Setting up DC1 Asset Management

• Enter the DC1 Asset Management application code (AAC).
• Perform update by clicking OK.

• Depreciation proposals
• Disposal proposals
• Inventory proposals

• Active (normal) assets
• Budget assets

• Disposal accounting
• Depreciation accounting
• Balance movement

Note: If you want to use an explicit voucher type for assets, then you need to set up the voucher number series and voucher type before.

Main depreciation type

This depreciation type is used in the disposal routine for disposing of depreciated assets. It tells the system which depreciation type to use to reverse balances and calculate profit and loss.

Actual depreciation year

This is the accounting year used only in the Asset Management system. The year does not have to be the same as the accounting year in DC1 Financials, thus allowing you to calculate asset depreciation before performing year-end closure.

Note: The year you enter here cannot be less than the current accounting year in DC1 Financials.

Economic transaction history

If you want to save transactions from the previous year after the yearly reorganisation, then set this field to YES. The transactions will be saved in the History file.

Profit and loss calculation

You can choose one of three different methods for calculating profit and loss by entering the correct code in this field.

Method	Description
1	The system calculates and creates profit and loss postings, as well as reverses the balances.
2	The system only reverses the balances.
9	The system does not calculate profit and loss, and reversal of balances must be performed manually.

Profit and loss calculation methods

Example:

This example explains the three methods for calculating profit and loss and the impact these methods have on G/L transactions. It uses the scenario described below.

You acquired a new asset for $100,000.00 in January 2010. In July, you sold it for $50,000.00. The accumulated depreciation when you sold the asset was $25,000.00.

Method 1
The system calculates and performs profit and loss postings, as well as reverses the balances. The following G/L transactions are performed using this method.

Method 2
The system only reverses the balances. The following G/L transactions are performed using this method.

Method 3
The system does not calculate profit and loss, and you must reverse the balances manually. Therefore, there are no G/L transactions created when you use this method.

Accounting

In order to generate G/L postings for the disposal transactions, you must set this field to YES. You must also enter an interface type in the field below.

Interface type

If you want to transfer disposal transactions to the G/L, you must enter an interface type from the Interface type table in this field. The interface type is used to define how to transfer and update the G/L postings in DC1 Financials. This provides a link to a voucher type and voucher number series.

Number series

You must also define the number series that will be used in the Asset Management module. You must define these number series in advance. They are:

• Depreciation proposal
• Inventory proposal
• Disposal proposal
• Budget asset

Note: For the Depreciation, Inventory and Disposal proposals, choose a number series defined in the Number series table. For Budget asset, choose a number series defined in the Asset number series table.

Calculation constants

If you want to custom define your own calculation rules for calculating depreciation, you can create calculation constants here. The calculation constants can be used as a fixed value e.g., internal interest rate, or a percentage. Constants defined at this level are valid for all assets in the system. You can also define calculation constants for specific asset types and groups in the Asset file. None of the pre-loaded calculation rules use the values established here.

Note: The average user does not need to use this function. Contact your technical support if you want to set up your own calculation rules to calculate depreciation.

Codes for:

Active asset and Budget asset

When you set up an asset in the Asset file, you must tell the system if the asset is a budget asset or an active asset. For active assets, the system calculates depreciation and creates transactions.

Cost centre allowed

If you want to allow cost centre accounting, set this field to YES. You can then link a cost centre to each asset in the Asset file. Cost centre is used for creating G/L postings for different transactions in Asset Management. In addition, it can be used for sorting selections on Asset Management printouts and enquiries.

If you do not allow cost centre accounting, the Cost centre field will not be displayed anywhere in the system.

Cost centre account part

If cost centre accounting is permitted, you must enter the corresponding account part in DC1 Financials. If no cost centre account part is defined in DC1 Financials you can use which account part you need.

Project allowed

If you want to allow project accounting, set this field to YES. A project can then be kept on asset level in the Asset file, which can be used when creating G/L postings for different transactions in Asset Management. In addition, it can be used for sorting selections on Asset Management printouts and enquiries.

If you do not allow project accounting, then the Project field will not be displayed anywhere in the system.

Project account part

If project accounting is permitted, you must enter the number of the account part for the project part. The project account part can be any account part except main and cost centre.

Wait file origin:

A/P, A/R, GL

Set the DC1 Financials functions from which retrieval of transactions should be possible to YES.

Heading locations 1-8

In these fields, you define the headings for the location classes that are to be used in the Location table and the Asset file. Locations can represent the physical place where the asset is located, e.g., a country or city. In addition, it can be used for financial control.

Location fields

Example:

• Create a location heading for department called Dept.
• Access the Location table and enter several departments. You can enter a Sales, Marketing and R&D department.
• Access the Asset file and select an existing asset or create a new one. This asset will be physically located in the Sales department.
• Note that the heading, Dept, which you created in the ASM control file, is now a field on the Location and user fields maintenance panel.
• Enter the Sales department location that you created in the Location table, in the Dept field.

User defined alpha 1-5

These fields can be used if you need to keep more information about your assets than what the system provides. By completing the Heading and Attribute fields below, you can create up to five user-defined alphanumeric fields that appear on the Location and user fields maintenance panel in the Asset file.

Heading

Here, you create your own company headings that are displayed as the field names on the Location and user fields maintenance panel in the Asset file. They appear underneath the heading User defined fields. Each field can be up to 15 characters in length.

Attribute

If you want completion of a field to be mandatory, then enter the code for Mandatory as defined in the G/L control file. Leave the field blank for optional entry.

User-defined alpha field

Example:

Your company must keep track of which country assets are manufactured in. In this case, you need to create an alphanumeric field that has mandatory entry in the Asset file.

• Create a user-defined alpha field called Country origin.
• Enter the code for Mandatory in the Attribute field.
• Access the Asset file and select an asset.
• Note that the user-defined alpha field, Country origin, that you created in the ASM control file is now a field on the Location and user fields maintenance panel.
• The asset was manufactured in Poland. Enter Poland in the Country origin field. The system does not allow you to skip this field because you have defined it as mandatory in the Attribute field for Country origin in the ASM control file.

User defined numerical 1-5

By completing the Heading, Decimals, Type and Attribute fields below, you can also create up to five user-defined numerical fields that appear on the Location and user fields maintenance panel in the Asset file.

Heading

Here, you create your own company headings that are displayed as the field names on the Location and user fields maintenance panel in the Asset file. They appear underneath the heading User defined fields. Each field can be up to 15 characters in length.

Decimals

Enter the number of decimals for field type 1 (numerical unspecified) and field type 2 (amount). For amounts, the number of decimals automatically defaults to the number of decimals for the system currency. The number of decimals for system currency is defined in the Currency table.

Type

Define the type of numeric field by using one of the following codes:

Code	Description	Example
1	Numerical unspecified	1000
2	Amount (defined as system currency)	1000.54
3	Date	000101 or 010100 (depending upon system setup)
4	Period	0001

The system ensures that the numerical value you enter in a specific user-defined numerical field in the Asset file is compatible with the type.

User-defined numeric fields

Example:

When you purchase used assets, it is useful for you to enter the last date when the previous owner routinely maintained these assets. This information is not mandatory.

• Create a user-defined numeric field called Maint. date.
• Enter the code 3 in the Type field to indicate that a date must be entered here.
• Leave the Attribute field blank for optional entry.
• Access the Asset file and create a new asset or maintain an existing one.
• Note that the user-defined numerical field Maint. date that you created is now a field on the Location and user fields maintenance panel.
• Enter a date in the Maint. date field. Note: If you enter a value here, then you must enter a date because you entered the code 3 in the Type field in the ASM control file. If you left the Attribute field for Maint. date blank in the ASM control file, then you may leave this field blank.

Attribute

If you want completion of a field to be mandatory, enter the code for Mandatory, as defined in the G/L control file, in the Attribute field. Leave the field blank for optional entry.