EC029_b - Fixed Assets

Management
Interview notes from mm/dd/yy

Updated on 6/1/2011

Author
Participant(s)
Recipient(s)
To be validated
for the

FIXED ASSETS MANAGEMENT 2

ROLLOUT OF THE FUNCTIONS 3

Expenses 3
Individual Expense Processes 4
Fixed Assets 4
Asset Creation and Update Operations 5
Depreciation Charge Entries 6
Individual and Batch Processes on Assets 7
Options on Assets 21
Physical Element 22
Physical Element Creation and Update Operations 22
Transfer of a Physical Element 22
Issue of a Physical Element 23
FIXED ASSETS MANAGEMENT
The Fixed Assets Management module for Sage ERP X3 Standard Edition lets you manage the life cycle of fixed assets,
from the invoicing of expenses through to the issue of assets. The two streams managed automatically with this Fixed
Assets module are as follows:
 Creation of expenses to be capitalized from purchase invoices and / or BP supplier invoices
 Account postings generated throughout the life cycle of the fixed assets intended for general accounting (individual
accounts and consolidated accounts on an optional basis) and analytical accounting.

Expenses to be capitalized
BP
INVOICES Suppliers

Accounting Fixed assets

INVOICES
Purchases
Accounting
documents
Expenses to be capitalized

1 Will the expenses to be capitalized be managed on the basis of:

 Purchase invoices
 BP supplier invoices
 Purchase invoices and BP supplier invoices without distinction

2 How many fixed asset will you manage in Sage ERP X3 Standard Edition?
 Specify a range
(This information must be known at the time of ordering. The Fixed Assets module is priced by the number of fixed
assets managed by the company.)

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ROLLOUT OF THE FUNCTIONS

Expenses
Sage ERP X3 Standard Edition manages all expenses made by four possible flows:
 Expenses entered directly (subsequent adjustment in the case of an accounting GL).
 Expenses generated from the validation of purchase invoices.
 Expenditure generated from the validation of BP supplier invoices.
 Expenses originating from an incoming interface from another application via an import.
These capitalizable expenses (i.e. not yet attached to an asset) can be selected in order to create assets (1 to n expense
items can make up an asset).
The modification of an item of expense is only permitted in the following cases:
 The data relating to expenses attached to an asset is no longer modifiable, with the exception of the data in the
free fields.
 For expenses generated from the validation of purchase invoices, BP supplier invoices or an import, only fields
not generated from the invoice or not supplied by the import are modifiable. After entry and validation, this
information is no longer modifiable.
The deletion of expenses is prohibited in the following two cases:
 If the expenditure are generated from the validation of a purchase invoice, a BP supplier invoice or an import
 If the expenses are attached to an asset.

3 Does the expense flow described above meet your requirements?

You can also specify budgetary postings on the expense for information purposes:
 The budgetary fiscal year.
 The reference of the investment budget in which the expense was planned (managed in miscellaneous table
615).
 The reference of the investment request in which the expense was explained (managed in miscellaneous
table 616).
 The contract number in which the expense was recorded (managed in miscellaneous table 620).

4 Do you need to manage budgetary postings at an expense level?

If yes, please complete the file below of budget tables:

Imputations_Budgét
aires.xls

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Individual Expense Processes
ADD AN EXPENSE LINE
This action adds an expense line to the same reference  The expense reference is maintained. Only the line number is
incremented. This feature allows you to save 1 invoice consisting of several lines.
DISTRIBUTION OF AN EXPENSE LINE
This action is used to distribute a capitalized expense or not yet capitalized expense in order to generate 1 to n additional
items of expense.
There are 2 methods of splitting expenses and this allows you to specify the total number of items of expense you want at
the end of the splitting process:
 Distribution based on quantity (Quantity > 2),
 Split by distribution of the amount

5 Do you need to carry out expense splitting?

 If yes, do the previous types of splitting meet your requirements?

Fixed Assets
Sage ERP X3 Standard Edition manages two flows on assets:
 Assets entered directly (lease, rented product, retrieval of an existing fixed asset basis).
 Assets generated from a grouping of one or more items of expense (Capitalization of expense).
Based on a single ledger for the purpose of meeting the needs of social accounting, analytical accounting and, on an
optional basis, the needs of group accounting in accordance with IFRS standards (consolidated accounts).

Sage ERP X3 Standard Edition lets you manage the following depreciation plans:
 Accounting depreciation plan to determine statutory depreciation,
 On an optional basis, the IAS/IFRS depreciation plan to determine the depreciation to be posted in the
consolidated accounts. Option to be enabled only for companies that must keep their consolidated accounts in
accordance with IAS/IFRS standards.

Each depreciation plan:

 Is attached to a context that the fiscal years and the division of the years into periods (months, quarters, etc.)
for interim cut-offs
 Has its own method of depreciation: Method, duration, rate, particular tax arrangement.

The depreciation method for each plan can be determined automatically via the association of values function from:
 The accounting code of the fixed asset
 Or the accounting group assigned to the fixed asset
The division of the fiscal years into periods allows you to determine the depreciation to be posted and the depreciation
posted:
 The depreciation to be posted is determined by the calculation process.
 The depreciation posted is determined by the generation of accounting postings process.

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6 Does the fixed asset flow set out above meet your requirements?
Sage ERP X3 Standard Edition manages the notion of main asset / component assets via a status specific to each fixed
asset:
 Status Autonomous: no components attached
 Status Principal: components are attached or can be attached
 Status Component: attached to a main asset
 Status Component pending attachment: when the selection of the main asset is in the process of
assignment
The implementation of this notion, when the components of a fixed asset require specific depreciation methods, allows
them to be posted separately from the outset and for successive replacements. Assets grouped in this way therefore
remain linked by this relationship and their management is interdependent (eg. the issue of a main asset can be passed
on to its components).

7 Do you break down assets into main and component assets?

Variable depreciation, which varies according to the use of the equipment, is also available in Sage ERP X3 Standard
Edition.
For this variable depreciation method, we must define the work units in the production plan and attach the respective
fixed asset to this production plan.
These production plans, based on the completion of work units, are used to:
 Specify the total number of work units in the production plan: number of parts, hours, kilometers,...
 Break down the total number of planned work units by period and by fiscal year in accordance with the periodic
and fiscal year division method defined for the context used for the management of the company's work units,
 Enter, for the current period, the number of work units actually completed. This information, which usually
comes from Production Planning, can also be the subject of an import.

8 In your context, do you have fixed assets that correspond to the depreciation method presented above?

Asset Creation and Update Operations

 The creation of an asset results in the following:
 Creation of the attached depreciation plans,
 Performance of a depreciation calculation if the "Auto-calculation on validation" setting is Yes
 Attachment of the expense to the asset (Capitalization of expense)
 Generation of a creation of an asset event in order to produce an accounting document for posting the creation
of an asset entry. This applies if the asset is not created from expense already posted.
 Modification of an asset
 Once the creation is validated, the asset is no longer modifiable as such and must undergo the following
business actions: change accounting posting (type of holding, accounting group, accounting code, nature and
CoA account), update, Tax adjustment, analytical and geographical transfer, change depreciation method.
The modification of an asset results in the following:
 Performance of a depreciation calculation if the "Auto-calculation on validation" setting is Yes
 Attachment of one or more subsequent items of expense in order to update the asset.

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 Deletion of an asset
The deletion of an asset results in the following:
 The deletion of the attached depreciation plans,
 The deletion of the charges for the fiscal year and periods.
 The deletion of the attached events
 The generation of a cancellation of the asset event in order to produce an accounting document for posting the
cancelation.
The deletion of an asset is prohibited in the following cases :
 The asset is subject to a fiscal year or period closure
 The asset posting date is before the start date of the current fiscal year
 The asset has physical elements attached
9 In your context, do you have fixed assets that must be created by means of a direct entry (besides purchase
invoices and BP supplier invoices entered in Sage ERP X3 Standard Edition)?
 Do you need to generate a creation of an asset entry from this flow?
N.B.: This entry is not delivered in the reference folder.

Depreciation Charge Entries

Sage ERP X3 Standard Edition can automatically provision social accounting with depreciation charges from the
accounting depreciation plan.
The standard accounting document generated can be used to post the following entries:
> Operating depreciation charge accounting posting
> Exceptional depreciation charge accounting posting
> Depreciation accounting posting
> Special depreciation charge accounting posting
> Exceptional depreciation loss increase accounting posting
> Exceptional depreciation accounting posting/ Provision
> Exceptional depreciation accounting posting/ Adjustment
> Impairment loss increase accounting posting
> Exceptional depreciation impairment transfer accounting posting
> Impairment provision accounting posting
> Revaluation variance accounting posting
> Special provision adjustment accounting posting/ Revaluation

10 In your context, do the economic depreciation charge entries meet your social accounting provisioning
requirements?
 Do you post special entries and special adjustment entries?
 Do you post impairment and impairment loss increase entries?
 Do you post revaluation variance entries?

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Individual and Batch Processes on Assets
Sage ERP X3 Standard Edition lets you manage various events throughout the life cycle of a fixed asset.
These events are generated from different actions, either individually (asset by asset) or by means of batch processes
(selection of a population of assets).

INDIVIDUAL PROCESSES ON ASSETS

The individual actions available in Sage ERP X3 Standard Edition are as follows:
 Change of accounting posting, including transfer from a fixed asset current account to a fixed asset in service
account.
 Change of depreciation method for each depreciation plan of a fixed asset.
 Revaluation of the depreciation basis of an asset.
 Depreciation of the net book value of an asset.
 Update of the CoA balance sheet value and display of the transfer of the updated values to the different depreciation
plans of a fixed asset.
 Distribution of an asset into n assets, whatever the purpose: partial issue, different assignments of constituent items,
breakdown for the purpose of managing the depreciation plans based on the period of use of each component. The
breakdown key can be specified at the moment of splitting or predefined.
 Change of Tax rule: update of the admission coefficient.
 Transfer in order to apply an analytical posting change or a location change (financial site, geographical site, location)
to an asset.
 Issue of an asset in the event of sale, scrappage, theft or disappearance.
 Subsequent Attachment / Detachment of one or more items of expense in order to update the value of an asset.

BATCH PROCESSES ON ASSETS

The batch actions available in Sage ERP X3 Standard Edition are as follows:
 Revaluation
 Impairment
 Modification of an accounting posting
 Modification of depreciation method
 Analytical and geographical transfer
 Batch distribution of assets
 Asset issue
 Tax adjustment

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REVALUATION
The value of an asset can be revaluated so that this asset can be valued at its real or fair value on the revaluation date.
This value corresponds to the amount for which the asset could be exchanged in standard competitive conditions.
The asset revaluation is applied either to the values at the start of the fiscal year or to the values at the start of the current
period.
The revaluation function is used to carry out revaluations or to cancel previous revaluations. Only one revaluation is
permitted over the same period.
A revaluation can be implemented:
 Either by taking the market value of the asset and transferring it to the balance sheet value with the zero reset
of the depreciation and impairment loss totals: The asset is then depreciated on the basis of its new value and
its residual depreciation period.
 Or by applying a constant coefficient or variable coefficients or indexes (completed beforehand by the user in
the table of revaluation coefficients and indexes). These coefficients or indexes are applied to the Balance
sheet value, Depreciation totals, Depreciation (and Impairment loss) and Net value.
The revaluation by market value of an asset depreciated using a non residual method, involves, a change in depreciation
method on this plan that will automatically take the residual equivalent method value. This means that the revaluation
can be processed on a long-range basis by depreciating the new net value of the asset over its residual depreciation
period.

The revaluation of an asset results in the following:

 The update, depending on the chosen revaluation method (Coefficient, Index, Market value), of the values in
the depreciation plan affected by the revaluation.
 The generation of a revaluation event in order to produce a revaluation accounting document.
 The accounting document is used to manage revaluation entries with:
> a revaluation entry for the revaluation of the gross value,
> a revaluation entry for the revaluation of depreciation,
> an entry for the determination of the revaluation variance.
An asset can only be revalued once for the same depreciation plan and the same period. You therefore need to cancel
the previous revaluation, which results in the following:
 Reassignment to their pre-revaluation values (i.e. their values for the previous period) of the fields updated by
the revaluation process
 Automatic restoration of the original method if the revaluation has led to a mandatory change of depreciation
method to a residual equivalent method.
 Generation of a revaluation cancellation event in order to provision a cancellation accounting document.
11 In your context, do you carry out revaluation operations on your fixed assets?
 If yes, what is the frequency of these revaluations?
 What fixed asset revaluation method do you use?
 Application of a revaluation index?
 Application of a revaluation coefficient?
 Application of a market value?
 Does the accounting posting generated by Sage ERP X3 Standard Edition meet your requirements?

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IMPAIRMENT
Sage ERP X3 Standard Edition lets you manage the different forms of asset impairment.
Impairment corresponds to a loss in value over and above the loss in value determined through normal depreciation and
applies to the values at the end of the current period of the plan in question.
Impairment can be explained by internal reasons (obsolete or damaged asset, restructuring foreseeable, etc.) or by
external reasons (fall in market value of the asset, technological change, etc.).
These loss of value indexes are reversible: Impairment can therefore be adjusted, without, however, producing an
accounting value greater than the value that would have been determined if the asset had not been impaired.
Impairment takes place when the net value of the asset, at the end of the period (or the fiscal year), becomes greater
than its recoverable value.
The recoverable value corresponds to the higher of the following two values:
 Market value,
 Use value.
Impairment loss increase takes place when the asset has been impaired over previous periods or fiscal years and its
net value, at the end of the period (or the fiscal year), has become less than its recoverable value.
Impairment loss increase also takes place automatically in the following two cases:
 When issuing an asset with a impairment balance on the issue date, if the value of the setting "Issue:
impairment loss increase" is Yes
 On the periodic calculation of the statutory chart of accounts if impairment has been recorded in a prior fiscal
year. In this case, an impairment loss increase is recorded and automatically transferred to exceptional
depreciation in the last period of the fiscal year or over the issue period if an asset issue is recorded in a
previous period.
Following depreciation or an impairment loss increase, the following operations are performed on the asset:
 Registration on the selected depreciation plan selected of the amount of the depreciation or impairment loss
increase
 Calculation of its new net value at the end of the period.
 Update of the asset with the entry of an internal/external reason for the impairment and, if relevant, its new
market value.
 Update of its residual value (with the net value of the asset, if this net value is less than the residual value
before impairment).
 The impairment loss of an asset depreciated according to a non-residual method leads to a change in the
depreciation method that automatically takes the equivalent residual method as the value. This change in
method is used to process the impairment or impairment loss increase on a long-range basis, or rather by
depreciating the new net value over the residual impairment period.
 Generation of an Impairment event in the case of impairment or Impairment loss increase event in order to
produce an accounting document to post this event.
> Generation of an Impairment event if the impairment loss increase is recorded on the issue of an asset
with an impairment balance on the issue date.

12 In your context, do you perform impairment operations on your fixed assets?

 If yes, do the entries provided by Sage ERP X3 Standard Edition presented above meet your requirements?

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CHANGE OF ACCOUNTING POSTING
The change of account posting function is used for performing transfers between accounts on an asset.
 Placement in service: transfer from a "fixed asset current account" account to a "fixed asset in service
account".
 Transfer from a fixed asset in service account to another fixed asset in service account or fixed asset current
account to another fixed asset current account.
Following a change of account posting, the operations carried out on an asset are as follows:
 Update of asset (holding type, classification of asset as held for sale, accounting group, accounting code,
account, placement in service date)
 Generation of a principal change of accounting entry event (and method change event if necessary) and as
many secondary change of accounting entry events as there are periods whose initial postings are subject to a
definitive posting (over the current and the next fiscal year).
 Generation of an accounting document for posting the change of accounting entries with:
> An initial fixed asset accounting entry An initial impairment transfer accounting entry
> A final fixed asset accounting entry A final impairment transfer accounting entry
> An initial depreciation accounting entry An initial revaluation provision accounting entry
> A final depreciation accounting entry A final revaluation provision accounting entry
> An initial impairment accounting entry An initial special provision accounting entry
> A final impairment accounting entry A final special provision accounting entry
> An initial operating charge accounting entry An initial special adjustment accounting entry
> A final operational charge accounting entry A final special adjustment accounting entry
> An initial exceptional charge accounting entry
> A final exceptional charge accounting entry

13 Does the change of account posting operation presented above meet your requirements?
 Do you re-classify fixed assets that are in process to in service?

CHANGE OF DEPRECIATION METHOD

The change of method function allows you to:
 Revise your depreciation plans - desired adjustments to the depreciation method settings for each depreciation
plan.
 To specify the effective date of the method change - Date of start of period, date of start of fiscal year, date of
start of depreciation. The choice of the date depends on the depreciation start date of the asset.
1st case: Depreciation start date < start date of current fiscal year FY>
Effective date Processing methods
The depreciation total at the end of FY-1 is recalculated.
The variance between the new total and the old total can be processed, as the user wishes,
using one of the following methods:
 Carry forward.
Depreciation start date
 Exceptional charge for the fiscal year
 Exceptional charge for the period
 Integrated into the charge for the fiscal year
 Integrated into the charge for the period
Start date of current fiscal year The depreciation total at the end of FY-1 is not recalculated.

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 Effective date Processing methods
FY The charge for the fiscal year FY will be recalculated using the new method, which must be
based on a residual method applied to the depreciable net value at the start of the fiscal year
FY.
The charge for the period P will contain the charge adjustments of the closed periods.
The depreciation total at the end of FY-1 is not recalculated.
The depreciation total of the closed periods of the current fiscal year is not recalculated.
The charge for the "residual" fiscal year [start of period P - end of fiscal year FY] will be
calculated using the new method, which must be based on a residual method applied to the
Start date of current period P depreciable net value at the start of the period P.
This charge for the "residual" fiscal year will be broken down over the period P and subsequent
periods of the fiscal year FY.
The charge for the fiscal year FY will be equal to the total of: charges for the closed periods
before the method change + charge for the "residual" fiscal year.

2nd case: Depreciation start date >= Start date of current fiscal year FY and < Start date of current period P.
Effective date
Depreciation start date
Start date of current period P
Processing methods
The charge for the financial year FY will be recalculated using the new method.
The charge for the period P will contain the charge adjustments of the closed periods.
The depreciation total of the closed periods of the current fiscal year is not recalculated.
The charge for the "residual" fiscal year [Start of period P - end of fiscal year FY] will be
calculated using the new method, which must be based on a residual method.
This charge for the "residual" fiscal year will be broken down over the period P and subsequent
periods of the fiscal year FY.
The charge for the fiscal year FY will be equal to the total: charges for the closed periods before
the method change + charge for the "residual" fiscal year.

3rd case: Depreciation start date >= Start date of current period P.
Effective date Processing methods
The charge for the period P (or the depreciation start period) will be calculated using the new
Depreciation start date
depreciation method.

Following a method change, the operations carried out on the fixed asset are as follows:
 Application of the new setups entered.
 Update of the asset and its depreciation plans according to the processing methods linked to the choice of the
effective date of the change.

14 Does the description presented above it meet your requirements?

UPDATE
This function is used to update the CoA balance sheet value (value recorded in the individual accounts) of the asset and
select the plans based on which the transfer of the new values will be taken into account.
The update process involves updating one or more of the following values:
 Ex-tax receipt value
 Invoiced Tax
 Collected Tax
The validation of the update of the CoA balance sheet value leads to the transfer of the new balance sheet value of the
asset:
 On the plans of the accounting and tax context and those selected with the CoA value for initial depreciation
basis.
 On the tax basis and on the capital gain or loss reference basis, if these are identical to the balance sheet
value prior to the update.

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The update of the depreciation basis:
 Is accounted for from the current fiscal year start date (or the depreciation start date if this is later). The charge
for the current fiscal year and the subsequent fiscal years is calculated based on the new depreciation basis. If
closed periods exist for the current fiscal year, the charge for the current period contains the adjustment
resulting from the update of the charge for the fiscal year.
 Does not involve any change of depreciation method.
If the asset falls before the fiscal year, no change is made to the depreciation totals at the end of the previous fiscal year.
An update event is generated for each plan whose depreciation basis is modified in order to produce an update
accounting posting.
An asset can no longer be updated in the following cases:
 The asset is attached to one or more items of expense
 The asset has been created in an earlier fiscal year: If the update concerns a CoA valuation, the depreciation
start date in the chart of accounts is less than the fiscal year start date for the Accounting and tax context.
 The asset has been subject to impairment: If the update concerns a CoA valuation, the balance sheet value in
the chart of accounts is different to the Depreciation basis.
 The asset is in the process of an intra-group transfer. (feature not available in Sage ERP X3 Standard Edition).
The update cannot result in a negative valuation of a plan. The value entered is greater, in terms of absolute value, than
the ex-tax receipt value. An update amount must therefore be entered that is lower, in terms of absolute value, than the
ex-tax receipt value.

15 In your context, you need to make updates to your assets?


SPLIT
This function is used to distribute an asset in order to generate 1 to n additional assets. The splitting methods managed
by Sage ERP X3 Standard Edition are as follows:
 Distribution based on quantity
This type of split is permitted if the quantity is greater than or equal to 2. If this quantity is lower, this type of distribution is
only permitted if the quantity is expressed in a unit that accepts decimals.
The number of assets to be created must be entered. The maximum number of assets obtained is limited to the quantity
of the original asset.
 Distribution based on amount
The distribution may be carried out either: on the CoA ex-tax receipt value, the CoA balance sheet value or the CoA
revalued balance sheet value. This type of splitting is only permitted if the amount selected is greater than 0.
The number of assets to be created must be entered. The maximum number of assets obtained is limited to 999.
 Distribution based on expense attached to the asset:
This type of distribution is prohibited:
 If the asset is attached to only one expense,
 If the CoA value of the asset is different to the sum of the values of the expense capitalized with respect to
CoA monitoring.
The number of assets to be created is automatically determined as a function of the number of items of expense, such
that each item of expense is attached to an asset (the main expense remains attached to the original asset). It is
modifiable but can only then take the value 2 (the user will need to select the item(s) of expense to attach to the
generated asset. The expense not selected remains attached to the original asset).

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If the main expense is selected to be attached to the generated asset, the first item of expense not selected from the list
will become the new main expense attached to the original asset.
 Distribution based on the physical elements attached to the asset:
The different methods for numbering the assets generated by the splitting are as follows:
 No automatic numbering applied. The reference for the distributed asset must be entered manually
 Add a numeric increment: automatic assignment of a reference identical to the original asset with the addition
of an increment.
 Renumbering: a new reference will be automatically assigned to each asset generated by the splitting.

16 Does the splitting function presented above meet your requirements?

 What distribution method will you use for splitting?
> Distribution based on quantity?
> Distribution based on amount?
> Distribution of expense attached to the asset?
> Distribution of physical elements attached to the asset?
 What is the purpose of your splitting operations:
> Partial fixed asset issue?
> Subsequent reassignment of constituent items of a fixed asset?
> Management of depreciation plans in accordance with the period of use of each component?

CHANGE OF VAT RULE

This relates to global VAT adjustment processes that allow for French companies to make adjustments relating to
events that call deduction entitlements into question:
 Legislative or regulatory changes to the exclusion rules of deduction entitlements.
 Assets become used for transactions carrying a deduction entitlement.
 Assets ceasing or permanently ceasing to be used for transactions carrying a deduction entitlement.
This applies to assets that meet the following criteria:
 Residual adjustment duration greater than or equal to 0
 Holding type = In property or In concession,
 CoA accounting nature = fixed asset in service or fixed asset current
 Not having been subject to an actual issue or an annual VAT adjustment
 Liability coefficient different to 0
Calculation of VAT adjustment amount = (deduction coefficient resulting from the event – reference deduction
coefficient1) x (initial VAT / duration of adjustment period) x residual adjustment period
 Modification of admission coefficient process
This function is used to update the asset admission coefficient in the event of legislative changes to the exclusion rules of
deduction entitlements.

1This is the future reference coefficient in place prior to the adjustment.

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The adjustment amount consists:
 Of an additional VAT deduction if the calculation result is positive.
 Of a VAT repayment if the calculation result is negative
 Modification of taxation coefficient process
This process involves all assets attached to an activity sector and must be implemented in the following cases:
 The assets become used for transactions carrying a deduction entitlement (reference taxation coefficient
= 0 / reference liability coefficient different to 0). This adjustment modifies the reference taxation coefficient,
which takes the value resulting from the new use of the asset. The adjustment amount consists of an additional
VAT deduction.
 The assets cease being used for transactions carrying a deduction entitlement but remain used for
taxable transactions (liability coefficient different to 0 / taxation coefficient different to 0). This adjustment
modifies the reference taxation coefficient reference which becomes nil. The adjustment amount consists of a
VAT repayment.
 The assets permanently cease being used for taxable transactions (liability coefficient different to 0 /
taxation coefficient = 0). This adjustment modifies the liability coefficient which becomes nil. No VAT
adjustment is recorded in this case. The assets are permanently withdrawn from the adjustment cycle.
Following the global adjustment process:
 The information on this type of adjustment is updated on the asset (VAT tab)
 The VAT repayments and additional VAT deductions update the balance sheet value (setting VAT variation
basis update = Yes [REGMAJBAS]). The depreciation variance is adjusted on the last depreciation fiscal year.
 A VAT adjustment event is generated for each asset managed in the chart of accounts in order to automatically
generate an accounting document for the VAT repayment or additional VAT deduction entries.
The accounting document generated automatically by Sage ERP X3 Standard Edition is used to manage:
> A VAT repayment entry
> An asset value increase entry
> An additional VAT deduction entry
> An asset value decrease entry
17 Are you affected by the issue of VAT deduction? If yes, does the VAT adjustment process presented above
meet your requirements?
 Do the VAT repayment and additional VAT deduction amounts have to update the balance sheet value?
 Does the global adjustment process (modification of admission coefficient and taxation coefficient) also have to apply
to fixed assets that are current?

ANALYTICAL AND GEOGRAPHICAL TRANSFER

This function is used to carry out different types of transfer on an asset and any component assets attached to it:
 Transfer of geographical location: financial site, geographical site, location
 Transfers of economic entries: activity sector
 Transfers of analytical posting: Distribution key, analytical dimension
Transfer of geographical location
 Financial site: the site must belong to the company to which the asset has been registered.
 Geographical site: the site must correspond to the stock count site of the financial site or a site attached to
this financial site.
 Location: this information must be entered if the asset is a main asset with components to which physical
elements are linked

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.

Geographical transfer of an asset attached to physical elements

 When the asset is attached to one or more physical elements, the transfer is automatically copied to the
attached physical elements.
 When one of the attached physical elements has a transfer movement pending, the geographical site and
location fields are automatically provisioned by those of the transfer movement pending on the physical
element. These fields can be edited. Validating the transfer leads to the transfer of all the physical elements
attached to the asset.
 When several attached physical elements have transfer movements pending, the transfer of the asset is
prohibited. The physical elements must therefore be detached or the asset distributed.
 When at least one physical element attached to the asset is pending issue or an issue cancellation, a transfer
is not permitted.
Transfer of analytical posting
 When this transfer takes place after a charge calculation giving rise to the generation of charge events, an
analytical posting adjustment process is carried out on the depreciation charges. This adjustment amount is
copied to each transfer event generated and is calculated as follows:
> If the transfer is after the current period end, this amount is equal to 0,
> If the transfer is in the current period, this amount corresponds to the charge amount for the period,
> If the transfer is made in a closed period, this amount corresponds to the total charges for the period
between the start of the transfer period and the end of the current period.
Economic entry transfer
 Activity sector: if the activity sector transfer relates to an asset acquired in the current fiscal year or the
following fiscal year, the VAT data will be subject to an update.
An activity sector transfer leads to a global VAT adjustment process in the CoA plan. This process is carried out if the
following conditions are met:
 The CoA accounting nature is fixed asset in service (or fixed asset current if the setting concerning current
VAT adjustment (REGENCOURS) has the value: Yes)
 The posting date of the asset is greater than or equal to the current fiscal year start date of the accounting and
tax context.
Global Tax adjustment process linked to the activity sector transfer
The cases managed are as follows:
1st case: Taxable sector  Non-taxable sector
The transfer leads in this case to the taxation of a self-delivery: no global adjustment is carried out.
2nd case: Non-taxable sector  Taxable sector
3rd case: Taxable sector  Taxable sector
In these last two cases, the transfer corresponds to a non-taxable sale with Tax transfer to the buying sector.
The process carries out:
 A global adjustment for the selling sector
This adjustment is calculated according to the methods applied to a non-taxable issue:
For each of the remaining years of the adjustment period, the value of the asset taxation coefficient is automatically set
to: 0 (its deduction coefficient due to the event will therefore have the value: 0).
The global adjustment therefore corresponds to a repayment It is equal to the sum of the annual adjustments which would
have been carried out until the end of the adjustment period. The amount is calculated as follows:
(0 - Deduction coefficient in force) x initial Tax x residual duration / duration of adjustment period.

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 A Tax transfer to the buying sector
A part of the initial Tax invoiced is transferred to the buying sector in proportion to the duration of the adjustment period
not yet accrued.
The amount is calculated as follows,
initial Tax invoiced x residual adjustment period / duration of adjustment period
and becomes the new initial tax amount and is used as basis for the adjustment calculations.
 A recalculation of the deductible Tax amount using the new initial tax amount and the new deduction coefficient
produced by applying the taxation coefficient associated to the buying sector. The depreciation bases are also
updated.
Following the geographical, economic, analytical transfer process:
 Update of the asset and any of its components with the new assignments / postings entered
 Generation of a principal Geographical / Analytical transfer event and as many secondary Geographical /
Analytical transfer events as there are periods, subsequent to the current period, whose initial postings are
subject to a definitive posting (over the current and the next fiscal year). These events carry the analytical
posting adjustment amounts for the charges already posted.
 Generation of a transfer event for each physical element attached to the asset.
 Production of an accounting document from the Geographical / Analytical transfer event with the initial and final
analytical posting entries:
> Initial posting depreciation Initial posting exceptional adjustment total
> Final posting depreciation Final posting exceptional adjustment total
> Initial posting depreciation total Initial posting exceptional depreciation
> Final posting depreciation total Final posting exceptional depreciation
> Initial posting exceptional provision Initial posting exceptional depreciation total
> Final posting exceptional provision Final posting exceptional depreciation total
> Initial posting exceptional provision total Initial posting impairment loss increase
> Final posting exceptional provision total Final posting impairment loss increase
> Initial posting exceptional adjustment Initial posting impairment loss increase total
> Final posting exceptional adjustment Final posting impairment loss increase total

A transfer can only be cancelled if it took place in the current fiscal year.
Cancelling a Geographical / Economic / Analytical transfer leads to the update of:
 The asset and any component assets attached to it, with the initial postings for the asset before this last
transfer.
 The physical elements attached to the assets, with their initial geographical postings.

18 In your context, what types of transfer do you perform?

 Geographical transfer: sites, locations
 Activity sector transfer (Tax adjustment)
 Analytical transfer

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19 In your context, do you need to generate analytical transfer entries?
 Do the analytical transfer postings produced by Sage ERP X3 Standard Edition meet your requirements?
 Please specify the other types of transfer entries you need (inter-site, geographical location).

ASSET ISSUE
This function is used to manage both actual issues in the event of sale, scrapping, theft or disappearance and projected
issues for simulation purposes. It can also be used to cancel an issue.
 Actual issue of an asset
The issue date must be in the current or next fiscal year of each depreciation context managed.
When the issue involves a main asset, all the component assets attached to it can be issued at the same time. If these
assets are not issued, they are detached from the main asset.
If the actual issue involves a component asset, this asset is detached from its main asset before the issue and becomes
an autonomous asset.
If physical elements are attached to the asset, they are also automatically issued.
 Projected issue of an asset
The issue date must be after or on the current fiscal year start date.
When the issue involves a main asset with components, the user can choose to issue them at the same time. If the
component assets are not issued, they are not detached but remain linked to the main asset.
If the forecast issue applies to a component asset, this asset remains linked to its main asset.
The projected issue does not affect the physical elements attached to the asset.
 Cancellation of an issue
An issue can be cancelled as long as the issue:
 has taken place in the current or next fiscal year of each depreciation context managed.
 is not due to the termination or registration of the end of the financial leasing agreement to which the asset is
linked.
Cancelling the issue of an asset results in the following:
 The information relating to the issue is reset with its original value.
 When physical elements are attached to the asset, their issue dates and reasons are cleared.
 The cancellation of the issue of a main asset automatically generates the cancellation of the issue of its
components.
 The generation of an issue cancellation event for the asset and for each of the physical elements attached to
the asset in order to produce the accounting document for posting the issue cancellation entries for the asset.

An actual issue gives rise to the following operations:

 Issue of a main asset
 If the issue of its component assets is not requested, they are detached from the main asset and become
autonomous. The main asset retains its Main status.
 If the issue of its component assets is requested, the component assets are issued, including those issued on
a projected basis.
 Issue of a Component asset
 This asset is detached from its main asset at the time of its issue and becomes autonomous.
 Issue of an asset that has been subject to impairment over the period

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 The issue process will automatically cancel this impairment.

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 Issue of an asset to which physical elements are attached
 All the physical elements attached to the asset are automatically issued. If there are movements pending on
the physical elements, these movements will be automatically cancelled.
 If the user does not want to issue all the physical elements, he/she must either detach these physical elements
or split the asset prior to the issue.
 The physical elements issued take the issue date and reason of the asset.
 Calculation of the net value of the asset at the end of the issue
The net value is calculated based on the order below:
 Charge (according to the issue rule and/or the depreciation method)
 Impairment loss increase, if the Issue: Impairment loss increase (IMLRVEISS) setting is Yes
 Exceptional depreciation, if the value of the issue rule is: Exceptional depreciation = Net value
 Tax adjustment, if the account for Tax capital gain/loss (PCOTVAPMV) setting is Yes. the net value is either
reduced by the additional deduction or increased by the Tax repayment.
 Issue of an asset with a exceptional depreciation provision balance on the issue date:
 The exceptional depreciation balance is adjusted. Over the fiscal year of the issue, the asset can therefore
benefit from an extraordinary depreciation provision or depreciation loss increase or from an exceptional
depreciation loss increase due to the issue.
 Issue of an asset with an impairment balance on the issue date
 If the Issue: Depreciation impairment loss (IMLRVEISS) setting is Yes, the impairment balance on the issue
date is automatically adjusted. This impairment loss increase increases the net value determined after the
depreciation calculation.
> This is the impairment balance after the impairment loss increase transferred as exceptional
depreciation.
> When the following issue rule is applied: Exceptional depreciation = NV, this new net value is kept as
Exceptional depreciation.
 VAT adjustment
The actual issue of an asset may result in a VAT adjustment process in the CoA plan.
It corresponds to a global adjustment that applies only to companies coming under the French tax system. It involves
carrying out, globally and in one operation, all the annual adjustments the company would be required to carry out until
the end of the adjustment period should its situation, as a result of the event in question, remain the same until this time.
The adjustment concerns assets where:
 The holding type is In property or In concession,
 the CoA accounting nature is Fixed asset in service or Fixed asset current (Fixed asset current: Adjust VAT?
setting = Yes [REGENCOURS]).
The period over which a VAT adjustment can be recorded is automatically determined according to the Tax type and the
VAT adjustment reference date (generally speaking, the date of the asset purchase).
> For assets whose tax type is real estate that were purchased as of 01.01.96, the adjustment period is
20 years (1/20th rule).
> In other cases, the adjustment period is 5 years (1/5th rule).
The period and the residual adjustment period relate to a number of full years: the year of purchase and the year of issue
therefore each count as a whole year.

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 VAT adjustment calculation
In the case of the sale of an asset, the adjustment calculation rules differ depending on whether the sale is taxable or
non-taxable.
 Non-taxable sale: no VAT on the sale.
For each of the remaining years of the adjustment period, the asset will be deemed to be used for an exempt activity that
does not carry a deduction entitlement. Its taxation coefficient will automatically take the value 0.
The deduction coefficient due to the event will therefore also have the value 0.
The adjustment therefore consists of an additional VAT repayment calculated as follows:
(0 - Deduction coefficient in force) x VAT invoiced x (residual duration of adjustment / duration of adjustment period)
 Taxable sale: VAT on sale different to 0.
For each of the remaining years in the adjustment period, the asset will be deemed to be used in taxed operations and its
deduction coefficient will therefore automatically be set to 1.
The adjustment therefore consists of an additional deduction calculated as follows:
(1 - Deduction coefficient in force) x VAT invoiced x (residual duration of adjustment / duration of adjustment period)
 Calculation of capital gain and loss on the sale: Sale price - Net value at the end of the issue
> If the result is negative, it is a capital loss
> If the result is positive, it is a capital gain.

At the end of the issue process, the following operations are performed:
 Update of issue information on the asset.
 Generation of an issue event for each of the issued physical elements attached to the issued asset.
 Generation of an asset issue event in order to produce an accounting document for posting the asset issue
entry:
The accounting document produced is used to manage the following issue entries:
> Fixed asset accounting entry Revaluation variance accounting entry
> Depreciation accounting entry Revaluation special provision adjustment accounting entry
> Sold asset net value accounting entry Claim on sale proceeds accounting entry
> Special impairment loss increase accounting entry Asset sale proceeds accounting entry
> Special depreciation accounting entry VAT payable on asset sale accounting entry
> Exceptional depreciation charge accounting entry Impairment provision accounting entry
> Exceptional depreciation accounting entry Impairment loss increase accounting entry

20 In your context, do you use to types of issue other than those managed by Sage ERP X3 Standard Edition
(sale, scrapping, theft or disappearance)?
 If yes, please specify which?
21 Do you carry out taxable and non-taxable sales?
22 In your context, do you carry out Tax adjustments on asset issues?

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Options on Assets
These options can be used to provide an asset with specific additional information. Sage ERP X3 Standard Edition
manages this additional information on the basis of 4 options:
 Insurance
 Vehicle
 Market value
 Physical elements
 Insurance
This is information about the insurance policy covering the asset: details of the insurance contract, date of last expert
appraisal, state of asset, replacement value, insured value.
 Vehicle
This option is dedicated to the management of company vehicles. It is used to enter the details found on the vehicle
registration document, the tax rate to which the vehicle is subject and, if necessary, the lease dates and duration.
This information is used when producing the preparatory statement to producing financial report 2855: company vehicle
tax.
 Market value
The market value, usually determined by means of an expert appraisal, serves to value the asset according to its fair
value and corresponds to the amount against which the asset could be exchanged in normal competitive conditions.
The market value may be used:
 During the revaluation process
 During the impairment process
 Physical elements
If provided within the scope of the project, this option presents the list of physical elements attached to the asset with, for
each element as appropriate, the indication of a transfer or issue movement pending validation on the asset.
From the asset and using this option, you can:
 Attach physical elements belonging to the same geographical site as the asset.
 Detach a physical element.
 Cancel a suspended movement on a physical element (issue or geographical transfer)
 Return a cancelled physical element to a pending status

23 What additional information do you need to manage your fixed assets?

 Vehicle information
 Insurance contract information
 Stock count information (barcode, serial number, physical location etc.)
 Do you manage expert appraisals.

EC029_b - Fixed Assets Management - Updated on 6/1/2011 21/23

Physical Element
A physical element is used to specify the physical composition of an asset and covers the specific information needed to
monitor an item of equipment. The purpose of this monitoring via the registration of the physical element (barcode label)
is to be able to carry out stock control tasks.
An asset can comprise:
 a single physical element (1 asset = 1 single registration)
 several physical elements (1 asset = n registrations)
When one or more physical elements are attached to an asset, the different actions registered for the
physical elements are reflected in the asset (and vice versa):
Individual actions on the physical elements:
 Transfer of geographical assignment
 Issue of a physical element
These individual actions can also be performed as batch transfer or issue actions.
The table of physical categories must be completed beforehand:

TD_537_Catégorie_p
hysique.xls

Please complete the file of physical categories above.

Physical Element Creation and Update Operations

 The creation of a physical element results in the generation of a creation of a physical element event.
 The modification of a physical element: the geographical site and the location of a physical element can only be
modified by means of a transfer operation, once the creation of the physical element has been validated.
 The deletion of a physical element requires the element to be detached from the asset beforehand.

Transfer of a Physical Element

The transfer of a physical element is used to specify its new geographical assignment and the possible cancellation of the
last transfer made.
There are two cases:
 The physical element is not attached to an asset: In this case, the change of geographical site and/or location
is immediate.
 One or more physical elements are attached to an asset:
> The change of location is immediate unless a pending geographical site transfer already exists.
> The change of geographical site takes the pending status. It will require:
- Either the validation of the geographical site transfer from the asset if the asset only has one
physical element.
- Or, if the asset has several physical elements, the splitting of the asset in order to carry out the
geographical site transfer for the asset to which the transferred physical element is attached.

EC029_b - Fixed Assets Management - Updated on 6/1/2011 22/23

There are two possible cases for the cancellation of a geographical transfer:
 The physical element is not attached to an asset: In this case, the cancellation leads to the update of the
physical element with its geographical assignments prior to last transfer.
 The physical element is attached to an asset: In this case, the cancellation takes a pending status and the
cancellation must be validated from the asset (in this case cancelling a previously validated transfer).

The validation of the geographical transfer results in the following:

 Update of the physical element with its new assignment.
 Generation of a geographical transfer and/or geographical transfer cancellation event.

Issue of a Physical Element

A physical element is issued based on the two methods below:
 The physical element is not attached to an asset: In this case, the issue is immediate.
 The physical element is attached to an asset: In this case, the issue movement takes the pending status.
> If the asset has only one physical element, the issue will need to be validated from the asset.
> If the asset has several physical elements attached, the asset must be split in order to carry out the
issue for the asset to which this physical element is attached.
In the case of an issue cancellation:
 The physical element is not attached to an asset: In this case, the cancellation results in the update of the
physical element by deleting the issue information.
 The physical element is attached to an asset: In this case, the cancellation movement takes the pending status
and the issue cancellation must be validated from the asset (in this case cancelling a validated issue).

The validation of the issue results in the following:

 Update of the physical element with the issue information.
 Generation of an issue and/or issue cancellation event.

24 In your context, do you manage registration numbers or barcodes for the physical monitoring of your
equipment (for stock count operations)?
 Are the movements for this equipment (issue, geographical transfer, creation, cancellation) interfaced to or from a
park management tool?
 Specify the type of interface: incoming and/or outgoing?
 Specify the type of movement to interface: creation, issue, cancelation, transfer?

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