Are Your Fixed Assets Audit Ready?

While on site last week performing fixed asset consulting and data work, my client had encountered last-minute auditors. Not just one, but three (3) from different places. Funny thing was, they were keeping their fixed asset listings and their CIP (construction in progress) accounting assets in the same spreadsheet. Boy, was it a long one with filters and pivot tables, etc.

During the first day of my stay, I uploaded their fixed asset records into FAS Asset Accounting, ran some preliminary depreciation to balance back to FY 2010. In a matter of hours I was able to prepare a report in 3 different formats and export out to a PDF for the corporate Controller. At the end we noticed about a $95K difference in depreciation – in their favor!

The next day the Auditors were in and out of the Controllers office asking all about fixed assets and their current schedule and if they could get a listing sorted by asset class / asset type with sub-totals by location. With their current “system” (aka: spreadsheets and SAP fixed assets), they couldn’t get this or make this readily available. However, with Sage FAS Asset Accounting they were able to very quickly.

Thank goodness they had a fixed asset Consultant on deck that week. Next time they have an unexpected / unanticipated audit (they thought they had until December), they will be even more ready with CIP reports as well. So the question is… are YOU and YOUR fixed assets audit ready?

SAP Fixed Assets To Sage FAS: Live Update 6

It’s been a while since my last update on the large SAP fixed assets to Sage FAS Asset Accounting.  We had a minor set back – client induced.  However everything is moving along quite nicely with great momentum!

Two out of six companies are in the final phases – comparing ending balances between original 4562’s and FAS Asset Accounting generated 4562’s.  So far, little discrepancies are showing and in the end of the day, may turn out to be immaterial.  Once the balances are blessed (for our end), we will then move on to the largest of the 6 (over 35,000 line items). 

Soon, SAP fixed assets for federal Tax and multi-state depreciation will be a thing in the past…  And so will months and months of off-line spreadsheet finagling!  Cheers to that!

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.

Implementing FAS with SAP ERP: Live Updates

We get a lot of questions about how FAS (and if) integrates or works with ERP systems.  Since all ERP systems do not have a true “fixed asset management solution”, nor do they admit to having one – many businesses look to other solutions, especially for tracking and running automated depreciation for federal Tax and State books.  While ERP can track and depreciate internal / GAAP book just fine (straight-line is easy to code into a system) – they fail on keeping up on the never-ending depreciation updates of federal Tax and State.  This is where Sage FAS Asset Accounting shines!

Here at Paragon Systems, we often implement the Sage FAS solution(s) along side an ERP solution – such as PeopleSoft, Oracle and SAP.  We figured that since we do this often enough we should share the progress of one of our latest projects.

Currently, we just started implementing Sage FAS 500 Asset Accounting at one of our larger clients.  They are utilizing SAP for all of their worldwide financials.  They (as many do) have been struggling with the lack of automated depreciation for federal Tax, AMT and all State calculations — especially with all the bonus and Section 179 changes.  It’s a nightmare to get all the new bonus rules, property type changes, Section 179 limitation updates, etc. into their SAP fixed asset module.  Not only is a time sensitive issue, it’s also VERY costly (which makes FAS 500 pay for itself  immediately).  Their tax department was definitely spending too much time on manually calculating both tax and state calculations in mass amount of spreadsheets.

We (well, I, Angie Bolton-Lyons) will keep you updated as our progress evolves.  Client name will NOT be provided due to obvious reasons.

Today – we installed our extraction utility (remotely) and are on our way to getting the first round of test data out.  Success!

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