QAD Fixed Assets

Key Features of QAD Fixed Assets

• Integration with QAD Enterprise Application entities and general ledger
• Flexible business rules define standard and custom accounting procedures
• Wide variety of built-in depreciation methods
• Fixed asset entry individually or in batch
• Full set of fixed asset management functions, including asset retirement, asset splitting, book adjustments and more
• Fixed asset transactions and general ledger posting for acquisition, depreciation, retirement and transfer—including correction transactions (general ledger void transactions)
• Accounting and management information reporting

Integration with QAD Enterprise Applications

• Integrated with QAD Enterprise Application entities and general ledger (general ledger daybooks, accounts, sub-accounts, cost centers and projects)
• Allows user to set up and create either summary or detailed journal entries for general ledger (GL) transactions

Business Rules

• Allows user to define general accounting parameters and customize QAD Fixed Assets to meet specific accounting needs by setting up business rules.
• Provides defaults for assets entered in Fixed Asset Maintenance:
  • Depreciation methods to use for financial and tax purposes
  • Usage of custom calendars
  • Fixed asset books needed
  • Fixed asset locations
  • Classes to define for grouping similar assets

Depreciation Methods

Depreciation allocates an asset cost to periods in its service life. Depreciation affects both tax and financial reporting. Depreciation can be calculated one way for tax purposes and another for financial purposes.

• The following depreciation methods are supplied with QAD Fixed Assets:
  • Straight Line Depreciation
  • Units of Production Depreciation
  • Declining Balance Depreciation
  • Declining Balance Switch to Straight Line
  • Sum-of-the-Years’ Digits Depreciation
  • Flat Rate Depreciation
  • Custom Table
• Fixed assets are not always acquired on the first day of the year, nor are they always retired on the last day of year. Therefore, Fixed Asset Conventions are used for averaging depreciation in the first and last years of an asset life. Conventions can be used in conjunction with equations for depreciation calculations in the first, last and disposal years of an asset life.
• Meters are used to measure asset usage for the units-of-production depreciation method. A meter can be attached to an asset or group of assets to collect the usage in Fixed Asset Maintenance.

Fixed Asset Classes

Depreciation for assets in the same class generally affects the same general ledger accounts for the asset investment, accumulated depreciation and depreciation expense.

• Fixed Assets supports an unlimited number of asset classes. Primary criteria for a class are:
  • Items are similar and grouping is reasonable
  • Items are related for accounting purposes, affecting the same general ledger accounts. These accounts are set as the default entries for the class.
  • Items use the same books
  • Items have the same service lives for calculating depreciation
  • Items use the same depreciation methods for both book and tax purposes

Fixed Assets Creation and Management

• Allows user to enter fixed assets into the system individually or in a batch.
• Defines fixed assets with key values like class, location, service date, asset cost, salvage amount, replacement cost and number of asset components, if the asset is depreciated, and authorization number.
• The following functions can be performed to manage assets:
  • Maintenance of asset account information
  • Entry of asset comments
  • Maintenance of user fields for customizations
  • Maintenance of insurance data
  • Adjustment of depreciation books
  • Adjustment of posted depreciation
  • Maintenance book detail
  • Maintenance of information for the units-of-production depreciation method
  • Maintenance of information about asset components
  • Division of an asset into two separate assets (splitting; also used for partial retirements and transfers)
  • Retirement or transfer of a group of assets

QAD Fixed Assets Maintenance function

Fixed Assets Processing

• Creates (by entity) and posts to the general ledger the following fixed asset transactions for assets at the end of each reporting period:
  • Acquisition of assets (acquisition costs)
  • Depreciation of expenses (periodic or accumulated)
  • Retirement of assets (sale amount, gain or loss on disposal)
  • Asset transfer (old location to new location, entity change through intercompany account booking)
• Allows user to correct any general ledger errors by creating reverse general ledger transactions for the original general ledger entries (general ledger void transactions)
• Enables user to archive and/or delete retired assets at period or year end, when debits equate to credits

Fixed Assets Reports

• Provides accounting and management information.
• The following reports are included in QAD Fixed Assets:
  • Periodic Activity Report
  • Depreciation Adjustment Report
  • Acquisition Report
  • Depreciation Expense Report
  • Asset Depreciation Array Report
  • Asset Owned Report