Fixed Asset Program Manual

User guide for the fixed asset program (excel)

© Rupert Parsons 2013

Where to download the 'Fixed Asset Program'
The program supported by this manual is available free of charge to download on the following websites: Scribd (www.scribd.com) Sourceforge (www.sourceforge.net) (Google “Scribd Rupert Parsons” or “Sourceforge Rupert Parsons User Profile”)

Copyright
Fixed Asset Program Manual Copyright © 2013 Rupert Parsons This document is licensed under the Creative Commons Attribution Share Alike License version 3. You may copy, distribute and/or modify it under the conditions stipulated in the copyright licence. Click the link below to view the details of the copyright licence which applies to this publication: http://creativecommons.org/licenses/by-sa/3.0/deed.en

Author y Feedback
Author: Rupert Parsons If you would like to make any comments or suggestions about this guide please write to me at: rupertparsons@users.sourceforge.net (or leave a comment on Scribd / Sourceforge).

© Rupert Parsons 2013

Table of Contents
Entering / copying data from another spreadsheet ....................................................................................1 Introduction....................................................................................................................................................... 2 Step 1: Set up the program............................................................................................................................... 3 Step 2: Insert rows............................................................................................................................................ 4 Step 3: Enter / copy data into yellow cells......................................................................................................... 5 Step 4: Enter depreciation brought forward.................................................................................................... 12 Step 5: Check for errors.................................................................................................................................. 13 Copying dates from Excel for Mac version 2008 or earlier..............................................................................15 Year End Procedure ..................................................................................................................................... 17 Introduction..................................................................................................................................................... 18 Step 1: Check for errors.................................................................................................................................. 19 Step 2: Create a copy of the spreadsheet....................................................................................................... 20 Step 3: Move year end balances (c/f) to prior year (b/f)..................................................................................21 Step 4: Enter new accounting period.............................................................................................................. 22 Step 5: Check that the year end has been completed correctly......................................................................23 Delete fixed assets that were disposed of last year........................................................................................ 25 Revaluations / impairments in the previous year............................................................................................ 26 New Fixed Assets ........................................................................................................................................ 27 Introduction..................................................................................................................................................... 28 Step 1: Insert new row & enter details............................................................................................................ 29 Step 2: Check for errors.................................................................................................................................. 32 Fixed Asset Disposals ................................................................................................................................. 33 Introduction..................................................................................................................................................... 34 In the year of disposal..................................................................................................................................... 35 The year after disposal................................................................................................................................... 38 Reports ......................................................................................................................................................... 39 Introduction..................................................................................................................................................... 40 Reports available & how they can be accessed..............................................................................................41 How to configure the reports for printing......................................................................................................... 43 Verification of Fixed Assets ........................................................................................................................ 44 Revaluation of Fixed Assets ....................................................................................................................... 46 Introduction..................................................................................................................................................... 47 In the year of revaluation................................................................................................................................ 48 The year following revaluation........................................................................................................................ 50

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Impairment of Fixed Assets ........................................................................................................................ 52 Introduction..................................................................................................................................................... 53 In the year of impairment................................................................................................................................ 54 The year following impairment........................................................................................................................ 55 Prior Month & Prior Year Adjustments ....................................................................................................... 56 Introduction..................................................................................................................................................... 57 Prior Month Adjustments................................................................................................................................. 58 Prior Year Adjustments.................................................................................................................................... 59 Cut & Paste / Cell Drag & Drop (Disabled) .................................................................................................61 Columns (changing widths, adding & deleting) ........................................................................................ 63 Introduction..................................................................................................................................................... 64 Changing column widths................................................................................................................................. 65 Adding columns.............................................................................................................................................. 66 Deleting columns............................................................................................................................................ 68

© Rupert Parsons 2013

Entering / copying data from another spreadsheet

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Introduction
This chapter contains the following sections (each section starts on a new page): • Step 1: Set up the program • Step 2: Insert rows • Step 3: Enter / copy data into yellow cells • Step 4: Enter / copy depreciation bought forward • Step 5: Check data • Copying dates from Excel for Mac version 2008 or earlier Assumed Knowledge This chapter assumes you are already familiar with the following: • How to copy & paste in your version of Excel.* • How to protect & unprotect worksheets in your version of Excel. *You need to use 'Paste Special' which is explained in the manual.

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Step 1: Set up the program
You must set up the fixed asset program before entering data from your current fixed asset spreadsheet. To set up the fixed asset program: Click the button 'Setup' on the home page.

In the 'Setup' menu click each button in turn and enter the required data. Note that if the currency of your country requires 2 decimal places, you only need select 'Amounts: 2 decimal places' if you have previously selected 'Amounts: no decimal places' in the 'Setup' menu. The is because by default the program shows amounts to 2 decimal places.

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Step 2: Insert rows
Click the button 'Fixed Assets' on the home page. For each fixed asset category: Click the button which corresponds to the fixed asset category where you want to insert rows:

Click the button 'New Row' to insert the number of rows which corresponds to the number of rows in your current fixed asset spreadsheet for the asset category:

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Step 3: Enter / copy data into yellow cells
Introduction Read the first 3 sub sections: What data to enter from your current fixed asset spreadsheet How to enter data from your current fixed asset spreadsheet Copy & Paste instructions You only need to consult the other sub sections listed below for clarification or to deal with specific issues / problems: Copy & Paste issues & problems Fixed Asset Revaluations Fixed Asset Impairments Year 1 Depreciation Charge Note that the depreciation charge may not be calculated correctly for all assets until steps 3 & 4 are completed. What data to enter from your current fixed asset spreadsheet From your current fixed asset spreadsheet, only enter data that corresponds to the yellow cells in the fixed asset program. For example do not copy the the depreciation charge from your current fixed asset spreadsheet as there are no yellow cells for this (the fixed asset program automatically calculates the depreciation charge).

Note that data does not have to be entered in all the yellow cells. However, the following yellow cells must have an entry for the fixed asset to be registered: Date Description Cost / Value
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If depreciation is to be calculated, the following cells must also be completed: Year 1 Depreciation Months Year 1 Depreciation Month of Purchase Included (Yes / No)? Depreciation Method Useful Life Depreciation Rate % (only if declining balance method is selected) The following yellow cells have a default entry and you will only need to change these if necessary: Year 1 Depreciation Months Year 1 Depreciation Month of Purchase Included (Yes / No)? Depreciation Method Useful Life Depreciation Rate % (only if declining balance method is selected) The default entries in the yellow cells will only need to be changed in the following situations: • If you charge partial depreciation in year 1 or your accounting period does not equal 12 months, then you will need to change the number of months registered in the ' Year 1 Depreciation Months' column. • If you charge partial depreciation in year 1 and you do not count the month of purchase then you will need to select “No” in the column 'Year 1 Depreciation Month of Purchase Included (Yes / No)?'.

Go to section 'Year 1 Depreciation' at the end of this section for further details. • If you need to apply a depreciation policy to a fixed asset that is different from the depreciation policy applied to the category:

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How to enter data from your current fixed asset spreadsheet Where possible the quickest & most reliable method is to use copy and paste (special). This is explained in the next sub section 'Copy & Paste Instructions'. However, it is not recommended that you copy & paste into the yellow cells listed below as they have drop down lists and you must only enter content that corresponds exactly to a selection in the the drop down list: Year 1 Depreciation Months Year 1 Depreciation Month of Purchase Included (Yes / No)? Cost Centre / Department Depreciation Method

Of course you can opt to manually enter all of the fixed asset data into the program. If you do this with the fixed asset purchase dates, a warning message will appear when entering assets prior to the current accounting period. When the warning message appears, click 'Yes' to confirm the date*:

*the warning message appears to prevent incorrect dates being entered in the case of new fixed assets. Copy & Paste instructions Open your current fixed asset spreadsheet. Open the fixed asset program using the same instance of Excel that was used for your current fixed asset spreadsheet i.e. do not click the Excel icon again to open the fixed asset program. For each column in your current fixed asset spreadsheet that is to be copied & pasted: Copy the data in the column (e.g. dates):

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Select the fixed asset program. Select the first yellow cell of the corresponding column in the fixed asset program (e.g. the date cell):

Select the Excel function Paste Special... (In Excel 2003 or earlier, 'Paste Special' appears in the Edit Menu. In Excel 2007 or later, 'Paste Special' appears by clicking in the drop down arrow below the 'Paste' icon). A dialogue box will appear (see image below). Select Values. Click OK.

If you experience any problems with copy & paste, consult the sub section below: Copy & Paste issues & problems If the following paste special dialogue box appears instead of the dialogue box depicted above:

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This is because you have opened the fixed asset program & your current fixed asset spreadsheet using separate instances of Excel. Close both spreadsheets and open the fixed asset program & your current spreadsheet with the same instance of Excel. If the purchase dates pasted into the fixed asset program are different from the dates in your current fixed asset spreadsheet: This is is because your current fixed asset spreadsheet was developed in Excel for Mac version 2008 or earlier which uses a date system that is different from the date system used in your current version of Excel. To correct this issue go to the final section of this chapter 'Copying dates from Excel for Mac version 2008 or earlier'. If you are using Excel for Mac and a warning message appears “The workbook you are pasting to uses a different date system”: This is is because your current fixed asset spreadsheet was developed in Excel for Mac version 2008 or earlier which uses a date system that is different from the date system used in your current version of Excel. You should click 'Convert'. This is explained in more detail in the final section of this chapter 'Copying dates from Excel for Mac version 2008 or earlier'. Fixed Asset Revaluations If an asset has been revalued & no historic depreciation is being charged: In the cost / value column (column F), enter the revalued amount. If an asset has been revalued & historic depreciation is being charged: In the cost / value cell (column F), enter the purchase price. Go to the cost brought forward cell (column AL). Unprotect the worksheet (there is no password). Overwrite the purchase price with the revalued amount. Protect the worksheet (without a password). For further details about fixed asset revaluations go to the chapter 'Revaluation of Fixed Assets'. Fixed Asset Impairments If an asset has incurred an impairment loss & no historic depreciation is being charged: You can reflect the impairment loss either in the cost / value cell (column F) or in the accumulated depreciation brought forward cell (see step 4).

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If an asset has incurred an impairment loss & historic depreciation is being charged: You must reflect the impairment loss in the cost / value cell (column F) in order that the depreciation charge is calculated correctly. If the impairment loss was originally charged to accumulated depreciation, then you will also need to enter the original purchase price of the asset in the cost brought forward cell (column AL): Go to the cost brought forward cell (column AL). Unprotect the worksheet (there is no password). Overwrite the amount (after impairment) with the purchase price. Protect the worksheet (without a password). For further details about fixed asset impairments go to the chapter 'Impairment of Fixed Assets'. Year 1 Depreciation Charge If you charge full depreciation in the year of purchase: You should not normally have to do anything! The default entries in the yellow cells 'Year 1 Depreciation Months' & 'Year 1 Depreciation Month of Purchase Included (Yes / No)' are the correct entries to register full depreciation in the year of purchase for a 12 month accounting period. You will only need to change the entry in the yellow cell 'Year 1 Depreciation Months' in the unlikely event that your accounting period is greater or less than 12 months. Full Year Depreciation Convention: If you charge full depreciation in the year of purchase, the fixed asset program assumes no depreciation charge in the year of disposal. If you charge partial depreciation in the year of purchase: Go to the cell 'Year 1 Depreciation Months'. Enter / select the number of months of depreciation you want to charge. Go to the cell 'Year 1 Depreciation Month of Purchase Included (Yes / No) '. Select 'Yes' if you included the month of purchase in the 'Year 1 Depreciation Months'. Select 'No' if you excluded the month of purchase in the 'Year 1 Depreciation Months'.

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Partial Depreciation Convention: If you charge partial depreciation in the year of purchase and the month of purchase is included ('Yes' is selected), no depreciation is charged in the month of disposal. If you charge partial depreciation in the year of purchase and the month of purchase is excluded ('No' is selected), depreciation is charged in the month of disposal.

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Step 4: Enter depreciation brought forward
Open the fixed asset program. Click the 'Fixed Assets' button on the home page. For each fixed asset category: Click the button that corresponds to the asset category. Go to the first cell of the accumulated depreciation brought forward column (column AU10). Unprotect the worksheet (there is no password). If possible copy and paste special the depreciation brought forward amounts (see instructions below) or enter the data. Protect the worksheet (without a password). Important: Do not copy and paste accumulated depreciation carried forward as this is automatically calculated by the program. Copy & Paste Instructions Open your current fixed asset spreadsheet using the same instance of Excel that was used to open the fixed asset program i.e. do not click the Excel icon again to open your existing spreadsheet. In your current fixed asset spreadsheet Copy the accumulated depreciation brought forward. Go to the fixed asset program and select Paste Special... (Step 3 explains how to access 'Paste Special' in your version of Excel) In the 'Paste Special' dialogue box select Values. Click OK. Protect the worksheet (without a password).

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Step 5: Check for errors
There are two checks you should perform to confirm that you have entered the fixed asset data correctly into the fixed asset Program. Check 1 should be carried out before check 2. Check 1: Error Messages Open the fixed asset Program. Click 'Fixed Assets' on the home page. For each fixed asset category: Click the button that corresponds to the asset category you want to check. Go the column Input Error Messages (column AE). Check that there are no error messages. If an error message appears for any asset, correct the error identified by the message:

Note that assets which have input error messages are not registered in the program. Check 2: Net Book Values Open the fixed asset program. Click 'Fixed Assets' on the home page. Click 'Summary of fixed asset movements'. Print the report 'Summary of fixed asset movements'. Confirm that the total net book value(s) at the year end corresponds with the total net book value(s) according to your current fixed asset spreadsheet:

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If the total carried forward net book value(s) registered in the fixed asset program and your current fixed asset spreadsheet do not agree, not all the data has been entered correctly. In the report look at the cost and accumulated depreciation carried forward for each asset category and compare this with the corresponding amounts in your current fixed asset spreadsheet. This will help identify where the data has not been entered correctly:

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Copying dates from Excel for Mac version 2008 or earlier
An issue arises when copying and pasting dates if your current fixed asset spreadsheet was created in Excel for Mac version 2008 or earlier but you are now currently using: Excel for Windows or Excel for Mac for version 2011 or later The following sub sections deal in turn with Excel for Windows & Excel for Mac version 2011 or later: If you are now using Excel for Windows What happens when you copy and paste the dates The dates that are pasted into the fixed asset program are shifted by four years and one day. Why the problem occurs This is due to the different date systems used by Excel for Windows and Excel for Mac version 2008 & earlier. Excel for Windows calculates dates by counting the days from January 1, 1900. Excel for Mac version 2008 & earlier calculates dates by counting the days from January 1, 1904. To correct the dates: Open a blank worksheet. In an empty cell type 1462

Open the fixed asset program. (using the same instance of Excel used to open the blank worksheet) Then for each fixed asset category: Copy the cell containing 1462. Select the dates in the fixed asset program:

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Select Paste Special... (Step 3 explains how to access 'Paste Special' in your version of Excel) In the 'Paste Special' dialogue box select Values. In the 'Paste Special' dialogue box also select Add. Click OK.

The dates in the fixed asset program should now appear correctly. If you are now using Excel for Mac version 2011 or later What happens when you copy and paste the dates A dialogue box appears which says: “The workbook you are pasting to uses a different date system.” Why this dialogue box appears This is due to a new date system introduced in Excel for Mac version 2011. Excel for Mac version 2011 or later calculates dates by counting the days from January 1, 1900. Excel for Mac version 2008 & earlier calculates dates by counting the days from January 1, 1904. This will result in the copied and pasted dates to differ by 4 years and 1 day. What you should do When the dialogue box appears you should click 'Convert'. This will ensure that the dates pasted in the fixed asset program correspond with the dates in your current fixed asset spreadsheet. For more information Click in the link below: http://www.officeformachelp.com/2010/10/excel-2011-defaults-to-1900-date-system/

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Year End Procedure

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Introduction
The year end procedure must be carried at the end of each financial year otherwise the fixed asset program will not function correctly. This chapter contains the following sections (each section starts on a new page): • Step 1: Check for errors • Step 2: Create a copy of the spreadsheet • Step 3: Move year end balances (c/f) to prior year (b/f) • Step 4: Enter new accounting period • Step 5: Check that the year end has been completed correctly • Delete fixed assets that were disposed of last year • Revaluations / impairments in the previous year Assumed Knowledge This chapter assumes you are already familiar with the following: • How to print in your version of Excel. • How to create a copy of a spreadsheet file using 'Save As' in your version of Excel. • Fixed Asset Reconciliations.

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Step 1: Check for errors
The follow checks should be performed: • Check for input errors identified by the program & for negative net book amounts. • Fixed Asset Reconciliation. Check for input errors identified by the program & for negative net book amounts Click the button 'Procedure' on the home page. Click the button that corresponds to '1. Check for errors'. If there are input errors identified by the program or negative net book amounts, you will be taken to an error report which identifies how many errors and in which asset categories:

Do not continue with the year end procedure until these errors are corrected. Fixed Asset Reconciliation A fixed asset reconciliation for each asset category should be completed (i.e. comparing total cost & accumulated depreciation carried forward according to the fixed asset program to the financial accounts and correcting any differences found). In the fixed asset program total cost and accumulated depreciation are detailed in the reports 'Fixed Asset Cost Movements' & 'Fixed Asset Depreciation Movements' (the chapter 'Reports' explains how to access & print these reports) . These reports provide a space to enter the total cost & accumulated depreciation carried forward according to your financial accounts:

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Step 2: Create a copy of the spreadsheet
Create a copy of the spreadsheet for the new financial year using 'Save As' in Excel:

The file name of the new spreadsheet should include the new financial year. If the fixed asset program that you downloaded uses the Excel 2000-2003 Workbook file format and you are using Excel 2007 or later, the file can be saved as an Excel 2000-2003 Workbook or as a Macro Enabled Workbook.

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Step 3: Move year end balances (c/f) to prior year (b/f)
In the copy of the spreadsheet for the new financial year: Click the button that corresponds to '3. Move year end balances (c/f) to prior year (b/f)'. The program will then carry out the following for each fixed asset category: • Move the year end fixed asset costs to the brought forward column. • Move the year end accumulated depreciation to the brought forward column. (the new accounting period is registered in the next step)

• Restores any broken links in the column 'Depreciation charge in accounting period' in the unlikely event it was necessary to override one or more of the calculated charges in the previous year:

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Step 4: Enter new accounting period
It is very important that step 3 is completed before the new accounting period is entered, otherwise the program will not function correctly in the new financial year. In the copy of the spreadsheet for the new financial year: Click the button that corresponds to '4. Enter new accounting period'. A message will appear to confirm that step 3 has been completed. Enter the new financial year in the orange cells:

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Step 5: Check that the year end has been completed correctly
In the copy of the spreadsheet for the new financial year: Click the button that corresponds to '5. Check year end has been completed correctly'. Print the report 'Summary of Fixed Asset Movements'. Carry out the following checks using this report to confirm whether or not the year end procedure has been carried out correctly: • Check the dates. • Check the total net book values brought forward. Check the dates Check that the dates in the report 'Summary of Fixed Asset Movements' correctly reflect the new accounting period:

If the dates in the report do not correspond with the new accounting period, go back to step 4 of the procedure and correct. Check the total net book value brought forward Print the report 'Summary of Fixed Asset Movements' for the previous year. To access the report for the previous year: Open the fixed asset program for the previous year. Click the button 'Fixed Assets'. Click the button 'Summary of fixed asset movements'.

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Make sure that the total net book value brought forward in the report for the new financial year is the same as the total net book value carried forward in the report for the previous year. Total net book value brought forward (new financial year):

Total net book value carried forward (previous financial year):

If the total net book value brought forward & carried forward do not agree, the year end procedure has not been completed correctly e.g. step 3 was not done, was done twice or was done in the wrong order. Therefore, delete the file for the new financial year and repeat the year end procedure from step 2 (create a copy of the spreadsheet).

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Delete fixed assets that were disposed of last year
(This is recommended but optional and does not apply if the fixed asset program was not in use in the previous year). For each asset that was disposed of last year*: Select any cell of the fixed asset. Click the button 'Delete Row'. (A message appears to confirm that you have selected a cell of the row you want to delete. Another message appears to confirm that you want to delete this fixed asset)

* for assets disposed in the previous year the disposal date should have been entered in column 'date of disposal'. See the chapter 'Fixed Asset Disposals' for further details.

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Revaluations / impairments in the previous year
(This does not apply if the fixed asset program was not in use in the previous year). The cost and / or depreciation adjustments entered for fixed assets which have been revalued or impaired in the previous financial year must be erased:

Read the chapters 'Revaluation of Fixed Assets' & 'Impairment of Fixed Assets' for further details.

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New Fixed Assets

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Introduction
This chapter contains the following sections (each section starts on a new page): • Step 1: Insert new row & enter details • Step 2: Check for errors

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Step 1: Insert new row & enter details
When entering a new fixed asset it is recommended that grouping assets together is avoided as as far practically possible. This makes it easier to track the location of the asset and reduces the possibility of complications due to part disposals. For example if 10 computers were purchased, it might be better to register each computer separately. To register a new fixed asset: Click the button 'Fixed Assets' on the home page. Select the fixed asset category that corresponds to the new fixed asset. Click the button 'New Row'. A new row will appear below the final row. Enter the fixed asset details in the yellow cells:

Note that not all yellow cells in the program need be completed. However, the following yellow cells must have an entry for the fixed asset to be registered: Date Description Cost / Value If depreciation is to be calculated the following cells must also be completed: Year 1 Depreciation Months Year 1 Depreciation Month of Purchase Included (Yes / No)? Depreciation Method Useful Life Depreciation Rate % (only if declining balance method is selected) The following yellow cells have a default entry and you will only need to change these if necessary: Year 1 Depreciation Months Year 1 Depreciation Month of Purchase Included (Yes / No)? Depreciation Method Useful Life Depreciation Rate % (only if declining balance method is selected)
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The default entries in the yellow cells will need to be changed in the following situations: • If you charge partial depreciation in year 1 or your accounting period does not equal 12 months, then you will need to change the number of months registered in the ' Year 1 Depreciation Months' column. • If you charge partial depreciation in year 1 and you do not count the month of purchase then you will need to select “No” in the column 'Year 1 Depreciation Month of Purchase Included (Yes / No)?'.

See 'Year 1 Depreciation Charge' below for further details. • If you need to apply a depreciation policy to a fixed asset that is different from the depreciation policy applied to the category:

Year 1 Depreciation Charge If you charge full depreciation in the year of purchase: You should not normally have to do anything! The default entries in the yellow cells 'Year 1 Depreciation Months' & 'Year 1 Depreciation Month of Purchase Included (Yes / No)' are the correct entries to register full depreciation in the year of purchase for a 12 month accounting period. You only need to change the entry in the yellow cell 'Year 1 Depreciation Months' in the unlikely event that your accounting period is greater or less than 12 months. Full Year Depreciation Convention: If you charge full depreciation in the year of purchase, the fixed asset program assumes no
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depreciation charge in the year of disposal. If you charge partial depreciation in the year of purchase: Go to the cell 'Year 1 Depreciation Months'. Enter / select the number of months of depreciation you want to charge. Go to the cell 'Year 1 Depreciation Month of Purchase Included (Yes / No)? '. Select 'Yes' if you included the month of purchase in the 'Year 1 Depreciation Months'. Select 'No' if you excluded the month of purchase in the 'Year 1 Depreciation Months'. Partial Depreciation Convention: If you charge partial depreciation in the year of purchase and the month of purchase is included ('Yes' is selected), no depreciation is charged in the month of disposal. If you charge partial depreciation in the year of purchase and the month of purchase is excluded ('No' is selected), depreciation is charged in the month of disposal.

If the fixed asset was purchased in a previous month New rows are created under the final fixed asset row. An issue therefore arises where a new fixed asset is registered but needs to be inserted between rows because it was purchased in a previous month and newer fixed assets have since been entered. To move the row to the correct position is explained in the section 'Prior month adjustments' of the chapter 'Prior month and year adjustments'.

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Step 2: Check for errors
After the details of the new fixed asset have been entered in the yellow cells: Go to the column Input Error Messages (column AE). Check that there is no error message for the new asset. If there is an error message, correct the error identified by the message. After correcting the error, go back to the column Input Error Messages and confirm that the error message has disappeared.

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Fixed Asset Disposals

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Introduction
This chapter contains the following sections (each section starts on a new page): • In the year of disposal • The year after disposal

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In the year of disposal
Go to the row of the fixed asset which has been disposed. Go to Date of Disposal (column X). Enter the date of disposal in the yellow cell. (use the short date format for your country e.g. 12/02/2012).

Important: When you enter the date of disposal the program will automatically reverse the cost and accumulated depreciation of the asset:

Do not enter the disposal adjustments in the cost & depreciation adjustment cells. The program assumes that you are disposing of the entire asset. Dealing with part disposals is explained at the end of this section. If a disposal date is entered before the accounting period, the program ignores the disposal date. If the disposal date is after the accounting period, this will result in an input error. The following pages explain how depreciation is calculated if the fixed asset is disposed before the end of its useful life and how to deal with part disposals.

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If the fixed asset is disposed before the end of its estimated useful The conventions detailed below are applied when calculating the depreciation charge in the year of disposal. If full depreciation was charged in the year of purchase: No depreciation is charged in the year of disposal. If partial depreciation was charged in the year of purchase and the month of purchase was included: Partial depreciation is charged in the year of disposal up to but excluding in the month of disposal. If partial depreciation was charged in the year of purchase and the month of purchase was excluded: Partial depreciation is charged in the year of disposal up to and including the month of disposal. You can override the calculated depreciation charge in the year of disposal if you want to apply a different convention: Go to Depreciation charge in accounting period (column V). Select the depreciation charge of the disposed asset. Unprotect the worksheet (there is no password). Enter (overwrite) the depreciation charge. Protect the worksheet (without a password).

The link to the calculated depreciation charge will be restored after you have run the year end procedure.

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Part Disposals If only part or some of the asset(s) registered are disposed of, the fixed asset should be deleted and re-entered in the program such that the part disposed and the part that remains are registered separately. This will ensure that the movement of cost and accumulated depreciation due to the disposal are shown correctly and any annual depreciation is correctly calculated. How to delete and re-enter the asset is explained below. To delete the fixed asset: Select any cell of the fixed asset. Click the button 'Delete Row'. The following section 'Year after disposal' explains this in more detail. To re-enter the fixed asset: Click the button 'New Row' twice to create 2 new rows. (one row is for the disposed element of the asset, the other row is for the asset(s) that remain) In one of the newly created rows, enter the details for the disposed element of the asset including the disposal date and accumulated depreciation brought forward*. In the other newly created row, enter the details for the asset(s) that has not been disposed of including accumulated depreciation brought forward*. *Entering depreciation brought forward is explained in the section 'Prior Year Adjustments' of the chapter 'Prior Month & Year Adjustments'.

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The year after disposal
In the following year (after you have run the year end procedure): Select any cell of the fixed asset which was disposed of in the previous year. Click the button 'Delete Row'. (A message appears to confirm that you have selected a cell of the row you want to delete. Another message appears to confirm that you want to delete this fixed asset)

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Reports

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Introduction
This chapter contains the following sections (each section starts on a new page): • Reports available & how they can be accessed • How to configure the reports for printing

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Reports available & how they can be accessed
This section is divided into the following sub sections: • Detailed Fixed Asset Reports • Summary Fixed Asset Report • Error Report Detailed Fixed Asset Reports Click the button 'Fixed Assets' on the home page. Select the fixed asset category that corresponds to the detailed reports you want to view / print. The detailed fixed asset reports are accessed from the buttons as detailed in the image & table below:

Report Name (additional details in brackets) Fixed Asset Cost Movements Fixed Asset Depreciation Movements (accumulated depreciation) Fixed Asset Net Book Values Fixed Asset Register (location and document details) Depreciation Journal (debit & credit entries for the dep. charge) Depreciation charge calculations Depreciation charge by cost centre

Press the following button: FA Cost Report Depreciation Report NBV Report FA Register Report Dep. Journal Report Dep. Charge Report Cost Centre Report

Summary Fixed Asset Report This report provides a summary, by fixed asset category, of the movements between the brought forward and carried forward amounts (cost, accumulated depreciation, & net book values). It can be used to prepare the fixed asset schedules (notes) for your published accounts. To access the summary report: Click the button 'Fixed Assets' on the home page. Click the button 'Summary of fixed asset movements'.

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Summary fixed asset report:

Error Report This report details the number of fixed assets that register input errors identified by the program and negative net book value amounts. It is a quick and easy way to confirm whether or not these type of errors exists. The report also identifies in which fixed asset categories the errors are located. To access the error report: Click the button 'Procedure' on the home page. Click the button '1. Check for errors'. The error report will only appear if errors have been identified:

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How to configure the reports for printing
To adjust the reports to take into account the paper size and other printing preferences: Click the button 'Setup' on the home page. Click the button 'Print Setting (reports)'. You can change the paper size, orientation, & scaling. If the report is a 'detailed fixed asset report' (see previous page), the settings will be applied to the reports for all fixed asset categories. The default print settings are optimised for A4 paper.

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Verification of Fixed Assets

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If an audit of fixed assets is being carried out, the fixed asset register report is very useful because it details the location and documentation of each asset. To access the fixed asset register report: Click the button 'Fixed Assets' on the home page. Select the fixed asset category that corresponds to the asset details you want to view / print. Click the button 'FA Register Report'.

If a physical inspection of fixed assets is being carried out In the fixed asset register report you can group the assets by location: Click the button 'Sort by location'. (you can restore the order of fixed assets by date by clicking the button 'Sort by date')

The following is the fixed asset register report shown at the top of the page but after having been sorted by location (all classroom 1 assets are now grouped together):

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Revaluation of Fixed Assets

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Introduction
This chapter contains the following sections (each section starts on a new page): • In the year of revaluation • The year following revaluation Assumed Knowledge This chapter assumes you are already familiar with the following: • The accounting concepts governing fixed asset revaluations. • Whether upward revaluation of fixed assets is permitted in your country.

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In the year of revaluation
Go to the Cost Adjustment cell (column Z) of the fixed asset which has been revalued. Enter the cost adjustment required to reflect the revaluation. Go to the Reason cell for the cost adjustment (column AA). Select 'Revaluation' from the drop down list. Example: A plot of land cost £150,000 and no depreciation was charged. If it is then revalued at £200,000, enter 50,000 in the Cost Adjustment cell to reflect the revaluation:

If depreciation is charged on the revalued fixed asset Go to the Depreciation Adjustment cell (column AB). In the yellow cell enter the negative amount, which together with the cost adjustment, adjusts the net book value of the asset to the revalued amount (normally accumulated depreciation is completely reversed). Go to the Reason cell for the depreciation adjustment (column AC). Select 'Revaluation' from the drop down list. Two points to note regarding entering the depreciation adjustment: • As it is a negative amount you have to enter, place the negative sign (“-”) before the amount. The program represents negative amounts in parenthesis e.g. -5,000.00 will appear as (5,000.00). • It is recommended that you print the report 'Fixed Asset Depreciation Movements' to obtain the accumulated depreciation brought forward and depreciation charge in the year. This will ensure you do not accidentally enter a depreciation adjustment that is greater than the accumulated depreciation brought forward and depreciation charge in the year. To access this report click the button 'Depreciation Report'. Examples: Two examples are given below to illustrate the cost & depreciation adjustments you should make. Example 1 A property cost £250,000 with £55,000 accumulated depreciation giving a net book value of £195,000. If the property is revalued at £300,000, the cost & depreciation adjustments required to reflect the revaluation are as follows:
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Cost Adjustment: Depreciation Adjustment:

50,000 (55,000)

(in the accounts £105,000 would be credited to a revaluation reserve)

Example 2 A property cost £200,000 with £30,000 accumulated depreciation giving a net book value of £170,000. If the property is revalued at £190,000, there are two possible cost & depreciation adjustments to reflect the revaluation: Cost Adjustment: Depreciation Adjustment: or Cost Adjustment: Depreciation Adjustment: No adjustment (20,000) (10,000) (30,000)

(in the accounts £20,000 would be credited to a revaluation reserve) If the fixed asset is revalued prior to the year end: If a fixed asset is revalued during the year rather than at the end of the year, the depreciation adjustment will also need to reflect an additional depreciation charge due to the revaluation. Go to 'If depreciation is charged on the revalued fixed asset' on the following page for further details.

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The year following revaluation
In the following year (after you have run the year end procedure): Go to the entries made to the revalued asset in the previous year i.e. the Cost Adjustment & Reason cells (columns Z & AA) and if depreciation is charged, the Depreciation Adjustment & Reason cells (columns AB & AC). Delete all entries in these cells. if you do not delete the amount(s), the fixed asset will be revalued again!

If depreciation is charged on the revalued fixed asset For this year and subsequent years over the remaining useful life of the asset: Enter the excess depreciation due to revaluation in the Depreciation Adjustment cell. The fixed asset program continues to calculate historical depreciation for the profit & loss account. The excess depreciation, entered in the ´Depreciation Adjustment´cell, should be charged to a revaluation reserve. To calculate the excess depreciation due to the revaluation: Use a separate copy of the fixed asset program to calculate the total depreciation charge on the revalued asset and deduct the historic depreciation charge registered in your actual fixed asset program. To calculate the total depreciation charge in the copy of the program: Go to the the fixed asset which has been revalued. In the Date cell (column C), enter the date of the revaluation. A warning message will appear when entering assets prior to the current accounting period. When the warning message appears, click 'Yes' to confirm the date. In the Cost / Value cell (column F), enter the revalued amount of the fixed asset. In the cell 'Year 1 Depreciation Months' (column M), enter the number of months of the new depreciation charge that was applied in year 1 (i.e. the previous year). This depends on when the revaluation occurred in the previous year. If the revaluation took place at the end of the financial year, enter 0 (months) and select 'No' in the cell 'Year 1 Depreciation Month of Purchase Included (Yes / No)?'.

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In the Useful Life cell (column S), enter the estimated remaining useful life of the asset from the date of the revaluation. Go to the 'Depreciation charge in the accounting period' cell (column V) and confirm that the new depreciation charge for the asset has been calculated correctly.

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Impairment of Fixed Assets

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Introduction
This chapter contains the following sections (each section starts on a new page): • In the year of impairment • The year following impairment Assumed Knowledge This chapter assumes you are already familiar with the accounting concepts governing fixed asset impairments.

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In the year of impairment
Go to the the fixed asset which has incurred an impairment loss. Enter the impairment loss in the Cost Adjustment cell (column Z) or the Depreciation Adjustment cell (column AB).* Go to the Reason cell next to the cell where you entered the impairment loss (column AA or column AC). Select 'Impairment' from the drop down list. *If depreciation is charged, normally the impairment loss is reflected in accumulated depreciation. Example: If the original cost of a building was £250,000 and is revalued at £200,000, enter 50,000 in the Cost Adjustment or Depreciation Adjustment cell to reflect the impairment loss:

If an impairment loss is charged prior to the year end and depreciation is charged In this very unlikely situation you will need to override the depreciation charge calculated by the program to reflect the new depreciation charge due to the impairment of the fixed asset. Go to 'If depreciation is charged on the asset which has incurred an impairment loss ' on the next page for further details. To override the depreciation charge calculated by the program: Go to the cell 'Depreciation charge in accounting period' (column V). Unprotect the worksheet (there is no password). Enter (overwrite) the depreciation charge. Protect the worksheet (without a password). The link to the calculated depreciation charge will be restored after you have run the year end procedure.

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The year following impairment
In the following year (after you have run the year end procedure): Go to the adjustments made in the previous year for the impairment loss i.e. the Cost Adjustment & Reason cells (columns Z & AA) or the Depreciation Adjustment & Reason cells (columns AB & AC). Delete all entries in these cells. if you do not delete the impairment loss, the fixed asset will be impaired again!

If depreciation is charged on the asset which has incurred an impairment loss The depreciation charge after impairment is based on the new value of the asset and its remaining useful life. Therefore, the asset will need to be re-registered in the fixed asset program in order for the depreciation charge to be calculated correctly. To re-register the fixed asset which has incurred an impairment loss: Go to the the fixed asset which has been impaired. In the Date cell (column C), enter the date when the impairment loss was incurred. Normally impairments take place at the end of the financial year and if this is the case, enter the year end date of the previous year. A warning message will appear when entering assets prior to the current accounting period. When the warning message appears, click 'Yes' to confirm the date. In the Cost / Value cell (column F), enter the new value of the fixed asset (after the impairment loss). In the cell 'Year 1 Depreciation Months' (column M), enter the number of months of the new depreciation charge that was applied in year 1 (i.e. the previous year). This depends on when the impairment occurred in the previous year. If the impairment took place at the end of the financial year, enter 0 (months) and select 'No' in the cell 'Year 1 Depreciation Month of Purchase Included (Yes / No)?'. In the Useful Life cell (column S), enter the estimated remaining useful life of the asset from the date of impairment. Go the 'Depreciation charge in the accounting period' cell (column V) and confirm that the new depreciation charge for the asset has been calculated correctly.

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Prior Month & Prior Year Adjustments

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Introduction
This chapter contains the following sections (each section starts on a new page): • Prior Month Adjustments • Prior Year Adjustments Important If you are entering your fixed asset data for the first time, the relevant chapter is 'Entering / copying data from another spreadsheet'. Assumed Knowledge For 'Prior Year Adjustments': This section assumes you are already familiar with how to protect and unprotect worksheets in your version of Excel.

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Prior Month Adjustments
To edit a fixed asset registered in a previous month of the accounting period: Go to the yellow cell(s) of the asset and change the data. To delete a fixed asset registered in a previous month of the accounting period: Select any cell of the fixed asset row and click the button 'Delete Row'. To insert a fixed asset that was purchased in a previous month: If newer fixed assets have since been registered, the asset needs to be inserted between rows. In this situation follow the instructions below: Click the button 'New Row'. Enter the asset details in the yellow cells. The asset will appear in the final row:

Then click the button 'Sort by date':

This will move the row of the asset to the correct position on the fixed asset page with regard to its date of purchase:

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Prior Year Adjustments
This section deals with two scenarios: • If you need to add a fixed asset that should have been registered in a prior year • If you need to edit a fixed asset that has been registered in a prior year If you need to add a fixed asset that should have been registered in a prior year Open the fixed asset program for the current accounting period. Insert a new row & enter the asset details: Click the button 'New Row'. Enter the asset details in the yellow cells. Note that when the date of the fixed asset is entered a message will appear to warn you that the date does not relate to the current accounting period. As you are entering an asset from a previous accounting period click 'Yes' to confirm the date.

Enter the depreciation brought forward for the asset: Go to the accumulated depreciation brought forward cell (column AU) of the fixed asset. Unprotect the worksheet (there is no password). Enter the accumulated depreciation brought forward. Protect the worksheet (without a password).

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To move the asset to the correct position on the fixed asset page: Click the button 'Sort by date'.

The previous section 'Prior Month Adjustments' explains in more detail the use of the 'Sort by date' button to move the asset to the correct position. If you need to edit a fixed asset that has been registered in a prior year Open the fixed asset program for the current accounting period. If an adjustment to the fixed asset cost is required you will need to edit the cost brought forward. If an adjustment to the fixed asset depreciation is required you will need to edit the accumulated depreciation brought forward. To edit the cost brought forward: Go to the cost brought forward cell (column AL) of the fixed asset. Unprotect the worksheet (there is no password). Change the cost brought forward. Protect the worksheet (without a password).

To edit the accumulated depreciation brought forward: Go to the accumulated depreciation brought forward cell (column AU) of the fixed asset. Unprotect the worksheet (there is no password). Change the accumulated depreciation brought forward. Protect the worksheet (without a password).

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Cut & Paste / Cell Drag & Drop (Disabled)

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In the worksheets where the fixed assets are registered, cut & paste and cell drag and drop are disabled by the program. This is to protect the formulas and cell formats which can be seriously corrupted by these functions. However, you are still able to copy & paste. When you close the fixed asset program, cut & paste / cell drag & drop functionality are completely restored. If you open another spreadsheet while the fixed asset program is still running and you are using the same instance of Excel, cell drag & drop is disabled in the other spreadsheet. However, you will still be able to cut & paste. To enable cell drag & drop in other spreadsheets: Close the fixed asset program. or Open the other spreadsheet(s) in a separate instance of Excel. To open a spreadsheet in a separate instance of Excel, click the excel icon and then open the spreadsheet.

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Columns (changing widths, adding & deleting) Columns (changing widths, adding & deleting)

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Introduction
This chapter applies to data entry columns (yellow cells) and to the columns of the fixed asset reports. The chapter contains the following sections (each section starts on a new page): • Changing column widths • Adding columns • Deleting columns If you are changing, adding or deleting columns in the fixed asset reports: • The detailed reports are located between columns AI & DK of the worksheets that register fixed assets except for the 'Depreciation Journal' reports which are on separate worksheets 'Depreciation Journal 1' through to 'Depreciation Journal 6'. • The report 'Summary of Fixed Asset Movements' is on the worksheet 'Fixed Asset Summary'. Assumed Knowledge This chapter assumes you are already familiar with the following: • How to protect and unprotect worksheets in your version of Excel. • How to change column widths in your version of Excel. • How to add columns in your version of Excel. • How to hide & unhide rows in your version of Excel (if you are adding columns). • How to format spreadsheet cells (if you are adding columns). • Spreadsheet formulas (if you are adding columns). • How to delete columns in your version of Excel.

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Changing column widths
You can safety change the width of data entry columns (yellow cells) and the columns of fixed asset reports by following the instructions below: Select any cell of the column you want to change the width of. Unprotect the worksheet (there is no password). Change the column width. Protect the worksheet (without a password).

If a column of a fixed asset report has been changed: The print settings (scaling %) may need to be adjusted to accommodate the new width. To change the scaling (%), go to the Setup menu and select Print Settings (reports):

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Adding columns
You can safety add data entry columns (yellow cells) and columns to fixed asset reports. Below are instructions that explain how to insert data entry columns and on the following page are instructions for inserting new columns in reports: How to insert data entry columns (yellow cells) Go to the yellow cells where you want to insert a new column. Select any spreadsheet cell in the column to the right of where you want to insert the new column. Unprotect the worksheet (there is no password). Insert the column. Format the cells of the new column and, if formulas are required, enter these. Protect the worksheet (without a password).
Select any cell in the column to the right of where you want to insert the new column

Also, the newly created cell of a hidden row will need to be formatted: The hidden row is copied & pasted when a new row is created and is located 2 rows under the key instructions (see image below). Unhide the row. In the new cell created by the inserted column, format the cell:

Hide the row. The following page explains how to insert rows in fixed asset reports.
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How to insert rows in fixed asset reports Go to the fixed asset report where you want to insert a new column. Select any spreadsheet cell in the column to the right of where you want to insert the new column. Unprotect the worksheet (there is no password). Insert the column. Note that the column should be inserted between the first and last column of the report:
Insert new columns between the first and last column of the report

If the column is inserted to the left of the first column or the right of the last column, the new column will not be printed without an understanding of named ranges & Excel macros. Format the cells of the new column and, if formulas are required, enter these. Protect the worksheet (without a password.
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If the report is a 'detailed fixed asset report' (these reports are listed in the chapter 'Reports'), you will also need to format and if required, enter the formula for the nearly created cell of a hidden row (the hidden row is copied & pasted when a new row is created): The hidden row is located 2 rows under the key instructions (see image at the bottom of the previous page). Unhide the row. In the new cell created by the inserted column, format and enter the formula for the cell. Hide the row.
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Finally, the print settings (scaling %) may need to be adjusted to accommodate the new column. To change the scaling (%), go to the Setup menu and select Print Settings (reports):

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Deleting columns
You can delete data entry columns (yellow cells) and columns of fixed asset reports without damaging the program only if the columns listed below are not deleted. Columns that must not be deleted Any column containing amounts In addition to columns containing amounts, do not delete the following columns in the worksheets where the fixed assets are registered and the detailed reports are located: Column A (which is hidden) Date (column C) Year 1 Depreciation Months (column M) Year 1 Depreciation Month of Purchase Included (Yes / No)? (column N) Cost Centre / Department (column P) Depreciation Method (column R) Useful Life (column S) Depreciation Rate % (column T) Date of Disposal (column X) Input Error Messages (column AE) Dep. Rate % (column BL) % Based On (column BM) Chargeable Years (column BO) Chargeable Year No. (column BP) Supporting Schedules (columns CM to DJ) These columns must not be deleted as they critically affect the functioning and/or calculations of the program. Delete Column Instructions Select any spreadsheet cell of the column you want to delete*. Unprotect the worksheet (there is no password). Delete the column. Protect the worksheet (without a password). *Remember not to delete any of the columns listed above.

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