The General Ledger Interface provides the accounting user with the capability to automatically generate all fixed asset entries to the general ledger.
The System can generate entries to handle the following:
- Current depreciation expense
- Transfers (in and out)
- Maintenance expense
The user can differentiate between different types of transactions. As an example, different entries can be generated for an asset that was retired through sale and one that was scrapped. For each of these transactions, the System can generate multiple entries. A sale might generate one entry equal to the gain and have it posted to a gain/loss account, while a second entry could be posted crediting the asset cost account for the amount of the original cost.
The amount of the entry can also be controlled. Cost, accumulated reserve, current depreciation, proceeds, net book, and gain or loss are all available for posting. Current depreciation can also be allocated over a number of locations, as in the situation where several departments share the expense of a building.
An override option on the individual transactions allows the user to suppress all entries for an individual asset, if so desired.
The General Ledger Interface also supports multiple charts of accounts. The accounting rules, dictating which entries are to be generated, are independent of the charts of accounts.
A user-defined transaction description may be entered with each accounting rule, and appears on both the reports and the transactions produced by the Subsystem.
Although different types of transactions (e.g., sale or scrap) can be distinguished, a transaction type code can be used to specify the accounting rules for all other addition or retirement types.
Special location codes may be specified in conjunction with certain entries; for example, many companies have a special clearing account associated with a particular location, regardless of the location at which the addition, retirement or other activity occurs. The special location code used may be a combination of constant values included in the accounting rules and location code values associated with the assets involved.
For companies for which amounts are maintained in foreign currency, amounts can be automatically converted to dollars for reports and G/L interface transactions (journal entries).