What Asset Values are Maintained?

SunSystems Fixed Assets maintains the following values for each asset, for each asset valuation:

Gross Value

The gross value is the original cost of the asset plus any additions, revaluations, or disposals.

It is calculated from all of the transactions posted to the asset with an asset indicator of Initial or Value.

Accumulated Depreciation

The accumulated depreciation is the total depreciation posted to the asset. This is the total of the depreciation calculated and posted automatically by Depreciation Calculation or Asset Disposal, and any depreciation entered and posted manually using Ledger Entry or Ledger Import.

It is calculated from all of the transactions posted to the asset with an asset indicator of Depreciation.

Net Value

The net value is the gross value less the accumulated depreciation.

Note: It is important to note that the net value may be less than the final value if depreciation is posted manually or if the gross value is reduced by posting a disposal. Such exception conditions are shown on the Asset Status Listing (FAT).

Final Value

A final value can be entered for an asset. This is the scrap or residual value which is used in the depreciation calculations. This value is entered on Asset Records (FAS) for an asset.

Note: A second final value can be defined for an asset, if the Japanese straight line depreciation method applies.

You can view the asset values for an asset using Asset Records (FAS). You cannot update the gross, accumulated depreciation and net asset values directly. You must enter ledger transactions to update them.

Transactions are posted to assets using Financials Ledger Entry (LEN) or Ledger Import (LIM). In addition to posting to the chart of account code referenced, these transactions can also identify an asset code, asset subcode, and asset indicator. This asset indicator determines whether the transaction values should update the gross value or depreciation value for the asset.

Note: You can alter the final value but should not do so once depreciation has been calculated for the asset.

The asset values are always maintained in the base currency but can also be maintained in up to two additional currencies: transaction currency and second base/reporting currency.