The Ledger : Fixed Assets

Itty Bitty Timesavers

Jennifer Maroney — Tue, 17 Nov 2009 12:57:00 GMT

Hey blog readers! I found a great post on The Book Bag that I wanted to share with you. If you've liked The Ledger time savers you must check out the Itty Bitty Timesavers post. It lists some great tips and tricks to save you a few seconds here and there. Remember, a few seconds saved on each task quickly adds up to extra hours and who can't use more hours in their day ?

Talk to you soon!

The Straight Line Breakdown

Haley Campbell — Fri, 02 Oct 2009 12:23:00 GMT

Straight line depreciation is one of the most common methods used when depreciating assets. Have you ever wondered about the list of conventions, and what they mean, and what they do? I hope these explanations help you understand which depreciation convention is right for your assets!

Full Month

Depreciation begins with the first month in service
Equal depreciation amount every month, determined by the total number of months in service
Continues throughout useful life

Mid Month:

If the date in service is before the 16^th, a full month's worth of depreciation calculates the asset's first month
$0 is charged in the first month if Date in Service is after the 15^th

An ‘extra' month is added to the asset's useful life to compensate for the amount not charged in the first month of life.

Zero Month:

No depreciation is calculated in the asset's first month in service
Beginning with the second month, depreciates like Full Month convention

Full Year:

An entire year's worth of depreciations calculates in the first year, regardless of the month in service date.

During the first year, the annual depreciation will be distributed over the number of periods in service for the first year. Example: If the asset is placed in service in the third period, then the first year's depreciation will be evenly distributed between periods three through twelve.

After the first year, the asset will depreciate in the same manner as Full Month.

Half Year:

One half of a normal year's depreciation will be depreciated in the first year.

The actual amount of depreciation will be distributed over the number of periods the asset is in service during the first year.

Beginning with the second year, a full years' depreciation is taken
Continues until the last year, when an additional half year's depreciation is taken. This is like the Half Month convention we discussed earlier. The additional year is added to compensate for the half year skipped in the beginning of the asset's life.

Zero Year:

Just like Zero Month, no depreciation is calculated in the first year of service
In the first period of the asset's second year, depreciation will begin calculating in the same manner as Full Month.

Purging Records

Karen Badham — Thu, 24 Sep 2009 12:17:00 GMT

Have you ever wanted a record, or a group of records just gone? I mean completely gone. This is something you can do in The Financial Edge. We call it purging records.

Why would you want to purge records? There are a variety of reasons. You may need to purge records to make corrections, such as needing to reprint a check using the same check number. Purging records may also improve database performance. For example, if your vendor Activity tabs take a long time to load, it may be beneficial to purge old vendor activity. Purging records to help with performance issues should be a last resort after trying the steps in How to troubleshoot performance issues.

But wait! Before you continue, understand that purging records removes them permanently from the database and they can never be recovered. We always recommend creating a backup of your database before completing a purge process. This way if you need to review the purged information, you can use the back up.

Here are the records that can be purged in The Financial Edge:

Adjusting the Depreciation Basis of an Asset

Geoff Sharbrough — Tue, 01 Sep 2009 19:31:00 GMT

So your organization just got a brand new vehicle or other asset and you want to record this in The Financial Edge. However, there is still some information that you do not have about the asset, such as how you want to handle the depreciation basis or depreciation amount. While I recommend having all information at the time of entering an asset, you can still enter the asset without knowing all of the vital depreciation information. It would be beneficial to not calculate the depreciation until this information is known, but it can be changed even if it is calculated.

Now that you have the information a few months later, or you realize the method originally defined was incorrect, it can be changed by deleting any existing depreciation transactions from the asset record. If the transactions were posted, reversing entries will post to the General Ledger. Keep in mind any soft-closed fiscal periods when posting your reversals though! Once you have posted the deleted depreciation transactions, you can then go back and adjust the depreciation basis of the asset. Then simply re-calculate your depreciation transactions, and you’re done.

Hope this helps with your new purchases!

An Easy Way to Open a Group of Records

Karen Badham — Fri, 28 Aug 2009 17:51:00 GMT

Have you ever had a situation where you need to edit a whole list of records? There are many ways you can do this, from editing each record individually, to global change, to import. But what if what you are trying to accomplish can't be done with global change or import and the task seems too daunting to hunt and peck for each record? Don't despair; there is a tool you can use. I call it Open Query as a List.

Create a query with the proper criteria that fits the list of records you want to edit. On the Results tab double click the top row to open the first record. Once the record is open, make the necessary edits and click Save and Continue. Then use the blue arrows at the top to scroll through each record in the query. This is much easier than searching for each record!

Take a look at the solution, How to scroll through records, for step-by-step instructions.

The Best Button Ever

Karen Badham — Thu, 13 Aug 2009 14:25:00 GMT

I am going to share with you one of my favorite tips for importing. It’s called the browse button. This button will give you examples of what the import will take for a particular field. On the Fields tab of the import parameter, highlight an import field line and then click the Browse button. It’s in white text on the dark gray bar towards the bottom right. A Browse box will pop up with examples of what can be imported for that field.

I hope this helps your import process!

Five Step Method for Creating the Perfect Query

Kellie Wingfield — Thu, 23 Jul 2009 14:01:00 GMT

Ever wonder, "How am I going to get a list of this information?" Oftentimes, you need to pull data from our system, but how can you? These are the times to look to a query. What is a query? Queries retrieve raw data and present it in a list format. It is a grouping tool, not a reporting tool. A query can also be used in dashboards, exports, searches, global changes; basically in every module of The Financial Edge. I have a five step method for creating the perfect query. These questions help resolve most issues surrounding queries. So what are these magical steps? I am glad you asked!

What kind of records do I need to group together?
This will determine the query TYPE. For example, you can choose Vendor, Invoice, Transaction, or Employee.
Do I want the list to be updated?
This is the format selection between STATIC and DYNAMIC. More information can be found in the Static vs. Dynamic post.
What do my desired records have in common?
This selection is made on the Criteria Tab. Are they Vendors that are all marked 1099? Are they transactions entered on the same date?
What do I want to know about the results?
The answers can be used to determine the fields on the Output Tab. Do I need to see the Vendor name or ID? Do I need to only see the post date or the transaction date?
What order do I need to see the result (or what order do the columns need to be in?)
The answers can be used to determine the fields on the Sort Tab. Do I need Employee Name before Hire date?

Use these five steps as a guide to make the perfect query every time!

Improve Your Data's Quality and Consistency

Jennifer Maroney — Wed, 08 Jul 2009 15:30:00 GMT

A list of procedures and rules can improve your data's consistency and quality, and save you time and effort when entering data, preparing reports, and reconciling. I recommend compiling the procedures and rules to create a policies and procedures manual, also known as a data entry guide. The manual should specify how you enter and maintain records, and perform various functions related to your database. By documenting rules and guidelines, you can ensure consistent data entry. Here are some items to consider for your policies and procedures manual.

Soft close all periods except the current period and the next period. Closing previous periods prevents accidental posting to a closed and balanced period. By closing periods in the future, you prevent inadvertently posting transactions to periods that should not yet be affected.
Use journal codes correctly. Journal codes, also known as source codes, tell you the origin of a transaction. The codes specifically assigned to sub-ledgers should never be used in journal entries and vice versa. In GL Journal Entry, you can define which journal codes are allowed to prevent any errors. Check out BB58058 for the steps.
Create recurring journal entries for your regularly occurring journal entries. These templates allow you to define transactions and/or distributions to use over and over again.
Create distribution templates for commonly used distributions so all you have to do is select the template instead of manually typing in each account number, amount, project, or t-code. Using distribution templates not only prevent data entry errors but also save time, especially if you have detailed distributions.
Use business rules to promote accuracy and consistency. There are a variety of business rules that allow you to determine some things that should or should not be allowed in your database. Some examples include not posting zero dollar amounts, excluding inactive records from searches, allowing non-bank transactions to cash accounts, and automatically assigning record IDs. Each sub-ledger has its own business rules to set. Check out these solutions for some business rule tips: General Ledger | Accounts Receivable | Student Billing | Payroll
Configure security groups to restrict user rights. Carefully consider which users need what rights. For example, not all users should have access to voiding, deleting, or purging transactions. Depending on your organization's size and needs, you may be able to set up just one or two security groups or you may need to set up a separate security group for each user.

Talk to you soon!

Static vs. Dynamic: What’s the Difference?

Kellie Wingfield — Mon, 22 Jun 2009 12:16:00 GMT

One of the most common query questions we get has to do with the static and dynamic format. Which should you choose? Let me tell you a story that will explain the difference.

You have two file clerks in the office: Static and Dynamic. You ask them both to find accounts that use account code 5555. Static is the more meticulous of the two, bringing with her a handful of paperclips. She locates the accounts and places a paperclip on each of them. Dynamic just likes the adventure of the task and dives right in. He does not mark each account, but locates them just the same. Both return the same list of accounts. You thank the clerks and they return the files to the file cabinets.

A month goes by and you've added a few more accounts with account code 5555. You ask your willing file clerks to again locate all the accounts with this account code. Static remembers the accounts she pulled earlier and only retrieves the accounts with the paperclips. Dynamic dives right in as usual, but he notices there are more accounts with the account code 5555 than before. This time you get different lists. Dynamic gives you a list of all accounts where Static gives you the same list as before.

The reason? Dynamic will refresh his list with each request so it always includes up-to-date information. On the other hand, Static is more like a snapshot she will always give you the original list. Dynamic queries are the most commonly used type. I would recommend a static query if you always want to capture the same set of accounts, employees, transactions, or vendors.

Depreciation Years

Karen Badham — Wed, 17 Jun 2009 15:59:00 GMT

Understanding your depreciation years is important to ensure accurate asset depreciation. When you create your Depreciation Year in Configuration, you define the time frame for the accounting cycle and the number of periods that make up the cycle for the life of the asset. Each depreciation year can be whatever you want; they do not have to follow the fiscal or calendar year. Without a depreciation year, FA doesn't know how to spread out the asset cost and depreciation will not calculate.

It is integral to plan out how you want to depreciate an asset and create the depreciation year accordingly. For example, if you create your depreciation year to match the calendar year, but you want your depreciation to follow your fiscal year it will not. Your depreciation will calculate incorrectly causing incorrect reporting.

Another reason to plan out your asset depreciation is once you start creating asset transactions within a depreciation year, the year can no longer be edited. For example, if there is an asset transaction in 2009, but not in any other year, the 2009 depreciation year can no longer be edited.

I hope this helps you understand your depreciation years!

What a Waste of Paper!

Lisa Lookadoo — Mon, 15 Jun 2009 12:03:00 GMT

"Oh man, I didn’t mean to print that !" Have you ever said that when you validate or post and the report prints? Would you rather see it on your screen instead of wasting paper? Well, you can and it’s easy!

Simply select Tools, Options from the GL menu bar and select the Records tab. Highlight Post Options, change Print Post Report on to Preview Post Report, and click Apply and then OK. That's it, you're done! If you decide you want a printed copy once you view it on the screen, just click the print icon.

Let’s save some trees!

Reconciliation Recommendations

Jennifer Maroney — Tue, 19 May 2009 12:33:00 GMT

At some point we all need to perform the dreaded reconciliation process. It can go smoothly, especially if you reconcile on a regular basis, or can be a headache if you don't reconcile regularly and have inconsistent data entry. The Transaction Business Rules, implemented in version 7.77, can help with inconsistent data entry, but you still need to get in the habit of reconciling regularly; have you caught my theme yet ?

Sometimes, no matter how careful you are, your subsidiary ledger does not balance to the GL. Here are some of the common causes of balancing issues:

Voided or deleted transactions
Voided checks
Transactions where the transaction date and post date are in different fiscal periods
Remitting Payroll taxes, deductions, or withholdings from the incorrect account
Journal entries made directly to the subledger summary account

You can find these sneaky transactions by creating a query or running additional reports.

I've put together a list of recommendations for reconciling subsidiary ledgers, but they can also help when reconciling balance sheet and income statement line items.

Find a reliable starting point. This may be your annual audit or another period when your subledger and general ledger were in agreement. If you cannot find a period, you may need to make a one-time adjustment at your reconciliation start date. Without a good starting point in the past, none of the subsequent beginning balances will be reliable.
Avoid manual journal entries to the summary accounts (e.g., Accounts Payable Summary, Accounts Receivable Summary, or the Accumulated Depreciation accounts). Make corrections to items such as invoices or checks in the subsidiary ledger, rather than making a manual journal entry to General Ledger. If you must make journal entries, consider creating a separate account for them to simplify subledger reconciliation.
Use journal codes to indicate the source of transactions. When posting journal entries, do not use the journal code used by the subsidiary ledger. Clearly and consistently identifying the journal codes helps you trace a transaction to its origin.
Reconcile monthly . Perform reconciliations at least monthly. Finding and correcting items regularly may prevent additional errors. If you have several periods to reconcile, start with the oldest and reconcile one period at a time.
Be aware of how your organization uses post dates and transaction dates. Items such as invoices may be dated in one fiscal period, posted in another, and paid in yet another fiscal period. When running reports, determine whether you want to see the transaction date or the post date. Ensure you have established guidelines for determining the correct transaction post date. Inconsistency can cause reconciliation issues and possible financial statement misrepresentation.
Ensure transactions have the correct post status.
Update your policies and procedures manual regularly. Include detailed instructions for correcting reconciling issues. Create a reconciliation schedule as part of your policies and procedures manual, detailing which accounts should be reconciled with what frequency, and by whom.

For detailed reconciliation information, check out the Subsidiary Ledger Reconciliation Guide.

Is it Okay to Cancel Out of Posting, Copying, or Reversing a Batch?

Jennifer Maroney — Mon, 18 May 2009 11:42:00 GMT

Do you ever notice your workstation task manager shows The Financial Edge is not responding? Just because it shows not responding on your workstation doesn't mean that FE has stopped working. Many times the process is still running on the server. If you cancel the process at the wrong point it could result in data corruption and who wants that?

Pardon the interruption, but this is a great example of why you should regularly back up your database. Check out the Backup and Recovery series on Inside the Edge for more details about the importance of backing up your database and testing it on a regular basis. Now back to you regularly scheduled program.

Here are some helpful tips:

Before initiating the process, disable any applications running unnecessarily, including those running in the background that may be using up system resources.
Post regularly, and assign a specific time of day to complete your posting.
Large batches with complex distributions, attributes, transaction codes, and projects will take longer to process because more information must be validated for each element of the transaction. If you have large distributions, post in smaller batches.
Allow sufficient time for the process to finish.
If you think you have performance issues, check out Knowledgebase solution BB8626 for performance considerations.

So remember, the next time you're posting, copying, or reversing a batch and your workstation's task manager indicates that the software is not responding, wait before you cancel the process.

Talk to you soon!

Make it Feel Like Home: Easy Access to Reports

Mallory Gilbert — Mon, 11 May 2009 13:47:00 GMT

Do you find yourself frequently running the same saved reports, such as Financial Statements or the Open Invoice Report? Did you know you can save time by adding a shortcut to saved reports on your Navigation Bar for quick access? Well, you can, and it’s easy to do!

First, set up a shortcut folder on the Navigation Bar. To do this, simply click Favorites, Organize Favorites from the FE menu bar. Highlight the Navigation Bar folder and click "New Folder." Once you've entered a folder name, click OK.

Now your folder is created, so let's add those reports. From any saved report parameter, click Favorites, Add to Favorites from the menu bar. Once you've given the report a name, choose the folder you just created in the "Create in" drop down menu and click OK.

You can now easily access the report by clicking the shortcut folder. It’s that easy! Here’s an added bonus; these reports cross modules. Create a shortcut to the Open Invoice Report, for example, and you can access it from the General Ledger!

The Ledger Lowdown: Top Questions for April '09

Jennifer Maroney — Wed, 06 May 2009 17:18:00 GMT

Each month we keep track of the top questions you ask. This FAQs list includes GL, AP, AR, CR, FA, and general FE questions. To see the FAQs broken out by individual module, review The Financial Edge FAQs on our website. Here are the top FE questions for April and March.

April

Bank Reconciliation shows out of balance to GL Cash Account or vice versa: BB61184
How to import journal entry transactions: BB53174
How to void a posted payment: BB113811
How to add or edit bank adjustments: BB66590
How to reconcile the bank account: BB61838
How to set up the queue service to run scheduled queues: BB289850
A reversal transaction does not post for a voided payment: BB219542

March

Bank Reconciliation shows out of balance to GL Cash Account or vice versa: BB61184
How to reconcile to the General Ledger: BB3358
How to add or edit bank adjustments: BB66590
How to create a bank adjustment from a journal entry: BB71038
How to unvoid or reverse a voided check: BB6275
What is a mock close?: BB22412
How to delete a deposit: BB133943

Talk to you soon!