Sage Evolution Fixed AssetsThe Sage Evolution Fixed Assets module automates all of your important processes
Fixed Assets: Everything you need to keep a register of your assets with Sage Evolution.
South African Company Law requires that businesses keep a register of their fixed assets as part of their accounting records. The same applies to many international countries. However, managing your company’s fixed assets can be tedious and time-consuming.
Fixed assets are physical items such as desks, computers, cars and machinery which you acquire to run your business. As you use assets, they depreciate or become obsolete. You can legally expense depreciation in your accounts and for tax purposes.
Managing your ﬁxed assets with Sage Evolution includes the following tasks:
- Tracking each asset’s value, both from a tax and an accounting point of view.
- Depreciating assets correctly using an appropriate depreciation rate and method.
- Updating the replacement values of your fixed assets for insurance purposes.
- Accurately recording any sale, disposal or loss of assets.
- Maintaining an accurate Fixed Assets Register which records information such as date of purchase, date of disposal, purchase price, accumulated depreciation, net book value, profit or loss on sale etc.
The Sage Evolution Fixed Assets module automates all of these processes. Once you provide the initial information, the system takes over and manages your assets for you.
One of the realities of fixed assets processing is that companies frequently change depreciation rules as legislation allows and as company policy changes. Some changes are retroactive to when you purchased the asset. Sage Evolution Fixed Assets calculates its values dynamically from the start of each asset’s life, which makes retroactive changes simple
Sage Evolution Fixed Assets can be Stand-Alone or Integrated
One of the main reasons for a fixed assets package is to derive values from fixed asset activities and post these values into your General Ledger. You can accomplish this in three ways:
Directly into Sage Evolution
You install Sage Evolution Fixed Assets as an additional module seamlessly into the Sage Evolution Accounting Suite. The system transfers information directly into the General Ledger module.
Directly into Pastel Partner
You install Sage Evolution Fixed Assets as a stand-alone module and link it directly into Pastel Partner (Version 9 and higher). The system then creates a General Ledger batch in Pastel Partner.
You install Sage Evolution Fixed Assets as a stand-alone module, and enter General Ledger codes that correspond to your accounting system. You then derive the values to post to the General Ledger via the Sage Evolution Fixed Assets reports.
Grouping Assets in Sage Evolution Fixed Assets
Keeping physical track of assets is a tedious process. Some assets are identical such as chairs and desks. Some are unique (vehicles), and others look similar but are different inside (computers). Computers are an example of assets that are complex to manage.
They change constantly – you add memory, replace a hard drive and so on. Keeping track of these changes manually or on a spreadsheet is tedious at best, impossible at worst. Sage Evolution Fixed Assets allows you to group and link assets in logical ways so that your asset records mirror your physical assets as closely as possible. You have the following capabilities:
You can group identical assets into one record – for example, 20 chairs. This simplifies the asset register considerably. You can sell or dispose of one or more units, and have the ability to split the asset into one or more separate assets at any time.
Master and Sub Assets
Sub assets allow you to group assets together. For example, adding an additional hard drive to a computer. If you create a separate asset for the hard drive, it becomes difficult to manage which hard drive is in which computer. Instead, you can create the hard drive as a sub asset of the computer asset.
You link each asset to an asset type. The asset type contains the book and tax depreciation methods for the asset, as well as General Ledger integration information. You define once how a particular type of asset such as desks, cars or computers work. When you add a new asset, you link it to an asset type and the system knows how to depreciate it.
Cost Centre, Department, Location
These are three optional analysis codes used to track where assets physically are in your company and who is responsible for them.
Sage Evolution Management Features
Sage Evolution Fixed Assets contains optional management features to assist you in managing your fixed assets:
Capital Expenditure Budgets
You can create capex budgets and process capex orders prior to creating an asset. The advantage is that you can report at any stage on “over” and “under” budget areas.
You can create supplier records. You use these for record keeping purposes if you purchase assets regularly from the same supplier
You can create and use a database. You use this to track people within your company who are responsible for fixed asset duties. You can also use it for contacts at your suppliers.
Depreciation in Sage Evolution
Fixed Assets Processing in Sage Evolution
Tracking and Changing Depreciation
The primary function of Sage Evolution Fixed Assets is to calculate book and tax depreciation. If you make a retroactive adjustment, the system calculates an adjustment per period. You can process adjustments in their respective periods or in the current period.
Changing the Value of an Asset
You can revalue an asset at any time. This could be an upward or downward revaluation. In line with legislative requirements, the system uses the new value to calculate book depreciation. For tax depreciation, the system always uses the original value.
Sometimes an asset’s life changes dramatically from the original lifespan you intended. For example, it may suffer damage or it may have been overused. You use the Override Assets feature to specify how many periods of useful life remain for the asset. The system will then depreciate the remaining value equally over these periods.
Selling/Disposing of Assets
Assets do not keep forever. They wear out and cease to be of use or are sold. Sage Evolution Fixed Assets handles all the calculations and postings required when you cease to use an asset.
You can analyse depreciation costs by asset type or cost centre. If you transfer an asset from one cost centre to another, the system leaves the accumulated depreciation in the old cost centre, and assigns future depreciation to the new cost centre. You can transfer individual assets, or you can perform group transfers of assets.
It can happen that you wish to suspend depreciation of an asset for a time. For example, you may have an expensive piece of machinery that you currently do not use. You have the ability to freeze the asset for a specified amount of time. During this period, the system does not calculate depreciation for the asset.
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