Fixed Assets

Policy

FIACCT 09-05_00 Fixed Assets – Merging Assets

Effective: March 16, 1998
Revised: April 1, 2002

Purpose

This policy defines the procedures agencies must follow to merge multiple asset records into a single asset record.


Policy

Fixed asset records shall be merged in FINET Fixed Assets by state agencies when appropriate. It is the
responsibility of individual agencies to insure that capital expenditures and FINET Fixed Assets are reconciled and remain in balance monthly.


Background

The merge procedure is used to combine two or more assets into one. This can be useful in the following ways:

1. Partial Payments on payment vouchers are often made due to back orders or partial shipments. Asset
components may be purchased from separate vendors. FINET will record these documents as separate line items and therefore create separate help FAs. The user will want to merge related fixed asset records into a single asset record.

Example: A truck chassis is purchased from one vendor and the dump bed which goes on the chassis is purchased from a different vendor. FINET will create two separate FA records for these two payments. The
user will want to merge these separate records into one asset record.

FINET does not have an automatic merge function. The merge must be performed manually. This means
that the user must select one of the held asset records, change the asset value of the selected asset record to the sum of all held asset record(s) being merged. The held asset record(s) being merged out must be deleted. The total asset values of the held assets before the merge must equal the asset value of the final merged asset.

2. A second alternative for merging two or more assets is to use the two-digit component number (Betterment) field and associate the two or more asset records together using the first 13 characters of the Fixed Asset Number.

An asset may have multiple components. For instance, an agency may buy a truck and add a snow blade, a hydraulic lift, and an emergency medical unit. The truck may have an asset ID of 100 1 123456789. The snow blade could be 100 1 123456789 01, the hydraulic lift 100 1 123456789 02, and the emergency medical unit 100 1 123456789 03.


Procedures

Responsibility

Action

Merge multiple asset records into a single asset record and delete merged out asset records.
Example #1: You purchase a truck chassis on one PV for $75,000 and purchase a dump bed for $25,000 on a second PV. This creates two held FAs and you wish to merge them together.

Agency

  1. Log onto the mainframe and access the FINET accounting system.
  2. Change the asset value of the $75,000 held FA to $100,000 and complete the record. See the FA – Adding Fixed Assets from Payment Vouchers and Scratch Adds policy in this section of the manual.
  3. Process. Delete the remaining held FA record for the $25,000 dump bed.

Merge multiple asset records into a single asset record by using the component (betterment) field in the Fixed Asset Number. Example: You purchase a truck chassis on one PV for $75,000 and purchase a dump bed for $25,000 on a second PV. This creates two shell FAs and you wish to merge them together.

Agency

  1. Log onto the mainframe and access the FINET accounting system.
  2. Both asset numbers on the respective FA documents must be identical, with the exception of the component number. This means that the Agency, Division Identifier, and Number must be the same on both records. It is this combination of codes that links the two asset records together. This method is very similar to adding a betterment to an existing asset record. Use the $75,000 record as the parent FA (component number is left blank). Complete the two-character component number of the $25,000 dump bed record (use 01 for example). See the FA – Adding Fixed Assets from Payment Vouchers and Scratch Adds policy in this section of the manual.

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