These assets will be recognized at net book value for the first time in the current fiscal year (i.e. the capitalized cost of the asset and accumulated depreciation for prior fiscal years is recognized in the current fiscal year). After the Asset Accounting User (FA.15) creates the asset master record and parks the asset acquisition document, the Asset Accounting Senior User (FA.16) must review and post the asset acquisition document to capitalize the asset. The Asset Explorer shows most of the financial information for a single asset or AuC. It shows the current book value, acquisition value, planned and posted depreciation, and any other transactions against the asset. Since we are looking at AuCs here, there will be no depreciation.

SIMBA maintains the records of all capitalized property acquisitions. This information is used in determining the depreciation charge, to assist in generating the financial statements and in determining the amount of insurance coverage required for property. If the property is received by gift, lease purchase, or if the property is found while inventorying, the amount recorded for capitalization is either fair market value, present value, or actual cost from the original source document. Movable or fixed property acquired with University or grant funding, that is University titled, is identified during the Shop OnLion process. Departments place their tangible property requisition with applicable supporting documents. And the item product category maps to a tangible commodity code, the shopping cart will then be placed in a special workflow that will route the shopping cart to asset approvers.

.900 Surplus Property

Similar assets are assets that are of the same general type, that perform the same function, or that are employed in the same line of operation. Refer to the Department of Administrative Services Georgia Surplus Property Manual for tracking and disposal instructions for State owned assets. All University System of Georgia institutions will use the straight-line depreciation method . Institutions will use the following-month convention for depreciation for indicating when the asset is placed into service. See Section 7.1.9 for assets transferred from component units/cooperative organizations. This layout is set as a default and hence there is no need for selection.

Be aware of changes forthcoming with new Procedures For Capitalizing Fixed Assets accounting standards. Software with a cost of $100,000 or greater should be capitalized and amortized in accordance with the provisions of the TBR position paper on Capitalization and Amortization of Software Purchases.

Business Procedures Manual

In order to see WBS Element and Internal Order, you may want to modify current report layout and show additional fields, as shown in the following screenshot . The WBSE or IO must be added to the two line items with Posting Key 70 and Posting Key 50.

• Do NOT use the Accountability Transfer Form to transfer property or equipment.
• (This criterion is not used to evaluate a lease that begins with the last 25% of the original estimated economic life of the leased property).
• Any errors discovered that are non-dollar in nature can be corrected by the Receiving/Inventory Control Department, while adjustments related to dollar values or depreciation methods must be processed by the Accounting Office.
• When recording an exchange of similar assets with an entity not included in the State reporting entity, State organizations must use a book value basis for the assets surrendered.
• See also the definitions of equipment and special purpose equipment in this section.
• Ensure the sales amount you are using is net of UNDP fees where applicable.

For example, if component 01 of https://intuit-payroll.org/ 123 was initially added to the SPA system on Sept. 1, with a value of $6,000, and ancillary costs of $2,000 were added in Oct. 2014 , the value of the depreciable entity would be $8,000. This depreciable entity would exist for fiscal 2015 financial transactions for component 01 of property 123. If an additional $5,000 in value were added to component 01 of property 123 on Sept. 1, 2015 , a new depreciable entity for the amount of $5000 would be created.