OVERVIEW

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The Assets subsystem of CES offers facilities to

Classify Accounts in GL as
Asset Accounts
Depreciation Accounts
Repair accounts
Maintain Asset Details
Grouping , Depreciation Category, Details
Cost Breakup by cost type (Basic, Royalty, Insurance)
Location
Extract from Books for Voucher Details
PO / GRN / Bill Details
Repairs Cost Breakup by Repair Cost Type (AMC, Breakdown)

Determine Depreciation based on
Straight Line
Written Down Value
Facilitate Depreciation for
Income Tax
Company Law

Determine Residual Depreciation
Cut off Month Basis
Pro-rata Basis

Asset Disposal
Disposal for Income TAX
Disposal for Company Law
Extract from Books

Year Wise Balances
for Income Tax
for Company Law

Output Asset Statement
Schedule 6 format
For Income Tax / Company Law
Depreciation by Division
Asset Additions / Deletions
GL Reconciliation for assets additions and deletions

Introduction

The Assets sub system of CES is used to determine depreciation for the purpose of Income Tax and Company Law.
The depreciation can be determined either based on asset depreciation categories or asset.
The asset details can be entered or extracted from the books.
Depreciation for Income Tax / Company Law

The Depreciation can be determined separately for

Income Tax
Company Law

These are available by asset and accounting year.
The Commissioning date is taken as the basis for calculating the depreciation.

Depreciation can be determined by running a ledger for the period desired viz. A month, quarter, half-year or a year

You can run take out a depreciation report by month , half yearly.
Work flow

Depreciation Categories

The depreciation categories can be registered to indicate the depreciation method for Income Tax and Company law.

The Depreciation methods are as follows:-

Straight Line
Written Down Value

For each category the residual depreciation basis is also indicated viz. Pro-Rata / Cut-off Month basis (September)

Asset Grouping

Asset can be grouped such as Plant, Equipment, Land etc..

Asset Locations

Asset Location can be pre-defined to associate the location of the Asset.
Additionally a sub location can be specified in the Asset detail.

Asset Details

The Asset details can be registered with following details

Identify an Asset using a code (maximum of 16 Characters)
Associate an Asset Group
Specify Acquired & Commissioned Date
Associate a Depreciation Category

Copy/Enter Voucher Details

Identify the Cost Type viz. Basic, Installation, Royalty
Copy / Enter PO , GRN , Bill Details
Override the default Depreciation for Income Tax/Company Law
Minimum Asset value below which no Depreciation is to be applied

Residual Depreciation
The residual depreciation is applied for assets bought with in the accounting Year. Two methods are available for the residual depreciation

Cut off Month method
Pro-rata method

Cut off month Method
In this method the residual depreciation percentage is applied whenever the commissioned date (for the cost type) is after the cutoff month

Example (Case-1)
The commissioned date of an asset value 10000/- being lst December 95.
The Cut off month is September with residual depreciation of 5%
The residual depreciation in the corresponding Year is 10000 * (5/100) = 500

Pro Rata Method
In this method the residual depreciation percentage is applied for the period in use in the accounting Year.

Example (Case-2)
The commissioned date of an asset value 10000/- being lst December 95 and a residual Percentage of 10%
The residual depreciation in the corresponding Year is 10000 * (10/100) * (4/12) = 333

Asset Disposal

Asset disposal is recorded in the Books This information can be absorbed through a facility provided in the Fixed Assets system.

The Asset disposal can be partial or complete disposal. In either case the impact of it can be recorded as a single disposal entry in assets in an accounting Year.

The manner in which the impact of disposal of asset is recorded for

Disposal for Income TAX
Disposal for Company Law

The asset disposal details available are

Disposal Reference, Date
Voucher Details
Disposal Value, Asset Value Before, Asset Value after,
Profit /Loss for Income Tax / Company Law.

Determine Depreciation

The depreciation is determined for an accounting year, quarter, half-year or month. This is identified by a ledger identity. The ledger identity is associated with Income Tax or Company Law for which the depreciation is determined.

Asset Balances (Ledger) Year or month
The asset balances are maintained by asset / Ledger id. Since Ledger id is associated with the year id and Income Tax / Company Law.

The Balance can be viewed accordingly viz.

for Income Tax
for Company Law

Asset Statement

The Asset statement is also available

For Income Tax / Company Law

The Asset Statement contains the following details:-

Depreciation by Depreciation.Category / Asset
Current Depreciation
Current Asset Value
Cumulative Depreciation
Voucher Details

Asset Location Transfer

Facilitate transfer of assets from one location to another is available

Preset for Assets System

Use the depreciation percentage from Depreciation category or Asset
Default basis for depreciation Pro-rata or Cut-off month
Cut-off Month for depreciation
Basis for pro-rata working Day or Month

Facilities in the system

Setting up

AS01	Maintain Presets for Fixed Assets
AS02	Maintain Accounts for Asset/Depreciation
AS03	Maintain Depreciation Types
AS04	Maintain Depreciation Basis
AS05	Maintain Fixed Asset Groups
AS06	Maintain Depreciation Category
AS07	Maintain Assets Group Depreciation Basis
AS08	Maintain Asset Cost Type
AS09	Maintain Asset Location
AS10	Maintain Asset Maintenance Cost Type

Asset Registration

AS21	Register Asset Details
AS22	Asset/Group/Depreciation Linking
AS53	View Asset Details

Asset Disposal

AS23	Asset Disposal

Asset Ledger

AS32	Asset Ledger Control
AS33	Run Asset Ledger
AS31	Ledger Opening Balance
AS34	Maintain Asset Ledger Balances
AS35	View Asset Depreciation

Asset Locations

AS51	Raise Asset Location Transfer
AS52	Effect Location Transfer

Reports

AS71	Asset Sanction Print
ASR1	Assets Additions � CL
ASR2	Assets Deletions Report
ASR3	Assets Deletion Details - CL
ASR4	Assets Additions � IT
ASR5	Assets Depreciation � CL
ASR6	Assets Depreciation � IT
ASR7	Depreciation statement Division wise - CL
ASR8	SCHEDULE 6