is then applied on the remainder.

 

EXAMPLE:

 

Take-On Value = R10,000, 12 months straight line depreciation method, no expected salvage value, initial depreciation allowance = R1,000.

 

The first month's depreciation will be R1,750, and not R1,833.33. This is derived as follows: ((R10,000 - R1,000)/12 = R750) + R1,000.

 

hmtoggle_plus1Mode

If Beneficiary Maintenance is selected and Apply clicked, the system does the Beneficiary Update and displays a record in the Depreciation list box.

 

If Transfer Asset is clicked followed by Apply, the system realises that the Asset is to be transferred to another cost centre/division.  A record will be added to the Depreciation list box.

 

hmtoggle_plus1Reject New Beneficiary

When this option is selected, the Beneficiary field is disabled.   If the status is blank, it indicates that there is no beneficiary to reject.

 

You can only reject being a beneficiary where the status is Requested R.

 

hmtoggle_plus1Request New Beneficiary

When this option is selected, a new beneficiary must be selected in the Beneficiary field.

 

When this option is selected and the status is Requested R, a message is displayed indicating that a new beneficiary has already been requested.

 

hmtoggle_plus1Tax Expected Salvage Value

This value is used in tax depreciation calculations.  It is deducted from the current asset value before depreciation.  An asset can not depreciate to a value lower than the salvage value.

 

hmtoggle_plus1Tax Initial Depreciation Allowance

This value is depreciated only as a once-off amount during the asset's first depreciation run. The Tax Initial Depreciation Allowance only applies to the tax depreciation model, and not to the normal depreciation.  It is first subtracted from the Take-On Value and the applicable tax depreciation model is then applied on the remainder.

 

No journals are processed for the tax depreciation model, but the financial history of the tax depreciation model can be viewed.

 

hmtoggle_plus1Tax Depreciation Model Code

This model reflects how, according to specific tax regulations, the depreciation of the specific Asset should be viewed.

 

When an existing asset is selected, and the user clicks on a record in the Depreciation list box, this field displays the tax depreciation model of the selected asset from the Asset Depreciation table.

 

When adding a new asset, it is populated with the tax depreciation model code and the description from the Asset Depreciation Model table.