Finance Training

Fixed Assets Course Manual

Contents
1. Fixed Assets Overview Fixed Assets What are they? 3 Why do we track them?3 University Policy..3 Depreciation. 4 Fixed Assets Process Overview... 6 2. The Departments Role The Departments Role 7 Buying an Asset... 7 Departmental Access to the Fixed Asset Module 9 Finding Assets on CUFS. 10 Updating details of your Departments Assets12 To Amend an Assets Assignment...14 3. Viewing Information Viewing Financial Information...16 Viewing Asset Assignments... 17 Viewing Asset Source Lines... 18 Viewing Asset Book Information... 19 Viewing the Transaction History of an Asset. 21 Viewing the Depreciation of an Asset.22 Viewing the Cost History of an Asset.23 4. Reports 5. Fixed Asset Information in the General Ledger... 6. Common Queries 7. Further Help... 24 26 27 28

8. Appendices Appendix A: Asset Categories29 Appendix B: Glossary of Terms.31 Appendix C: Central Finance Function Following Departmental Involvement33 Appendix D: Automatic or Centrally Generated Accounting Entries.. 34 Appendix E: Enquiries Exporting to Excel.. 37

Finance Training Team Version 2c

Fixed Assets What are they?

Definition of a Fixed Asset An asset is an item that the University owns and uses while providing our administration, education and research services. A fixed asset is an asset that we retain for more than a year. Some common examples within the University are: Scientific equipment Office equipment, e.g. photocopiers Machinery Vehicles Land and Buildings Property held for Investment purposes It does not include consumable and stock items

Why do we track them

The University records it fixed assets for several reasons: To allow the cost of the asset to be spread (in accounting terms) over its deemed working life It is required by the University's Financial Regulations Security-the Asset module allows details of assets to be kept and it states their location and a responsible employee. It provides an insurance listing

University Policy
Due to the large number of fixed assets that the University owns, our policy is to only recognise within the assets module those that cost over 750 (including any nonreclaimable VAT). In addition to this, equipment that costs over 10,000 is capitalised if funded by: The University of Cambridge Funding Council and other grants Research Grants Trust Fund or Donations (except generally Works of Art as there are often conditions on how we can dispose of them)

Finance Training Team Version 2c

Therefore, any items valued between 750 and 10,000 are not depreciated but are just "expensed".

Whats the difference between expensed and capitalised? Expensed This means that the full cost of the item is included in your departmental accounts during the year of purchase. These items are treated slightly differently in your departmental accounts and will be depreciated.

Capitalised

Depreciation
A fundamental accounting concept is that you match your expenditure against the income that it helps generate. For assets this is done by depreciation. a) The cost of the asset is capitalised and transferred to the University's Balance Sheet from the Income & Expenditure Account. b) Then in each accounting period a depreciation charge is levied on the Income & Expenditure Account to write off the cost. Thus we split the cost of these assets out over a number of years to reflect the contribution they make to the services we provide in future years. However, all you need to know is that when you purchase the item you enter its full value into the Accounts Payable module, and code it against your departmental accounts (using a normal expenses code) in order to generate a cheque for the supplier. The cost is being spread over a number of years by means of depreciation and is a function that is carried out centrally by the Finance Division.

University policy on depreciation

Land: Property:

Is normally not depreciated Laboratories are depreciated over 20 years the remainder over 50 years (except investment property) Depreciated on a straight-line basis over 4 years unless funded by a grant. Grant funded equipment is depreciated over the life of the grant.

Equipment:

Finance Training Team Version 2c

A bit more information about Property

Properties that are owned by the University were only brought into the University's Fixed Asset Register in 1994. At this stage they were all revalued and this is the starting point for the subsequent depreciation calculations. Many people may think of this as a strange concept, as we are used to property values rising instead of diminishing. In this case the depreciation reflects the expense to the University of maintaining the buildings so that they are in a habitable and useable state. For example, it could be expected that after a number of years the wiring system of a building might become outdated and need replacing. If the building were to be sold at that point of time then it would realise a lower value. The depreciation is considered in isolation to the cost of any maintenance work that is undertaken on a building. These costs would be "expensed" in the year that they occurred. This is different to construction costs that are incurred when an extension etc to a property is built; in this case it is seen as an "addition" to the existing asset and it would be included in the value to be depreciated. Periodically the University may re-value the property that it holds.

Finance Training Team Version 2c

Fixed Assets Process Overview

Fixed assets arrive in the Fixed Asset Module after month end procedures have been carried out in central finance. Up to this point the invoice has been entered in Accounts Payable and if the box has been ticked the details are in a holding area called "mass additions" within the system. This is then reviewed at month end following which the items are posted into the Fixed Asset module

Accounts Payable Fixed Asset Invoice processed

Following Normal GL Interface

General Ledger Invoice recorded in GL as per its distribution

Fixed asset Capitalising journals created "Mass Addition Table"

At month end

"Post / Delete Mass Additions" Items accepted or rejected into the Fixed Asset module. Fixed Asset Module

Details listed in a holding area of the Fixed Asset Module.

Monthly processes carried out by Central Finance

The Departments' Role

Department's role in relation to the accounting for fixed assets is very limited. The majority of the accounting for fixed assets is done centrally by the Finance Division on your behalf. There are two main departmental roles: (i) (ii) The initial purchase of the fixed asset in the Accounts Payable module; Viewing and updating details of existing assets in the Fixed Asset module.

Buying an Asset
1. When buying a Fixed asset Enter the purchase invoice into the Accounts Payable module in the normal way until you get to the distribution window. Select an appropriate Transaction code (if paying for the item out of a GL account) or Expenditure Type (for Grants): Tick the 'Track as Asset' box, if not already ticked And then the Calculate Tax button.

Not sure if the item is a fixed asset or not? If in doubt - tick the box. It is easier to remove these details from their route to the asset register, rather than to enter all the details later. Alternatively contact the fixed asset helpdesk : tel 66780

Scenario 1 Buy numerous items that total more than 10,000 but each item individually costs less than 10,000 The items should be recorded separately (if over 750) but not capitalised. If the distribution line is the same but you have for example 30 items, just enter one distribution line and tick the box. The Finance Division will split the 30 items accordingly. Scenario 2 Buy one item that is less than 10,000 in value but which is an add-on-part of a larger capitalised item. This item should be merged with the larger item's record and capitalised. Merging will be carried out centrally. All that is required is to e-mail the Fixed Asset Helpdesk (UFS_FA@admin.cam.ac.uk) with the invoice numbers and a note that the invoice numbers and a note that the items need merging.

Finance Training Team Version 2c

Departmental Access to the Fixed Asset Module

Departmental users will be able to: 1. 2. 3. 4. 5. 6. Update certain details , e.g. serial numbers Change an assets location The assignment Change the responsible employee View details of their assets Produce reports Review for completeness

Access to the fixed asset module will be achieved through the responsibility: CAPSA XX: FA Administrator

Please note that the sub-ledger security rules do not apply to the Fixed Asset module. Although one department might purchase and use an item, all fixed assets are the property of the University as a whole.

Finance Training Team Version 2c

Finding Assets on CUFS

CAPSA XX: FA Administrator Navigate: View Financial Information
OR

Navigate: 1.

Assets Workbench

To recall the details of one of your department's fixed assets enter its asset number, or: your department's Asset Key; plus any other details that you know about the item using the tabbed regions Click on the Find Button

2.

Find by Asset detail

Guidelines Enter descriptive information such as asset number, description or category as the search criteria. Hint : where possible query by the unique asset number, However if you just query by your dept's asset key you will get a summary of all your department's assets. Enter assignment details such as employee name as the search criteria. To search using the expense account, enter the book details first. Enter invoice information such as supplier or invoice number as the search criteria Not being used by the University at the moment

Assignment

Source Line

Lease

Finance Training Team Version 2c

10

What is the Asset key? Each fixed asset is allocated an 'Asset Key' on the system. This details your department code and which register of assets it is recorded on. At present each department only has one register and that is entitled 'Misc'. Thus NA.MISC is the Department of Engineering's register of assets. This information is defaulted in upon asset set up. Note: If you want to be able to split your assets up into subgroups then further asset keys can be set up centrally, but all alterations (or transfers between subgroups) will also have to be done centrally.

NB, you will have two buttons entitled Open and Assignments if you have searched through Assets Workbench Route.
This window contains many fields and scrolls across to the right. However, the majority of fields are not utilised at the moment. Use Folder Tools to customise the screen to display the useful fields

Finance Training Team Version 2c

11

Updating details of your Department's Assets

Once an asset has been posted into the Fixed Asset module by central finance (normally from the Accounts Payable module) departments are able to: View the asset details Change its location Change the responsible employee

CAPSA XX: FA Administrator Navigate: Assets Workbench Locate the required asset Button: Open

We currently have around 33 different asset categories (see Appendix A), and these summarise the University's assets by the source of their funding and between:
Unique number across the whole University

Normally 1

Dept ref number

Equipment Freehold buildings Land Long leasehold Short leasehold

Finance Training Team Version 2c

12

At this stage you can update the record with further details of the asset: Field Tag Number Notes This is an optional field where you can add your own departmental reference number. Optional : Enter the appropriate details

Serial Number Manufacturer Model Warranty details Parent Asset

Property Type Property Class Asset Type Units

This allows you to cross reference one asset to another, where the new asset is a subcomponent of an existing one. Select an existing asset number Not used by the University at the moment Capitalised CIP Normally just 1

When completed click on Done and this will automatically save your amendments.

Finance Training Team Version 2c

13

To Amend an Assets Assignment

You can update the physical location and the name of the person who is responsible for an asset under "Assignments". CAPSA XX: FA Administrator Navigate: Assets Workbench Locate the required asset Button: 1. Assignments

Once you have located the asset in question enter the Assignments window. Here, enter '-1' (minus one) in the Unit change box of the first line and then tab to the next line down.

Enter -1 here

Never change this account code r change this Neve

account code!

2.

On the second line enter '1' into the Unit change box select from the list of values the new employee name for your asset. Copy the Expense Account code from the row above.

3.

DO NOT change the Expense Account Code, as it affects depreciation. If you feel that it is not correct then please contact the Fixed Asset Helpdesk to discuss on : 32221 or UFS_FA@admin.cam.ac.uk

4.

Update the location of your asset by using the list of values,

Finance Training Team Version 2c

14

5.

Click on Done

Can't find the location that you want?

Contact the Fixed Asset Helpdesk (UFS_FA@admin.cam.ac.uk) and they will update the list of values for the location.

Finance Training Team Version 2c

15

Viewing Financial Information

CAPSA XX: FA Administrator Navigate: View Financial Information Locate the required asset

Use the buttons at the bottom of the window to view the required details: Assignments Shows the location of the asset, the details of the employee who is responsible for it (a departmental default is put in) and the GL account which the depreciation will be charged. Shows details of the supplier, the invoice and purchase order and the project/grant if applicable. Shows the financial information regarding the cost, depreciation and treatment of the asset within the FA module.

Source Lines

Books

Finance Training Team Version 2c

16

Viewing Asset Assignments

At present there is only limited information on the system, regarding the physical location and responsible person, for the majority of the University's assets. It is hoped that over time Departments will update these details for themselves.

CAPSA XX: FA Administrator Navigate: View Financial Information Locate the relevant asset Buttons: Assignments

At present the location codes displayed are building codes (eg. T32 is Greenwich House). Departments will be able to add more specific details such as floors and room numbers themselves.

Finance Training Team Version 2c

17

Viewing Asset Source Lines

This screen displays information that was recorded in the Accounts Payable module when the asset was purchased: Supplier name and number Invoice and corresponding purchase order number The purchase price (exc. VAT)

The asset number

This normally displays the details that were entered in the description field, of the Distribution window in the AP module. Occasionally Finance might amend this to something more useful, if you have just entered "as above" or something in AP.

Assets as at 1st August 2000 uploaded onto the system

Only a description and the original purchase value will be shown.

Assets funded by research grants and capital projects

If the asset was purchased from a research grant/capital project then in theory another window will display the relevant project number and task, however this is not operating at the moment.

Finance Training Team Version 2c

18

Viewing Asset Book Information

The 'Book' window allows you to look at the financial information for each asset. On the system all departments assets are recorded within just one book for the whole University - CU Book

Recoverable Cost Date in Service

the purchase price including the non- recoverable VAT. The date of the supplier's invoice as entered in Accounts Payable. For uploaded assets: the date if known for the purchase of equipment (from Legacy) or the revaluation date for property. University policy is that all equipment is depreciated on a straight line basis ( STL ) University policy is that equipment is depreciated over 4 years unless funded by a research grant. Grant funded equipment will be depreciated over the period of the grant Used when calculating depreciation using the Reducing balance Method

Method

Life Years

Basic rate%

Finance Training Team Version 2c

19

Prorate date

The system uses the prorate date to calculate the depreciation expense for the first and last year of an asset's life.

A hard copy of the majority of this information can be obtained from using the standard reportAsset Register Report

Finance Training Team Version 2c

20

Viewing the Transaction History of an Asset

CAPSA XX: FA Administrator Navigate: View Financial Information Locate the required asset Buttons: Books Transactions

The original transferred in from the Departments old register

"Transfer" =

an Assignment transfer, eg a change of employee, location, or charge account

Click on the Details button for further details

This information is also available as a standard report Transaction History Report

Finance Training Team Version 2c

21

Viewing the Depreciation of an Asset

The University policy is that only assets over 10,000 are depreciated. Depreciation is calculated centrally by the Finance Division, as part of the monthly close down of the Fixed Assets module. CAPSA XX: FA Administrator Navigate: View Financial Information Locate required asset Buttons: Books Depreciation

The monthly depreciation charge is then transferred back (as a debit) to the Income & Expenditure section of the department's accounts using the source of funds ZZZZ and the transaction code FBBA ( I&E Depreciation).

The monthly depreciation charge

In the above example the monthly depreciation is calculated as: Original cost of the asset - its salvage value = 30,309.05 = 631.44 monthly depreciation It's calculated useful life ('life years') 48 mths NB. This is using the Straight-line method of depreciation

Finance Training Team Version 2c

22

Viewing the Cost History of an Asset

This screen shows the originally cost of the asset (an addition to the fixed asset register) as well as any subsequent additions or mergers. CAPSA XX: FA Administrator Navigate: View Financial Information Locate the required asset Buttons: Books Costs

Finance Training Team Version 2c

23

Reports
Quarterly statement of departmental assets will be sent out from Central Finance Check for completeness There are standard reports available on the system for Fixed Assets, but they are probably of limited value. The reports which have (UFS) or (CAPSA) after the name have been modified for University purposes and require your department code however it is worth remembering that there is no sub-ledger security within the fixed asset module. An alternative is to call up your department's assets in the asset workbench by defining the asset key as 'your dept code'.% and export this information into Excel (see Appendix E)

CAPSA XX: FA Administrator Navigate: Button : Other Requests Run

OK (to a single request)

Finance Training Team Version 2c

24

Type of Report
Information on Individual Assets

Report Name
Asset Register Report (UFS)

Info included
General details about the asset Details from the Accounts Payable module Depreciation and cost details Assignment details The same information that is included on the Transaction History Enquiry window Asset Number Asset Description Date in Service Original Cost For each asset number: Its beginning and ending balances Additions Adjustments Retirements Revaluations Reclasses Transfers Asset Number and Description Tag Number Details from the Payables invoice PO Number Depreciation and date in service As above but with Location details Responsible employee details Asset number and description Date in service Depreciation method and life years Cost Year to date depreciation For each Asset includes dates taken into service and retired, as well as its net book value, sale proceeds, removal costs and profit/loss Same information as the Cost Detail Report but summarised for each transaction code and cost centre Asset Category Asset number and description Serial and Tag numbers Cost Date in Service

Transaction History Report Summary information for a time period Annual Additions Report (UFS)

Cost Detail Report

Departmental Fixed Asset Report (UFS)

Departmental Fixed Asset Report with location (UFS) Asset Additions Report

Asset Inventory Report Asset Retirements Report

Cost Summary Report Assets by Category Report

Finance Training Team Version 2c

25

Information per Category

Asset Description Listing

Listing of all Asset Tag listing information held

Asset description Asset number Asset category Tag number Tag numbers (alphabetically) Asset number Description Category

Fixed Asset Information in the General Ledger

All accounting entries for capital assets have a source of funds in the Z range. Therefore, if you run the Budget-Comparing to Actual (UFS) report in the general Ledger we recommend that you restrict the range for sources of funds to: Source of funds 0000 -YYYY This helps to prevent confusion, and will not distort your view of your actual income and expenditure in your department with the accounting entries for depreciation.

Interested in the Double entry?

If you would like to understand further the various accounting entries that are made for each fixed asset process so that you can understand the reports in full, please see attached Appendix D.

Month End
There are no special procedures, although you may want to review your department's asset additions for completeness after the 5th working day in the month.

Finance Training Team Version 2c

26

Common Queries
Does the cost include VAT? It includes any non-reclaimable VAT. Note: only the net cost has the 'track as asset' box ticked. The system decides if VAT is required to be added. Purchasing numerous assets that total in excess of 10,000 but individually they cost less than 10,000 Split them up into separate assets so they are not capitalised (or request that central Finance split them). Purchasing an item that is less than 10,000 but which is part of a larger capitalised item This should be merged with the existing item and capitalised. Let Central Finance know. Moving an asset between departments Departmental users can update the Assignments screen with employee name and new location, but you need to let Central Finance know so that they can update the asset key. Need a new responsible employee or location added to the list of values E-mail the helpdesk (see below) with the required details - the same for amendments to current entries. What if I share an asset with another department? If an asset is shared between a number of departments, then each department's share will be recorded as a separate asset, with a note cross-referencing them all. In this situation contact Finance. What if the asset is funded from more than one source? Each asset can only be assigned one asset category on the system, so therefore it would have to split into a number of assets each being allocated to the appropriate category. A note will cross reference these asset numbers. Please speak to Central Finance in this situation. What if I dispose of an asset? Record any income received in the Accounts Receivable module using the transaction code LZGA (Fixed Asset Disposals) and then let Central Finance know the details of the asset, disposal, receipts and where coded. Which report can I run to see all our department's assets? There isn't a standard report that departmental users can run that summarises all their assets - quarterly statements will be sent out by Central Finance. However, you could run an Enquiry searching on your department's asset key and then export the results to Excel.

Finance Training Team Version 2c

27

What should I do with the Quarterly statement that has arrived from Central Finance? Check it for completeness and advise Finance of any amendments

Further Help
The Fixed Asset Helpdesk Tel: 66780 E-mail UFS_FA@admin.cam.ac.uk

Finance Training Team Version 2c

28

Appendix A: Asset Categories

Segment 1
EQUIPMENT ASSETS EQUIPMENT ASSETS EQUIPMENT ASSETS EQUIPMENT ASSETS EQUIPMENT ASSETS EQUIPMENT ASSETS EQUIPMENT ASSETS EQUIPMENT ASSETS EQUIPMENT ASSETS EQUIPMENT ASSETS EQUIPMENT ASSETS EQUIPMENT ASSETS EQUIPMENT ASSETS EQUIPMENT ASSETS EQUIPMENT ASSETS EQUIPMENT ASSETS

Segment 2
UNIVERSITY FUNDED RG OST RESEARCH COUNCIL RG UK-BASED CHARITIES RG CENTRAL GOVT BODIES RG LOCAL AUTHORITIES RG PUBLIC CORPORATIONS RG IND & COMMERCE RG HLTH & HOSPITAL AUTHS RG EUROPEAN COMMISSION RG EU GOVT BODIES RG EU OTHER RG OTHER OVERSEAS RG OTHER SOURCES EXPENSED LOW VALUE FUNDING COUNCIL OTHER GRANTS

FREEHOLD BUILDINGS FREEHOLD BUILDINGS FREEHOLD BUILDINGS FREEHOLD BUILDINGS FREEHOLD BUILDINGS

UNIVERSITY FUNDED RESEARCH GRANTS FUNDING COUNCIL OTHER GRANTS INVESTMENT PROPERTIES

LAND LAND LAND LAND

UNIVERSITY FUNDED FUNDING COUNCIL RESEARCH GRANTS OTHER GRANTS

LONG LEASEHOLD LONG LEASEHOLD LONG LEASEHOLD LONG LEASEHOLD

UNIVERSITY FUNDED FUNDING COUNCIL RESEARCH GRANTS OTHER GRANTS

Finance Training Team Version 2c

29

SHORT LEASEHOLD SHORT LEASEHOLD SHORT LEASEHOLD SHORT LEASEHOLD

UNIVERSITY FUNDED FUNDING COUNCIL RESEARCH GRANTS OTHER GRANTS

Finance Training Team Version 2c

30

Appendix B: Glossary of Terms

accumulated depreciation The total depreciation taken for an asset since it was placed in service. Also known as life-to-date depreciation and depreciation reserve. asset key Each fixed asset is allocated a key on the system. This details your department code and which register of assets it is recorded on. asset type Either expensed, capitalised or construction-in-progress assignment Shows the location of the asset, the details of the employee who is responsible for it (if recorded) and the GL account which the depreciation will be charged. books Shows the financial information regarding the cost, depreciation and treatment of the asset within the FA module. capitalised assets Capitalised assets are assets that you depreciate (spread the cost expense over time). capital project A project in which you build one or more depreciable fixed assets. construction-in-process (CIP) -via the Project module : EMBS You construct CIP assets over a period of time rather than buying a finished asset. The system lets you create, maintain, and add to your CIP assets as you spend money for material and labour to construct them. When you finish the assets and place them in service (capitalise them), the system then begins depreciating them. date placed in service The calendar date on which you start using an asset-often taken as the date of the supplier's invoice depreciate To depreciate an asset is to spread its cost over the time you use it. You charge depreciation expense for the asset each period. The total depreciation taken for an asset is stored in the accumulated depreciation account. expensed asset An asset that you do not depreciate, but charge the entire cost in a single period. Oracle Assets does not depreciate an expensed asset, or create any

Finance Training Team Version 2c

31

journal entries for it. You can, however, use Oracle Assets to track expensed assets. The Asset Type for these assets is "Expensed". fixed asset An item owned by your business and used for operations. Fixed assets generally have a life of more than one year, are acquired for use in the operation of the business, and are not intended for resale to customers. Assets differ from inventory items since you use them rather than sell them. parent asset A parent asset has one or more subcomponent assets. First you add the parent asset. Then, you add the subcomponent asset and assign it to the parent asset in the Additions form. You can change parent/subcomponent relationships at any time. prorate date Oracle Assets uses the prorate date to calculate depreciation expense for the first and last year of an asset's life. recoverable costs the purchase price excluding VAT. It does not include the element of nonrecoverable VAT. source line Shows details of the supplier, the invoice and purchase order and the project/grant if applicable. tag number Your own departmental reference number.

Finance Training Team Version 2c

32

Appendix C: Central Finance Function Following Departmental Involvement

1. Create mass additions sweeps all invoice data re ticked track as asset items into a holding area called mass additions within the fixed asset module. 2. Automatic Processes: Assets are categorised (using SOFs) to allow appropriate analysis Asset key is assigned to an asset (required for departmental analysis) Default location is assigned Default responsible employee is assigned Depreciation transaction code is assigned 2. Review mass additions for correct treatment 3. Post / Hold / Delete items Also at this stage split / merge etc 4. Process mass additions sweeps assets into the fixed asset register 5. Depreciate additions on a monthly basis. 6. For items omitted to be ticked by departments a manual entry can be carried out. 7. If departments have items that for some reason not previously been included in the fixed asset module these, once collated, can be uploaded by central finance. Please contact the Fixed Asset section. 8. Retirements 9. Disposals 10. Revaluations

Finance Training Team Version 2c

33

Appendix D: Automatic or Centrally Generated Accounting Entries

Equipment under 10,000
Equipment valued between 750 and 10,000 is to be recognised as an asset within the assets module. These assets will be expensed. No depreciation of these assets will be carried out. The assets will be expensed to the department by Payables journal entries created on transferring the invoice to GL DR: CR: Department Related CC Appropriate S of F Expense code Central payables control account

Any DR code can be used as allowed by users security permissions. Asset clearing and cost accounts should not be accessible to departmental users. The asset details are recorded in the fixed asset register.

Assets over 10,000

a) Non grant related Two stages. Firstly the automatic stage: AP invoice distribution line: Users must check the track as asset flag. DR CR U/Dept/CC/SOF/Transaction code Exxx Central payables control a/c system default

Puts the acquisition in the Income & Expenditure Account Secondly there is a manual stage: DR CR U/Dept/0000/ZZZZ/Equipment cost ac (PBAA) U/Dept/0000/ZZZZ/Trans Exxx

Removes the acquisition from the Income & Expenditure Account with appropriate SoF and creates an entry in the Equipment Cost Account

Finance Training Team Version 2c

34

b) Grant related General grant related issues Grant related assets are sub-divided as follows: Research Grants Funding Council Grants and Other grants

Invoices for grant funded assets will have project/grant details entered against the invoice distribution lines, including expenditure type, which enables the transfer to the Grants module. GL account codes are generated from the project/grant-related details entered against the invoice distribution line. (i) Funding Council or Other Grant Process : Two stages. Firstly the automatic stage AP invoice distribution line: Users must check the track as asset flag. DR U/Dept/CC/SOF/Transaction code Exxx CR Central payables control a/c system default Puts the acquisition in the Income & Expenditure Account

Secondly there is the manual stage: DR U/Dept/0000/ZZXA or ZZYA/ Equipment cost ac Funding Council & Other grants (PBAB) CR U/Dept/0000/ZZXA or ZZYA/Trans Exxx (trf of asset to BS ac) Removes the acquisition from the Income & Expenditure Account with appropriate SoF and creates an entry in the Equipment Cost Account

A further manual journal is required to create the Deferred Capital Grant and to strip out the original income (grant received) from the Income and Expenditure account:
DR CR U/Dept/0000/ZZXA/Transfer to Deferred Capital Grant Funding Council (HCAB) U/Dept/0000/ZZXA/Deferred Capital Grant Funding Council (WNAA)

Finance Training Team Version 2c

35

(ii) Equipment - category of Equipment:Research Grants ANY Process :Two stages.

Firstly the automatic stage : AP invoice distribution line: Users must check the track as asset flag. DR U/Dept/CC/SOF/Transaction code A-G (a Research Grant Posting) CR Central payables control a/c system default Puts the acquisition in the Income & Expenditure Account

Secondly there is the manual stage: DR CR U/Dept/0000/SoF(in the Z range)/Equipment Cost (PBAA) U/Dept/0000/SoF(in the Z range)/EZZG

Removes the acquisition from the Income & Expenditure Account with appropriate SoF and creates an entry in the Equipment Cost Account

A further manual journal is required to create the Deferred Capital Grant and to strip out the original income (grant received) from the Income and Expenditure account:

CR U/Dept/0000/SOF/Deferred Capital Grant Research Grants (e.g. WNAB) DR U/Dept/0000/SOF(in the Z range)/Transfer to Deferred Capital Grant Research Grants (egLZEC)

Depreciation
Basic Process

Creates a charge to the Income and Expenditure a/c and creates a corresponding balance sheet Land and Buildings depreciation entry DR CR U/CC/0000/Z range/I & E Depreciation (eg FBAA) U/CC/0000/Z range/Balance Sheet depreciation (eg PABA)

If the asset was financed by a grant then:A further journal is required to release an amount equal to the depreciation from the Deferred Capital Grant into the Income and Expenditure Account: DR
CR

U/Dept/0000/Z range /Deferred Capital Grant (eg WNAA)

U/Dept/0000/Z range/ Deferred Capital Grant Release (eg HCAA)

Finance Training Team Version 2c

36

Appendix E: Enquiries Exporting to Excel

This function is not available on a Mac.

The export function can be used to export data from a query into Excel. First, query the data.

1. Select Export from the File menu

Step 1

2. Via MS Internet Explorer, the lines are exported to MS Excel, where the data will appear automatically. 3. Select Save As from the File menu and save the spreadsheet with a Filename of your choosing and a File Type of Microsoft Excel Workbook. 4. Close the fndvfile.tsv spreadsheet file without saving.

Finance Training Team Version 2c

37