Government of Bermuda

Fixed Assets

JDE EnterpriseOne 9.0

Functional Design Specification
October 01, 2009
Draft
Executive Summary

The Government of Bermuda is upgrading their Fixed Assets to JD Edwards EnterpriseOne v9.0.

When an asset is purchased, it will be entered and tracked through the JDE system. The original purchase will be booked to an
expenditure account. An adjusting entry will be created to move the purchase from the expenditure account to the asset account in
the balance sheet. A clearing account will be used for the expense offset so that the original expenditure remains with the
department or project. The asset header will be created in order to assign the asset number. The asset number is assigned and
attached to the cost account on the re-class entry. The balance for the asset is stored in the fixed asset system. The accounting
department will run depreciation on a monthly basis. Fixed assets are maintained via transfers, updates and retirements.
Report Requirements

The following reports have been identified as a requirement in order to allow the JD Edwards E1 Fixed Asset system to meet the
Business Requirements defined in this document.

Report
Requirement From Report # Description of Report Requirements
Process #
No custom reports identified

Interface Requirements

The following interfaces are required in order to allow the system to meet the Business Requirements defined in this document.

Interface Relates to
Description of Interface Requirements
Requirement # Requirement #
No interfaces identified
Table of Contents

Section Page

1. ASSET OVERVIEW......................................................................................................................................... 1
FLOWCHART: ASSET OVERVIEW...........................................................................................................................2
2. REGULAR ASSET ACQUISITION.................................................................................................................. 3
FLOWCHART: REGULAR ASSET ACQUISITION.........................................................................................................5
3. WORK IN PROCESS ASSETS........................................................................................................................ 6
FLOWCHART: WORK IN PROCESS ASSETS.............................................................................................................8
4. ASSET DEPRECIATION................................................................................................................................. 9
FLOWCHART: ASSET DEPRECIATION...................................................................................................................10
5. ASSET TRANSFERS..................................................................................................................................... 11
FLOWCHART: ASSET TRANSFERS........................................................................................................................13
6. ASSET SPLIT................................................................................................................................................ 14
FLOWCHART: ASSET SPLIT..................................................................................................................................15
7. ASSET DISPOSAL........................................................................................................................................ 16
FLOWCHART: ASSET DISPOSAL..........................................................................................................................17
8. STANDARD ASSET REPORTS AND INQUIRIES.........................................................................................18
FLOWCHART: FIXED ASSET REPORTING...............................................................................................................20
9. ASSET CLOSE.............................................................................................................................................. 21
Flowchart: Asset Close.................................................................................................................................. 22
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1. Asset Overview

Starts With: Order Assets

Ends With: Asset Reporting

Description: This is the high-level Fixed Asset overview.

Step
Number Task Organization Description
1.0 Order Assets Non-Asset Departments Purchasing process to order.
2.0 Asset Set Up Asset Manager Create master record to record setup information.
Post costs from the general ledger system to fixed
3.0 Process Costs Asset Manager assets.
4.0 Depreciate Assets Asset Manager Run asset depreciation on a monthly basis.
5.0 Maintain Information and Balances Asset Manager Track asset changes using transfers, splits, locations.
6.0 Asset Maintenance Maintenance Manager Maintain assets and track costs associated by asset.
7.0 Disposal Asset Manager Asset disposal program.
8.0 Asset Reporting Non-Asset Departments Reports and Inquiries.
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Flowchart: Asset Overview

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2. Regular Asset Acquisition

Starts With: Plan Capital Assets

Ends With: Retrieve Asset Information via Reports

Description: Assets will be acquired and entered into the fixed asset system. Payments for assets will be coded to the expense line
for the appropriate business unit. Costs are then transferred to the balance sheet by journal entry to move the amounts to the fixed
asset account. The credit is posted to an offset account in the source business unit so that the original expenditure remains. The
asset master is created to record the master record including company, cost account, description, asset number and acquisition date.
The asset number is added to the re-class journal entry and posted into the fixed asset system. Asset balances are confirmed using
the Cost Summary screen in fixed assets. Asset records for meters will not carry transaction balances in fixed assets.

Step
Number Description Organization Description
1.0 Plan Capital Assets Other Departments Departments request new assets.
2.0 Acquire Asset Other Departments Asset is purchased.
Re-class Expenditure to Capital Voucher to pay for the asset.
3.0 Account Other Departments
4.0 Post Re-class to the GL Other Departments Journal entry post report.
Add Asset Number to Account Asset number is added to the transaction to be added
5.0 Ledger Record Asset Manager to the fixed asset balances.
Records asset name, default location, cost account and
6.0 Record Asset Header Info Asset Manager category codes, parent/child relationship.
7.0 Verify Depreciation Information Asset Manager Verify depreciation defaults and depreciation rules.
8.0 Add Insurance Information Asset Manager Add insurance information if needed.
9.0 Add Finance Information Asset Manager Finance information when applicable.
10.0 Add License Information Asset Manager Vehicle license information when applicable.
11.0 Post Cost to The Asset Asset Manager Cost is posted to the asset balance file (F1202).
Verify the Asset Posting via Cost
12.0 Summary Asset Manager
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Retrieve Asset Information via

13.0 Reports Asset Manager
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Flowchart: Regular Asset Acquisition

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3. Work in Process Assets

Starts With: Plan Capital Assets

Ends With: Retrieve Asset Information via Reports

Description: Assets will be acquired and entered into the fixed asset system. Payments for assets will be coded to the expense line
for the appropriate business unit. Costs are then transferred to the balance sheet by journal entry to move the amounts to the fixed
asset account. The credit is posted to an offset account in the source business unit so that the original expenditure remains. The
asset master is created to record the master record including company, cost account, description, asset number and acquisition date.
The asset number is added to the re-class journal entry and posted into the fixed asset system. Asset balances are confirmed using
the Cost Summary screen in fixed assets. Asset records for meters will not carry transaction balances in fixed assets.

Step
Number Description Organization Description
1.0 Plan Capital Assets Other Departments Departments request new assets.
2.0 Complete Infrastructure Project Other Departments Asset is purchased.
3.0 Re-class WIP to Capital Account Other Departments Voucher to pay for the asset.
4.0 Post Re-class to the GL Other Departments Journal entry post report.
Add Asset Number to Account Asset number is added to the transaction to be added
5.0 Ledger Record Asset Manager to the fixed asset balances.
Records asset name, default location, cost account and
6.0 Record Asset Header Info Asset Manager category codes, parent/child relationship.
7.0 Verify Depreciation Information Asset Manager Verify depreciation defaults and depreciation rules.
8.0 Add Insurance Information Asset Manager Add insurance information if needed.
9.0 Add Finance Information Asset Manager Finance information when applicable.
10.0 Add License Information Asset Manager Vehicle license information when applicable.
11.0 Post Cost to The Asset Asset Manager Cost is posted to the asset balance file (F1202).
Verify the Asset Posting via Cost
12.0 Summary Asset Manager
Retrieve Asset Information via
13.0 Reports Asset Manager
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Flowchart: Work In Process Assets

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4. Asset Depreciation

Starts With: Verify all Asset Transactions are Posted

Ends With: Print Depreciation Reports

Description: This specification is for asset depreciation on a period basis. All assets are depreciated using the straight line method of
depreciation. The period of depreciation varies between depreciation types. Depreciation is tested in proof mode and then run in
final mode to create transactions and update asset balances. Depreciation can be run multiple times for each month. The program
calculates the required depreciation amount for the period and then creates the adjusting amount required.

Step
Number Task Organization Description
Verify All Asset Transactions Are Verification is handled by the Revise Un-posted Entries
1.0 Posted Asset Manager form in fixed assets.
2.0 Run Depreciation in Proof Mode Asset Manager
The amount to be depreciated is printed on the report.
Processing options allow for formulas to be printed as
3.0 Verify Depreciation Calculations Asset Manager well.
3.5 Create Correcting Entries Asset Manager As needed.
Post Correcting Entries to Fixed This program posts the transaction amount to the fixed
4.0 Assets Asset Manager asset balance file (F1202).
The depreciation entry is created and posted to fixed
5.0 Run Depreciation in Final Mode Asset Manager assets automatically.
6.0 Verify Depreciation Balances in F/A Asset Manager
7.0 Post Depreciation Entries to the G/L Asset Manager
8.0 Print Depreciation Reports Asset Manager
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Flowchart: Asset Depreciation

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5. Asset Transfers

Starts With: Utilize Asset

Ends With: Operate Business

Description: This is the process by which assets are transferred. Asset transfers can relate to a physical location or an accounting
transfer. The physical location of assets is tracked by date. A historical record is stored of all transfers from acquisition to retirement.
When the new location is entered, the effective date is updated. The effective date can be in the future. An accounting transfer is
related to the accounts that the asset balances reside in.

Step
Number Task Organization Description
1.0 Asset In Use Operations Manager
Location transfers refer to the location business unit
assigned only. Accounting transfers refer to the
Location Transfer or Accounting transfer of cost from one company to another or from
2.0 Transfer Asset Manager one cost account to another.
2.1 Select Transfer Program Asset Manager
Enter new location and effective Location assignments are stored by date historically.
3.0 date Asset Manager
3.1 Verify Location Changes Asset Manager
3.2 Location Transfer Complete Asset Manager
4.0 Final or proof mode? Asset Manager
5.0 Process asset transfer in proof mode Asset Manager
Review asset transfer report in proof
6.0 mode Asset Manager
7.0 Errors? Asset Manager
8.0 Correct asset transfer errors Asset Manager
9.0 Process asset transfer in final mode Asset Manager
10.0 Asset transfer completed Asset Manager
11.0 Post Transfer Journal to GL Asset Manager
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12.0 Post Transfer Journal to FA Asset Manager

13.0 Enter Location Change Information Asset Manager
14 Operate Business Operations Manager
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Flowchart: Asset Transfers

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6. Asset Split

Starts With: Perform Asset Split

Ends With: Operate Business

Description: This the process by which a portion of one asset is split off to form another. The split can be based on an amount, a
percentage of cost, or a specific number of units if the asset contains multiple units. Transactions are created to move the split
amounts to the new assets.

Step
Number Task Organization Description
Asset Split Approval Received from
1.0 Dept. Asset Manager
Asset splits can be created by amount, percentages
2.0 Type of split Asset Manager and unit.
This option splits the asset by assigning a specific
3.0 Split using amounts Asset Manager amount.
This option splits the asset by assigning a specific
4.0 Split using units Asset Manager number of units.
This option splits the asset by assigning a specific
5.0 Split using percent Asset Manager percentage of the existing asset.
6.0 Post automatically to fixed assets Asset Manager
7.0 Post Split to GL Asset Manager
8.0 Verify New Asset Via Cost Summary Asset Manager
9.0 Operate Business Operations Manager
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Flowchart: Asset Split

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7. Asset Disposal

Starts With: Dispose of Equipment

Ends With: Verify Assets Balances

Description: This process flow documents the steps used to dispose of an asset. The asset balances are cleared and the remaining
amount is offset to an asset clearing. Cash proceeds from a sale are also accounted for in the disposal process when applicable.

Step
Number Task Organization Description
The disposal of a fixed asset will reverse the cost and
Approval Disposal Request accumulated depreciation from the balance sheet and
1.0 Received Asset Manager change the asset record to a disposed status.
Verify depreciation has been run for the current period
3.0 Has depreciation been run? Asset Manager and if the asset should be depreciated for that period.
3.1 Depreciate Asset Asset Manager When applicable.
4.0 Single or mass disposal? Asset Manager Multiple assets can be disposed when necessary.
4.1 Dispose of multiple assets Asset Manager
4.2 Dispose of single asset Asset Manager
5.0 Review and Post Disposal Entries Asset Manager
6.0 Verify Asset Balances Asset Manager
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Flowchart: Asset Disposal

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8. Standard Asset Reports and Inquiries

Starts With: Utilize Asset

Ends With: Print General Ledger to Fixed Asset Integrity

Description: This process outlines the reports and inquiries that are available in the Fixed Assets module.

Step
Number Task Organization Description
3.0 Review or create reports? Asset Manager
3.1 Print Additions Report Asset Manager Standard report
3.2 Print Transfer Report Asset Manager Standard report
3.3 Review Online Cost Summary Asset Manager
3.4 Print Adjustments Report Asset Manager Standard report
3.5 Print Depreciation Expense Report Asset Manager Standard report
Review Online Depreciation Standard report
3.6 Schedule Asset Manager
3.7 Print Disposal Report Asset Manager Standard report
Print Depreciation and Amortization Standard report
3.8 Report Asset Manager
Review Assembly Components and Standard report
3.9 Net Book Value Asset Manager
3.10 Print Inventory Report Asset Manager Standard report
3.11 Print Asset Report Asset Manager Standard report
3.12 Review Fixed Asset Data Integrity Asset Manager
3.13 Print Assets by Finance Method Asset Manager Standard report
3.14 Print Fixed Asset Trans. Integrity Asset Manager Standard report
Print Fixed Asset to General Ledger Standard report
3.15 Integrity Asset Manager
Print General Ledger to Fixed Asset
3.16 Integrity Asset Manager
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Flowchart: Fixed Asset Reporting

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9. Asset Close

Starts With: Close Account Balances

Ends With: Verify Results

Description: This section describes the year-end process to close account balances and create beginning balances for the following
year. The year-end program will total the prior years postings and create a new record with a beginning balance. The process can be
run multiple times for the same records. If the new record exists, the program will update the beginning balances field with the
correct balance if different.

Step
Number Task Organization Description
The asset account close report creates new records in
the Fixed Asset balance file. The asset account close
report will total the amounts (Beginning balance
through Period 12) and create a record for the new
2.0 Close Asset Account Balances Asset Manager year with the calculated beginning balance.
3.0 Verify Close Results Asset Manager
4.0 Operate Business Asset Manager
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Flowchart: Asset Close