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Slide notes: Before we discuss an Asset Master or an Asset Item, it is useful to refresh the understanding of what the difference is between an Asset Master and an Asset Item. Here we show where the Asset fits in the Asset Register hierarchy.

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Now, when we look at the bottom of the diagram, we see that an Asset as represented in the Asset Register, is actually an Asset Master and that an Asset Master may have a number of Asset Items attached to it.

A Typical Asset Master and Item

Slide notes: In fact, an Asset always starts out with a Master and 1 Item, usually with the same description, and although it is not forced, the convention is to make the Asset Item Key the same as that of the Asset Master, followed with '-01', '-02', etc. for any Items that are added. In many cases, for the life of the Asset, there may be only the 1 Asset Item attached to the Master.

Copy of A Typical Asset Master and Item

Slide notes: But in fact, the Asset Master has the capacity for multiple Asset Items to be introduced during the lifetime of the Asset Master. In this example, we see subsequent events that include refurbishment and revaluation. Although the same Asset, these new events introduce additional Capitalization Amounts, each with a new and separate Depreciation cycle.

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Slide notes: An Asset Item record is defined from the File Maintenance options at the Asset menu.

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Slide notes: The Asset Item Key is of our own design. The recommended option is to use the same Key as for the Asset Master, followed by a dash and a 2-digit sequential indicator for the Asset Item.

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Slide notes: When we select the Asset Master that the Item is attached to, then the Description is defaulted, but of course can be changed.

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Slide notes: The Transaction status allows settings of OPEN or CLOSED, and when CLOSED then no Transactions or Depreciation can be performed on the Asset Item.

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Slide notes: The Quantity indicator is often 1, but can of course be more. It is worth noting that when we dispose of an Asset Item, then the entire Asset Item is disposed of, so we cannot dispose of a quantity of 3 while leaving another 4, for example. Therefore, it is not recommended to make it a common practice to capitalize large quantities of the same Item type together, i.e. it is usually better to capitalize Asset Items separately.

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Slide notes: The Purchase Date is NOT captured when defining the Asset Item. This value is inserted by the system when we capitalize the Asset Item, but the field is available for change afterwards if a correction is required.

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Slide notes: The Meter Opening Balance is only captured for Assets where the Meter is used for Depreciation calculation, and will usually start at zero, except in the case of a 2nd-hand Asset.

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Slide notes: The Depreciation Category is selected from the lookup and rules the rate at which the Asset Item will depreciate. The Asset Register may be set up to work with only a Primary View, or with multiple views. In any event, we only capture indicators for the Views that we are using.

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Slide notes: Residual % and Amount is a either / or case, i.e. we capture the one or the other but not both. Depreciation can be based on either of the 2, and we need to indicate which.

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Slide notes: The 1st Period for automatic Depreciation calculation is also indicated. If the indicated Period is already in the past and the system has already performed Depreciation for this Period, then we may have to make a manual Depreciation Adjustment for the Period(s) already past.

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Slide notes: The Memo Value is optional, and used primarily to indicate another Forex Original Capital Value when needed, or to indicate a Forex Capital Value when applicable for an Asset Item while the entire Asset Register is not used with a Forex view.

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Slide notes: Physical Verification may be performed periodically and captured here, but it is more common to upload the verification details with the import option, rather than capturing individually.

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Slide notes: After creation of the Asset Item, the latest Values can be drilled from here.

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Slide notes: The Asset Values cannot be changed here in any way. They are only on display.

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Slide notes: We can also enter a number of other drills and views of the Asset Item.

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Slide notes: And we can drill into the Transactions of the Financial Account for this Asset Item, for any selected Period. From there, we can also export Transaction Detail to Spread Sheet and produce Audit Trail output.

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Slide notes: Now let's do an example of a new Asset Item. First we specify the new Asset Item Key, and in this case it is an existing Asset Master Key, followed by the next Item Key of '02'.

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Slide notes: The Internal Reference is optional, and we will not use it now.

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Slide notes: The Main Asset must be selected.

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Slide notes: When we do that, the Description is defaulted, but it may be changed if necessary.

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Slide notes: We capture the Quantity.

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Slide notes: And we choose the Depreciation Object that will determine the Rate of Depreciation.

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Slide notes: The system will check the status of the Asset Register and if the other Views are also in use, then the Value will be defaulted for the other views, which means we only need to change it when it is different. If the other views are not in use, then we do not capture values for those views.

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Slide notes: We only specify Residual Percentage OR Amount, so we will skip over the Percentage here.

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Slide notes: When we choose the Amount, of course the system defaults it again for the other views.

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Slide notes: And the same with the 1st Depreciation Period. That is the 1st Period when the system will calculate automatic Depreciation for this Asset Item.

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Slide notes: And now we have fulfilled the mandatory fields for the new Asset Item, and if we want, we can choose SAVE now to create the new Asset Item record.

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