Contents

Fixed Assets ......................................................................................................... 2

Fixed Assets Tree ............................................................................................... 3
Asset Details ...................................................................................................... 4
Depreciation Details ............................................................................................ 6
Depreciation Query ............................................................................................. 9
Accounting Links .............................................................................................. 10
Asset Usage ....................................................................................................... 11
Asset Transfer .................................................................................................... 12
Asset Maintenance .............................................................................................. 13
Asset Repairs ...................................................................................................... 14
Change Asset Value ............................................................................................. 15
Asset Disposal .................................................................................................... 16
Fixed Assets Report ............................................................................................. 17
Fixed Assets Report ............................................................................................. 18
Depreciation Schedule ......................................................................................... 19
Post Depreciation Entries ..................................................................................... 20
Fixed Assets

Focus now brings you a fully integrated Fixed Assets Module, capable of managing the
Fixed Assets inventory in any Organization. The Module comprises a List of all the Fixed
Assets in a Tree Format, similar to the Accounts Tree or Products Tree. You have
complete flexibility in defining Asset Groups, to classify your Fixed Assets as per your
requirements. Besides this, you have options to record full details of each Asset, right
from the time of purchase until disposal of the same. Focus makes it simple for you to
maintain records of each Asset by incorporating separate Screens for an Asset‟s Usage,
Maintenance, Repairs, Transfer and Disposal.

The Fixed Assets Menu is displayed when selected from the Fixed Assets option of the
Main Menu, as shown below.

The various options in the Fixed Assets Module are shown below.

 Fixed Assets Tree

 Assets Usage
 Transfer of Assets
 Asset Maintenance
 Asset Repairs
 Change Asset Value
 Disposal of Assets
 Fixed Assets Report
 Depreciation Schedule
 Post Depreciation Entries

Let‟s look at each of these options in detail on the following pages.

Fixed Assets Tree

The Fixed Assets window is displayed when selected under the Fixed Assets Tree option
of the Fixed Assets Menu.

The Fixed Assets Tree is similar to the Accounts or Products Tree, wherein you can
create and arrange all your Fixed Asset items under separate groups and classify them
at different levels as required.

Apart from this, you can create/add Asset records, edit or delete them as required. The
Procedure to be followed for all operations in the Tree is exactly similar to that described
earlier in the Accounts or Products Tree. Kindly refer to the Chapter entitled “Getting
Started-Create Masters” for more information on this topic.
Asset Details

To create a new Fixed Assets Record, click Add in the Fixed Assets Tree window
displayed on the previous page. The Fixed Assets Master window is displayed as shown
above. It consists of four Panels, each containing details about the Fixed Asset. Here in
the Asset Details Panel shown, we enter the Description of the Asset, the Asset Code,
Alias, the Asset Type, the Location, Value, Date of Purchase, the Vendor or Supplier,
Purchase Date, Price, Quantity, Cumulative Depreciation, Insured Value, Scrap Value,
Purchase Limit and Quantity Limit.

You can also attach a photograph of the Asset, provided it has been scanned into your
computer in .jpg format. Click the … button beside the Photo field and the Browse
window is displayed to help you locate the jpg file of the asset, as shown on the next
page.
Select the file and click Open to attach the photo to the Asset record.

One more option is available in Fixed Assets master creation screen wherein you can opt
for creating multiple Asset codes for as much quantity as you are mentioning in the
quantity field.

This option will create e.g. if quantity is given as “10” then 10 different assets with
running sequence of codes and asset names.

This will reduce the burden of creating multiple asset codes for bulk purchases of assets.

You can now move to the next Panel – Depreciation Details.

Depreciation Details

In the Depreciation Details Panel, you have to select the parameters based on which the
Depreciation will be calculated for the Asset. These parameters are explained below.

Depreciation Methods

Depreciation calculations vary from one Asset Type to another, depending on the Method
of Depreciation selected. Focus provides for the following methods explained below.

 Based on Usage: This method is usually applied to Plant and Machinery,

where the wear and tear of the Machines is proportionate to the usage of the
machines. Hence, the Starting Unit of the Machine at the beginning of the
accounting period is required for Depreciation calculations.

 Charge Off: A fixed amount is written off as Depreciation every year, until the
Total Asset Value is fully written off.
  Straight Line Method: In this method, the Original Cost of the Asset is
written off in equal instalments over the expected useful life of the Asset. Hence,
if the Original Cost of the Asset is 10,000/- and the expected useful life of the
Asset is 5 years, the Depreciation Amount for the Asset would be 2,000/- per
year, calculated pro-rata for the number of days of any given period.

 WDV Diminishing Value: Here, the Depreciation for the year is calculated at
a fixed rate on the Written Down Value (WDV) of the Asset i.e. the Cost of the
Asset minus the Depreciation calculated upto the previous year. Thus, if the Cost
of an Asset is 10,000/- and the Rate of Depreciation is 10%, the Depreciation
calculations would be done as shown below.

Year 1: Cost = 10,000 Depreciation = 1,000

Year 2: WDV = 9,000 Depreciation = 900
Year 3: WDV = 8,100 Depreciation = 810

Depreciation would continue until the value of the Asset is fully diminished.

 WDV Diminishing Value Calculated Half Yearly: This method is similar

to the previous method (WDV Diminishing Value). The only difference is that the
calculations are done pro-rata for the number of days of any given period.

Select the Method of Depreciation from the selection box as required.

Select the Unit of Usage. The Unit of Usage would not be applicable to all types of
Assets; it would mainly apply to those Assets where the Method of Depreciation selected
is „Based on Usage‟. The default units are KM, Hour, Production Quantity or Production
Runs.

Enter the Rate of Depreciation applicable to the Asset. Rates of Depreciation may be
different for different types of Fixed Assets.

Select the Date of Commencement starting from which the Asset is to be depreciated.

Enter the Starting Unit applicable, if „Based on Usage‟ is selected as Method of

Depreciation.

The Depreciation for the Asset will be calculated based on the parameters entered
above.

In Straight Line method normally Focus asks for the number of years in which the asset
will be written off.

If required we can even maintain Depreciation in Straight Line method and have the
depreciation rate mentioned.

If this option is required we have you tick on the option of “Always define Depreciation
Rate as %age” in Preferences under Masters tab as shown in the figure below.

If this option is checked on, then Focus will ask for the “Rate of depreciation” for such
assets where the method of depreciation is selected as “Straight Line”.
Depreciation Query

The Depreciation Query Panel allows you to find out the Accumulated Depreciation for an
Asset on any given date. Select the Date from the Date combo box. The Year-to-Date
Depreciation and the Prior Year C/F Depreciation figures are shown, together with the
Meter Reading, if applicable.
Accounting Links

Accounting Links are necessary for the generation and posting of Depreciation and Asset
Disposal entries. You have to nominate the Accounts, which will be updated, when the
Depreciation or Asset Transfer/Disposal entries are generated.

Select the Asset Account Code, the Accumulated Depreciation Account Code, the
Depreciation P/L Account Code and the Sales Account.

Once you have completed entering the details on all four Panels of the Fixed Assets
Master window, click OK to create the record or click Cancel to close the Fixed Assets
Master window and return to the Main Menu without adding the record to the Master.

If you wish to add more fields to the Fixed Assets Master record, click the Customize
button. The Customization of Fields window is displayed, wherein you can add extra
fields to the record. The procedure for this is similar to that of the Accounts Master or
Products Master. (Refer the chapter entitled Getting Started-Create Masters).
Asset Usage

The Usage or Consumption of certain Assets can be recorded either through consumption
of units which is determined by their meter readings or by recording the quantum of
production it is used for, based on the Batch Numbers.

The Asset Usage entry screen displayed above provides for the recording of the usage or
consumption of the same at user-selected intervals.

The Usage Entry window is displayed when selected under the Assets Usage option of
the Fixed Assets Menu.

The Usage No. is similar to the Document or Voucher No. in Financial Accounting. Enter
or select the Usage No., Date, Unit and Asset Code of the Asset.

If usage of the Asset is determined by the Meter Readings, in the Meter Reading box,
enter the Last Reading and New Units consumed. The New Reading is automatically
calculated and displayed.

If usage is based on the Production Quantity, in the Usage based on Production box,
enter the Batch Number, Product and Quantity produced.

Click Update to save the Usage record or click Cancel to close the Usage Entry window
and return to the Main Menu.
Asset Transfer

It is inevitable that movable Assets like machinery, furniture, computer equipment, etc.
are transferred from one location or branch to another to meet requirements for the
same.

When Assets are moved from one place to another, it becomes necessary to record the
change of location of the asset and also account for the depreciation of the same in the
new location from the date of transfer.

The Transfer window is displayed when selected under the Transfer of Assets option of
the Fixed Assets Menu.

The Transfer No. is like a Document No. reference. Enter the Transfer No. Select the
Date, Asset Code and the Location to which the Asset is being transferred. Enter the
current value of the Asset. In the Commencement Date box, select the date from which
Depreciation of the Asset should commence at the new location. Usually, depreciation
continues from the Original date of purchase. Optionally, you can choose the New radio
button and select a new date, from which Depreciation calculations at the new location
should commence.

Click Update to save the Asset Transfer record or click Cancel to close the Transfer
window and return to the Main Menu.
Asset Maintenance

Some Fixed Assets like machinery usually have a Maintenance Contract or Agreement
setup to ensure that they are maintained in good running condition at all times.

The Asset Maintenance screen allows the user to keep track of the Maintenance
Contracts for the Assets, thereby fulfilling an important requirement in Fixed Asset
management.

The Maintenance window is displayed when selected under the Maintenance option of the
Fixed Assets Menu.

Enter the Contract No. Select the Asset Code, Commencement Date and Expiry Date of
the Contract, and the Vendor from the respective combo boxes. Enter the No. of Units,
the Rate and the Value of the Contract.

Click OK to save the Contract Details or click Cancel to close the Maintenance window
and return to the Main Menu.
Asset Repairs

During the life of an Asset, it is necessary to keep track of the performance of the
machine, the number of times it has undergone repairs, the spares or parts
added/replaced, the value of such repairs, etc.

The above Asset Repair screen helps the user to keep track of repairs and servicing for
all equipments and machines whenever they are carried out.

The Repair window is displayed when selected under the Repairs option of the Fixed
Assets Menu.

Enter the Repair No. Select the Date of Repair and the Asset Code. Enter the Quantity,
Rate and Value of the Asset. Next select the Warranty Date. Enter the details of the
Parts Added or Replaced and finally enter the Remarks, if any.

Click OK to save the Asset Repair details or click Cancel to close the Repair window and
return to the Main Menu.
Change Asset Value

Sometimes, the value of an Asset may need to be enhanced or increased, whenever

modifications are made to the Asset. For this purpose, Focus provides the Change Value
option, wherein the User can add to the value of the Asset and specify the Commence-
ment Date for Depreciation to be calculated on the additional value.

The Change Value window is displayed when selected under the Change Assets Value
option of the Fixed Assets Menu.

Enter the Document No. Select the Asset Code and Date from the respective combo
boxes. Enter the Additional Value by which the Asset Value is to be increased. Select
the Commencement Date for Depreciation to be calculated and enter details of the
Additional Value in the Remarks text box.

Click Save to update the changes or click Cancel to close the Change Value window and
return to the Main Menu.
Asset Disposal

Assets are generally disposed of when they have served their useful life and purpose or if
they become obsolete. If the Asset is disposed, the details of the transaction need to be
recorded, since Depreciation should not be calculated on an Asset from the date of
disposal.

The Asset Disposal screen above helps the user to record the details of such Asset
disposal transactions, as and when they take place.

The Disposal window is displayed when selected under the Disposal of Assets option of
the Fixed Assets Menu.

The Disposal No. is like a Document reference. Enter the Disposal No. Select the Date
and Asset Code from the respective combo boxes. Enter the Accumulated Depreciation
amount for the Asset to be disposed. Select the Sale Account and enter the Quantity
and Value of the Sale.

Click OK to update the database or click Cancel to close the Disposal window and return
to the Main Menu.
Fixed Assets Report

The Fixed Assets Report in Focus allows you to view the Master information for all Fixed
Assets in a customized format.

The Report Parameters are displayed in the Tree window shown above. You can select
individual Assets, whose details are to be displayed in the report, by clicking them in the
Tree window. Click Select All Items if you wish to view the Report for all Assets. Click
Unselect All to reset the selection at any time and make a fresh selection. Select the
period for which you wish to see the report by selecting the From and To Dates in the
Report Dates box. Select the Report Layout from the Report combo box. Lastly, select
the report Output Destination from the Output box. Click OK to process the report or
click Cancel to close the Tree window and return to the Main Menu.

Note that you can customize any existing Report Layout by selecting the Layout from the
Layout combo and then clicking the Customize Report button. You can also filter the
Fixed Assets Report as per your requirements. Click Set Report Filters to enter the
criteria for filtering the Report. For more information on how to customize or filter the
report, please refer to the chapter entitled Reporting Basics.

A sample Fixed Assets Report is displayed on the next page.

Fixed Assets Report
Depreciation Schedule

The Depreciation Schedule Report gives you the complete details of the Assets during
the selected period. Full details are available and the report can be customized to suit
the user‟s requirements. The Report is entitled „Fixed Assets Schedule‟ and printed in
columnar format. A sample report is displayed below.
Post Depreciation Entries

Based on the information defined in the Fixed Assets Master, the Depreciation on Fixed
Assets can be auto-calculated and entries for the same generated/posted to the
respective Accounts, nominated in the Accounting Links Panel for each Asset.

The Depreciation Posting window is displayed when you select this option from the Fixed
Assets Menu.

Enter the Depreciation Posting Date. If you wish to have a single entry posted after
consolidating the Depreciation for the Asset Groups, select the Consolidated Posting
checkbox.

Click OK to process and post the Depreciation entries or click Cancel to close the
Depreciation Posting window and return to the Main Menu.