MIP Cloud - Web User Interface - Setting Up Fixed Assets Module and Assets
Info: How to set up the Fixed Asset Module and Assets in the MIP Cloud Web Interface
NOTE: If you have already set up Fixed Assets in the classic or on-premise interface you do not need to set it up again. The setup will carry over into the Web Interface. Any setup done in one will carry over into the other.
Before you can use the Fixed Asset module several things need to be setup. This setup is done under Maintenance>Fixed Assets.
The first setup item is the Asset Type. The asset type controls most aspects of how an asset will depreciate. This includes the calculation method (such as straight line) and all the coding that will be used in deprecation.
Before you can complete this setup you must have a Distribution Code setup (Maintanece>Distribution Codes). This distributon code will control all of the non-gl segment coding.
When selecting the GL code for the Accumulated Deprecation Account and Asset account you can only select from FAO accounts. If you have not set up FAO GL accounts you will need to do that in Maintenace>Chart of Accounts
All assets assigned to the Asset type will have the same coding for depreciation. If you have assets that require different coding you will need to set up a unique asset type for each coding combination.
Custom Deprecaition Codes- Optional
Custom depreciation codes are codes that control how the depreciation is calculated (the amount per period). In most cases customers use the default method of Straight line. This takes the cost and divides it by number of periods in the life and calculates the same amount each period. Other common methods are available or can add a custom code and create a table to control how much calculates each period.
Designation Codes – Optional
Designation Codes are optional codes that can be used to group, filter or classify assets for reporting purposes. Designation codes do not affect depreciation calculations or accounting amounts. There are 4 categories of optional designation codes available to tag an asset with.
After completing the setup of the above codes you are ready to add an asset.
NOTE: Adding a new Asset DOES NOT have any affect on accounting. When you add a new asset in fixed assets you must also make the corresponding entries in accounting to record the value of the asset on your books.
To add a new Asset Click Add Asset and fill in the required information.
The fields marked with an * are required, other fields are optional.
NOTE: The aquistion date is for informational purposes only. It has no effect on when the asset starts to calculate
Asset Type ID Section-
The Asset Type ID controls the coding of the asset. Choosing the ID will show you what coding will be used but you cannot change it. If you need to make changes to the coding you need to update or use a different Asset Type ID.
The Deprecation Section-
The deprecation section is where you put in infomration about the values and dates to be deprecaited.
Cost or Basis – This the the value of the asset. This could be what you paid for it or whatever amount that you will be depreciating on it.
Begin Depreciation Date – This is the date you wish to start depreciating the asset on. It is recommended that you make this date the first day of the month even if the asset was put into service on a different day.
Life (Months) – This is how many months you will be depreciating the asset for.
Salvage Value – Optional - If you expect the asset to have some value at the end of depreciation you would put it in here.
If you are putting in an asset that was newly acquired and had never had any depreciation recorded on it through another method or system you would leave this blank.
If you are putting in an asset that already has deprecation taken on it you would but the amount of depreciation, the months depreciated and the last date depreciation was taken on it in this section.
You purchased a car for $60,000 on 1/1/2015. It has a life of 60 months. Before you got the Fixed Asset module in MIP you kept track of depreciation on a spreadsheet and made JV entries in MIP to record the depreciation. You did this for 2 years (24 months) before getting the Fixed Asset Module.
After adding the Fixed Asset module you need to set that asset up. It would look like this:
Purchase Infomration- Optional
This is a place to record optional infomration about the asset, none of it has any effect on the asset calculation or accounting entries.
After setting up assets they can be used in depreciation calculations and disposals.
Question: I have an asset that I track but do not take deprecation on. How would I set that up.