Fixed Assets - Entering Additions and Betterments

Pgm: FAADDBTR – Additions and Betterments; standard Treeview path: Fixed Assets > Assets > Enter Additions and Betterments

Use this screen to enter details about additions and betterments. A history of these entries will be maintained, and the value of the additions and betterments will be added to the original cost to update the adjusted cost base (ACB).

It is not possible to delete or update records for past years, although the current year can be updated and deleted.

When saving additions and betterments, the user will be asked whether they want to reset the clock on the assets. If the user replies “yes”, the monthly depreciation amount will be adjusted to ensure that each asset becomes fully depreciated a specified number of months after the date of the addition or betterment. The number of months is the current value of the expected life set up for the asset. If the user replies “no”, the monthly depreciation amount is adjusted only to allow for the increase in the ACB; the asset will become fully depreciated on the same date as previously. After adding betterments to the asset, click on [Save]. Saving the betterments enables the 'Select' checkbox.

[Reset Expected Life] − Button

After this button is clicked, an alert pop-up window will display the message, "Expected life has been reset for [asset code] - [asset name]." The clock on the asset will be reset and the monthly depreciation amount will be adjusted in accordance with the updated netbook value. Upon resetting the expected life, the depreciation is calculated for the given expected life of an asset starting from the date of the addition and betterment. If the expected life is not reset, the depreciation is calculated for the remaining expected life of an asset. The [Reset Expected Life] button on this screen will be enabled for the assets that do not have a batch number assigned to it.

[Create and Post Transaction] – Button

Select the asset for which additions and betterments are to be posted. Clicking the [Create and Post Transaction] button will create a journal entry and post the acquisition transaction to GL.

The transaction will be posted to GL, and the corresponding batch number will be generated and displayed in the Batch display-only field. Once the transaction is posted, the selected line is locked for update.

Example of Processing and Posting

Add the betterment to the asset:

Select	* Asset Code	Asset Name	Description	* Date	Amount	Batch
N	EXCAVATOR	EXCAVATOR	PARTS CHANGED #1278	11-03-2020	42300.00	12210.00

Select the asset and click on the [Create and Post Transaction] button.

The posting distribution will be as follows:

Department	Account	Account Name	Debit	Credit
00	1100.200	Asset Account	42300.00	00
00	1100.300	Asset Acquisition Betterment Account	00	42300.00

The accounts are defaulted from the Control File.