Steps to Add an Account Number to the Chart of Accounts_____ 1. Add additional account numbers (in the Chart of Accounts in General Ledger) required to record depreciation and asset disposal to the Fixed Asset Fund. Examples of the account numbers you may need to add include: 1) balance sheet account numbers for the various groups of fixed assets (for example, Machinery and Equipment); 2) accumulated depreciation account numbers for the various groups of fixed assets (for example, Accumulated Depreciation on Machinery and Equipment); 3) fund balance account number for Investment in General Fixed Assets; 4) revenue account number for gain on sale of fixed assets; 5) expense account number for loss on disposal of fixed assets; and 6) expense account numbers for depreciation for each different function area of fixed assets. For assistance on determining which account numbers to add, refer to your state accounting manual and the regulations with GASB 34, or consult your auditor.
Steps to Add an Account Number to the Chart of Accounts
_____ 2. Set up the sub classes defined in Fixed Asset Inventory with the correct depreciation information and enter the appropriate account numbers in the Inventories Account and Reserved for Inventories Account fields; and then save the changes to update the specified information for the applicable assets assigned to the sub class.
_____ 3. If applicable, enter the estimated value of the asset at the end of its useful life in the Salvage Value field within the Asset File Maintenance option for each asset set up to depreciate.
Steps to Change an Asset within Asset File Maintenance
_____ 4. Verify the depreciation information for all assets set up to depreciate. To verify the information, print the Asset Report by Sub Class with Depreciation Information (from the Fixed Asset Inventory screen, Reports menu, Asset Reports) specifying With Depreciation Accounts as the report selection. If changes need to be made to a particular asset, make the changes within the Asset File Maintenance option.
_____ 5. Complete the Process Catch-Up Depreciation option.
Steps to Process Catch-Up Depreciation
_____ 6. Complete the Process Depreciation option each year (typically, completed at the end of the fiscal year) and complete the Process Asset Disposal option when disposing assets (as needed throughout the year or at the end of the fiscal year).