Not All Sage FAS Users Should be Created Equally

Here at Fixed Asset Consulting, we have been performing many data conversions lately.  Mainly data that has been in the Sage Fixed Assets Depreciation (formerly Sage FAS) and was outsourced.

The biggest problems we are running into during our analysis and process is that those ‘outsourced’ professionals who are using the Sage Fixed Asset System (or any automated fixed asset system) are not entering the asset information in correctly.  Here is a list of what we have been seeing (note: not all the data we are analysing and fixing are from the same source/end users):

  • Bonus depreciation not being utilized consistently.  Some assets have it on, others don’t.  Same property type, same placed-in-service year, etc.
  • Bonus depreciation not being used at all even though the Client is claiming in on their tax returns.  This means that even though the Tax calculations are outsourced, the Client still has to perform off-line adjustments and calculations on a spreadsheet.
  • Inconsistent data entry and misuse of critical depreciation fields.
  • Property Types are incorrectly used. I.e. Buildings and building remodels are set to Personal Property with a 39 year life and a straight-line method.  Should have been set to Real Property.
  • Adjustments were never taken and trued up on the data.  This is causing a lot of over and under depreciated assets to occur at the end of the assets life, creating a NBV on a fully depreciated asset.
  • One line items that represent 3 or sometimes 10 assets.  When reconciling this information back to the customers off-line data or internal data, some of those “assets” where disposed of.  Or… the sum of the 3 assets don’t equal the total amount of the one asset in the outsourced system.

We could go on and on, however, many times this stems from the end-user not being professional trained on the system, being thrown into fixed asset management role without training, not communicating properly with their clients or just not knowing what they are doing.

Not all fixed asset users or those managing fixed asset data should be created equally.  Problem is, many don’t know this is happening until it’s too late.  Don’t be one of them.

Balancing SAP Costs Before Importing Into Sage FAS: Live Update 5

A couple of weeks have gone by and we are progressing nice and easy — on schedule and on budget.  Our client has multiple entities (with thousands of data) and we are finished balancing on one and about 95% balanced to another with only 3 more to go. 

The struggle has been with SAP and their transaction codes.  Current FY data is sometimes hidden – which is a small struggle, but we persevere!  Another small struggle for the client is trying to assist us in reconciling starting balances between what SAP could/can handle against what they’ve had to manipulate off-line out of the system.  Hence the reason they are implementing Sage FAS Asset Accounting – NO OFF-LINE ADJUSTMENTS NECESSARY!

Remember when converting and implementing any system for the first time, the VERY first thing you should do is pick a date to balance out to.  This ensures that no data gets left behind and you will have a clean start.

Sage FAS Asset Accounting: Release of Version 2011.1

The moment has arrived for all you Sage FAS Asset Accounting users out there (over 300,000 active users).  The release of version 2011.1!  Yes, it incorporates tax law changes made during the year including the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 and the Small Business Jobs Act of 2010. 

This release is only available for CURRENT Sage Support members and new licenses.  If you need to renew your support to take advantage of this slick automation and updated depreciation methods and provisions, call me now at (847) 2402981 ext: 164 or shoot me an email with the SUBJECT: RENEW.

The FAS 2011.1 Tax Update contains exciting new features and enhancements to your:

  1. Tax Law Updates: Sage has updated the Sage FAS program to comply with the latest tax law changes:  
  • Updated Tax Forms and Worksheets. The 2011.1 Tax Update includes the updated IRS Form 4562 – Depreciation and Amortization for 2010. 
  • Updated Tax Limits. The 2011.1 Tax Update complies with the scheduled updates to the Section 179 limits and luxury auto limits, including changes to allow up to $250,000 of the Section 179 deduction to be claimed for qualified real property.
  • 168 Allowance of 100% for Certain Property. Assets placed in service after September 8, 2010 and before January 1, 2012 can take a 100% bonus deduction.
  • Extension of Tax Provisions. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 has extended several tax provisions, such as allowing a 15 year estimated life on qualified leasehold improvements, qualified restaurant property, and qualified retail improvement property.

2. Updated Audit Advisor. Sage FAS made the following updates to the Audit Advisor:  

  • Check for the increased Section 179 limits as stated above. 
  • Extend the check for Qualified Restaurant, Leasehold, and Retail Improvement Property. 
  • Added a new check for assets that claimed a 50% 168 Allowance when they are eligible to take the increased 100% depreciation allowance. 
  • Added a new check for real property that may be qualified for the Section 179 expense deduction.

3.  New Sage Timberline Enterprise Link. We have added a new general ledger link that enables you to post depreciation expense and accumulated depreciation from Sage FAS to Sage Timberline Enterprise.

NOTE: Please note that no database conversion is required to upgrade from version 2010.1 of Sage FAS to version 2011.1. However, if you are currently using an older version of Sage FAS, you must first upgrade to version 2010.1 before installing Sage FAS version 2011.1. 

If you DON’T have all the CDs or other material available for versions lower than 2010.1, you need a data schema upgrade.  Contact me today for competitive rates.

SAP Fixed Assets to Sage FAS: Live Update 4

Whew… we have been busy! Extracted five out of six companies out of SAP fixed assets.  Finalizing cost balances between internal books and all federal tax books.  What a mismatch.  Although, we have seen this every time we export out of any ERP.  The disconnect between entry per book. 

This week and next we will be moving on to re-formatting and building the federal tax books.

Preparing our clients import files to include bonus depreciation where necessary is so rewarding – for us and them! They are getting close to being able to throw those spreadsheets and the formulas that are contained with-in – into the electronic trash.

More on Sage FAS software – check out our new facelift at www.FixedAssetSoftware.com.

SAP to FAS Implementation: Live Update 3

MILESTONE day!  All data is extracted out of our clients SAP fixed asset system — all done remotely.  As if we were never there… wait, we weren’t. 🙂  Gotta love technology. 

We are now in the process of analyzing their data to find any variances between their Internal / GAAP (which will still be recorded in SAP ERP) and Tax values.  Once we gather that list, we will work with our clients through  the adjustment phase before finalizing data, reformatting and importing into Sage FAS 500 Asset Accounting for test data number 1.

This is a very exciting day for our client – as they see a faint light at the end of their fixed asset tunnel!

Depreciation Adjustments in Sage FAS

Once all your data is either –  a) in Sage FAS from being uploaded through a data’s conversion process or b) manually changed (changing either the cost, method, life, etc.), there are only three types of adjustments you can set Sage FAS Asset Accounting to take:

  1. Immediate –  the next time you run depreciation in Sage FAS Asset Accounting, the system will automatically true up the adjustment immediately for you. 
  2. Post Recovery – after the assets estimated life has expired, the adjustment amount needed will show it’s pretty little head as the NBV.  The very next time you run depreciation AFTER it’s useful life has expired, it will true up.  Example: est life of 3 years/36 months – month 36 you will see the remaining NBV.  When you run depreciation on month 37, FAS will perform a true up.
  3. None – well… don’t second guess yourself silly, FAS will do nothing.  This means, your assets that need a true up will always have a NBV forever… until you dispose of it.

There are only two types of adjusted assets: over depreciated asset(s), or an under depreciated asset(s).  No worries, should you set your adjustment to either immediate or post-recovery in Sage FAS Asset Accounting, the system is pretty darn good at reporting on those assets that needed a true-up.  Reason number…. I don’t know, a lot; why Auditors love this solution!

Fun Fact: the big 4 uses and recommends the Sage FAS solution!

Convert To Version 2004.2 Of Sage FAS

Question of the day:

When attempting to update my company’s Sage FAS software,  I have the software installed but when I try to open the old .db file I get an error stating that the file is in the 2001 format and must be updated to the 2004.2 format.  How do I updated this file?

The answer –

When Sage Software puts out new version releases, sometimes the database schema [data tables, etc.] has been updated along with the system itself.    When this happens, you have to take your data through the major version releases and utilize the Database Conversion Utility that installs itself along with the software versions.  If however, you don’t have all the version CDs up through the current release [v2009.1.1] you will have to get assistance from Sage FAS support OR through a geeky valued-added business partner who has the Sage/Best FAS library [that would be me].

How come you don’t have all these CD’s to being with?  Reasons could be one or many of the following:

  • Your key account contact has not been updated – going to someone who no longer works there
  • You moved and Sage was not notified – so it’s going somewhere else
  • You let your SupportPlus membership lapse – shame, shame…
  • Somebody has been getting them, but not forwarding to the appropriate staff member so they can be applied

Again, in order to get passed the upgrade error, you will need to contact Sage FAS, or the FAS geek who holds the library [shoot me an email: alyons@depreciationexperts.com].

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