Fixed Assets Inventory

Transcription

1 Fixed Assets Inventory Preliminary User Manual User Manual Edition: 2/3/2006 For Program version: 2/3/2006 Your inside track for making your job easier!

2 Tenmast Software 132 Venture Court, Suite 1 Lexington, KY Support: (877) support@tenmast.com Marketing: (877) info@tenmast.com Fax: (859) WinTen² Fixed Assets Inventory Preliminary User Manual User Manual Edition: 2/3/2006 For Program Version: 2/3/2006 Copyright 2006 Tenmast Software. All rights reserved. This manual, as well as the software described in it, is furnished under license and may be used and/or copied only in accordance with the terms of such license. The content of this manual is furnished for informational use only, is subject to change without notice, and should not be construed as a commitment by Tenmast Software. Tenmast Software assumes no liability for any errors or inaccuracies that may appear in this manual. Except as permitted by such license, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, recording, or otherwise, without the prior written permission of Tenmast Software. Permission to produce copies for official use is expressly granted to organizations and individuals with a current Update and Support Agreement with Tenmast Software for the maintenance and support of Tenmast Software s WinTen² Fixed Assets Inventory program. Any references to company, housing authority, or individual names or identities in examples or screen images are for demonstration purposes only and are not intended to refer to any actual organization or person.

3 CONTENTS Introduction Overview Feature List The Fixed Asset Process Program Integration Fixed Assets Inventory Main Menu Online Help Tenmast Best Practices Cyclical Actions Monthly Annually Maintain Assets Add Assets Use the Add Asset Wizard Edit Assets Maintain General Asset Information Maintain Asset Notes Monitor Asset Locations Monitor Asset Depreciation Process Assets Transfer Assets Use the Transfer Asset Wizard Dispose of Assets Use the Dispose of Asset Wizard Post Depreciation Use the Post Depreciation Wizard Setup Plan Setup Options Plan Asset Classes Plan Account Classes Plan Asset Types Plan Program Policies Implement Setup Maintain Default Settings Maintain Asset Classes Maintain Account Classes Maintain Asset Types Maintain Disposition Methods Maintain Locations and Location Groups Fixed Assets Inventory 2/3/2006 Edition iii

4 Contents Maintain Location Groups Maintain Locations Maintain Purchase Types Maintain Program Policies Appendixes Calculating Depreciation A.1 Additional Resources B.1 Program Changes for Existing Clients C.1 New Account Classes C.1 Other New Setup Options C.2 No Index or Purge Functions C.3 Manage Reports D.1 Choose Report Options D.1 Report Filtering D.2 Report Grouping D.3 Report Order D.4 Report Type D.4 Preview a Report D.4 Save a Report D.6 Load a Report D.8 Print a Report D.10 Common Icons E.1 Keyboard Actions F.1 Glossary G.1 Index X.1 Fixed Assets Inventory 2/3/2006 Edition iv

5 PART I: INTRODUCTION

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7 1 OVERVIEW WinTen² Fixed Assets Inventory allows your housing authority to track and manage all of your fixed assets. The program calculates depreciation and allows you to post it directly to your general ledger. This chapter provides an overview of the program. Topics addressed include: Feature List 1.1 The Fixed Asset Process 1.3 Program Integration 1.4 Fixed Assets Inventory Main Menu 1.6 Online Help 1.7 FEATURE LIST Here are just some of the ways Fixed Assets Inventory makes your job easier. Developmental Fund Accounting The program provides full support for agency-definable developmental fund accounting and management. Account classes link your fixed assets to specific developments. General Ledger Integration Data affecting other WinTen² programs automatically integrates with those programs "live," in real time. This eliminates duplicate data entry and ensures that all users have current information. Fixed Assets Inventory 2/3/2006 Edition 1.1

8 Chapter 1: Overview If you use the WinTen² General Ledger program, your fixed assets will appear automatically on your balance sheet. You can also choose to have depreciation post directly to your general ledger, so you don t have to do it manually. Asset Locations and Location Groups Your agency has unlimited flexibility in defining locations and location groups for your assets. A location tells you exactly where an asset is. Most locations are units, but other locations could include common areas, warehouses, maintenance buildings, and administrative offices. You can create an asset listing report for your entire agency or for a specific location. A tenant can sign an asset listing report when moving in, acknowledging responsibility for the property in the new unit. An inspector can use an asset listing report to check the property in a unit or at any other location. Location groups allow you to categorize locations for reporting and management analysis. You can create multi-level location groups you can have groups within other groups. Flexibility WinTen² programs allow your agency to make customizations to reflect your own business processes and make your job easier. In addition to custom locations and account classes, you can define your own asset classes, asset types, purchase types, and disposition methods. Browse Screens and Drill-down Browse screens with expanded sorting, filtering, and searching options help you find existing records more easily. You can also drill down to find related records. Expanded drill-down features provide many different ways to get to the same data. Wizards WinTen² programs feature expanded use of wizards to guide you through complex processes and help ensure that you complete HUD-mandated steps. Fixed Assets Inventory includes wizards to help you add, transfer, and dispose of assets. Keyboarding Options With WinTen² programs, you can choose to use your computer's mouse or speed data entry by using expanded keyboard shortcuts. You have the option of navigating through Fixed Assets Inventory, entering data, and executing commands by using the keyboard almost exclusively. Security Enhanced user security roles allow managers great flexibility in controlling security access across WinTen² programs. Custom Reports WinTen² programs include built-in reports with powerful filters to help track and manage your agency's data. The Custom Report Writer program allows managers to cre- Fixed Assets Inventory 2/3/2006 Edition 1.2

9 Chapter 1: Overview ate custom reports and make them available in specific programs. Managers can restrict user access to custom reports based on user security roles. THE FIXED ASSET PROCESS WinTen² Fixed Assets Inventory allows your housing authority to track all of your fixed assets, including their locations. The program calculates depreciation and allows you to post it directly to your general ledger. Here is a typical fixed asset process for most agencies. Note: Your process may vary slightly, depending on you agency's policies. The Governmental Accounting Standards Board (GASB) requires your agency to track all of your fixed assets, also known as "capital assets." You must depreciate each fixed asset over its estimated useful life and report depreciation as an expense on your revenue statement. GASB also requires you to report the current book value of your fixed assets on your balance sheet. GASB defines fixed assets as "tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period" (Paragraph 19 of GASB's Statement 34). In other words, a fixed asset is any asset with a useful life longer than one year. In addition to this life span test, however, accounting conventions also include a minimum purchase cost (or "capitalization threshold") for an asset to be considered a fixed asset. In general, an individual asset must cost at least $500 to be considered a fixed asset. If an asset costs less than $500 individually, but you own many of them (for example, office chairs or desks), you may choose to report them collectively as one fixed asset. Common examples of fixed assets include computer equipment (such as computers, monitors, and printers), office equipment (such as telephones and copiers), office furniture (such as desks, chairs, and cubicles), maintenance equipment (such as vehicles and tools), large appliances (such as refrigerators and stoves), buildings, and land. The Fixed Assets Inventory program contains one record for each of your fixed assets. Depreciating a fixed asset means you do not report the entire cost of the asset during the period in which you acquire it. Instead, you spread the cost over all the years you Fixed Assets Inventory 2/3/2006 Edition 1.3

10 Chapter 1: Overview will use the asset. As you depreciate an asset, its current value on your balance sheet decreases accordingly. Hint: For depreciation purposes, the "cost" does not necessarily mean the purchase cost (or "acquisition cost") of the asset. Instead, it means the acquisition cost minus any salvage value you expect to receive from it at the end of its useful life. This cost is known as the "depreciable basis." (For more information, see Calculating Depreciation on page A.1.) You will post depreciation on a regular basis, usually monthly. The Post Depreciation Wizard automates this process for you. If you use the WinTen² General Ledger program, you can choose to have depreciation post directly to your general ledger. Fixed Assets Inventory also tracks the location of each asset. This allows you to have a complete serial-numbered list of the fixed assets in any unit or at any other location at your agency (a "Fixed Asset Listing Report"). A tenant can sign an asset listing report when moving in, acknowledging responsibility for the property in the new unit. An inspector can use an asset listing report to check the property in a unit or at any other location. You can also run a variety of other reports in the program to help you track and manage your fixed assets. From time to time, you may want to transfer a fixed asset from one location to another or to dispose of an asset altogether. The Fixed Assets Inventory program includes wizards to simplify these tasks. PROGRAM INTEGRATION Fixed Assets Inventory integrates with three other WinTen² programs. Hint: For information on any of these programs, please see their respective user manuals or contact Tenmast. Required Program The Master Setup program is required for Fixed Assets Inventory to function. Fixed Assets Inventory 2/3/2006 Edition 1.4

11 Chapter 1: Overview Master Setup The Master Setup program allows the administrator of your WinTen² programs to control various high-level settings that affect how the programs interact with each other. Another important function of Master Setup is to control security permissions, which govern what any individual can see or do in the programs. Recommended Programs The General Ledger and Custom Report Writer programs integrate with Fixed Assets Inventory to save time and effort for your staff. Although they are optional, we recommend you use them to take full advantage of the features in Fixed Assets Inventory. General Ledger Your agency maintains your general ledger accounts in the General Ledger program. In the Fixed Assets Inventory program, you will assign general ledger accounts to your asset classes by means of assets class accounts. This provides support for developmental fund accounting and allows fixed asset information to appear on your financial statements automatically. It also allows the Fixed Assets Inventory program to post depreciation directly to your general ledger, so you don t have to do it manually. Custom Report Writer The Custom Report Writer program gives you almost complete flexibility in defining and formatting the reports you generate from all of your WinTen² programs. It also offers security settings that let you choose which employees have access to which reports. Fixed Assets Inventory 2/3/2006 Edition 1.5

12 Chapter 1: Overview FIXED ASSETS INVENTORY MAIN MENU The Main Menu screen is the first thing you see when you start the Fixed Assets Inventory program. It is your starting point for using the program s four main functions: Maintain Assets, Asset Depreciation, Reports, and Maintain Settings. We will discuss each of these in detail later in this manual. This screen also gives you access to two additional options: Version Date and Exit. Version Date The Version Date tells you what version of the program you are running. Use it to learn if a newer version of the program is available and/or to troubleshoot problems with the program. To See the Version Date:. Click the Information button or select Help menu > About Exit The Exit option from the Main Menu screen closes the Fixed Assets Inventory program. Fixed Assets Inventory 2/3/2006 Edition 1.6

13 Chapter 1: Overview To Exit Fixed Assets Inventory: Press Esc, press X, or click the Exit button. ONLINE HELP The Fixed Assets Inventory program includes context-sensitive Help, which is an online version of this user manual. You can start Help from anywhere in the program. Help is divided into pages called "topics." When you start Help, you will go to a list of topics that correspond to where you are in the Fixed Assets Inventory program. You can choose one of those suggested topics or use Help's Contents, Index, and Search tabs to find other topics. To Start Help: Press F1 or select Help menu > Contents. Fixed Assets Inventory 2/3/2006 Edition 1.7

14 Chapter 1: Overview Fixed Assets Inventory 2/3/2006 Edition 1.8

15 PART II: TENMAST BEST PRACTICES

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17 2 CYCLICAL ACTIONS This chapter provides a typical schedule of Fixed Assets Inventory actions many agencies perform on a regular basis. Schedules addressed include: Monthly 2.1 Annually 2.2 Note: Your cyclical actions may be different, depending on your agency's policies. MONTHLY Post Depreciation You will post depreciation on a regular basis, usually monthly. The Post Depreciation Wizard automates this process for you. (See Post Depreciation on page 5.1.) We recommend that you post depreciation each month, but the Fixed Assets Inventory program does not require you to do so. Each time you run the Post Depreciation Wizard no matter when you last ran it the program automatically calculates and posts all unposted depreciation (up to the posting date you enter in the wizard). Fixed Assets Inventory 2/3/2006 Edition 2.1

18 Chapter 2: Cyclical Actions ANNUALLY Review Setup At least once each calendar year, the administrator of your WinTen² programs should review your Setup options for the Fixed Assets Inventory and Master Setup programs. If you are running the WinTen² General Ledger or Custom Report Writer programs, please verify their Setup options as well to make sure they are working correctly with Fixed Assets Inventory. Hint: For information on how these programs relate to Fixed Assets Inventory, see Program Integration on page 1.4. If you have any questions, you may contact Tenmast Support at (877) or Fixed Assets Inventory 2/3/2006 Edition 2.2

19 3 MAINTAIN ASSETS You will maintain one asset record for each of your agency s fixed assets. An asset s record contains detailed information about the asset, including its location, as well as a variety of information related to its value and depreciation. Each asset must have one asset type and one account class. You select both when you add an asset. The assigned asset type and account class must always belong to the same asset class. You do not assign asset classes directly to individual assets. The asset class is assigned by means of the asset type you choose when you add the asset. After you have added an asset, you can no longer change the asset type. You can, however, change an asset s account class when you transfer the asset to a location in a different development. (For information on transferring assets, see Transfer Assets on page 4.1.) Topics addressed in this chapter include: Add Assets 3.2 Edit Assets 3.6 You can use the Browse Assets Screen to view and find your fixed asset records. You can use the Maintain Assets Screen to maintain your asset records and to view their detailed information. To Open the Browse Assets Screen: Press A or click the Assets button on the Main Menu. Fixed Assets Inventory 2/3/2006 Edition 3.1

20 Chapter 3: Maintain Assets Browse Assets Screen The Browse Assets screen contains a table of your agency s assets. Only active assets appear by default. You can add assets from this screen. This screen also gives you access to the Maintain Assets screen, which contains additional asset information. (For information on using that screen, see Edit Assets on page 3.6.) ADD ASSETS You will use the Add Asset Wizard to add asset records. You can add assets individually or in multiple quantities. For example, if you are adding more than one asset, but they are all identical (such as ten refrigerators), complete the wizard only once. It will create a separate record for each asset. Fixed Assets Inventory 2/3/2006 Edition 3.2

21 Chapter 3: Maintain Assets To Start the Add Asset Wizard: Press Ctrl+A or click the Add icon either on the Browse Assets screen or on the Main tab of the Maintain Assets screen. USE THE ADD ASSET WIZARD The Add Asset Wizard will guide you through five steps to create one or more asset records: 1. Select Asset Type 2. Select Account Class 3. Enter Purchase Information 4. Enter Asset Numbers 5. Confirmation Step 1: Select Asset Type This step allows you to select the type of asset you are adding. This screen offers your agency s list of asset types, which you maintain in Setup. (See Maintain Asset Types on page 7.10.) Note: You can also add, edit, or delete asset types directly from this wizard step. The instructions are the same as those for the Maintain Asset Types screen in Setup. For information, see Maintain Asset Types Screen on page To Complete Step 1: Click in the table to select the type of asset you are adding. Press PageDown or click the Start button to go to the next step. Step 2: Select Account Class This step allows you to select the account class for the asset. The account class identifies the asset s development, depreciation method, and useful life, as well as four general ledger accounts for financial reporting. This screen offers a subset of your agency s account classes. It shows only those that belong to the same asset class as your selected asset type (from Step 1). There are two main factors in choosing an account class on this step: 1. the development in which the asset is located Fixed Assets Inventory 2/3/2006 Edition 3.3

22 Chapter 3: Maintain Assets 2. the useful life of the asset You maintain your agency s account classes in Setup. (For information, see Maintain Account Classes on page 7.6.) To Complete Step 2: Click in the table to select the account class. Press PageDown or click the Next button to go to the next step. Step 3: Enter Purchase Information This step allows you to enter additional asset information. Step 3 contains nine data fields: Purchase Date, Purchase Type, Vendor, PO, Invoice, Location, Cost Per Item, Salvage Per Item, and Total Quantity to Add. Purchase Date, Location, and Total Quantity to Add are required. Cost Per Item and Salvage Per Item are also required for depreciable assets. Purchase Date Enter the date you purchased the asset. This field defaults to today s date. Purchase Type Select the purchase type for the asset (for example, new or used ). This field offers your agency s list of purchase types, which you maintain in Setup. (See Maintain Purchase Types on page 7.20.) Vendor Enter the name of the vendor from whom you purchased the asset. PO If you issued a purchase order for the asset, enter the purchase order number. Invoice If the vendor sent you an invoice for the asset, enter the invoice number. Location Select the current location of the asset. This field offers your agency s list of locations, which you maintain in Setup. (See Maintain Locations and Location Groups on page 7.13.) Cost Per Item Enter the purchase cost of the asset. If you are entering a multiple quantity of the same asset, enter the cost per item. Fixed Assets Inventory 2/3/2006 Edition 3.4

23 Chapter 3: Maintain Assets If this is a depreciable asset, the cost per item must be greater than zero and greater than the Salvage Per Item field (below). Hint: The program uses your selected account class from Step 2 to determine whether this is a depreciable asset. If that account class is not set to No Depreciation, these two restrictions apply. Salvage Per Item Enter the salvage value of the asset. Again, if you are entering a multiple quantity of the same asset, enter the salvage value per item. The salvage value is the amount you expect to receive from the asset at the end of its useful life. Total Quantity to Add Enter the quantity of the asset you are adding. This field defaults to 1. To Complete Step 3: Tab or click through the fields, entering the information. Press PageDown or click the Next button to go to the next step. Step 4: Enter Asset Numbers This step allows you to enter one or more identification numbers for each asset you are adding. Step 4 contains a table of assets. There is one row in the table for each asset you are adding, based on the Total Quantity to Add field from Step 3. Each asset has at least one editable data field, Serial Number. It is optional. The Asset Number field may also appear, depending on your agency s policies. If it appears, it is required. Asset Number If your agency has not chosen the Auto-Generate Asset Numbers option in Setup, you must enter a number to identify each asset within your agency. Each asset number must be unique across all of your fixed assets. An asset number can contain up to thirty numbers and/or letters. Most agencies who choose to enter asset numbers manually do so based on preprinted asset number tags that they attach to their assets. Hint: The Auto-Generate Asset Numbers option appears in the Program Policies area of Setup. See Plan Program Policies on page 6.7. Fixed Assets Inventory 2/3/2006 Edition 3.5

24 Chapter 3: Maintain Assets If your agency has chosen the Auto-Generate Asset Numbers option, the Asset Number field does not appear on this wizard step. In this case, the Fixed Assets Inventory program enters asset numbers for you. Serial Number Enter the asset s serial number assigned by the manufacturer. This field can also contain up to thirty numbers and/or letters. To Complete Step 4: If necessary, tab or click through the table, entering an asset number for each asset. Enter serial numbers as desired (optional). Press PageDown or click the Next button to go to the next step. Step 5: Confirmation Step 5 allows you to confirm the information before you finish adding the asset(s). The fields on this screen are not editable. To Complete Step 5: If anything is incorrect, press PageUp or click the Back button to go to the previous step(s) and correct it. If everything is correct, press PageDown or click the Finish button to finish adding the asset(s). When you finish, the Maintain Assets screen opens. EDIT ASSETS You can view or edit asset information on the Maintain Assets Screen. To Open the Maintain Assets Screen: Edit an asset (press Ctrl+E or click the Edit icon) on the Browse Assets screen. Fixed Assets Inventory 2/3/2006 Edition 3.6

25 Chapter 3: Maintain Assets Maintain Assets Screen The Maintain Assets screen has non-editable fields at the top of the screen showing the asset number and description of the selected asset. There are also at least two tabs near the top of this screen: Main and Location. A third tab, Depreciation, appears for depreciable assets. You can use the Main tab to maintain a variety of general information on any asset. You can use the Location tab to view a history of each location where an asset has been used or stored, including its current location. (See Monitor Asset Locations on page 3.11.) You can use the Depreciation tab to view an asset s book value and a history of its depreciation transactions. (See Monitor Asset Depreciation on page 3.13.) We will first walk through maintaining general asset information on the Main tab. MAINTAIN GENERAL ASSET INFORMATION General asset information includes a variety of data fields related to an asset, including its purchase, depreciation, and current location. You can maintain this information on the Maintain Assets Screen: Main Tab. Fixed Assets Inventory 2/3/2006 Edition 3.7

26 Chapter 3: Maintain Assets To Open the Main Tab: This tab appears by default when you open the Maintain Assets screen. If you have left it, press Ctrl+Tab or click the Main tab (at the upper left). Maintain Assets Screen: Main Tab The Main tab contains twenty-two data fields divided into six sections: Basic, Purchase Information, Status, Depreciation, Accounts, and Location. You can edit only the text fields that have white backgrounds. This tab also gives you access to the Transfer Asset Wizard and the Dispose of Asset Wizard (see Process Assets on page 4.1), as well as to the Maintain Asset Notes screen (see Maintain Asset Notes on page 3.10). Basic Hint: Many of the fields on this screen are also available from the Add Asset Wizard. For additional information, see Use the Add Asset Wizard on page 3.3. The fields in this section provide basic identification of the asset. You can edit the Description, Asset Number, Serial Number, and Comment fields. Fixed Assets Inventory 2/3/2006 Edition 3.8

27 Chapter 3: Maintain Assets The Make and Model are set by the asset type selected on Step 1 of the Add Asset Wizard. (See Select Asset Type on page 3.3 and Maintain Asset Types on page 7.10.) Comment Enter any additional information about the asset that may be helpful for your agency. Purchase Information You cannot manually check or uncheck the Created in PO field. The Created in PO field is checked if this asset record was created automatically by the WinTen² Purchase Order program. If that is the case, no fields in this section are editable; all the information is provided by the Purchase Order program. If the Created in PO field is not checked, all the other fields in this section display the values, if any, entered on Step 3 of the Add Asset Wizard (see Enter Purchase Information on page 3.4). You can edit the Vendor Name, PO Number, Invoice, and Purchase Type fields. The purchase Date and purchase Cost are never editable for existing assets. Status You cannot manually check or uncheck the Active field. This field is checked if this asset is still in use. This field is not checked if you have disposed of the asset. Depreciation and Accounts All the information in these two sections is set by the account class currently assigned to this asset. You cannot edit these fields directly. There are three factors in determining which account class to assign: 1. the asset class of the asset 2. the useful life of the asset 3. the development in which the asset is located You assign an account class on Step 2 of the Add Asset Wizard (see Select Account Class on page 3.3) or on Step 2 of the Transfer Asset Wizard (see Select Account Class on page 4.3). For information on account classes, see Plan Account Classes on page 6.4. Location This field displays the current location of the asset. You cannot edit it directly. You set the asset s location on Step 3 of the Add Asset Wizard (see Enter Purchase Information on page 3.4) or on Step 1 of the Transfer Asset Wizard (see Select Location on page 4.2). You can use the Location tab to see a history of all locations where the asset has been used or stored. (See Monitor Asset Locations on page 3.11.) Fixed Assets Inventory 2/3/2006 Edition 3.9

28 Chapter 3: Maintain Assets MAINTAIN ASSET NOTES The Notes icon on the Main tab of the Maintain Assets screen gives you access to the Maintain Asset Notes Screen. Asset notes can contain any information or comments that may be helpful for your agency. You can view existing notes or enter additional ones at any time on the Maintain Asset Notes screen. To Open the Maintain Asset Notes Screen: Locate the asset for which you wish to see or enter notes. Open this asset on the Main tab of the Maintain Assets screen. (See Edit Assets on page 3.6.) Click the Notes icon. OR Press Alt+V to open the View menu, and then press T. Maintain Asset Notes Screen A note contains three editable data fields: Date, Subject, and Notes. All are required. The Author field is not editable. Fixed Assets Inventory 2/3/2006 Edition 3.10

29 Chapter 3: Maintain Assets Date This is the date the note was created. Subject This is a short descriptive subject of the note. Notes This is the body of the note. Author This field automatically displays the user name of the person who created the note. To Add a Note: Press Ctrl+A or click the Add icon. Tab or click through the fields, entering the information. To save, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) To Edit a Note: Select the note you want to edit. Press Ctrl+E or click the Edit icon. Tab or click through the fields, changing information as needed. To save your changes, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) To Delete a Note: Select the note you want to delete. Press Ctrl+D or click the Delete icon. Press Y or click the Yes button to confirm the deletion. (To cancel, press N or click the No button.) MONITOR ASSET LOCATIONS The Fixed Assets Inventory program provides a history of all the locations where an asset has been used or stored. You can see this information on the Maintain Assets Screen: Location Tab. Fixed Assets Inventory 2/3/2006 Edition 3.11

30 Chapter 3: Maintain Assets To Open the Location Tab: Press Ctrl+Tab or click the Location tab (at the upper left) on the Maintain Assets screen. Maintain Assets Screen: Location Tab The Location tab contains a history of each location where an asset has been used or stored. The last row of the table shows the asset s current location. This tab is for informational purposes only. You cannot edit the information directly. You can change an asset s location by using the Transfer Asset Wizard. (See Transfer Assets on page 4.1.) This tab displays three fields for each location: Date Placed, Source Location, and Destination Location. Date Placed This is the date the asset was placed at the destination location. Source Location This is the location from which you transferred the asset. This field is blank for the first location in the table. Fixed Assets Inventory 2/3/2006 Edition 3.12

31 Chapter 3: Maintain Assets Destination Location This is the location where you placed the asset. To Change the Asset s Current Location: Click the Wizards icon drop-down arrow, and then click Transfer Asset. (See Use the Transfer Asset Wizard on page 4.2.) MONITOR ASSET DEPRECIATION The Maintain Assets Screen: Depreciation Tab shows a variety of information related to an asset s value and depreciation. It also shows a history of an asset s depreciation transactions. To Open the Depreciation Tab: Press Ctrl+Tab or click the Depreciation tab (at the upper left) on the Maintain Assets screen. Maintain Assets Screen: Depreciation Tab Fixed Assets Inventory 2/3/2006 Edition 3.13

32 Chapter 3: Maintain Assets The Depreciation tab contains an asset table, a depreciation table, and a summary information section. This tab is for informational purposes only. You cannot edit any information directly. This tab also gives you access to the Dispose of Asset Wizard. (See Dispose of Assets on page 4.4.) The asset table (the first table on the screen) contains one row for the selected asset. It has seven data fields: Method, Cost, Book Value, Salvage, Useful Life, Start Date, and End Date. The depreciation table (the second table on the screen) contains one row for each of this asset s depreciation transactions. It has four fields for each transaction: Posted Date, GL Account, GL Account Description, and Posted Amount. The summary information section is at the bottom of the screen. It has two fields: Total Remaining Depreciation and Total Posted Depreciation. Method This is the depreciation method assigned to this asset. (For information on depreciation methods, see Calculating Depreciation on page A.1.) Hint: Both the depreciation method and the useful life (see below) are set by the account class currently assigned to this asset. You assign an account class on Step 2 of the Add Asset Wizard (see Select Account Class on page 3.3) or on Step 2 of the Transfer Asset Wizard (see Select Account Class on page 4.3). For information on account classes, see Plan Account Classes on page 6.4. Cost This is the acquisition cost (purchase cost) of the asset. Hint: You enter the asset s cost and salvage value (see below) on Step 3 of the Add Asset Wizard. (See Enter Purchase Information on page 3.4.) These fields are not editable for existing assets. Fixed Assets Inventory 2/3/2006 Edition 3.14

33 Chapter 3: Maintain Assets Book Value The current book value of the asset is equal to its acquisition cost minus its accumulated depreciation. Note: The accumulated depreciation in this calculation includes depreciation through the end of the current month, whether it has been posted or not. This enables the program to calculate the correct book value, regardless of when you last posted depreciation. Salvage The salvage value is the amount you estimate you can receive for the asset at the end of its useful life. Useful Life This is the asset s estimated useful life (in years). Start Date This is the date on which depreciation began for this asset. An asset s depreciation start date depends on two things: 1. its acquisition date 2. your agency s depreciation averaging convention You enter the asset s acquisition date (purchase date) on Step 3 of the Add Asset Wizard. (See Enter Purchase Information on page 3.4.) It is not editable for existing assets. Depreciation averaging conventions simplify first-year and last-year depreciation calculations by assuming that assets are acquired or disposed of on designated dates throughout the year, instead of on the literal dates on which they are acquired or disposed of. For information on averaging conventions, see Calculating Depreciation on page A.1. Hint: Your agency s choice of averaging convention is in the Program Policies area of Setup. (See Plan Program Policies on page 6.7.) End Date This is the date on which depreciation ends for this asset. An asset s depreciation end date is equal to its start date plus its years of useful life. Posted Date This is the date on which depreciation posted. Fixed Assets Inventory 2/3/2006 Edition 3.15

34 Chapter 3: Maintain Assets GL Account and GL Account Description These fields display the number and description of the general ledger account to which depreciation posted. Posted Amount This is the amount of posted depreciation. Total Remaining Depreciation This is the amount of depreciation yet to post during the asset s useful life, assuming you do not dispose of it first. An asset s remaining depreciation is equal to its acquisition cost, minus its salvage value, minus its total posted depreciation (see below). Total Posted Depreciation This is the total depreciation that has posted to date for this asset. Fixed Assets Inventory 2/3/2006 Edition 3.16

35 4 PROCESS ASSETS From time to time, you may want to dispose of assets or transfer assets from one location to another. This chapter walks you through these processing steps. Topics addressed include: Transfer Assets 4.1 Dispose of Assets 4.4 You can access these options from the Maintain Assets screen. To Open the Maintain Assets Screen: Press A or click the Assets button on the Main Menu. The Browse Assets screen opens with a table of your agency's fixed assets. Only active assets appear by default. Select the asset you wish to process. Press Ctrl+E or click the Edit icon. (For information on using the Maintain Assets screen, see Maintain Assets on page 3.1.) TRANSFER ASSETS You will use the Transfer Asset Wizard to transfer assets from one location to another. You can access this wizard from either the Main tab or the Location tab of the Maintain Assets screen. Fixed Assets Inventory 2/3/2006 Edition 4.1

36 Chapter 4: Process Assets To Start the Transfer Asset Wizard: Open the asset record you want to transfer on either the Main tab or the Location tab of the Maintain Assets screen. Click the Wizards icon drop-down arrow, and then click Transfer Asset. USE THE TRANSFER ASSET WIZARD The Transfer Asset Wizard will guide you through four steps to transfer a single asset from one location to another: 1. Select Location 2. Select Account Class 3. Enter Date Placed 4. Confirmation Step 1: Select Location This step allows you to select the asset s new location. It contains two sections, location groups on the left and locations on the right. Hint: Your agency maintains your locations and location groups in Setup. See Maintain Locations and Location Groups on page The location groups on the left are in an "outline" or "tree" view. If a particular location group has other groups within it, that group has either a plus sign (+) or a minus sign (-) in front of it. Click the plus sign to expand the group and display the other groups within it. Click the minus sign to collapse the group and hide the other groups within it. If there is no plus or minus sign in front of a particular group, that group has no other groups within it. However, it could still contain individual locations, which will appear on the right. The location section on the right shows only the locations within the one location group currently selected on the left. To Complete Step 1: On the left, click to select the location group of the new location. On the right, click to select the specific location. Press PageDown or click the Start button to go to the next step. Fixed Assets Inventory 2/3/2006 Edition 4.2

37 Chapter 4: Process Assets Step 2: Select Account Class This step allows you to select the account class for the asset. The account class identifies the asset s development, depreciation method, and useful life, as well as four general ledger accounts for financial reporting. Step 2 offers a subset of your agency s account classes. It shows only those that have the same asset class, depreciation method, and useful life that the asset currently has. The main factor in choosing an account class on this step is the development in which the asset will be located after the transfer. Hint: You maintain your account classes in Setup. (For information, see Maintain Account Classes on page 7.6.) To Complete Step 2: Click in the table to select the account class. Press PageDown or click the Next button to go to the next step. Step 3: Enter Date Placed This step allows you to enter the date of the transfer. Step 3 contains only one data field, Date Placed. It is required. Date Placed Enter the date the asset was placed at the new location. This field defaults to today s date. To Complete Step 3: Verify or enter the date you placed the asset at the new location. Press PageDown or click the Next button to go to the next step. Step 4: Confirmation Step 4 allows you to confirm all of the information before you finish transferring this asset. The fields on this screen are not editable. To Complete Step 4: If anything is incorrect, press PageUp or click the Back button to go to the previous step(s) and correct it. If everything is correct, press PageDown or click the Finish button to finish transferring the asset. Fixed Assets Inventory 2/3/2006 Edition 4.3

38 Chapter 4: Process Assets DISPOSE OF ASSETS You will dispose of fixed assets from time to time, usually by selling them or discarding them. Often but not always you will do this as an asset comes to the end of its useful life. Your agency maintains your own custom list of disposition methods in Setup. (See Maintain Disposition Methods on page 7.11.) You will use the Dispose of Asset Wizard to dispose of assets. You can access this wizard from either the Main tab or the Depreciation tab of the Maintain Assets screen. To Start the Dispose of Asset Wizard: Open the asset record you want to dispose of on either the Main tab or the Location tab of the Maintain Assets screen. Click the Wizards icon drop-down arrow, and then click Dispose of Asset. USE THE DISPOSE OF ASSET WIZARD The Dispose of Asset Wizard will guide you through two steps to dispose of an asset: 1. Enter Disposal Information 2. Confirmation Step 1: Enter Disposal Information This step allows you to enter all the information needed to dispose of the asset. Step 1 contains six editable data fields: Disposition Date, Disposition Type, Disposition Reason, Replaced With, Sold To, and Sale Price. Disposition Date and Disposition Type are required. The Disposition Account field is not editable. Disposition Date Enter the date you disposed of the asset. This field defaults to today s date. Disposition Type Select how you disposed of the asset (for example, sold or discarded ). This field offers your agency-defined list of disposition methods, which you maintain in Setup. (See Maintain Disposition Methods on page 7.11.) Fixed Assets Inventory 2/3/2006 Edition 4.4

39 Chapter 4: Process Assets Disposition Account Any net gain or loss on the disposal of the asset will post to this account. (See Sale Price, below.) The disposition account is set by the account class currently assigned to this asset. You cannot edit this field. You assign an account class on Step 2 of the Add Asset Wizard (see Select Account Class on page 3.3) or on Step 2 of the Transfer Asset Wizard (see Select Account Class on page 4.3). For information on account classes, see Plan Account Classes on page 6.4. Disposition Reason Enter the reason you disposed of the asset. Replaced With If you replaced the asset with a different one, enter a short name or text description of the new asset. This field is for reference and reporting purposes only. It does not create a record for the new asset. (For help on adding asset records, see Add Assets on page 3.2.) Sold To If you sold the asset, enter the name of the purchaser. Sale Price If you sold the asset, enter the sale price. The Fixed Assets Inventory program will compare this value to the asset s current book value. Any difference between the two will result in a net gain or loss, which will post to the disposition account (see above). The book value appears on the Depreciation tab of the Maintain Assets screen. (See Monitor Asset Depreciation on page 3.13.) To Complete Step 1: Tab or click through the fields, entering the information. Press PageDown or click the Start button to go to the next step. Step 2: Confirmation Step 2 allows you to confirm all of the information before you finish disposing of this asset. The fields on this screen are not editable. To Complete Step 2: If anything is incorrect, press PageUp or click the Back button to go to the previous step and correct it. If everything is correct, press PageDown or click the Finish button to finish disposing of the asset. Fixed Assets Inventory 2/3/2006 Edition 4.5

40 Chapter 4: Process Assets Fixed Assets Inventory 2/3/2006 Edition 4.6

41 5 POST DEPRECIATION Depreciating a fixed asset means you do not report the entire cost of the asset during the period in which you acquire it. Instead, you spread the cost over all the years you will use the asset. As you depreciate an asset, its current value on your balance sheet decreases accordingly. (For information on depreciation, see Calculating Depreciation on page A.1.) You will post depreciation on a regular basis, usually monthly. Posting depreciation for an asset increases its depreciation expense and decreases its book value by an equal amount. The Post Depreciation Wizard automates this process for you. The Post Depreciation Wizard posts depreciation per asset class. In other words, you can choose to post for some asset classes, while leaving depreciation unposted for other classes. We recommend that you post depreciation each month, but the Fixed Assets Inventory program does not require you to do so. Each time you run the Post Depreciation Wizard no matter when you last ran it the program automatically calculates and posts all unposted depreciation (up to the posting date you enter in the wizard). If you use the WinTen² General Ledger program, you can choose to have depreciation post directly to your general ledger. This is a program policy option in Fixed Assets Inventory. (See Plan Program Policies on page 6.7.) To Start the Post Depreciation Wizard: Press D or click the Depreciation button on the Main Menu. Fixed Assets Inventory 2/3/2006 Edition 5.1

42 Chapter 5: Post Depreciation USE THE POST DEPRECIATION WIZARD The Post Depreciation Wizard will guide you through six steps to post depreciation: 1. Select Asset Class 2. Select Post Date 3. Print Pre-Posting Report 4. Post Depreciation 5. Print Final Posting Report 6. Complete Posting Depreciation As you complete each step, a green checkmark will appear next to the step title. If the wizard fails on any step, a red "X" will appear next to the step title. Step 1: Select Asset Class This step allows you to select one or more asset classes for which to post depreciation. Step 1 contains the Selected Asset Class table, which lists your asset classes. This screen also contains the Mark All and Unmark All functions. Selected Asset Class This table shows a list of your agency's asset classes, which you maintain in Setup. (See Maintain Asset Classes on page 7.4.) Fixed Assets Inventory 2/3/2006 Edition 5.2

43 Chapter 5: Post Depreciation All classes are checked by default. Uncheck any classes for which you do not want to post depreciation. Mark All and Unmark All Use these timesaving functions to check or uncheck all classes, respectively. To Complete Step 1: Press PageDown or click the Start button. The Select Asset Class to Post screen opens with a list of your agency's asset classes. Uncheck any classes for which you do not want to post depreciation. Press Enter or click the OK button to save your choices and close the screen. A green checkmark appears next to the Select Asset Class step, verifying that you have completed it. Step 2: Select Post Date This step allows you select the month for which to post depreciation. For all asset classes you selected on Step 1, the program will calculate and post all unposted depreciation through the last day of the month you select. Step 2 contains two data fields: Month and Year. Both are required. Month and Year Select the month and year for which to post depreciation. These fields default to the current month and year. To Complete Step 2: Press PageDown or click the Next button. On the Select Next Post Month screen, select the month and year. Press Enter or click the OK button to save your choices and close the screen. A green checkmark appears next to the Select Post Date step, verifying that you have completed it. Step 3: Print Pre-Posting Report This step allows you view and print a report of all depreciation you are about to post. Note: Examine the pre-posting report carefully. If you find any errors, exit the wizard and make any necessary corrections to your asset records. (See Edit Assets on page 3.6.) Fixed Assets Inventory 2/3/2006 Edition 5.3

44 Chapter 5: Post Depreciation You can choose two options for the report: Report Ordered By and Report Grouped By. Report Ordered By You can sort the report by asset description, asset number, or asset acquisition date. Report Grouped By You can group the report by asset class, asset account, or asset location. To Complete Step 3: Press PageDown or click the Next button. On the Depreciation Report Selection screen, select your options for the report. Press Enter or click the OK button. A report preview screen opens with the Fixed Asset Pre-Posting Report. For help on using a report preview screen, see Preview a Report on page D.4. View or print the report as needed. Verify that there are no errors. ** Press Alt+C or click the Close button to close the report preview screen. A green checkmark appears next to the Print Pre-Posting Report step, verifying that you have completed it. ** If You Find an Error on the Pre-Posting Report: Print or save the report. (For help, see Manage Reports on page D.1.) Press Alt+C or click the Close button to close the report preview screen. Press Esc or click the Exit icon to close the Post Depreciation Wizard. Use the report to make any necessary corrections to your asset records. (For help, see Edit Assets on page 3.6.) Restart the Post Depreciation Wizard. Step 4: Post Depreciation Step 4 posts your depreciation within the Fixed Assets Inventory program. If you have chosen automatic posting to WinTen² General Ledger, completing this step also posts your depreciation transactions to your general ledger.! CAUTION: After you have completed this step, you cannot undo it by going back or by canceling the wizard. To Complete Step 4: Press PageDown or click the Next button. Fixed Assets Inventory 2/3/2006 Edition 5.4

45 Chapter 5: Post Depreciation A green checkmark appears next to the Post Depreciation step, verifying that you have completed it. Step 5: Print Final Posting Report This step allows you view and print a report of all depreciation you just posted. (Step 5 is identical to Step 3, except the depreciation has already posted.) You can choose two options for the report: Report Ordered By and Report Grouped By. Report Ordered By You can sort the report by asset description, asset number, or asset acquisition date. Report Grouped By You can group the report by asset class, asset account, or asset location. To Complete Step 5: Press PageDown or click the Next button. On the Depreciation Report Selection screen, select your options for the report. Press Enter or click the OK button. A report preview screen opens with the Fixed Asset Posted Depreciation Report. For help on using a report preview screen, see Preview a Report on page D.4. Verify that there were no errors in posting. Print or save the report for your records (optional). (For help, see Manage Reports on page D.1.) Press Alt+C or click the Close button to close the report preview screen. A green checkmark appears next to the Print Final Posting Report step, verifying that you have completed it. Step 6: Complete Posting Depreciation Step 6 completes the wizard. To Complete Step 6: Press PageDown or click the Next button. A message box opens, telling you that you have completed the wizard. Press Enter or click the OK button to close the wizard and return to the Main Menu. Fixed Assets Inventory 2/3/2006 Edition 5.5

46 Chapter 5: Post Depreciation Fixed Assets Inventory 2/3/2006 Edition 5.6

47 PART III: SETUP

48

49 6 PLAN SETUP OPTIONS Each WinTen² program has a variety of Setup options. These options allow your agency to customize the program to best meet your needs and make your job easier. You should carefully plan and enter your Setup options before using the Fixed Assets Inventory program. The administrator of your WinTen² programs should also review your Setup options at least annually. This chapter addresses some of the more important options you should consider. Asset classes and asset types allow you to label and categorize your fixed assets for management and reporting. Account classes link fixed assets to your developments, providing support for developmental fund accounting. Program policies allow for more flexible customization of the Fixed Assets Inventory program. Topics addressed in this chapter include: Plan Asset Classes 6.1 Plan Account Classes 6.4 Plan Asset Types 6.5 Plan Program Policies 6.7 PLAN ASSET CLASSES An asset class is a broad category or classification of assets. Asset classes allow you to categorize your fixed assets for management reporting and analysis. They also tie together your asset types, account classes, and individual fixed assets. The Fixed Assets Inventory program gives you complete flexibility in defining your asset classes, but HUD provides guidelines based on GAAP (Generally Accepted Fixed Assets Inventory 2/3/2006 Edition 6.1

50 Chapter 6: Plan Setup Options Accounting Principles) for governmental accounting. HUD recommends the following seven classifications (Accounting for Fixed Assets, PHA GAAP Flyer, Vol. 1 Issue 2, June 1999, page 5): 1. Land 2. Buildings 3. Building improvements 4. Furniture and fixtures - Dwelling 5. Furniture and fixtures - Administration 6. Equipment - Dwelling 7. Equipment - Administration You might choose to use slightly different names for your asset classes. You might subdivide one or more of these seven into additional classes. It is also possible that your agency might not need all seven. Some agencies, for instance, do not have fixed assets that fall in HUD s Furniture and fixtures - Dwelling category. Most assets located in your dwelling units, such as appliances, typically belong in the Equipment - Dwelling category. An Asset Class record in the Fixed Assets Inventory program contains two data fields, Class Code and Description. The class code is a short identifier, and the description is a longer name or text description of the asset class. Both fields are required, and both can contain letters and/or numbers. The Class Code field can be up to ten characters. The Description field can be up to sixty characters, but thirty or fewer usually works best. Here is a customized list of asset classes we suggest for most housing authorities. Consider using it as a starting point for planning your own. Class Code Description Corresponding HUD Category CMP-EQP Computer Equipment Equipment - Administration OFC-EQP Office Equipment Equipment - Administration OFC-FRN Office Furniture Furniture and fixtures - Administration MNT-EQP Maintenance Equipment Equipment - Administration UNT-EQP Unit Equipment Equipment - Dwelling LAND Land Land BLDG Buildings Buildings BLD-IMP Building Improvements Building improvements Notice that we have modified HUD s names slightly in some of our descriptions. We have also separated Equipment - Administration into three asset classes and have not used Furniture and fixtures - Dwelling at all. Your asset classes also tie together your account classes, asset types, and individual fixed assets. Fixed Assets Inventory 2/3/2006 Edition 6.2

51 Chapter 6: Plan Setup Options For each of your asset classes, you will define at least one account class for each development that could use that asset class. An account class defines one depreciation method, one useful life, and a set of general ledger accounts for fixed assets. (See Plan Account Classes, below.) Each asset class must also be assigned to one or more asset types. Asset types are subdivisions of asset classes. Asset types help speed data entry when you are entering new assets in the program. (See Plan Asset Types on page 6.5.) Asset Class * Each asset class can be associated with multiple asset types and multiple account classes. Asset Type(s) Account Class(es) Individual Asset Depreciation Method Useful Life General Ledger Accounts: Asset Depreciation Expense Accumulated Depreciation Disposition * Each individual asset must have only one asset type and only one account class, both of which must belong to the same asset class. An individual asset has both an asset type and an account class. Each asset must have one and only one asset type and one and only one account class. You select both when you add an asset. (You do not assign asset classes directly to individual assets. The asset class is assigned by means of the asset type you choose when you add the asset.) After you have added an asset, you can no longer change the asset type. You can, however, change an asset s account class when you transfer the asset to a location in a different development. The assigned asset type and account class must always Fixed Assets Inventory 2/3/2006 Edition 6.3

52 Chapter 6: Plan Setup Options belong to the same asset class. (For information on adding and transferring individual assets, see Add Assets on page 3.2 and Transfer Assets on page 4.1.) After you have planned your asset classes, enter them in the Fixed Assets Inventory program. For help on setting up your Asset Class records, see Maintain Asset Classes on page 7.4. PLAN ACCOUNT CLASSES The primary purpose of account classes is to support developmental fund accounting. They enable you to transfer assets from one development to another, while ensuring that the assets are always reported correctly on your financial statements. An account class defines one depreciation method, one useful life, and a set of general ledger accounts for one asset class within one development. Your agency will have one account class for each possible combination of asset class, development, and useful life. As an example, let s say one of your asset classes is Unit Equipment. It is used for assets, such as refrigerators and stoves, that are located in your tenants units. Let s assume your agency uses two different useful lives for this class, seven years and ten years. Let s also assume your agency has two developments, Development A and Development B. For purposes of the Fixed Assets Inventory program, you will also define a third development we ll call it Admin. You will use the Admin development for any assets that are being used by all of your developments. This would include furniture and equipment in your main administrative office(s), as well as maintenance equipment. You will also use the Admin development for assets stored in any central warehouse. Because the Unit Equipment asset class uses two different useful lives, it will need two account classes for each development (one for seven years and one for ten years). Therefore, you will need six account classes for this asset class (3 developments X 2 useful lives). Here are the six account classes for unit equipment: 1. Unit Equipment - Admin - 7 YR 2. Unit Equipment - Admin - 10 YR 3. Unit Equipment - Dev A - 7 YR 4. Unit Equipment - Dev A - 10 YR 5. Unit Equipment - Dev B - 7 YR 6. Unit Equipment - Dev B - 10 YR Follow the same steps to identify all the account classes you will need for each of your asset classes. For each asset class, you can use the formula we used above Fixed Assets Inventory 2/3/2006 Edition 6.4

53 Chapter 6: Plan Setup Options (number of developments X number of useful lives) to determine the number of Account Class records you need. An Account Class record contains eight data fields: Description, Class, Depreciation Method, Useful Life, Asset Account, Depreciation Expense Account, Accumulated Depreciation Account, and Disposition Account. Description, Class, Depreciation Method, and Useful Life are required. The four account fields are also required if you want to have depreciation post directly to your general ledger. The description is a name or text description to identify the record. It can be up to sixty letters and/or numbers, but twenty-five or fewer usually works best. Since the asset class, development, and useful life are the determining factors in identifying your account classes, we strongly recommend you include these three elements in the description (as we have in our six examples above). This makes for easier identification, even though the asset class and useful life are also entered in their own separate data fields. The Depreciation Method field identifies the depreciation method for the asset class. The options are straight-line depreciation or no depreciation. (For information on depreciation methods, see Calculating Depreciation on page A.1.) The four account fields identify general ledger accounts associated with fixed assets. These accounts should correspond to the development associated with the account class. (For information on these account fields, see Maintain Account Classes Screen on page 7.7.) You must assign each individual asset to an account class. When you add an asset, you will select an account class on Step 2 of the Add Asset Wizard. (See Add Assets on page 3.2.) When you transfer an asset, you will select an account class on Step 2 of the Transfer Asset Wizard. (See Transfer Assets on page 4.1.) After you have planned your account classes, enter them in the Fixed Assets Inventory program. For help on setting up your Account Class records, see Maintain Account Classes on page 7.6. PLAN ASSET TYPES An asset type is a narrow category or classification of assets, such as filing cabinet or refrigerator. Asset types are subdivisions of asset classes. They help speed data entry when you are entering new assets in the program. For many of your fixed assets, you likely have a large quantity of identical items (refrigerators or desks, for example). Asset types allows you to select the existing description when you are adding an asset, instead of having to retype it each time. Fixed Assets Inventory 2/3/2006 Edition 6.5

54 Chapter 6: Plan Setup Options You have complete flexibility in defining your asset types. You can choose to make them very generic (such as range or phone ) or you can make them very specific (such as Toyota T100 truck ). Most likely, you will have some of both. An Asset Type record contains six data fields: Description, Class, Manufacturer, Make, Model, and Extended Description. Description and Class are required. The description is a name or text description to identify the asset type. It can be up to sixty letters and/or numbers, but thirty or fewer usually works best. Each asset type must belong to an asset class. This puts your assets in the correct categories and links them by means of account classes to the correct developments and general ledger accounts. The remaining fields are optional. Enter the manufacturer, make, and/or model if you want to make an asset type very specific. Omit them for a generic asset type. The extended description allows you to enter additional information that may be helpful for your agency. The possible asset types are limitless. Here are just a few examples: Description Class Manufacturer Make Model Chair, Executive Office Equipment Chair, Executive Office Equipment Heyworth H750 Filing Cabinet, Office Equipment 5-Drawer Filing Cabinet, Office Equipment Hon F105 5-Drawer Heat Pump, Unit Equipment 18,000 BTU Heat Pump Unit Equipment Trane T1500 Truck Maintenance Equipment Truck Maintenance Equipment Toyota T100 After you have planned your asset types, enter them in the Fixed Assets Inventory program. For help on setting up your Asset Type records, see Maintain Asset Types on page When you add an asset, you will select an asset type on Step 1 of the Add Asset Wizard. (See Add Assets on page 3.2.) You can also add, edit, or delete asset types on the fly directly from this wizard step. Fixed Assets Inventory 2/3/2006 Edition 6.6

55 Chapter 6: Plan Setup Options PLAN PROGRAM POLICIES Program policies are advanced options within Fixed Assets Inventory that can affect many different aspects of the program's behavior. Tenmast staff members will set up your initial policy choices for you. If you want to change any of your choices, please contact Tenmast to discuss the decision. Changing policy choices may have far reaching effects on the program s behavior and on your agency s data.! CAUTION: It is extremely important that you do not change any program policies, expect in direct consultation with Tenmast staff. The Fixed Assets Inventory program contains four policy options: Auto-Generate Asset Numbers, Depreciation Averaging Convention, Post Depreciation to General Ledger, and Post Summary Depreciation. Auto-Generate Asset Numbers This is a yes or no option. It affects the asset numbers for new assets, which are assigned on Step 4 of the Add Asset Wizard. (See Add Assets on page 3.2 and Enter Asset Numbers on page 3.5.) If you choose no, you must manually enter a unique asset number for each new asset. You will usually choose this option if you use preprinted asset number tags that you affix to your assets. You will enter each asset s number from its preprinted tag. If you choose yes, the Fixed Assets Inventory program will automatically assign asset numbers for you. Depreciation Averaging Convention You can choose one of four depreciation averaging conventions: Full Month, Mid- Month, Mid-Quarter, and Half-Year. Depreciation averaging conventions simplify first-year and last-year depreciation calculations by assuming that assets are acquired or disposed of on designated dates throughout the year, instead of on the literal dates on which they are acquired or disposed of. (For information on depreciation averaging conventions, see Calculating Depreciation on page A.1.) Fixed Assets Inventory 2/3/2006 Edition 6.7

56 Chapter 6: Plan Setup Options Post Depreciation to General Ledger This is a yes or no option: Do you want your depreciation to post automatically to your general ledger (GL)? Note: You must use the WinTen² General Ledger program in order to use this option. If you use WinTen² General Ledger, we recommend answering "yes." If you answer "no" or if you do not use WinTen² General Ledger you must post your depreciation manually to your ledger. Post Summary Depreciation This option is available only if you choose yes for Post Depreciation to General Ledger, above. This is also a yes or no option: When your depreciation transactions post to GL, do you want them to post in summary or in detail? If you choose "summary," Fixed Assets Inventory will post only one entry to each GL account that is affected by one or more depreciation transactions. (In other words, multiple depreciation transactions affecting the same GL account will be combined into one GL entry.) If you choose "detail," Fixed Assets Inventory will post a separate entry to GL for each depreciation transaction.! CAUTION: It is extremely important that you do not change any program policies, expect in direct consultation with Tenmast staff. If you are directed by Tenmast staff to change program polices, see Maintain Program Policies on page Fixed Assets Inventory 2/3/2006 Edition 6.8

57 7 IMPLEMENT SETUP After planning your Setup options, you must enter your choices into the Fixed Assets Inventory program before you can begin using it. This chapter will walk you step-bystep through entering these options. You will also enter a few simple options we did not discuss in the planning chapter of this manual. Note: Please be especially careful when entering Setup options. Inaccurate settings can cause Fixed Assets Inventory to function in an unexpected manner. As mentioned above, the administrator of your WinTen² programs should review the planning and implementation of your Setup options at least annually. You will use the Fixed Asset Setup Screen to enter your options. To Open the Fixed Asset Setup Screen: Press S or click the Setup button on the Main Menu. Fixed Assets Inventory 2/3/2006 Edition 7.1

58 Chapter 7: Implement Setup Fixed Asset Setup Screen The Fixed Asset Setup screen gives you access to eight different Setup areas, each with its own screen: Maintain Default Settings 7.3 Maintain Asset Classes 7.4 Maintain Account Classes 7.6 Maintain Asset Types 7.10 Maintain Disposition Methods 7.11 Maintain Locations and Location Groups 7.13 Maintain Purchase Types 7.20 Maintain Program Policies 7.21 Fixed Assets Inventory 2/3/2006 Edition 7.2

59 Chapter 7: Implement Setup MAINTAIN DEFAULT SETTINGS Fixed Asset Default Settings contains high-level options that can affect multiple areas of the program. You will use the Fixed Asset Settings Screen to view and maintain this information. To Open the Settings Screen: Press S or click the Settings button on the Setup screen. Fixed Asset Settings Screen The Fixed Asset Settings screen gives you access to the Change Color option and to your agency contact information. To change your contact information, you must be in Edit mode. To change color, you must not be in Edit mode. Change Color Some agencies choose to color code their WinTen² financial programs so they know at a glance which program they are using. The Change Color icon allows you to set Fixed Assets Inventory 2/3/2006 Edition 7.3

60 Chapter 7: Implement Setup the background color of screens in Fixed Assets Inventory. Light colors usually work best. To Change Background Color: Click the Change Color icon. In the Color dialog box, click to choose a basic color. OR Click the Define Custom Colors button and choose a custom color. Click the OK button. Agency Contact Information The following fields make up your agency's contact information: Organization Name, Address 1 and 2, City, State, Zip, Phone, Fax, and . This information will appear on various printed forms and reports in Fixed Assets Inventory. To Edit Contact Information: Press Ctrl+E or click the Edit icon. Tab or click through the fields, entering or changing information as needed. To save your changes, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) MAINTAIN ASSET CLASSES An asset class is a broad category or classification of assets, such as land, buildings, furniture, or equipment. Asset classes allow you to categorize your fixed assets for management reporting and analysis. They also tie together your asset types, account classes, and individual fixed assets. (See Plan Asset Classes on page 6.1.) You do not assign asset classes directly to individual assets. The asset class is assigned by means of the asset type you choose when you add the asset. You must assign each asset class to at least one account class and at least one asset type. The Asset Class field appears on the Maintain Account Classes screen (see Maintain Account Classes on page 7.6) and on the Maintain Asset Types screen (see Maintain Asset Types on page 7.10). This field also appears on the Main tab of the Maintain Assets screen, but it is not editable for existing assets. (See Maintain General Asset Information on page 3.7.) You will use the Maintain Asset Classes Screen to view and maintain your agency's list of asset classes. Fixed Assets Inventory 2/3/2006 Edition 7.4

61 Chapter 7: Implement Setup To Open the Maintain Asset Classes Screen: Press C or click the Asset Class button on the Setup screen. Maintain Asset Classes Screen An asset class contains two data fields: Class Code and Description. Both are required. Class Code This is a short code to identify the asset class. It can be up to ten letters and/or numbers. Description This is your agency s text description to identify the asset class. It can be up to sixty letters and/or numbers, but thirty or fewer usually works best. To Add an Asset Class: Press Ctrl+A or click the Add icon. Tab or click through the fields, entering the class code and description. To save, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) Fixed Assets Inventory 2/3/2006 Edition 7.5

62 Chapter 7: Implement Setup To Edit an Asset Class: Select the asset class you want to edit. Press Ctrl+E or click the Edit icon. Tab or click through the fields, changing information as needed. To save your changes, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) To Delete an Asset Class: Select the asset class you want to delete. Press Ctrl+D or click the Delete icon. Press Y or click the Yes button to confirm the deletion. (To cancel, press N or click the No button.) Note: You cannot delete an asset class you have assigned to any asset type or account class. You will usually delete only asset classes you have never used. MAINTAIN ACCOUNT CLASSES An account class defines one depreciation method, one useful life, and a set of general ledger accounts for one asset class within one development. Your agency will have one account class for each possible combination of asset class, development, and useful life. (See Plan Account Classes on page 6.4.) You must assign each individual asset to an account class. When you add an asset, you will select an account class on Step 2 of the Add Asset Wizard. (See Add Assets on page 3.2.) When you transfer an asset, you will select an account class on Step 2 of the Transfer Asset Wizard. (See Transfer Assets on page 4.1.) For each asset, fields from the Account Class record also appear on the Main tab of the Maintain Assets screen, but you cannot edit them directly on that screen. (See Maintain General Asset Information on page 3.7.) These fields include the depreciation method, useful life, and general ledger accounts. You can change this information for an asset only by transferring the asset with the Transfer Asset Wizard. You will use the Maintain Account Classes Screen to view and maintain your agency's account classes. To Open the Maintain Class Accounts Screen: Press A or click the Asset Accounts button on the Setup screen. Fixed Assets Inventory 2/3/2006 Edition 7.6

63 Chapter 7: Implement Setup Maintain Account Classes Screen An Account Class record contains eight data fields: Description, Class, Depreciation Method, Useful Life, Asset Account, Depreciation Expense Account, Accumulated Depreciation Account, and Disposition Account. Description, Class, Depreciation Method, and Useful Life are required. The four account fields are also required if you want to have depreciation post directly to your general ledger. Assigning general ledger accounts allows fixed asset information to appear on your agency's balance sheet, revenue statement, and other financial reports. These accounts should correspond to the development associated with the account class. If your agency uses the WinTen² General Ledger program, each of the four account fields is a drop-down list that allows you to select from your general ledger account numbers. If your agency does not use the WinTen² General Ledger program, type the appropriate account number in each field. These accounts also allow the Fixed Assets Inventory program to post depreciation directly to your general ledger. If you want to use the direct posting feature, you must Fixed Assets Inventory 2/3/2006 Edition 7.7

64 Chapter 7: Implement Setup use the WinTen² General Ledger program, and you must select all four account fields for each account class. Hint: The automatic posting option appears in the Program Policies area of Setup. See Plan Program Policies on page 6.7. For information on general ledger accounts, balance sheets, and revenue statements, please see the user manual for WinTen² General Ledger. Description This is your agency s text description to identify this account class. It can be up to sixty letters and/or numbers, but twenty-five or fewer usually works best. We strongly recommend including the asset class, development, and useful life in the description (for example, Unit Equipment - Dev B - 7 YR ). Class This is the asset class for this record. This field offers your agency-defined list of asset classes, which you also maintain in Setup. (See Plan Asset Classes on page 6.1 and Maintain Asset Classes on page 7.4.) Depreciation Method This is the depreciation method for this record. The options are straight-line depreciation or no depreciation. (For information on depreciation methods, see Calculating Depreciation on page A.1.) Useful Life This is the estimated useful life (in years) of assets in this account class. Asset Account For assets in the chosen development, this is the general ledger account through which assets appear on your agency's balance sheet. This is usually an account with a line item of 1400 (Fixed Assets) or a sub account of Depreciation Expense Account This is the general ledger account to which depreciation expense posts for assets in the chosen development. This is usually an account with a line item of 4800 (Depreciation Expense). Accumulated Depreciation Account For assets in the chosen development, this is the general ledger asset account through which accumulated depreciation appears on your agency's balance sheet. This is usually an account with a line item of 1405 (Accumulated Depreciation). Fixed Assets Inventory 2/3/2006 Edition 7.8

65 Chapter 7: Implement Setup Disposition Account This is the general ledger account to which a net gain or loss posts when you dispose of an asset in the chosen development. This is usually an account with a line item of 3490 (Gain or Loss on Sale of Fixed Assets). It can sometimes be an account with a line item of 6110 (Gain or Loss from Disposition of Real Property) or 6120 (Gain or Loss from Disposition of Nonexpendable Equipment). To Add an Account Class: Press Ctrl+A or click the Add icon. Tab or click through the fields, entering the information. To save, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) To Edit an Account Class: Select the record you want to edit. Press Ctrl+E or click the Edit icon. Tab or click through the fields, changing information as needed. To save your changes, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) Note: You cannot change the Depreciation Method field if you have assigned the account class to any asset. To Delete an Account Class: Select the record you want to delete. Press Ctrl+D or click the Delete icon. Press Y or click the Yes button to confirm the deletion. (To cancel, press N or click the No button.) Note: You cannot delete an account class you have assigned to any asset. You will usually delete only account classes you have never used. Fixed Assets Inventory 2/3/2006 Edition 7.9

66 Chapter 7: Implement Setup MAINTAIN ASSET TYPES An asset type is a narrow category or classification of assets, such as filing cabinet or refrigerator. Asset types help speed data entry when you are entering new assets in the program. (See Plan Asset Types on page 6.5.) Each asset type is a subdivision of an asset class. When you add an asset, you will select an asset type on Step 1 of the Add Asset Wizard. (See Add Assets on page 3.2.) Note: You can also add, edit, or delete asset types directly from Step 1 of the Add Asset Wizard. You will use the Maintain Asset Types Screen to view and maintain your agency's list of asset types. To Open the Maintain Asset Types Screen: Press T or click the Asset Type button on the Setup screen. Maintain Asset Types Screen An asset type contains six data fields: Description, Class, Manufacturer, Make, Model, and Extended Description. Description and Class are required. Description This is your agency s text description to identify the asset type. It can be up to sixty letters and/or numbers, but thirty or fewer usually works best. Class Select the asset class for this asset type. This field offers your agency-defined list of asset classes, which you also maintain in Setup. (See Plan Asset Classes on page 6.1 and Maintain Asset Classes on page 7.4.) Manufacturer, Make, and Model This is the manufacturer, make, and/or model for this asset type. These fields are optional. Enter this information if you want to make the asset type very specific. Omit it for a generic asset type. Extended Description This optional field allows you to enter additional information that may be helpful for your agency. Fixed Assets Inventory 2/3/2006 Edition 7.10

67 Chapter 7: Implement Setup To Add an Asset Type: Press Ctrl+A or click the Add icon. Tab or click through the fields, entering the information. To save, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) To Edit an Asset Type: Select the asset type you want to edit. Press Ctrl+E or click the Edit icon. Tab or click through the fields, changing information as needed. To save your changes, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) Note: You cannot change the Asset Class field if you have assigned the asset type to any asset. To Delete an Asset Type: Select the asset type you want to delete. Press Ctrl+D or click the Delete icon. Press Y or click the Yes button to confirm the deletion. (To cancel, press N or click the No button.) Note: You cannot delete an asset type you have assigned to any asset. You will usually delete only asset types you have never used. MAINTAIN DISPOSITION METHODS Disposition methods simply identify how you disposed of assets. Common examples are sold, discarded, retired, and lost. Your agency has complete flexibility in defining the disposition methods you want to use. You will select a disposition method each time you dispose of an asset. This field appears on Step 1 of the Dispose of Asset Wizard. (See Dispose of Assets on page 4.4.) Fixed Assets Inventory 2/3/2006 Edition 7.11

68 Chapter 7: Implement Setup You will use the Maintain Disposition Methods Screen to view and maintain your agency's list of possible disposition methods. To Open the Maintain Disposition Methods Screen: Press D or click the Disposition button on the Setup screen. Maintain Disposition Methods Screen A disposition method contains only one data field, Description. It is required. Description This is your agency s name or description to identify the disposition method. It can be up to forty letters and/or numbers. To Add a Disposition Method: Press Ctrl+A or click the Add icon. Enter the description. To save, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) To Edit a Disposition Method: Select the disposition method you want to edit. Fixed Assets Inventory 2/3/2006 Edition 7.12

69 Chapter 7: Implement Setup Press Ctrl+E or click the Edit icon. Change the description as needed. To save your changes, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) To Delete a Disposition Method: Select the disposition method you want to delete. Press Ctrl+D or click the Delete icon. Press Y or click the Yes button to confirm the deletion. (To cancel, press N or click the No button.) MAINTAIN LOCATIONS AND LOCATION GROUPS Locations and location groups let you track where assets are being used or stored. Your agency has complete flexibility in defining the locations and location groups you want to use. Location groups allow you to categorize locations for reporting and management analysis. You can create multi-level location groups you can have groups within other groups. This allows you to create them in a hierarchy, like an organizational chart or a family tree. The hierarchy of your groups should reflect the physical organization of your housing authority. Your housing authority itself is at the top of the hierarchy, followed by your developments. (You will also want to include one or more groups for your administrative offices, maintenance buildings, and warehouses.) Within each development, the next level might be tracts or buildings. Your buildings may or may not have wings that you want to include as groups. Here s an example of how you might organize your location groups: Tenmast Housing Authority : Admin : : Main Office : : Maintenance : : Warehouse Fixed Assets Inventory 2/3/2006 Edition 7.13

70 Chapter 7: Implement Setup : Development A : : Building 1 : : Building 2 : Development B : : Building 1 : : Building 2 Most location groups contain one or more locations. Some higher level groups might not contain locations, only other groups. You must assign each asset to a location. A location is a specific place (such as a unit, community room, office, or storage room) where an asset can be used or stored. Most of your locations will be units. You will use the Maintain Locations Screen to view and maintain your agency's list of locations and location groups. To Open the Maintain Locations Screen: Press L or click the Location button on the Setup screen. Maintain Locations Screen Fixed Assets Inventory 2/3/2006 Edition 7.14

71 Chapter 7: Implement Setup The Maintain Locations screen has a non-editable field at the top of the screen to identify the location group you have currently selected. There are also two tabs near the top of this screen: Location Group and Location. You can use the Location Group tab to view and maintain your location groups. You can use the Location tab to view and maintain your individual locations. (See Maintain Locations on page 7.17.) We will first walk through maintaining location groups on the Location Group tab. MAINTAIN LOCATION GROUPS A location group can contain other location groups, individual locations, or both. This allows you to organize you locations in a hierarchy, which gives you greater flexibility in tracking and reporting on your assets. You can run reports that list the assets located at any place in the hierarchy. You will use the Maintain Locations Screen: Location Group Tab to view and maintain your location groups. To Open the Location Group Tab: This tab appears by default when you open the Maintain Locations screen. If you have left it, press Ctrl+Tab or click the Location Group tab (at the upper left). Fixed Assets Inventory 2/3/2006 Edition 7.15

72 Chapter 7: Implement Setup Maintain Locations Screen: Location Group Tab This tab contains a list of your agency's location groups in an "outline" or "tree" view. This view allows you to see them in a hierarchy, like an organizational chart or a family tree. If a particular location group has other groups within it, that group has either a plus sign (+) or a minus sign (-) in front of it. Click the plus sign to expand the group and display the other groups within it. Click the minus sign to collapse the group and hide the other groups within it. If there is no plus or minus sign in front of a particular group, that group has no other groups within it. However, it could still contain individual locations, which appear on the Location tab. A location group has only one data field, Description. It is required. Description This is a short name or text description to identify the location group. It can contain up to sixty letters and/or numbers, but twenty-five or fewer usually works best. Fixed Assets Inventory 2/3/2006 Edition 7.16

73 Chapter 7: Implement Setup To Add a Location Group: Select the group in which to add a new group. In other words, select the parent of the new group. You will create the new group within the group you select. Hint: You can use the non-editable field at the top of the screen to verify that you have selected the correct group. Press Ctrl+A or click the Add icon. Enter the group description. To save this new group, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) To Edit a Location Group: Select the group you want to edit. Press Ctrl+E or click the Edit icon. Edit the Description field as needed. To save your changes, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) To Delete a Location Group: Select the group you want to delete. Press Ctrl+D or click the Delete icon. Press Y or click the Yes button to confirm the deletion. (To cancel, press N or click the No button.) Note: You cannot delete a location group that contains any other groups or any individual locations. You will usually delete only groups you have never used. MAINTAIN LOCATIONS A location is a specific place (such as a unit, community room, office, or storage room) where an asset is being used or stored. Each location must exist within a location group. You must enter a location's group in the Fixed Assets Inventory program before you can enter the location itself. (See Maintain Location Groups, above.) Fixed Assets Inventory 2/3/2006 Edition 7.17

74 Chapter 7: Implement Setup You must assign each asset to a location. When you add an asset, you will select a location on Step 3 of the Add Asset Wizard. (See Add Assets on page 3.2.) When you transfer an asset, you will select a location on Step 1 of the Transfer Asset Wizard. (See Transfer Assets on page 4.1.) An asset s location also appears on both the Main tab and the Location tab of the Maintain Assets screen. (See Maintain General Asset Information on page 3.7 and Monitor Asset Locations on page 3.11.) However, you cannot edit the Location field directly. After you have added the asset, you can change the location only by using the Transfer Asset Wizard. You will use the Maintain Locations Screen: Location Tab to view and maintain your agency s locations. To Open the Location Tab: Select, on the Location Group tab, the group whose locations you want to view. Press Ctrl+Tab or click the Location tab (at the upper left) on the Maintain Locations screen. Maintain Locations Screen: Location Tab The Location tab shows only the locations within the one location group currently selected on the Location Group tab. The name of this group is displayed in the noneditable field at the top of the screen. Fixed Assets Inventory 2/3/2006 Edition 7.18

75 Chapter 7: Implement Setup A location contains two data fields: Description and Comment. Description is required. Description This is a short text description to identify the location. It can contain up to sixty letters and/or numbers, but twenty-five or fewer usually works best. Comment Enter any additional information about the location that may be helpful for your agency. To Add a Location: Verify the location group you have selected. You will create the new location within the selected group. Press Ctrl+A or click the Add icon. Tab or click through the fields, entering the information. To save, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) To Edit a Location: Select the location you want to edit. Press Ctrl+E or click the Edit icon. Tab or click through the fields, changing information as needed. To save your changes, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) To Delete a Location: Select the location you want to delete. Press Ctrl+D or click the Delete icon. Press Y or click the Yes button to confirm the deletion. (To cancel, press N or click the No button.) Note: You cannot delete a location you have assigned to any asset. You will usually delete only locations that you have never used. Fixed Assets Inventory 2/3/2006 Edition 7.19

76 Chapter 7: Implement Setup MAINTAIN PURCHASE TYPES Purchase types allow you to report on and analyze your fixed assets based on the terms of their purchase. The most common purchase types are "new" and "used" (meaning, "Was the asset new or used when you purchased it?"). Other examples might include rebuilt or donated. Your agency has complete flexibility in defining the purchase types you want use. When you add an asset, you will select a purchase type on Step 3 of the Add Asset Wizard. (See Add Assets on page 3.2.) This field also appears on the Main tab of the Maintain Assets screen. (See Maintain General Asset Information on page 3.7.) You will use the Maintain Purchase Types Screen to view and maintain your agency's list of possible purchase types. To Open the Maintain Purchase Types Screen: Press P or click the Purchase Type button on the Setup screen. Maintain Purchase Types Screen A purchase type contains only one data field, Description. It is required. Fixed Assets Inventory 2/3/2006 Edition 7.20

77 Chapter 7: Implement Setup Description This is your agency s name or description to identify the purchase type. It can be up to sixty letters and/or numbers. To Add a Purchase Type: Press Ctrl+A or click the Add icon. Enter the description. To save, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) To Edit a Purchase Type: Select the purchase type you want to edit. Press Ctrl+E or click the Edit icon. Change the description as needed. To save your changes, press Ctrl+S or click the Save icon. (To cancel, press Ctrl+Q or click the Cancel icon.) To Delete a Purchase Type: Select the purchase type you want to delete. Press Ctrl+D or click the Delete icon. Press Y or click the Yes button to confirm the deletion. (To cancel, press N or click the No button.) Note: You cannot delete a purchase type you have assigned to any asset. You will usually delete only purchase types you have never used. MAINTAIN PROGRAM POLICIES Program policies are advanced options within Fixed Assets Inventory that can affect many different aspects of the program's behavior. (See Plan Program Policies on page 6.7.) Fixed Assets Inventory 2/3/2006 Edition 7.21

78 Chapter 7: Implement Setup A Tenmast staff member may direct you to modify program policies.! CAUTION: It is extremely important that you do not change any program policies, expect in direct consultation with Tenmast staff. You will use the Browse Policies Screen to view and maintain your agency's program policies. To Open the Browse Polices Screen: Press O or click the Policies button on the Setup screen. Browse Policies Screen The Browse Policies screen contains a policy table with one row of information for each policy available in the Fixed Assets Inventory program. A program policy contains only one editable data field, Value. The policy table also displays two non-editable fields: Code and Description. You will edit policies in the Maintain Policy dialog box. This dialog box contains one additional field, Comment. It is not editable. Fixed Assets Inventory 2/3/2006 Edition 7.22

79 Chapter 7: Implement Setup! CAUTION: It is extremely important that you do not change any program policies, expect in direct consultation with Tenmast staff. Code This is the computer programming code used to identify the policy. Description This is a short text description to identify the policy. Comment The Comment field provides additional information about the policy, often a list of allowable entries for the Value field. Value This field contains your agency's value or "choice" for the policy option. To Edit a Program Policy: Verify your policy choice with Tenmast staff. Select the policy you want to edit. Press Ctrl+E or click the Edit icon. In the Maintain Policy dialog box, tab or click to the Value field and enter a value as directed by a Tenmast staff member. To save your change, press Enter or click the OK button. (To cancel, press Esc or click the Cancel button.) Fixed Assets Inventory 2/3/2006 Edition 7.23

80 Chapter 7: Implement Setup Fixed Assets Inventory 2/3/2006 Edition 7.24

81 PART IV: APPENDIXES

82

83 A CALCULATING DEPRECIATION The Fixed Assets Inventory program calculates depreciation for you automatically; you do not need to calculate it manually. This appendix introduces you to the basics of depreciation. If you are new to working with fixed assets, this will help you better understand what the program does when it calculates depreciation. Topics addressed in this appendix include: Depreciating an Asset A.1 Straight-Line Depreciation A.1 Depreciation Averaging Conventions A.3 Depreciating an Asset Depreciating a fixed asset means you do not report the entire cost of the asset as an expense during the period in which you acquire it. Instead, you spread the cost over all the years you will use the asset. As you depreciate an asset, its book value decreases accordingly. Depreciating an asset serves two accounting purposes: 1. It allows you to report the appropriate cost of the asset on your agency's revenue statement. 2. It allows you to report the appropriate value of the asset on your agency's balance sheet. Straight-Line Depreciation There are several different methods of calculating depreciation. HUD recommends you use the straight-line depreciation method because of its simplicity. This method distributes an asset's cost equally to each year of its useful life. Fixed Assets Inventory 2/3/2006 Edition A.1

84 Appendix A: Calculating Depreciation Most other depreciation methods, such as various types of accelerated depreciation, are used for tax purposes. They help determine and/or reduce the owner's taxable income. This is not an issue for public housing authorities. The Fixed Assets Inventory program supports only the straight-line depreciation method. However, you can also choose not to depreciate certain assets that you track in the program. Land and permanent land improvements, for instance, are not depreciated. For depreciation purposes, the "cost" does not necessarily mean the asset's purchase price (its "acquisition cost"). Instead, it means the acquisition cost minus any salvage value you expect to receive from it at the end of its useful life. This cost is known as the "depreciable basis." Straight-line is the simplest depreciation method. You can calculate it using two basic formulas: Acquisition Cost - Salvage Value = Depreciable Basis Depreciable Basis / Useful Life (in years) = Depreciation Expense per Year You can also combine these two formulas into one: Acquisition Cost - Salvage Value Useful Life (in years) = Depreciation Expense per Year As an example, let's say you purchase a desk for $320 (its acquisition cost). You estimate that it has a useful life of 10 years, and that you could sell it for scrap and get $20 (its salvage value) at the end of the 10 years. Putting these values into our last formula gives you a straight-line depreciation expense of $30 per year: $320 - $20 10 years = $30 per year Most agencies calculate and post depreciation each month, not just once a year. The same formula applies. To get the monthly depreciation, simply divide the annual depreciation by 12. Your desk will depreciate $2.50 per month ($30/12). Fixed Assets Inventory 2/3/2006 Edition A.2

85 Appendix A: Calculating Depreciation As you depreciate an asset, its book value decreases accordingly. When you first purchase the desk, you record no expense at all and record its asset value on your balance sheet as $ The first month, you record the $2.50 of depreciation expense and reduce the desk s value by $2.50, to $ The second month, you record another $2.50 of depreciation and reduce the asset value to $ This continues throughout the useful life of the asset, unless you dispose of it first. Depreciation Averaging Conventions Depreciation averaging conventions determine the correct depreciation for the first year and last year of an asset s useful life. The formula discussed above is the basic calculation for straight-line depreciation, but unfortunately, it's not quite so simple in the real world. You almost never own an asset for 100% of the calendar year in which you acquire it or for 100% of the calendar year in which you dispose of it. This means you should not report a full year's worth of depreciation for those two years. Calculating first-year and last-year depreciation based on the exact days you acquire or dispose of assets would become extremely complicated, especially considering the large number of assets most agencies have. Depreciation averaging conventions help simplify this for us. Averaging conventions assume that assets are acquired (placed in service) or disposed of on designated dates throughout the year, instead of on the literal dates on which they are placed in service or disposed of. This determines how much depreciation is allowed when you acquire or dispose of an asset. Note: Averaging conventions affect only the first year and the last year an asset is in service. Each year in between receives a full year of depreciation. The Fixed Assets Inventory program allows your agency to choose one of four depreciation averaging conventions: Full Month, Mid-Month, Mid-Quarter, and Half-Year. Here is how each convention determines depreciation: Full Month Acquisitions: A full month of depreciation is allowed for the month when you place an asset in service. Disposals: No depreciation is allowed for the month when you dispose of an asset. Example: Your agency s Fiscal Year End is December 31. On May 10, 2003, you purchase an asset for $1,000 with a salvage value of $100. This asset is defined as having a 5 year life. Fixed Assets Inventory 2/3/2006 Edition A.3

86 Appendix A: Calculating Depreciation The depreciable basis for this asset is $900. ($1,000 acquisition cost minus $100 salvage value.) Note: The total (accumulated) depreciation for an asset can never exceed its depreciable basis, regardless of the averaging convention, acquisition date, or disposition date. For the Fiscal Year ending December 31, 2003, the asset will accumulate 8 months of depreciation (May through December). You sell the asset on May 17, The asset has accumulated depreciation as follows, up to the disposition date: FY 2003: 8 months. FY 2004: 12 months. FY 2005: 4 months (January through April). Mid-Month The mid-month convention rounds depreciation to the nearest whole month. Acquisitions: If you place an asset in service during the first half of a month (on or before the 15th), a full month of depreciation is allowed for that month. If you place an asset in service during the last half of a month (on or after the 16th), no depreciation is allowed for that month. Disposals: If you dispose of an asset during the first half of a month, no depreciation is allowed for that month. If you dispose of an asset during the last half of a month, a full month of depreciation is allowed for that month. Example: We will use the same assumptions as our Full-Month example: an asset purchased on May 10, 2003, and sold on May 17, 2005: For the Fiscal Year ending December 31, 2003, the asset will accumulate 8 months of depreciation. (You acquired the asset prior to the 15th of May, so it accumulates 100% of May 2003's depreciation.) The asset has accumulated depreciation as follows, up to the disposition date: FY 2003: 8 months. Fixed Assets Inventory 2/3/2006 Edition A.4

87 Appendix A: Calculating Depreciation FY 2004: 12 months. FY 2005: 5 months. (You disposed of the asset after the 15th of May, 2005, so it accumulates 100% of May 2005's depreciation.) Mid-Quarter The mid-quarter convention rounds depreciation to the nearest whole quarter (three months). Acquisitions: If you place an asset in service during the first half of a quarter, a full quarter of depreciation is allowed for that quarter. Hint: For each quarter, in the first half means on or before the 15th day of February, May, August, or November, respectively. In the last half means on or after the 16th day of these months. If you place an asset in service during the last half of a quarter, no depreciation is allowed for that quarter. Disposals: If you dispose of an asset during the first half of a quarter, no depreciation is allowed for that quarter. If you dispose of an asset during the last half of a quarter, a full quarter of depreciation is allowed for that quarter. Example: We will still use the same assumptions: an asset purchased on May 10, 2003, and sold on May 17, 2005: For the Fiscal Year ending December 31, 2003, the asset will accumulate 9 months of depreciation. (You acquired the asset prior to the 15th of May, so it accumulates 100% of depreciation for the second quarter (Q2) of 2003.) The asset has accumulated depreciation as follows, up to the disposition date: FY 2003: 9 months. FY 2004: 12 months. FY 2005: 6 months. (You disposed of the asset after the 15th of May, 2005, so it accumulates 100% of Q2 2005's depreciation.) Half Year Acquisitions: Six months of depreciation is allowed for the year when you place an asset in service. Fixed Assets Inventory 2/3/2006 Edition A.5

88 Appendix A: Calculating Depreciation Disposals: Six months of depreciation is allowed for the year when you dispose of an asset. Example: We will still use the same assumptions: an asset purchased on May 10, 2003, and sold on May 17, 2005: For the Fiscal Year ending December 31, 2003, the asset will accumulate 6 months of depreciation. The asset has accumulated depreciation as follows, up to the disposition date: FY 2003: 6 months. FY 2004: 12 months. FY 2005: 6 months. Fixed Assets Inventory 2/3/2006 Edition A.6

89 B ADDITIONAL RESOURCES This manual provides only a brief, general discussion of fixed assets accounting. For additional information, please see these and other resources available from HUD's Web site and from the Governmental Accounting Standards Board (GASB). 1. Accounting for Fixed Assets, PHA GAAP Flyer, Vol. 1 Issue 2, June 1999: 2. GASB Statements 33, 34, and 35. Available for purchase from GASB: Fixed Assets Inventory 2/3/2006 Edition B.1

90 Appendix B: Additional Resources Fixed Assets Inventory 2/3/2006 Edition B.2

91 C PROGRAM CHANGES FOR EXISTING CLIENTS Tenmast clients who have used the WinTen Fixed Assets Inventory program should take special note of the following changes: New Account Classes C.1 Other New Setup Options C.2 No Index or Purge Functions C.3 NEW ACCOUNT CLASSES One of the most important changes to WinTen² Fixed Assets Inventory is the addition of account classes. This change enables more flexible support for your agency s developmental fund accounting. In the WinTen program, an Asset Class record contained not only the Asset Class Code and Description fields, but also a Depreciation Method field and a Useful Life field. It also designated four general ledger accounts to use for assets within the class: asset account, depreciation expense account, accumulated depreciation account, and disposition account. In WinTen² Fixed Assets Inventory, the Asset Class record has been split into two records. The Asset Class record itself now contains only the Asset Class Code and Description fields. All other fields now appear on an Account Class record. Fixed Assets Inventory 2/3/2006 Edition C.1

92 Appendix C: Program Changes for Existing Clients An account class defines one depreciation method, one useful life, and a set of general ledger accounts for one asset class within one development. Your agency will have one account class for each possible combination of asset class, development, and useful life. You maintain your agency s asset classes and account classes in Setup. For information, see Plan Asset Classes on page 6.1 and Plan Account Classes on page 6.4. OTHER NEW SETUP OPTIONS In addition to account classes, WinTen² Fixed Assets Inventory contains the following new or changed Setup options: Locations, Purchase Types, and Program Policies. Locations In WinTen Fixed Assets Inventory, as asset s location was identified by a single text field on the Asset record. You now have the flexibility of predefining your locations and creating multi-level location groups to categorize them. For information, see Maintain Locations and Location Groups on page Purchase Types You can define your own custom purchase types, which identify an asset's condition when you acquired it (for example, new, used, or rebuilt) or how you acquired the asset (for example, donated). For information, see Maintain Purchase Types on page Program Policies Program policies are advanced options that can affect many different aspects of the program's behavior. Fixed Assets Inventory contains four policy options: Auto-Generate Asset Numbers, Depreciation Averaging Convention, Post Depreciation to General Ledger, and Post Summary Depreciation. For information, see Plan Program Policies on page 6.7. Fixed Assets Inventory 2/3/2006 Edition C.2

93 Appendix C: Program Changes for Existing Clients NO INDEX OR PURGE FUNCTIONS The Index Database function and the Purge Disposed function do not exist in WinTen² Fixed Assets Inventory. They are no longer needed because of WinTen² s new SQL (Structured Query Language) platform. In WinTen Fixed Assets Inventory, the Index Database function appeared on the Main Menu screen, and the Purge Disposed function appeared in Setup. Fixed Assets Inventory 2/3/2006 Edition C.3

94 Appendix C: Program Changes for Existing Clients Fixed Assets Inventory 2/3/2006 Edition C.4

95 D MANAGE REPORTS WinTen² programs include many built-in reports with powerful options to help track and manage your data. If your agency uses the Custom Report Writer program, you can create custom reports and define who has rights to run them. (For information, see the user manual for WinTen² Custom Report Writer.) You can manage your reports by choosing from many report options and by previewing or printing reports. You can save reports as various file types and can reopen QuickReport files in Fixed Assets Inventory. Topics addressed in this appendix include: Choose Report Options D.1 Preview a Report D.4 Save a Report D.6 Load a Report D.8 Print a Report D.10 You can use the Reports screen to manage and run your reports. To Open the Reports Screen: Press R or click the Reports button on the Main Menu. CHOOSE REPORT OPTIONS Report options allow you to define very precisely what you want to see on a report. They give you tremendous flexibility in reporting on and analyzing your data. Fixed Assets Inventory 2/3/2006 Edition D.1

96 Appendix D: Manage Reports Report options fall into four categories: Report Filtering D.2 Report Grouping D.3 Report Order D.4 Report Type D.4 The specific options available can vary greatly from one report to another. Please note that you cannot save your option choices for standard reports. All report options will return to their defaults if you select a different report, select a different tab of the Reports screen, or close the Reports screen. If you want to set report options permanently, you must define them in custom reports. (For information on custom reports, see the user manual for WinTen² Custom Report Writer.) To Set Report Options: Locate the report you want to use. Available reports appear on the left side of the Reports screen. Click the report s radio button to select it. The report s available options appear on the right side of the screen. Tab or click through the options, verifying or selecting your choice for each. REPORT FILTERING Most report options fall in the filter category. Filtering allows you to narrow the results of a report. You can show only records that match one or more criteria that you select. Use filters to choose or describe what you do want to include in the report. Only records that match your criteria will appear on the report. If you set a filter option to "All" or "None," that option will be ignored it will have no effect on the report. The number of different filtering options is almost limitless. The available options can also vary greatly from one report to another. You can filter many reports based on development, project, fund, caseworker, or management code. Many other options allow you to filter by record types, categories, or data fields that are specific to particular WinTen² programs. One of the most common filters is a date or date range. Below are two examples. Fixed Assets Inventory 2/3/2006 Edition D.2

97 Appendix D: Manage Reports REPORT GROUPING Grouping is a method of organizing a report into sets of records that have something in common. A grouped report typically has a sub-heading at the beginning of each group (in addition to the main heading at the beginning of the report). Each sub-heading identifies the element that the records in that group have in common. Many grouped reports have a subtotal line at the end of each group, as well as a grand total line at the end of the report. As an example, let s assume you have a report that lists tenants and addresses. You might choose to group the report by zip code. All tenants with a zip code of, say, would be listed together under a sub-heading, followed by all tenants with a zip code of 40508, and so on. This report might have a subtotal line at the end of each group showing the number of tenants in each zip code. The grand total line at the end of the report would show the number of all tenants in all zip codes. Some reports allow you set sub-groups within the groups. If you sub-grouped the above report by bedroom size, it would list all tenants with zero-bedroom units in zip code 40507, then all tenants with one-bedroom units in zip code 40507, and so on. The grouping option on a report usually has the label Grouped By, or some variation of it. Fixed Assets Inventory 2/3/2006 Edition D.3

98 Appendix D: Manage Reports REPORT ORDER Ordering simply sets the sort order of a report. Common examples of ordering options are by last name, by Social Security Number, by unit number, by address, by number of bedrooms, or by date. The ordering option on a report usually has the label Order By, or some variation of it. REPORT TYPE Some reports give you the option of choosing a summary or detail report. Summary reports do not contain as much specific information about individual records on the report, but typically include various calculations such as averages or totals to help you analyze the data. Detail reports give more information about each record, but may or may not offer analysis calculations. This option on a report usually contains the word detail. PREVIEW A REPORT You may choose to preview a report before you print it. Even if you are not printing it, you may choose just to view it on-screen. Fixed Assets Inventory 2/3/2006 Edition D.4

99 Appendix D: Manage Reports You can use the Preview Report Screen to preview your reports. To Open the Preview Report Screen: Select the report you wish to view on the Reports screen and choose any options for the report. Click the Preview icon. Preview Report Screen There are six options on the Preview Report screen: Zoom, Change Page, Print, Save Report, Load Report, and Close. Zoom You have three choices for zooming the preview (making it larger or smaller): the Zoom to Fit, 100%, and Zoom to Width icons. The Zoom to Fit and Zoom to Width icons size the page to the window. Zoom to Fit (usually the smallest option) lets you see the entire page, and Zoom to Width (usually the largest option) widens the page to fill the window horizontally. The 100% icon sets the page to its normal, "full" size, regardless of the window size. To Change the Zoom: Click one of the three zoom icons. Change Page The Change Page options let you move from one page of your preview to another. Obviously, they are available only for multiple-page previews. There are four options: the First Page, Previous Page, Next Page, and Last Page icons. Each icon takes you to its respective page. To Change the Page: Click one of the four page icons. Print The Print option opens a Print Report dialog box from which you can print the report. (See Print a Report on page D.10.) To Print: Click the Print icon. Save Report and Load Report We will discuss the Save and Load Report options below. (See Save a Report on page D.6 and Load a Report on page D.8.) Fixed Assets Inventory 2/3/2006 Edition D.5

100 Appendix D: Manage Reports Close The Close option closes the preview. To Close: Press Esc, press Alt+C, or click the Close button. SAVE A REPORT Saving an electronic copy of a report can be an alternative to printing a hard copy. It allows you to take a snapshot of your data at any time. You can also choose to manipulate data in the saved report independently of the Fixed Assets Inventory program. You can save a report in any of several different file types. If you save a report as a QuickReport file, you can reopen it (load it) in Fixed Assets Inventory. (See Load a Report, below.) Note: The data in the saved report is only a snapshot; it will not change as information in the Fixed Assets Inventory program changes. When you need the up-to-date information in the future, run the report again. Because the saved report is a snapshot, you might consider including its date in the file name when you save it. The Save Report option is available from the Preview Report screen. (See Preview a Report, above.) You can use the Save Report Dialog Box to save a report. To Open the Save Report Dialog Box: Click the Save Report icon on the Preview Report screen. Fixed Assets Inventory 2/3/2006 Edition D.6

101 Appendix D: Manage Reports Save Report Dialog Box There are three primary fields on the Save Report dialog box: Save In, File Name, and Save as Type. Save In The Save In field shows the folder in which you will save the report. File Name The file name is the name you will give to the saved report. Save as Type You can save a report as one of six different file types: QuickReport file, Excel spreadsheet, Comma Separated Values, Rich Text Format, Text file, and HTML document. Your choice of file type will depend on how you want to view and/or manipulate your report data. If you save a report as a QuickReport file (*.QRP) type, you can view it again by reopening (loading) it in the Fixed Assets Inventory program. (See Load a Report, below.) Once you have loaded a report, you can again choose to save a copy of it as any of the six file types. You can use the Excel spreadsheet (*.XLS) type in Microsoft Excel. The Comma Separated Values (*.CSV) type is similar, but more flexible; you can use it in Excel or in any other spreadsheet program. You can use either file type to import your data into most database programs. (If you want to import into a database, you may first need to manipulate or "clean up" your data.) The Excel file type allows you to format your report with, for example, formulas, fonts, or borders. The Comma Separated Values file type is text-only, without any formatting. You can use RTF (Rich Text Format) (*.RTF) in most word processing programs, such as Microsoft Word or Word Perfect. RTF supports text formatting options such as font, font size, font color, and so on. A Text file (*.TXT) is text-only, without any formatting. Fixed Assets Inventory 2/3/2006 Edition D.7

102 Appendix D: Manage Reports You can view it in any word processing program, but it usually opens in Notepad by default. Use the HTML document (*.HTM) type to save the report as a Web page viewable in a Web browser, such as Internet Explorer or Netscape Navigator. You might choose this option it you want to post the report to your Internet or intranet site. To Save a Report: Type a name for the file in the File Name field. If necessary, tab or click to the Save As Type field and choose the file type. If necessary, tab or click to the Save In field and choose the folder in which to save the report. To save the report, press Enter or click the Save button. (To cancel, press Esc or click the Cancel button.) LOAD A REPORT If you have saved any report as a QuickReport file (*.QRP), you can use the Load Report option to view it in Fixed Assets Inventory. Once you have loaded a report, you can again choose to save a copy of it in any of the six available file types. (See Save a Report, above.) The Load Report option is available from the Preview Report screen. (See Preview a Report on page D.4.) You can use the Load Report Dialog Box to load a report. To Open the Load Report Dialog Box: Click the Load Report icon on the Preview Report screen. Fixed Assets Inventory 2/3/2006 Edition D.8

103 Appendix D: Manage Reports Load Report Dialog Box There are three primary fields on the Load Report dialog box: Look In, File Name, and Files of Type. Look In The Look In field shows the folder where you last saved or loaded a report. Use this field, if necessary, to locate the folder that contains your saved report. File Name This is the name of the file you want to load. You can type the name directly, but you will usually click to select the file instead. Files of Type Only QuickReport files can be loaded in Fixed Assets Inventory, so this field is not editable. To Load a Report: If necessary, tab or click to the Look In field and select the folder where your report is stored. Select the report you wish to load. To open the report, press Enter or click the Open button. (To cancel, press Esc or click the Cancel button.) Fixed Assets Inventory 2/3/2006 Edition D.9

104 Appendix D: Manage Reports PRINT A REPORT You can use the Print Report Dialog Box to print a report. To Open the Print Report Dialog Box: Select the report you wish to print on the Reports screen. Choose any options for the report. Click the Print icon. (You can also click the Print icon on the Preview Report screen. See Preview a Report on page D.4) Print Report Dialog Box There are five primary fields on the Print Report dialog box: Printer, Font Name, Print Range, Number of Copies, and Duplex. Font Name The Font Name field shows the default font (typeface) for the printer you have chosen. Changing this field will change the font for all text on the report. The available fonts may vary, depending on the printer you have chosen and on the fonts installed on your computer. To Change the Font: Tab or click to the Font Name field and select the Font. Fixed Assets Inventory 2/3/2006 Edition D.10