Fixed Assets - Enquiries

Overview
Financial Values
Layouts and Enquiries
Company Summary
Asset List
Valuation List
Depreciation Modelling
Depreciation Modelling Additional Functionality

Overview of Enquiry Controls

Financial Enquiries in Fixed Assets are controlled using Layouts and Formulae.

These controls allow the user to choose how the user views the financial data held in the system. Enquiry may be made using the Company Summary to give value totals by Group/Category and optionally Element (if ICA is in use), or Asset Financial List, to give totals for assets selected using the asset list selection criteria.

Totals are held in the following way:

Each valuation/disposal/transfer made for an asset in a book contributes values to the Asset Summary
Each valuation/disposal/transfer made for an asset in a book contributes values to the Company Summary for the Category/Element to which the asset belongs, in the book in which the valuation/disposal/transfer is made
Current Period Company Summary values are maintained during the current period and at Period End. Current Period Opening and Last Year Closing are updated at Period End and Year End only. Enquiries can be made on Current Period Opening and Last Year Closing values during the current period

Enquiries are defined in the following way:

Formulae are defined identifying financial values held, or combinations of values held for a book
Formulae are gathered together into a Layout, for use in an Enquiry. Layouts may be built showing historical values, user book values or both
A Layout is specified whenever a financial enquiry is to be made, either a Company Summary Enquiry or Report, or an Asset Financial Enquiry. The same Layout may be used for both levels of Enquiry
Default Layouts may be held on the Company Controls - Edit MFAB for use on the Company Summary Enquiry or Report, or the Asset Financial Enquiry
The Company Summary Enquiry or Report may use the same Layout to build a current financial picture, or that at the end of the previous period, or the end of the previous year

Financial Values

There are 32 financial values available for enquiries. The values are held by asset for each book and summed by asset category and optionally element to each book.

Current Situation Values

Formula	Description
FAVLNAMT	Valuation Amount - current valuation amount in this book.
FADPNPRV	Depreciation Provision - depreciation to date, total accumulated depreciation provision.

NOTE If there have been Revaluations and some depreciation provision has been moved to reserves, then this depreciation amount is not included.

Movements on Valuation Amounts

Formula	Description
FAAQCURY	Acquisition Current Year - asset valuation amounts, (or changes to valuation amount), because of an initial valuation, (or an additional valuation, initial correction, or revaluation), this year.
FAVLNCCY	Valuation Changes Current Year - changes to asset value due to revaluation in the current year. Note: This is the amount moved to reserves
FACSTRFI	Cost (Valuation) Transferred In - asset valuation amount moved in by a transfer.
FACSTRFO	Cost (Valuation)Transferred Out - asset valuation amount moved out by a transfer.
FACSTDSP	Cost (Valuation) on a Disposal - asset valuation amount moved out by disposal.
FASALVAL	Net Sale Value - difference on disposal between the sale proceeds and the cost of sale.
FACSTAPY	Cost (Valuation) Adjustments for Prior Years - changes to valuation amount by revaluation, or additional valuation, or initial valuation, or initial correction, made this year but effective for prior years.

Movements to Depreciation Amounts

Formula	Description
FADPNCYT	Depreciation in Current Year Total - total depreciation charges in this year. NOTE If there have been revaluations and some depreciation provision has been moved to reserves, then this depreciation amount is included.
FADPNLPT	Depreciation Last Period Total - total depreciation charges in this year, before the last period end run. NOTE If there have been revaluations and some depreciation provision has been moved to reserves, then this depreciation amount is included.
FADPNLPE	Depreciation Last Period End - depreciation calculated for last period, i.e. depreciation charge taken in the last period end run.
FADPNTFI	Depreciation Transferred In - depreciation provision transferred in.
FADPNTFO	Depreciation Transferred Out - depreciation provision transferred out.
FADPNDSP	Depreciation Disposed - depreciation provision disposed.
FATFRSCY	Transferred Current Year - depreciation provision moved to reserves this year.
FATFRSPY	Transferred Prior Years - depreciation provision moved to reserves this year but effective for prior years.
FADPNAPY	Depreciation Adjustment Prior Years - adjustment to depreciation provision due to revaluation additional valuation, relife, initial valuation, or initial correction, made this year but effective for prior years.
FADPNLYT	Depreciation Last Year Total - total depreciation charged in last year.

Other Financial Values

Formula	Description
FARSDVAL	Residual Value - residual value.
FAREVRES	Revaluation Reserves - the cumulative amount posted to the Balance Sheet account due to revaluations.
FAREVPAL	Revaluation P/L - the cumulative amount posted to the Profit and Loss account due to revaluations.
FAREVPAL	Revaluation P/L - the cumulative amount posted to the Profit and Loss account due to revaluations.
FAREVOPY	Revaluation Change to Impairment Prior Year.
FAREVOCY	Revaluation Change to Impairment Current Year.
FAREVDPY	Revaluation Reserve Depreciation prior Year.
FAREVDCY	Revaluation Reserve Depreciation Current Year.
FAREVDPE	Revaluation Reserve Depreciation Last Period End.
FAIMPVAL	Impairment Value.
FAIMPCPV	Change in Depreciation Provision, due to impairment.
FAIMPCCY	Change in Depreciation Current Year, due to impairment.
FAIMPOPY	Impairment Change to Revaluation Prior Year.
FAIMPOCY	Impairment Change to Revaluation current Year.

Some Examples of Derivable Financial Values:

These would be defined and held as Formulae.

Value	Formula
Net Book Value	FAVLNAMT - FADPNPRV
Opening Value for Year	FAVLNAMT - FAAQCURY - FAVLNCCY - FACSTRFI + FACSTRFO + FACSTDSP - FACSTAPY
Asset Costs Acquired This Year	FAVLNCCY + FAAQCURY
Asset Costs for Prior Years	FAVLNAMT - FAAQCURY - FACSTRFI + FACSTRFO + FACSTDSP - FACSTAPY

Layouts and Enquiries

For asset financial enquiries, layouts should be defined to meet the needs of different users. Each layout is defined using formulae that are defined in the pool of formulae. You can create a formula as a single Financial Value or as a calculation based on one or more financial values. Some examples of formula are given in the following table.

So for example there might be Layouts LC1 and LC2 as follows:

LC1	Net Book Values	Formula
NB	Historic Net Book Value	Formula 1 = FAVALNAMT(H) - FADPNPRV(H)
NBA	NBV for Book Type A	Formula 2 = FAVALNAMT(A) - FADPNPRV(A)
NBB	NBV for Book Type B	Formula 3 = FAVALNAMT(B) - FADPNPRV(B)
NBC	NBV for Book Type C	Formula 4 = FAVALNAMT(C) - FADPNPRV(C)
NBD	NBV for Book Type D	Formula 5 = FAVALNAMT(D) - FADPNPRV(D)
NBAV	Variance of NBV for Books H and A	Formula 6 = (FAVALNAMT(H) - FADPNPRV(H)) - (FAVALNAMT(A) - FADPNPRV(A))
NBBV	Variance of NBV for Books H and B	Formula 7 = (FAVALNAMT(H) - FADPNPRV(H)) - (FAVALNAMT(B) - FADPNPRV(B))
NBCV	Variance of NBV for Books H and C	Formula 8 = (FAVALNAMT(H) - FADPNPRV(H)) - (FAVALNAMT(C) - FADPNPRV(C))
NBDV	Variance of NBV for Books H and D	Formula 9 = (FAVALNAMT(H) - FADPNPRV(H)) - (FAVALNAMT(D) - FADPNPRV(D))

LC2	Depreciation This Year	Formula
DP	Historic Depreciation This Year	Formula 1 = FADPNCYT(H)
DPA	Depn This Year Book Type A	Formula 2 = FADPNCYT(A)
DPB	Depn This Year Book Type B	Formula 3 = FADPNCYT(B)
DPC	Depn This Year Book Type C	Formula 4 = FADPNCYT(C)

Company Summary

The company Summary (MFGA) shows the summary position for the company. Information can be shown in a variety of ways including by group and category, element, or reporting group and category. Up to 20 formulae may be displayed along with their totals according to the layout specified.

This information can also be produced on a report by submitting the FA summary Reports (FG0).

Asset List

The asset list (MFDA) can show either basic asset information or the financial summary information associated with the asset. When using the financial list up to 20 formulae may be displayed along with their totals according to the layout specified.

This information can also be produced on a report by submitting the FA summary Reports (FG0).

It is possible to interrogate asset relationships from this screen using the full structure option for any asset that has children or parents. This will display all assets within the structure and is most suited where component accounting is in use.

Valuation List

The valuation list (MFEA) shows for each asset the valuations that have been applied for any book, with the latest valuation in any book always showing the current value of the asset.

Options available from this screen include viewing the period by period history of this asset (Go History), and viewing linked GL postings where detailed postings are in use (Historic Book only).

Depreciation Modelling

There exists within e5 Fixed Assets Enquiries a facility that enables the user to produce depreciation forecasts for individual assets based upon existing valuations and uplift parameters.

As an example, asset 10301 may have a current active valuation of £10,000. The user might want to tell the system to calculate what the future depreciation will be until the end of the asset's useful life based on:

Its current depreciation method and life; and / or
If in a year's time the method is to be changed from a straight line to a reducing balance method; and / or
If the expected useful life of the asset is reduced from ten years to eight; and / or
If a revaluation was to occur midway through its penultimate useful year increasing its value to £13500;

In addition, the user may enquire as to the future effects of depreciation on a specified valuation amount, which may not relate to an existing asset, again with the option to use uplift parameters. This might be used where the user is considering the purchase of an asset for a certain amount and the user wishes to perform some 'what if?' analysis before the user decides to buy it. This may incorporate potential situations along the lines of those suggested above.

Before the Depreciation Modelling Forecast screen is generated, parameters must be specified which will allow the user to determine the basis on which the modelling is to take place.

If the user wishes to forecast depreciation for one or more groups or categories of assets an offline forecasting report may be run (MFJI).

NOTE Because assets cannot be depreciated until they are active, i.e. until they have been valued, then similarly a depreciation forecast can only be performed on an existing asset if that asset is already active.

Depreciation modelling has no impact on an asset's life cycle. It is carried out purely for enquiry purposes.

When the modelling is complete the forecast of the depreciation can be viewed for each period to the end of the asset life. The information displayed will always take the same format. Consider an asset, costing £13,000, which has a depreciation start date of 1st January 1995 and is to be depreciated using the straight line basis over the next ten years, leaving a residual value of £1,000. This will mean that each year, depreciation will amount to £1,200 and, assuming that each year is divided into 12 equal periods, this will equate to £100 per period.

The first (and subsequent) years of the asset's depreciation will be displayed as follows:

Depreciation
Year	Pd	Depreciable Amount	This Period	This Period	To Date	Net Book Value
1995	1	10000	100	100	100	9900
1995	2	10000	100	200	200	9800
1995	3	10000	100	300	300	9700
1995	4	10000	100	400	400	9600
1995	5	10000	100	500	500	9500
1995	6	10000	100	600	600	9400
1995	7	10000	100	700	700	9300
1995	8	10000	100	800	800	9200
1995	9	10000	100	900	900	9100
1995	10	10000	100	1000	1000	9000
1995	11	10000	100	1100	1100	8900
1995	12	10000	100	1200	1200	8800

If an existing active asset is entered on the parameters screen, then on validation the current active valuation record for that asset will default and may not be amended
If an existing asset is not entered then the first valuation details entered must be of an IV type record. In addition, if no valuation amount is entered a value of zero will default but a warning message will appear indicating that this is the case
In all cases, i.e. for both existing assets and otherwise, repeated fields are provided to enable additional potential or fictional valuation records to be added to the model. For example, an enquiry may be required on an existing asset which currently only has an IV record. The enquiry may be to find out the effect of further specific valuations, as listed below beneath the IV. Each of these may be effective on any date falling on or after the effective date of the record immediately preceding

					Expected Life
Type	Effective Date	Valuation Amount	Depn Method	Depn Rate	Years	Periods
IV	01-Jan-1995	1000	SL	10%	10	00
AV	31-Mar-1996	12000	SL	10%	10	00
RV	04-Aug-1996	13500	SL	10%	10	00
RL	30-Sep-1996	13500	SL	10%	06	08

Depreciation Modelling Additional Functionality

Forecast Start Date

This is used to specify the date, for display purposes, at which the forecast will commence. If, for example, the depreciation start date was 1 January 1996 but the user only wishes to view details of depreciation for the range of dates commencing 1 August 1998. The latter date could be entered in this field and the future depreciation would be displayed from that date, preventing the user from having to find that date manually.

Weight Calendar

A non-fiscal calendar can be entered here which may specify extra depreciation to apply on certain dates. For example, a harsh winter may be expected so, for outdoor equipment, the user may want to use a calendar with extra weighting from November to February so that double the normal depreciation would occur in those months.

Search Limit

This limit applies to the number of periods from the Forecast Start Date which are retrieved. This is useful where, for example, an asset's useful life is twenty years but the user only wishes to view the depreciation for the first couple of years. Retrieval time will therefore be considerably reduced.

NOTE The menu path shown is the default for the system. Your company may have customised menu options, so the path shown may not be accurate. Please contact your system administrator for details.