Fixed Assets
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Fixed Assets

Fixed Assets

With the Fixed Assets module you will be able to track unlimited assets types and depreciation schedules. Fixed Assets features automatic depreciation calculation and automatic generation of depreciation Journal Entries. FA also allows three types of depreciation: Straight line, Double Declining & Sum of year digits. You can even track salvage value and your percentage of usage. FA even offers tracking of Fixed Asset sales, featuring automatic creation on sales invoices for sold assets.

Basic Information: Fixed assets is located under Financials à Fixed Assets:

  1. Corporate vehicles: A listing of all vehicles that are owned and operated by your company.
  2. Airplane/Jets: A listing of the aircraft your company owns, populated from either your Aircraft Fleet list or a list within FA.
  3. Real Estate: A listing of properties; buildings and land; held by your company.
  4. Fixed assets Listing and Depreciation: This shows a list of the assets you have entered and calculates their depreciation values.
  5. Post Into Journal Entry: This posts the depreciation values into a journal entry under the General Ledger.
  6. Fixed Asset Default Life Years: A table where you can enter in the default years that a particular asset type will retain its value.
  7. NOTE: After creating any fixed asset, be sure to log out and log in again for the links to take effect.

Creating Fixed Assets

  1. Corporate Vehicles: A listing of vehicles owned and operated by your company. In order to set up your corporate vehicles listing, you must:
    1. Enter the FA module through the Financials Menu
    2. Select the Corporate Vehicles by double-clicking it
    3. Click the Add button
    4. Fill out the appropriate information concerning the vehicle. Any asset entered through this window will appear as “1 – Automobile” in the Fixed Asset Listing and Depreciation window.
    5. Click OK to save
    6. Click Close
    7. Double-click Fixed Asset Listing and Depreciation
    8. Click the Add button
    9. Select “1 - Automobile” from the Type drop down menu
    10. The field, “Registration No.” will appear in the bottom half of the window. Clicking the 3 dots will allow you to choose from the list you entered into Corporate Vehicles.
    11. Fill out the remaining appropriate information concerning the aircraft description, purchase date, etc.
    12. Determine your Usage %; Pentagon default assumes 100% usage.

      NOTE: From within this form you will be able to set up the depreciation schedule, but we will go through that in the next section.
    13. Click OK to save
    14. Click Close
  2. Real Estate: A list of properties; buildings and land; held by your company. In order to list your real estate assets you must:
    1. Select Real Estate by double-clicking it
    2. Click the Add button
    3. Fill out the appropriate information concerning the property. Be sure to select the appropriate Type from the Type drop down menu. The Fixed Asset Listing is determined by Type.
    4. Click OK
    5. Click Close
    6. Double-click Fixed Asset Listing and Depreciation
    7. Click the Add button
    8. Select from the Type drop down menu the corresponding type of Real Estate asset you wish to list.
    9. Once the type is selected, a field titled, “Real Estate No.” will appear. Clicking the 3 dots will allow you to choose from the list of the Real Estate assets you entered of that type.
    10. Fill out the remaining information concerning the real estate description, purchase date, etc.
    11. Click OK to save
    12. Click Close
  3. Airplane/Jet: A listing of the aircraft your company owns. This listing can be populated from your Aircraft Fleet which can be entered by going to Operations: Engineering & Record Keeping: Aircraft Fleet. Alternately you may create a new aircraft from directly within FA. To create a new aircraft from within FA:
    1. Select Airplane/Jet by double-clicking it.
    2. Click the Add button.
    3. Fill out the appropriate information pertaining to the aircraft. Be sure to fill out all of the tabs with the relevant information.
    4. Select Fixed Assets Listing and Depreciation
    5. Click the Add button
    6. Select “2 – Airplane/Jet” from the Type drop down menu.
    7. A field titled “Aircraft No.” will appear; clicking on the 3 dots will open a searchable list of your aircraft. (This list will include both your Aircraft Fleet listing as well as any aircraft that were added through FA as in steps 1-3 above.)
    8. Fill out the remaining appropriate information concerning the aircraft purchase date, etc.
    9. Determine your Usage %, Pentagon default assumes 100% usage.

      NOTE: From within this form you will be able to set up the depreciation schedule, but we will go through that in the next section.
    10. Click OK to save
    11. Click Close
  4. Computers/Office Equipment/Office Furniture: These assets are listed by part number; meaning that it is necessary to have them in stock in your inventory.
    1. Select Fixed Assets Listing and Depreciation
    2. Click the Add button
    3. Select Computers/Office Equipment/Office Furniture
    4. A field titled “Part Number” will appear; clicking on the 3 dots will open a searchable inventory list
    5. Fill out the remaining appropriate information concerning the item purchase date, etc.
    6. Determine your Usage %; Pentagon default assumes 100% usage.
    7. Click OK to save
    8. Click Close
  5. Fixed Asset Default Life Years: This option creates a default lifespan for depreciation for certain types of assets. Entering a default setting here will ensure that when creating a new depreciation schedule, the depreciations will all follow the same estimated lifespan.
    1. Double-click Fixed Asset Default Life Years.
    2. Select the type of asset from the drop down menu.
    3. Set the number of years for depreciation default.
    4. Click OK

Setting up Depreciation Schedules

The depreciation schedule offers you a calculation of the life and value of your assets. For pictures and examples of the process explained below, please see the Additional Information section on page 11.

  1. Double-click Fixed Assets Listing and Depreciation
  2. Select one of the existing asset entries from the list by double-clicking it
  3. Click the Depreciation tab
  4. Click the Edit button
  5. Select the method you are using to calculate depreciation from the drop down menu (Straight Line, Double Declining, Sum Of Year Digits)
  6. Enter the Salvage value of the item. Once the number is entered it will appear in currency format.
  7. Enter the First Year, this is the month and year from which depreciation will begin.
  8. Enter the Estimated Life In Years by typing or using the arrows. (If this value has already been established using a default, it will already appear there.)
  9. Check or uncheck Post Into Periods; this determines whether the depreciation is done for each period separately or for each year as a whole. Select your G/L Code Debit, Credit, and your Journal Entry Type from the pop up menu lists.
  10. Click OK
  11. Click the Calculate button located at the top of the window. A “Please Wait…” box will appear showing the progress of the calculation. When completed, the depreciation schedule will appear in the bottom of the window.
  12. If you wish to recalculate the depreciation you must first click the Clear button to clear the depreciation schedule from the window.
  13. Then click the Edit button to be able to modify the depreciation information.
  14. Click OK to save
  15. Click Calculate to create a new depreciation schedule.

Post Into Journal Entry:

  1. Enter the Fixed Assets module through the Financials menu.
  2. Double-click Post Into Journal Entry
  3. Select the date you wish to post data to
  4. Click OK
  5. Posted Journal Entries can then be viewed by going to Journal Entries under the General Ledger.

Fixed Asset Reports:

These reports can be found under the reports menu: Reports\Financials\Fixed Assets. There are two types of reports available; Active Assets and Sold Assets. Active Assets runs a report of only open assets, Sold Assets runs a report only of those assets which have been sold. There are many filters that you can set within the reports, these will be listed and explained below.

  1. Filters:
    1. Report Settings: Checking “Detailed” will list the active/sold assets including their depreciation schedule, leaving it unchecked simply provides a list of the active or sold assets.
    2. Asset No.: This field allows users to select a certain range of assets from your searchable asset list.
    3. Status: This field allows you to determine whether you would like to run the report on an Open, Closed, or Sold asset.
    4. Purchase Date: This field allows users to select a range of purchase dates to run the report on.
    5. Asset Type: Users may run a report based upon asset type.
    6. Depreciation Method: Users may select a report based upon the method of depreciation for that asset.
  2. User Sub Title: This field allows the user to add a title to the report.
  3. Filtering Description: This field lists the filters you have applied to the report and offers a glance at what elements will be included in the report.
  4. Buttons:
    1. Preview: Shows you a preview of what the report will look like, an electronic copy.
    2. Print: This will print a hard copy of the report.
    3. Clear: This option clears away all of the filter settings that you may have selected.
  5. To Create a Fixed Assets Report:
    1. Double-click the type of report you wish to run; Active or Sold.
    2. Add any desired User Sub Title to personalize the report.
    3. Set up your filters determining the specific requirements of the report.
    4. Click the Preview button to view a preview of the report.
    5. Determine whether the report looks as you hoped it would; if so, click the Print button, if not, return to the filters and adjust them accordingly. Remember that the “Clear” button will remove any previously selected filters.
    6. Print the report.

Additional Information

  1. Clicking the “Fixed assets Listing and Depreciation " option will open a search screen showing most of the fields in the FIXED ASSETS table:
  2. Selecting an Item from the Search or clicking the Add button opens the Fixed Asset main window in Browse/Edit mode respectively:  
  3. A Fixed Asset contains the following fields:
    1. Asset No.: The asset number, upon creating a new asset it will be filled with 6 digits leading zero, however the user can change it manually.
    2. Type: The Asset type, represented by a number and the description, will be shown in a panel to the right of the number. Selection is made from a Combo-Box. The Combo Box will show both the type number and the description. The available types need to be inserted to the Pentagon Repository, the type are:
      • [1]  - Automobile
      • [2]  - Airplane/Jet
      • [3]  - Land
      • [4]  - Resident Build
      • [5]  - Comm. Build
      • [6]  - Rental Build
      • [7]  - Apartment
      • [8]  - House
      • [9]  - Computers
      • [10]  - Office Equipment
      • [11]  - Office Furniture
      • [100]  - Other
    3. Status:   Can be Open, Sold, Hold. When a new record is created status Open is defaulted. The status is shown as pentagon standard - a label inside a group box in the upper right side of the form.  
    4. Description: Free text description
    5. Purchase Date: Asset purchase date, date only.
    6. Cost: Asset cost, formatted to currency, cannot be negative, can be zero.
    7. Sold On: Date the asset was sold, date only.
    8. Sold Price: Price the asset was sold for, formatted to currency, cannot be negative, can be zero.
    9. Registration No., Aircraft No., Real Estate No., Part Number: The caption and values shown change according to the type of asset. The Edit button is used for that field. Clicking the button opens the related search window for the option to select the asset. The Aircraft assets are drawn from your Aircraft Fleet database.
  4. The depreciation tab of the form contains the following fields:  
    1. Method: Depreciation Method is visually shown the same as the asset type field (Selection from a Combo Box and a panel showing the name). The available types need to be inserted to the Pentagon Repository, the type are:
      • [1] – "Straight Line"
      • [2] – "Double Declining"
      • [3] – "Sum of Year Digits"
    2. Salvage: The value of the item after full depreciation, formatted to currency, cannot be negative, can be zero.
    3. First year: A date that indicates the starting year and month of the asset depreciation.
    4. Estimated Life in Years: The number of years an asset will retain value. Spin edit, cannot be zero. The field is populated by the default value which is taken either from the repository or from the defaults table (See the menu in the 1st section).
    5. Post Into Periods: Yes or No – states whether the depreciation is done each period separately or for each year as a whole.
    6. G/L Code for debit and credit: Used for financial purposes when the depreciation lines are posted to Journal Entries.
    7. Journal Entry Type: Determines the type of the Journal Entries when and if the lines of the assets will be posted.

      The tab contains a grid that shows all the data of the depreciation lines of the asset – the year and period of the depreciation entry, the amount to be depreciated from the assets value, the status of the entry (open/Posted to G/L), whether it was/wasn't posted and the status of the J/E made from the entry.
  5. The asset form contains the following buttons:
    1. Add – for adding a new asset of any type.
    2. Edit – Edit the asset (enabled only for “open” asset).
    3. Delete – Delete the Asset (enabled only for “open” asset).
    4. Calc - hinted "Calculate Depreciation", the "c" letter is underlined i.e. shortcut. The button can be clicked only in browse mode and when the form is in Active state; the calculation is made with a “please wait” form popup. The depreciation calculation is done only if all pre conditions are filled (must have a purchase cost, both G/Ls and the J/E type, the estimated life years field, etc.).
    5. Clear – Clears the depreciation values but only if no entry has been posted to G/L yet.
    6. Options – three options are displayed:
      • Close – closing an asset is a prerequisite for posting its entries.
      • Reopen – can be done only if no line has been posted yet.
      • Sell – Sell the asset
        1. The asset must be in closed state for it to be sold.
        2. The user is asked for a selling date – the minimum date is the date of the first depreciation period that hasn't been posted to J/E.
        3. The user is asked for a selling price, which would be the price the asset was actually sold for.
        4. All depreciation entries with dates greater then the selling date are voided.
        5. The asset status is changed to Sold.
        6. A  group box with selling info appears on the depreciation tab of the asset form:
          • The value on selling day is the purchase cost minus the depreciation lines that haven't been voided.
          • The actual selling price is the one given by the user in the selling procedure.
          • Profit/loss = <Actual selling price> - <Value on selling day>
    7. Search – Search for a different asset.
    8. Close – Close the asset window.

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Fixed Assets