Fixed Asset Data Migration

#FixedAsset #GeneralLedger #Implementation #ExcelAddIn #PostingProfile

Description: achieve what
Migrate Fixed Asset Data from Legacy system.

Cut off Date = 4/1/2024
Journal cannot be posted into previous month / previous fiscal year
Acquisition and Accumulated Depreciation (Fixed Asset History) should not impact current Trial Balance

Source:

Details

Configuration

Fixed assets parameters
Fixed asset posting profiles

Books: Service Life

Depreciation profiles: Depreciation Method

Fixed Asset Groups

Fixed Asset Group Books
Fixed Asset Depreciation: Depreciation Convention

Data Preparation

Data Entity Template: DMF Fixed Asset

Fixed Assets v2
Fixed Asset Book V2

Columns need to be cautious

Default Dimension
Fixed Asset ID should be same in both templates
Acquisition Date = 4/1/2024
Place In Serivce = real Acquisition date (e.g. 8/1/1990)
(extra column) Accumulated Depreciation amount as of 04/30/2024
Depreciation Remaining periods as of 4/30/2024

Data Migration

Import Fixed Assets / Fixed Asset Book

Acquisition

Change Fixed asset posting profiles Type of Acquisition: Offset Account = Main Account ^[1]
(verification) screenshot of Current Trial Balance of Asset Accounts
Fixed Asset Acquisition Proposal and post journal

Acquisition date = 4/1/2024
Acquisition Amount = Amount in Legacy system

(verification) Trial Balance of Asset Accounts
Closing balance should NOT be changed
Increment of Debit side = Increment of Credit side
Change Fixed asset posting profiles Type of Acquisition: Offset Account to be correct account (e.g. Retained Earning / Fixed Asset Clearing Account)
Update Place in Service using Excel add-in ^[2]

Depreciation

Change Fixed asset posting profiles Type of depreciation: Offset Account = Main Account ^[3]
(verification) screenshot of Current Trial Balance of Accumulated depreciation Accounts
Fixed Asset Depreciation Proposal and post journal

To date = 4/1/2024
Summarize depreciation = Yes ^[4]
sum of Depreciation Amount = sum of accumulate depreciation Amount in Legacy system; if not see manual Depreciation

(verification) Trial Balance of Accumulate depreciation Accounts
Closing balance should NOT be changed
Increment of Debit side = Increment of Credit side
Change Fixed asset posting profiles Type of Depreciation: Offset Account to be correct account (e.g. depreciation Expense account)

Manual Depreciation

Big gap between system-calculated accumulated depreciation with Accumulated depreciation amount from legacy system. Customer wants to reflect the amount from Legacy system into FinOps

Prepare Fixed Asset depreciation journal template

Fixed asset journal V2 entity
Fixed Assets Journal >>> Open In Excel

Columns need to be cautious

Date = 4/1/2024

Account Type = Fixed Asset

Account = Fixed Asset ID

Transaction Type = Depreciation

Credit = Accumulated Depreciation Amount

Offset Account = Accumulated Depreciation Account + Financial Dimension

(verification) screenshot of Current Trial Balance of Accumulated depreciation Accounts
upload prepared fixed asset depreciation journal and post
(verification) Trial Balance of Accumulate depreciation Accounts
Closing balance should NOT be changed
Increment of Debit side = Increment of Credit side
Change Fixed asset posting profiles Type of Depreciation: Offset Account to be correct account (e.g. depreciation Expense account)
Update Depreciation periods remaining using Excel add-in ^[5]

Validation

run Depreciation Proposal for next month to see the system-calculated amount correct

By doing this, posted acquisition journal would be zeroed out for Asset Account ↩︎
System will update the Place In Servicedate to match the acquisition date after acquisition journal posted, even if the "Place In Service" date was correct when the fixed asset was imported. ↩︎
By doing this, posted depreciation journal would be zeroed out for accumulated depreciation Account ↩︎
Considering the large number of transferred fixed assets and their long history, the parameter can reduce the number of depreciation records, if customer does not require detailed depreciation history. ↩︎
System will not update depreciation periods remaining field under fixed asset book if posting depreciation journal manual. Wrong depreciation periods remaining will cause wrong depreciation value using depreciation proposal ↩︎