Fixed Assets

PRONTO Xi Fixed Assets is a dynamic, robust tool for managing assets from acquisition through to disposal. All asset transactions are fully managed including acquisition, disposal, transfer, depreciation, revaluation and reporting. Asset register transactions are automatically posted to the general ledger. The fixed asset register covers both book and tax transactions.

Fixed Assets functionalities include:

• Fixed Assets interfaces with the PRONTO Xi General Ledger;
• Multiple methods of asset acquisition;
• Asset identification and maintenance;
• Process to manage improvements and revaluations;
• Flexibility to transfer or split an asset;
• Specify depreciation method;
• Handles tax aspects of disposals;
• Wide variety of reports available.

Acquisitions

There are four methods of processing an asset acquisition:

1. Manually – you can create the asset profile from within the asset register. This posts amounts to a clearing account in the general ledger;

2. From inventory – you can create an asset from an inventory item, thus automatically transferring the item from the inventory ledger;

3. From a purchase order – you have the option of creating the asset profile while raising the purchase order or posting directly to a specific general ledger account. This provides a streamlined approach to ensuring that your asset register is updated for new acquisitions;

4. From a supplier’s invoice – you can create an asset profile while processing a supplier’s invoice without the need to raise a purchase order.

Asset Maintenance

PRONTO Xi carries a unique asset number or label for each asset. You can manually assign numbers to each asset or let PRONTO Xi generate a sequential asset number. You may enter an additional identification or serial number against an asset, for example, the manufacturer’s serial number, or a motor vehicle registration number.

Related assets may be linked in a parent-child relationship. A parent asset can have multiple child assets, but a child asset can only have one parent. For example, a computer keyboard and a screen are attached to a specific computer.

Asset Maintenance allows you to view additional details (attachments, service maintenance or schedules) and record:

• Disposals;
• Revaluations;
• Returns to inventory;
• Splits.

The register allows you to decide how to structure your assets for reporting purposes and easier management.

Depreciation

Using PRONTO Xi Fixed Assets, you get a flexible way of managing depreciation through:

• Both book and tax depreciation postings;
• Different tax and book rates per asset;
• Straight-line, diminishing value, units of usage, variable and MACRS depreciation methods;
• A depreciation schedule that can be reviewed prior to updating the general ledger;
• Depreciation processing which can be used to forecast future amounts without posting.

Fixed Assets Interface with General Ledger

PRONTO Xi posts the various asset transactions directly to specific general ledger accounts. Based on the location and group codes, transactions such as depreciation expense, depreciation provision, acquisitions, disposals, revaluations and profit or losses upon disposal are posted to specific accounts in the general ledger.

Code Tables

PRONTO Xi enables the assignment of up to four different codes to an asset. These codes are used to assist in collating assets for administration and reporting purposes. The codes are Location, Group, Sub-Group and Branch. Group and Location codes are also used to determine the general ledger postings and primary reporting.

Improvements/Revaluations

You can use PRONTO Xi to make improvements to an asset. The improvement is an integral part of the asset. It is added to the book capital cost and included in the depreciable cost of the asset.

PRONTO Xi also allows asset revaluations. The amount of the revaluation is offset to a general ledger account specified in the interface record.

Transfer/Splitting an Asset

Assets can be transferred between locations and groups. In multi-company systems, the assets can be transferred from one company to another. PRONTO Xi disposes of the asset in the source company and acquires it in the target company. The appropriate transactions are posted to clearing accounts in each company.

Assets can be split, passing part of the value to a new asset. The value of the new asset can be calculated automatically based on the quantity recorded against the new asset, or it may be manually entered.

Depreciation

For both book and taxation depreciation, you can specify the depreciation method: straight line or diminishing value. Where necessary, book and tax depreciation rates may be different for each asset. For book depreciation, the units of usage method is also available. The Modified Accelerated Cost Recovery System (MACRS) method is available for United States accounting requirements.

Where diminishing value depreciation is used, the amount of depreciation for each period can be weighted by applying spread factors. A detailed Depreciation Schedule can be run prior to posting depreciation, thus allowing the depreciation posting to be reviewed prior to updating the general ledger. Posting of depreciation will result in both the asset register and general ledger being updated simultaneously. You can make depreciation adjustments to both book and tax depreciation.

Disposals

When disposing of an asset, PRONTO Xi can calculate book depreciation up to the disposal date. Optionally, depreciation can be controlled to calculate a full-year depreciation in the year of disposal.

PRONTO Xi will display both the tax and book values of any profit/ loss on the disposal, and show the written down value of the item. Once the disposal has been posted, no further transactions may be processed against this asset. PRONTO Xi allows balancing charges to be processed so as to allow a tax profit on disposal of an asset to be apportioned against the cost of a replacement asset.

Reports

PRONTO Xi offers report writing tools and an extensive range of standard reports. These reports have additional selection criteria to deliver the most appropriate information for your organisation.

Some of the reports available in PRONTO Xi Fixed Assets include:

• Tax Cost Reconciliation;
• Depreciation Schedule;
• Valuation;
• Aged/Exception List;
• Reconciliation;
• Disposals.

More features

• Asset history recording;
• Recording of finance, land/property and
• motor vehicle details;
• Maintenance of service history;
• Expense recording;
• Revenue recording for rental assets;
• Asset budgets.