Asset Management

Agencies must maintain asset master records for items
which are considered assets according to DF&A
accounting regulations.The regulations define capitalized
assets as any item over $2,500. This value includes
taxes, shipping, handling and any other cost associated to
the asset.
Items between $500.00 - $2,499.99 are considered low
value assets and are maintained as such. Controlled
items, such as, weapons, radios, cell phones, etc., that are
under $500.00 may also be maintained as low value
assets.
Assets may be purchased, donated, discovered items,
and/or capital projects (assets under construction).

PURCHASED ASSETS

The following are the processes recommended by
the AASIS Support Center for creation and
purchasing asset.
AS01 - Create Asset Master Record
ME51N - Create Purchase Requisition
ME54N - Requisition Approval
ME21N - Create Purchase Order
ME28 - Purchase Order Approval
MIGO - Goods Receipt
MIRO - Invoice Payment

DONATED ASSETS


Items that are donated (given charitably to a State
agency) and meet the criteria for assets must be
maintained in AASIS.

These items are considered a gift and should not be
posted as an expense to the receiving agency's
budget. Therefore, these assets are assigned to the
appropriate non budget relevant (NBR)* asset class.

DONATED ASSETS (cont.)

The agency will create the asset shell and send
an email to DFA/Office of Accounting requesting
that the value be posted. The request to
DFA/Office of Accounting must include the asset
number, capitalization date, and value.

Values should be determined by one of the
following methods:
1. fair market value
2. catalog price
3. value assigned by the donor
4. appraisal of historical item

DISCOVERED ASSET

An item is discovered and the initial accounting
treatment (for the original purchase or acquisition) is
unknown. The original accounting process was most
likely to expense the cost of the item. This means that
the acquisition has already posted against budget and
recording the item as an asset should not be budget
relevant in the current fiscal year. Therefore, these
assets are assigned to the asset class of non budget
relevant (NBR)*.
An asset must be created, value determined,
capitalization date determined. This information is then
emailed to DFA/Office of Accounting for value posting.

ASSET CLASS

The Asset Class:
is used to classify fixed assets
forms a template for the asset master record
establishes the connection between the asset
master record and the G/L postings.

ASSET CLASS - NBR

Asset classes with NBR after the description are
non budget relevant asset classes. This class is
selected for those items that have been acquired as
a gift or donation or for a discovered asset only.

These assets should not be posted as an expense
to the receiving agency's budget, therefore the
transaction is not budget-relevant.

NOTE: DO NOT USE THE NBR (NON-BUDGET
RELEVANT) ASSET CLASSES FOR ANYTHING
BUT DONATED, CONFISCATED OR
DISCOVERED ASSETS.

DEPRECIATION

There are two depreciation areas in AASIS. Both
depreciation areas are shown in the asset master
record:
• Depreciation area 01 - 100% depreciation in the
month of acquisition and is shown as capital
outlay for all assets
• Depreciation area 20 - Straight line depreciation
Depreciation of capitalized (area 20) items (see
note page) is posted each month based upon the
capitalization date and the recommended useful
life of the asset. The depreciation program is
currently run each month by the ASC.

The following asset classes do not depreciate in
Area 20:
• 1000 - Land
• 2100 - *Equip low value
• 3000 - Works of art
• 2101 - Equip low value collective
• 2300 - DIS DP equip low value
• 3020 - Low value works of art
• 8000 - Assets under Construction
*Equip low value fully depreciates in 01 and 20
during period of acquisition.


CAPITALIZATION DATE

The capitalization date is the value date of an asset.
The system determines the asset value date from
the first posting that results in the capitalization of
the asset.

For items that are discovered or donated this date
must be determined according to when the asset
was put into use. The date is entered when the
values are posted to the asset master record.

RECOMMENDED USEFUL LIFE

The recommended useful life is the reasonably
expected length of time for using the asset and applies
only to Depreciation area 20. Within this time period,
the asset should be completely written off. The actual
technical life of the asset can exceed this time period.

The DF&A Office of Accounting has determined that the
recommended useful life in the asset master record
class code description is the useful life that is to be
used.

ASSET UNDER CONSTRUCTION

An Asset under Construction (AuC) is an asset that is in the
process of being constructed, e.g., building, road, etc. It is a
temporary asset and will not be depreciated in area 20. It will
be distributed and settled when the construction has been
completed. Upon settlement, it will be capitalized and begin
depreciation.
At the beginning of the construction process, a WBS capital
project is set up to capture costs associated with the AuC. At
the end of the fiscal year or the completion of the project,
whichever comes first, the capital project is settled. The costs
associated with the project are then posted to the AuC. The
AuC is then distributed and settled to a capitalized asset
when the project is completed. This process is taught in
another AASIS class.

1. Create Asset Master Record:
Accounting> Financial Accounting> Fixed Assets>
Asset> Create> Asset
2. Change Asset Master Record:
Accounting> Financial Accounting> Fixed Assets>
Asset> Change> Asset
3. Display Asset Master Record:
Accounting> Financial Accounting> Fixed Assets>
Asset> Display> Asset
4. Block Asset:
Accounting> Financial Accounting> Fixed Assets>
Asset> Lock> Asset
5. Create Asset Sub-Number:
Accounting> Financial Accounting> Fixed Assets> Asset>
Create> Sub-Number> Asset
6. Asset Retirement by Scrapping
Accounting> Financial Accounting> Fixed Assets> Postings>
Retirement> Scrapping
7. Asset Explorer:
Accounting> Financial Accounting> Fixed Assets> Asset>
Asset Explorer
8. Asset Balances:
Accounting> Financial Accounting> Fixed Assets>
Environment> Worklist> Generate
9. Fixed Asset List:
Special Transactions and Reports>Financial Accounting>Fixed
Assets>Fixed Asset List