Life Cycle of an ASSET

This following addresses a sample Asset Life cycle involving the following steps,

1. Addition of an Asset .
2. Depreciation Calculation process.
3. Accounting Entry Creation.
4. Transfer of an Asset.
5. Retirement.

ADDITION OF AN ASSET.

The main tables which get updated on adding an asset ,

a) PS_COST.
b) PS_ASSET.
c) PS_BOOK.
d) PS_BOOK_HIST.
e) PS_OPEN_TRANS
f) PS_ASSET_ACQ_DET.
g) PS_ASSET_CUSTODIAN.
h) PS_ASSET_LOCATION.

a) PS_COST.
It represents the cost of the transaction. The transaction’s cost for an asset book is summed to provide a balance at a given point of time.

The main fields which are updated ,

1. Asset ID.
This denotes the distinct number which is assigned to the asset, it is automatically incremented when the Asset ID is selected as ‘ NEXT’

2. Category.
Category classify assets by type for accounting entry purposes. Typically these categories reflect how assets are reported on balance sheets. Examples of commonly used asset categories are Furniture and Fixtures , Machinery and Equipment , etc.

3. Trans_Type.
When adding an asset the transaction type is either an ADD or TRF (in).



4. Trans_Date.
The transaction date is the date when the asset is added . It reflects the date when the event has taken place. The transaction date must be earlier or equal to the accounting date.

5. Accounting date.
The accounting date reflects when the asset was booked or sent to accounting in the system.

6. Cost.
The purchase cost.

ASSET_ID CATEGORY TRANS_TYPE TRANS_DT ACCOUNTING_DT COST
100 AUTO ADD 11/22/06 12:00 AM 11/22/06 12:00 AM 5000

b) PS_ASSET.
This table represents the general fields which are populated for Asset.

A few important fields which are populated,

1. Asset Status
The status of the asset, whether it is In-service, Disposed, Transferred, etc.

2. Profile_ID.
The profile ID of the asset is the value the asset was originally added to, e.g. Motor Vehicle , Furniture and Fixtures, etc.

c) PS_BOOK.
It identifies the asset’s depreciation attributes by book. Also some other depreciation related fields as mentioned below are part of this table.

The main fields which are populated,

1. Book.
The Asset Book which are associated to the asset, like CORP, or FEDERAL, or TAX, etc.

2. In Service date.
The date the asset was placed in service.

3. Begin Depr. Date.
The date when the asset begins depreciating. This is calculated by the Depreciation Calculation process.

4. Depr. Status.
The depreciation status whether it is Depreciable or Non-Depreciable.

5. Convention.
Depreciation convention in combination with asset in-service date determines when the depreciation starts.

BOOK IN_SERVICE_DT BEGIN_DEPR_DT DEPR_STATUS CONVENTION
CORP 11/22/06 12:00 AM NULL D FM


d) PS_BOOK_HIST.
This represents, the history of book transactions which have happened in the life of an asset.

The main fields which are populated,

1. Book_Change_Type.
It represents the rows of transactions which affected the book (e.g. ADD, RES, SUS,OTH, LFE).
2. Transaction date.
3. Accounting date.
4. In Service date.
5. Life.
6. Method.
The depreciation methods are, Straight line, Declining Balance, etc.
The other table where the Depreciation method is referenced is , PS_BOOK.


BOOK_CHANGE_TYPE TRANS_DT ACCOUNTING_DT IN_SERVICE_DT LIFE METHOD
ADD 11/22/06 12:00 AM 11/22/06 12:00 AM 11/22/06 12:00 AM 60 SL


e) PS_OPEN_TRANS.
The open_trans table is a ‘to do’ list for several programs , such as AMDPCALC, and AMAEDIST. An entry is made to the OPEN_TRANS table. Also, the rows on open_trans represent the history of an asset’s transactions which affected the cost and the book.

The main fields which are populated,

1. Trans_Type.
The transaction type can be ADD, TRF, RET, RAD, ADJ, REI, RCT, BKS, SUS, RES,etc.

2. Calc_Depr_Status.
This field determines whether depreciation needs to be calculated on this transaction. It has the following 3 status, Pending, Completed, Never and Held for transfer in.
The meaning of these statuses are,

Pending  Depreciation has not been calculated for this transaction.

Completed Depreciation has been calculated for this transaction.

Never  The Depreciation calculation process will ignore this transaction.

In process  The Depreciation calculation process thinks its still processing this transaction.

Held for transfer in  When we process inter –unit transfers, the out and the in transactions are processed at the same time . This status indicates that the transaction is being held until its corresponding Transfer out can be processed.

3. Calc_Dist_Status.
This field determines whether accounting entries need to be created for this transaction.

Completed  This transaction has had amaedist run against it.

Never  The distribution process will ignore this transaction.

Pending  This transaction has not had amaedist run against it.

4. Calc_Rept_Status.

Completed  The Load Depreciation Reporting table process AMDPREPT, has been run and populated depr_rpt. Now reports can be run.

Pending  The process AMDPREPT has not been run on the Asset.


TRANS_TYPE CALC_DEPR_STATUS CALC_DIST_STATUS CALC_REPT_STATUS
ADD P P P

f) PS_ASSET_ACQ_DET.
This table represents the details of acquisition for an asset.

The main fields which are populated,

A) System_Source :--- The Source System from which the acquisition detail was derived for Asset Management. The most common values are, PAP ( Came from AP) , PPO ( Came from Purchasing ), CNV (came from Conversion ), and if it is blank, then asset was added online and not interfaced.

If the System Source is PAP, then you will have the following fields,

1. Voucher ID.
The Voucher which has created this asset. It happens when the asset is interfaced from AP.

2. Amount.
The cost of the asset.

VOUCHER_ID AMOUNT
5000
The voucher ID will be blank since the asset is entered through Express Add, and not interfaced from AP.

If the System Source is PPO, then you will have the following fields,

PO_ID PO_LINE_NBR


If the System Source is Blank, then it means the Asset was added online.

SYSTEM_SOURCE DESCR
ADDITION


g) PS_ASSET_CUSTODIAN.
This table represents the custodian, for an asset.

The main fields which are populated,

1. Custodian.
2. Emp ID.

h) PS_ASSET_LOCATION.
This gives the Location for an Asset.

The main fields which are populated,

2. Location.

To summarize following main tables get updated after doing addition,

PS_COST.

BOOK CATEGORY TRANS_TYPE TRANS_DT ACCOUNTING_DT QUANTITY TXN_COST COST
CORP AUTO ADD 11/22/06 0:00 11/22/06 0:00 1 5000 5000


PS_ASSET.

DESCR DESCRSHORT ASSET_STATUS FINANCIAL_ASSET_SW ACQUISITION_CD PROFILE_ID
ADDITION ADDITION I Y P AUTO

PS_BOOK.

BOOK IN_SERVICE_DT IN_SERVICE_PD IN_SERVICE_FY BEGIN_DEPR_DT BEGIN_DEPR_PD
CORP 11/22/06 12:00 AM 0 0 NULL 0

PS_OPEN_TRANS.


BOOK TRANS_TYPE CONVENTION CALC_DEPR_STATUS CALC_DIST_STATUS CALC_REPT_STATUS
CORP ADD FM P P P




DEPRECIATION CALCULATION PROCESS.

This process is run after the asset is added and is used to calculate the depreciation of the asset, based on the convention, and the in –service date.

The main tables which get updated on running the Depreciation calculation process,

1. PS_DEPRECIATION.
3. PS_BOOK.
4. PS_OPEN_TRANS.

a) PS_DEPRECIATION.
This table is populated after the Depreciation Calculation process is run, whenever there is a new transaction for the asset, e.g. BKS, ADD, TRF, RET, etc.

The main fields which are getting updated are,

1. Fiscal_Year
The year when the depreciation was taken.

2. Start_Pd.
The start period for which the depreciation was taken.

3. End_Pd.
Represents the end period for which the depreciation was taken.

4. Trans_type.
The transaction type here will be DPR.

5. Depreciation Amount.
The amount of Depreciation for the asset.

FISCAL_YEAR START_PD END_PD TRANS_TYPE DEPR
2006 12 12 DPR 50
2007 1 12 DPR 600


b) PS_BOOK.

The following fields gets updated on running the Depreciation calculation process,

1. In_Service_Pd.
The calendar period in which the in-service date falls.

2. In_Service_Fy.
The calendar fiscal year in which the in-service date falls.

3. Begin_Depr_Dt.
The date when the asset begins Depreciating.

4. End_Depr_Date.
This represents the date when the depreciation will stop for the asset.

IN_SERVICE_PD IN_SERVICE_FY BEGIN_DEPR_DT END_DEPR_DT
11 2006 12/1/06 12:00 AM 11/30/11 12:00 AM

c) PS_OPEN_TRANS.

The following fields gets updated on running the Depreciation calculation process,

1. Calc_Depr_Status.
The above field becomes Complete, from its earlier status of Pending.

CALC_DEPR_STATUS
C


To summarize following main tables get updated or inserted after running Depreciation calculation process.

PS_BOOK

BOOK IN_SERVICE_DT IN_SERVICE_PD IN_SERVICE_FY BEGIN_DEPR_DT BEGIN_DEPR_PD
CORP 11/22/06 12:00 AM 11 2006 12/1/06 12:00 AM 12


PS_OPEN_TRANS.


BOOK TRANS_TYPE CONVENTION CALC_DEPR_STATUS CALC_DIST_STATUS CALC_REPT_STATUS
CORP ADD FM C P P


PS_DEPRECIATION.

BOOK FISCAL_YEAR START_PD END_PD TRANS_TYPE TRANS_DT ACTUAL_END_PD CATEGORY
CORP 2006 12 12 DPR 12/1/06 12:00 AM 12 AUTO







ACCOUNTING ENTRY CREATION PROCESS.

The Accounting Entry creation process (AMAEDIST), creates asset transaction accounting entries, by selecting the appropriate accounting entry template. The selection is dependent on the acctg entry template ID, category, cost type, transaction type, and transaction code of the asset transaction. At the end of each accounting period , depreciation accounting entries are created by running the Depreciation Close process AMDPCLOS., which applies the depreciation (DPR), and the prior period depreciation (PDP), accounting entry templates, to the asset depreciation tables.

The main table which get updated on running the accounting entry creation process,

1. PS_DIST_LN.
2. PS_OPEN_TRANS.

a) PS_DIST_LN.
This table accumulates information from creating accounting entries.

The following fields gets updated on running the AMAEDIST process,

1. Account.
It classifies the nature of a transaction.

2. Distribution Type.
The accounting entries are created by using standard accounting entry types (distribution type ), based on the asset category, cost type, and action that is specified.e,g, FA means Fixed Asset and AP means Contra asset.

3. Ledger_Group.
The Ledger templates and detail ledgers are combined in an appropriate Ledger group.

4. Ledger.


ACCOUNT DISTRIBUTION_TYPE LEDGER_GROUP LEDGER
155000 FA RECORDING LOCAL
674000 AP RECORDING LOCAL


b) PS_OPEN_TRANS.

The following fields gets updated on running the AMAEDIST process,

1. Calc_Dist_Status.
The above field becomes Complete, from its earlier status of Pending.

To summarize following main tables get updated or inserted after running AMAEDIST process.



PS_DIST_LN.

BOOK ACCOUNT DISTRIBUTION_TYPE TRANS_TYPE CATEGORY LEDGER_GROUP LEDGER
CORP 155000 FA ADD AUTO RECORDING LOCAL
CORP 674000 AP ADD AUTO RECORDING LOCAL

PS_OPEN_TRANS.

BOOK TRANS_TYPE CONVENTION CALC_DEPR_STATUS CALC_DIST_STATUS CALC_REPT_STATUS
CORP ADD FM C C P



DEPRECIATION CLOSE PROCESS.

The Depreciation Close process generates period depreciation accounting entries for all depreciable assets in a particular accounting period. This process should be run only for an accounting period that has not yet been closed. It updates the dist_ln table similarly to AMAEDIST process. You specify the year and period to run the AMDPCLOS process. If there are rows already existing for ps_depreciation for that year / period , then DPR and /or PDP rows will be written to dist_ln.


TRANSFER OF AN ASSET.

Transfers can be briefly summed up as , changes to asset records, or to add newly received information. Modifications can be made to cost, quantity, chartfields like department, location, etc.

The following tables gets updated on transferring an asset.

a) PS_ASSET.
The status becomes T, when there is a full Transfer.
ASSET_STATUS
T



b) PS_OPEN_TRANS.
The following fields also get populated while doing an inter unit transfer,

Transfer_BU.
Transfer_Asset_ID.
Transfer_Book.
Trans_In_Out.

TRANS_TYPE TRANSFER_BU TRANSFER_ASSET_ID TRANS_IN_OUT
TRF US002 2 O

c) PS_COST.

TRANS_TYPE TRANS_IN_OUT
TRF O

d) PS_ACTIVITY_SW.

The activity_sw changes to 1 from 0 for a transfer.

BOOK DEPTID CATEGORY TRANS_TYPE TRANS_IN_OUT ACTIVITY_SW RETIRE_SW QUANTITY
CORP AUTO ADD 0 0 1
CORP AUTO TRF O 1 0 -1
CORP 10000 AUTO TRF I 0 0 1
CORP 10000 AUTO TRF O 1 0 -1


To summarize following main tables get updated or inserted after doing an intra unit and an inter unit transfer.

PS_ASSET.

DESCR DESCRSHORT ASSET_STATUS FINANCIAL_ASSET_SW ACQUISITION_CD PROFILE_ID
ADDITION ADDITION T Y P AUTO

PS_OPEN_TRANS.

BOOK TRANS_TYPE TRANSFER_BU TRANSFER_ASSET_ID TRANS_IN_OUT CALC_DEPR_STATUS CALC_DIST_STATUS
CORP ADD C C
CORP TRF P P
CORP TRF US002 2 O P P


PS_COST
BOOK DEPTID CATEGORY TRANS_TYPE TRANS_IN_OUT QUANTITY TXN_COST COST
CORP AUTO ADD 1 5000 5000
CORP AUTO TRF O -1 -5000 -5000
CORP 10000 AUTO TRF I 1 5000 5000
CORP 10000 AUTO TRF O -1 -5000 -5000


RETIREMENT OF AN ASSET.

Assets are retired when they are either disposed or no longer in use. They can be retired fully or partially in the past, present or the future.

The following tables gets updated or inserted on retiring an asset.

1. PS_BOOK.
2. PS_ASSET.
3. PS_COST
4. PS_RETIREMENT
5. PS_OPEN-TRANS.

1. PS_BOOK.
The change which is evident after retiring an asset is, the Retired_SW field becomes Y.

RETIRED_SW
Y

2. PS_ASSET.

The asset status becomes Disposed on retiring an Asset, only if a full retirement was done.

ASSET_STATUS
D

3. PS_COST.

The trans_type changes to RET, and the quantity and cost becomes Negative, signifying that the asset has been retired, and the retire_sw changes from 0 to 1.


TRANS_TYPE QUANTITY
RET -1

4. PS_RETIREMENT.
The retirement table gets inserted only when an asset is retired or disposed off.

The main fields which gets populated,

1. RETIREMENT_DT.
2. END_DEPR_DT (after amdpcalc runs)
3. DISPOSAL CODE.
4. QUANTITY.
5. RETIREMENT_AMOUNT.
6. GAIN_LOSS. (after amdpcalc runs)
7. RETIREMENT_RSV (after amdpcalc runs)

RETIREMENT_DT END_DEPR_DT DISPOSAL_CODE QUANTITY GAIN_LOSS
NULL NULL S -1 0

5. PS_OPEN_TRANS

The trans_type is changed to RET, on retiring the asset.

TRANS_TYPE
RET

To summarize following main tables get updated or inserted after retiring the asset.

PS_BOOK.

BOOK DEPR_STATUS METHOD RETIRED_SW RETIRE_CONVENTION
CORP D SL Y FM

PS_COST.

BOOK TRANS_TYPE RETIRE_SW QUANTITY
CORP RET 1 -1

PS_RETIREMENT.

RETIREMENT_DT END_DEPR_DT DISPOSAL_CODE QUANTITY GAIN_LOSS
NULL NULL S -1 0

PS_OPEN_TRANS

TRANS_TYPE CONVENTION CALC_DEPR_STATUS CALC_DIST_STATUS CALC_REPT_STATUS
RET FM P P P