Fixed Asset Program Manual

Year End Procedure

Fixed Asset Program Manual Copyright 2013 Rupert Parsons This document is licensed under the Creative Commons Attribution Share Alike License version 3. You may copy, distribute and/or modify it under the conditions stipulated in the copyright licence. Click the link below to view the details of the copyright licence which applies to this publication: http://creativecommons.org/licenses/by-sa/3.0/deed.en

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Introduction
The year end procedure must be carried at the end of each financial year otherwise the fixed asset program will not function correctly. This chapter contains the following sections (each section starts on a new page): Step 1: Check for errors Step 2: Create a copy of the spreadsheet Step 3: Move year end balances (c/f) to prior year (b/f) Step 4: Enter new accounting period Step 5: Check that the year end has been completed correctly Delete fixed assets that were disposed of last year Revaluations / impairments in the previous year Assumed Knowledge This chapter assumes you are already familiar with the following: How to print in your version of Excel. How to create a copy of a spreadsheet file using 'Save As' in your version of Excel. Fixed Asset Reconciliations.

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Step 1: Check for errors

The follow checks should be performed: Check for input errors identified by the program & for negative net book amounts. Fixed Asset Reconciliation. Check for input errors identified by the program & for negative net book amounts Click the button 'Procedure' on the home page. Click the button that corresponds to '1. Check for errors'. If there are input errors identified by the program or negative net book amounts, you will be taken to an error report which identifies how many errors and in which asset categories:

Do not continue with the year end procedure until these errors are corrected. Fixed Asset Reconciliation A fixed asset reconciliation for each asset category should be completed (i.e. comparing total cost & accumulated depreciation carried forward according to the fixed asset program to the financial accounts and correcting any differences found). In the fixed asset program total cost and accumulated depreciation are detailed in the reports 'Fixed Asset Cost Movements' & 'Fixed Asset Depreciation Movements' (the chapter 'Reports' explains how to access & print these reports) . These reports provide a space to enter the total cost & accumulated depreciation carried forward according to your financial accounts:

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Step 2: Create a copy of the spreadsheet

Create a copy of the spreadsheet for the new financial year using 'Save As' in Excel:

The file name of the new spreadsheet should include the new financial year. If the fixed asset program that you downloaded uses the Excel 2000-2003 Workbook file format and you are using Excel 2007 or later, the file can be saved as an Excel 2000-2003 Workbook or as a Macro Enabled Workbook.

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Step 3: Move year end balances (c/f) to prior year (b/f)

In the copy of the spreadsheet for the new financial year: Click the button that corresponds to '3. Move year end balances (c/f) to prior year (b/f)'. The program will then carry out the following for each fixed asset category: Move the year end fixed asset costs to the brought forward column. Move the year end accumulated depreciation to the brought forward column. (the new accounting period is registered in the next step)

Restores any broken links in the column 'Depreciation charge in accounting period' in the unlikely event it was necessary to override one or more of the calculated charges in the previous year:

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Step 4: Enter new accounting period

It is very important that step 3 is completed before the new accounting period is entered, otherwise the program will not function correctly in the new financial year. In the copy of the spreadsheet for the new financial year: Click the button that corresponds to '4. Enter new accounting period'. A message will appear to confirm that step 3 has been completed. Enter the new financial year in the orange cells:

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Step 5: Check that the year end has been completed correctly
In the copy of the spreadsheet for the new financial year: Click the button that corresponds to '5. Check year end has been completed correctly'. Print the report 'Summary of Fixed Asset Movements'. Carry out the following checks using this report to confirm whether or not the year end procedure has been carried out correctly: Check the dates. Check the total net book values brought forward. Check the dates Check that the dates in the report 'Summary of Fixed Asset Movements' correctly reflect the new accounting period:

If the dates in the report do not correspond with the new accounting period, go back to step 4 of the procedure and correct. Check the total net book value brought forward Print the report 'Summary of Fixed Asset Movements' for the previous year. To access the report for the previous year: Open the fixed asset program for the previous year. Click the button 'Fixed Assets'. Click the button 'Summary of fixed asset movements'.

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Make sure that the total net book value brought forward in the report for the new financial year is the same as the total net book value carried forward in the report for the previous year. Total net book value brought forward (new financial year):

Total net book value carried forward (previous financial year):

If the total net book value brought forward & carried forward do not agree, the year end procedure has not been completed correctly e.g. step 3 was not done, was done twice or was done in the wrong order. Therefore, delete the file for the new financial year and repeat the year end procedure from step 2 (create a copy of the spreadsheet).

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Delete fixed assets that were disposed of last year

(This is recommended but optional and does not apply if the fixed asset program was not in use in the previous year). For each asset that was disposed of last year*: Select any cell of the fixed asset. Click the button 'Delete Row'. (A message appears to confirm that you have selected a cell of the row you want to delete. Another message appears to confirm that you want to delete this fixed asset)

* for assets disposed in the previous year the disposal date should have been entered in column 'date of disposal'. See the chapter 'Fixed Asset Disposals' for further details.

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Revaluations / impairments in the previous year

(This does not apply if the fixed asset program was not in use in the previous year). The cost and / or depreciation adjustments entered for fixed assets which have been revalued or impaired in the previous financial year must be erased:

Read the chapters 'Revaluation of Fixed Assets' & 'Impairment of Fixed Assets' for further details.

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