Fixed Assets Management

Note! This manual is developed for the MKG004 software. If you are using MKG5, the description of the operation may differ from your environment. We aim to provide a product-specific description for this topic in the future.

Via: MKG Financial Fixed Assets Fixed Assets the module is opened where assets are managed. There are different ways to register assets:

• Per asset: a machine and/or company resource.
• Per installation: a collection of multiple machines that together handle a certain part of the production, for example, a paint line consisting of a spray robot, a drying line, a paint mixing machine, and a conveyor belt.

In the second case, a collective name can be used for an asset under which multiple company resources are registered. For illustration:

General Tab

In the header, the data of the asset or installation is stored. Then, by creating a new line, it can be specified what falls under this asset. The line window consists of two tabs. The 'General' tab looks as follows:

On this tab, the basic data of a company resource can be recorded. The most important fields:

• Purchase Date. The date on which the company resource was purchased/delivered.
• Purchase Value. The value for which the company resource was purchased.
• Residual Value. The residual value that the company resource will have at the end of the economic life (fiscal).
• Initial Value for Depreciation. The amount that has been depreciated.
• Depreciations. The automatically depreciated value from the depreciation plan.
• Total Depreciations. The total amount that has been depreciated on the company resource.
• Book Value. The current book value of the asset (purchase value –/– the total depreciations).
• Fiscal Value. Informative field with the default being the purchase value.
• Insurance Value. Informative field with the default being the purchase value.
• Interim Account. Selection field to select the general ledger account for the interim account where the asset is temporarily parked. At the time of activation, this account is offset, and the asset account of the company resource is booked.
• Purchase Account. Selection field to select the general ledger account for the purchase account (this is a balance sheet account).
• Depreciation Account. Selection field to select the general ledger account for the depreciation account (this is a balance sheet account).
• Depreciation Costs. Selection field to select the general ledger account for the depreciation costs (this is an income statement account).
• Serial Number. Field to note the serial number of the asset.
• Location. The location of the asset.
• Creditor. Selection field to select the creditor.
• Purchase Document. A manually fillable field.
• Activation in Fiscal Year. The year and period when the asset must be activated.
• Deactivate in Fiscal Year. The year and period when the asset must be deactivated.
• Still Depreciate in This Period. Checkbox to indicate whether depreciation still needs to be done in the deactivation period. This field can only be filled in when the 'Deactivate in Fiscal Year' checkbox is active.

Depreciation Plan Tab

On the 'Depreciation Plan' tab, it can be indicated how the asset should be depreciated. Based on the number of terms and the amount to be depreciated, MKG calculates the amount that must be depreciated each term. For the distribution, the window will look as follows:

For an existing company resource, the depreciation terms are presented in this overview with the corresponding amounts. Additionally, the status of a depreciation term is displayed. There are three possible statuses:

• Status 0 = not yet processed in the financial administration.
• Status 2 = partially processed, but due to, for example, an adjustment in the depreciation plan, there are still matters to be processed in the financial administration.
• Status 4 = processed in the financial administration.

By clicking on Distribute... a screen will appear where it can be indicated how the depreciation amounts should be calculated:

The consequences associated with the options in this intermediate screen are explained below:

• Distribute over all unprocessed terms. The amount to be depreciated is distributed over all depreciation terms with status 0 (= not processed).
• Distribute over all terms, but do not adjust processed terms. The amount to be depreciated is distributed over all periods. The correction (possibly catch-up depreciation) is processed in the first period that has not yet been processed. The amounts of processed terms are not adjusted.
• Distribute over all terms. The amount to be depreciated is distributed over all terms. The terms that were already processed receive status 2: an adjustment to the depreciation plan ensures that the depreciation is not yet fully processed.
• Distribute over all terms, starting at:. When a number of terms are entered in the underlying screen, a year and period can be entered with this option that forms the starting point for the depreciation plan.

After executing the distribution, the depreciation amount is distributed over the periods. The amount to be depreciated in a particular period can be adjusted if necessary. The table is filled with depreciation lines. In the 'Status' column, it is visible whether a period has been processed or not:

When a depreciation amount is changed, it will be stated in red in the header of this screen which amount still needs to be distributed to fully depreciate the company resource!

When the main asset involves multiple machines, or an installation consisting of multiple machines, the lines do not need to be purchased or activated on the same date. Additionally, a depreciation plan can be established per line. In the overview of an asset, it is visible which amount is going to be depreciated or has been depreciated from the different components:

In the header of this asset, a total overview can be found of the investments, depreciations, book value, residual value, and what still needs to be depreciated on this asset:

For the depreciations and activations, MKG uses the module Processing Fixed Assets. After processing the depreciations in this module, mutations are only created in the financial module of MKG. Processing fixed assets is thus an important step in closing a period.

Financial: index

Related

• Processing Fixed Asset Depreciations