Our client is utilizing the Sage FAS Asset Accounting solution to manage and depreciate capitalized assets. They have a capitalization policy of $2500. All other fixed assets get expensed, but also tagged and tracked in Sage FAS Asset Inventory. These two solutions are seamlessly integrated with one another so that all the data can be managed in one centralized database (should you choose). Below, the client is referring to the pre-defined group in FAS: Non-FAS Assets. This group can be accessed in the Group View of Asset Accounting, under the Group drop down menu.
I don’t understand how we even get Non-FAS assets into our Sage FAS Asset Accounting system and whether they should be counted. Can you please explain this to me?
SAGE FAS CONSULTANT ANSWER
There should be many assets in Non-FAS, including some art, desks, and I imagine LOTS of IT equipment. These are assets that are inventoried and tracked, but not capitalized as the cost was under the $2500 cut off for capitalization. (Leased, Expensed or donated). For Depreciation reporting, the accounting department does not typically deal with these on a regular basis, but they are part of what you use to run your business. These need to be tracked for personal property taxes, insurance and security / theft purposes, as well as simple management of assets, to answer questions such as: how many laser printers do we have and where are they? Or, we just had a fire, what was lost? Do I have any idle laptops that could be used for a new employee instead of buying new ones?
Tracking all your fixed assets, whether they are expensed or capitalized, is key to properly managing your fixed assets. Just ‘one’ thing to think about… if your building caught on fire, do you have enough insurance to cover a complete rebuild? Or will you have to call it quits because you aren’t properly covered?