What is an Asset?

Report
Advanced Purchasing
Finance Business Solutions
Shaleen Batra
Finance Business Solutions – User Support & Training
Agenda
•
Foreign Currency Overview
•
What is an Asset?
•
Strategic Procurement
•
Tagging of UNSW Asset
•
Treasury
•
Buying an Asset
•
Buying Network
•
Create a PO for Asset
•
FX PO – deal
•
Receipt an Asset PO
•
FX PO – No deal
•
Scenarios
•
BUILTIN and TRADEIN
•
Asset Reports
Foreign Currency Overview
Purchase Major Equipment inn foreign currency
Foreign
Currency
Deal
(>50K)
No
Deal
FX Purchases
(Hedging Required when Purchase > AUD50k)
Buying
Network
Strategic
Procurement
Treasury
Foreign
Currency
PO
Strategic Procurement (SP)
What’s the difference between Purchasing and Strategic Procurement?
- Strategic Procurement supports and helps the end-to-end buying of goods/services across
UNSW by assessing opportunities, analysing your needs and potential suppliers, engaging
suppliers, implementing UNSW wide goods/services contracts, and the continuous
management of those suppliers. It also includes high value one-off transactions.
This makes Strategic Procurement distinctly different from Purchasing. Purchasing
encompasses the administrative activities associated with raising and goods receipting an
order which may form part of a boarder Procurement activity. Purchasing links with Accounts
Payable to ensure the payment of goods and services.
When engaging Strategic Procurement?
- As early as possible so that SP can define the most appropriate level of support
Strategic Procurement
So what they do not do:
≠
≠
≠
≠
≠
≠
≠
≠
≠
create vendors in UNSW's financial systems
complete forex hedging application
manage the customs clearance process
organise payment of invoices
collect signatures for procurement documentation
complete purchase order forms
raise purchase orders
force you to select the cheapest deal
take over your relationship with the supplier
Strategic Procurement
So what they do:
 Support preparation of procurement activities / tenders such as determining
approach and preparing tender documentation (requirements, contracts,
etc.)
 Facilitate or project manage procurement/tender process
 Negotiate with suppliers on commercial, technical, and contractual aspects
and resolve disputes
 Draft purchase agreements (contracts)
 Provide ongoing post-agreement commercial and procurement support
Contact details: http://www.fin.unsw.edu.au/OurServices/FinancialOperations_Procurement_WCH.html
Procurement Area and process: http://www.fin.unsw.edu.au/OurServices/Procurement.html
When involved in the project, Strategic procurement :
- can support Buyer/researcher through this process
- should be CC’ed in order to follow up the project’s progression
Strategic Procurement :UNSW Policy
Value Thresholds
(AUD inc GST)
Estimated value of contract
Preferred Supplier (Buying Guide)
=< $3k
(no quotes required)
>$3k, =< $30k
(At least 1 written quote)
>$30k, =< $250k
(At least 3 written quote)
> $250k
(Tender required, unless exempted by Strategic
Procurement Team)
Treasury
The Group Treasury team has the primary objective to ensure that the treasury activities and risks of the
UNSW Community are managed in a prudent, cost-effective and comprehensive manner, reflecting the
needs of all UNSW stakeholders, by means of actively aligning to the strategic objectives of UNSW Finance
and the University as a whole.
•
•
•
•
•
•
•
•
•
Foreign exchange risks
Payments, receipts and cash applications
Bank guarantees and letter of credit
Credit risk
Equipment leasing agreements
Banking relationships
Short term liquidity risks
Funding and re-financing risks
Interest rate risks
Contact details: https://www.fin.unsw.edu.au/OurServices/FinancialOperations_Treasury_WCH.html
About Treasury: https://www.fin.unsw.edu.au/OurServices/FinancialOperations_Treasury.html
Foreign Exchange Risks
•
•
•
Cashflow is impacted by movements in exchange rates
Potential gain or loss from exchange rate can result in a movement of payments
and receipts
To hedge a foreign currency deal Treasury Dept needs to be involved
along with the Buying Network
UNSW Head Office (Buying Network)
http://www.fin.unsw.edu.au/OurServices/FinancialOperations_Purchasing.html
**
FX PO with Deal





Contact Treasury to hedge a deal so that the rates can be locked in
Treasury will send a Foreign Currency Agreed Rate PO Form (FC1)
Complete FC1 form and get approval from Financial delegate
Send the form and all relevant documents to Buying Network
Buying Network will raise the PO
Checklist before sending completed FC1 form and documents to Buying Network
1.
2.
3.
4.
5.
6.
7.
Check if Vendor is already set up in NS Financials
If vendor is set up in the system but is older than 6 months, then bank details should be provided on Vendor’s letterhead
Business Unit is clearly written e.g. MEDIC, COMEC, SCTEC. Do not use UNSWA.
Buyer Name, Employee ID and contact number are correct
Correct description should be written in FC1 form e.g. Ship to Code, chartfields, price etc.
Other comments that may need to be written on the PO for the supplier
Milestones/Prepayments
FX PO – No Deal
Enter
Header
Details
Enter
Chartfield
information
Enter line
details (only
one line)
Add more
lines (if
applicable)
Go to
Header
details
Update
Currency
FX PO – No Deal
1.
2.
3.
Enter the Vendor Details
On Behalf of
PO Reference
FX PO – No Deal
Enter Line details but not the Chartfields. For multiple line PO enter only line 1 first.
Go to Header Details to change the currency
FX PO – No Deal
FX PO – No Deal
FX PO – No Deal
FX PO – No Deal
Save and Budget Check
FX PO – No Deal
Make sure to check Total amount and encumbrance
Fluctuation in rate
Difference of $454
Another PO was raised two days later and there was a difference of $454
Asset Definitions
What is an Asset?
A physical or non-physical item that generates future benefits beyond 12 months that can be identified and
which UNSW has ownership of.
An asset can be tangible (like a building) or intangible (such as intellectual property). Types of assets
purchased at UNSW include computer, laboratory and plant equipment, etc.
Associated costs of a Fixed Asset
The cost of a fixed asset includes all amounts incurred to acquire the asset and any amounts that are
directly attributable to bringing the asset into working condition.
Asset Definitions
Directly attributable:
 Delivery, freight costs
 Costs associated with acquiring the asset such as stamp duty and import duties
 Costs of installation of the asset (installation and labour costs)
 Professional fees, such as legal fees and architects' fees (building, land)
Assets Help Sheet
Not Directly attributable:
 Training
 Maintenance services
 Warranties
Asset Definitions
Up until December 2013, only equipment equal or greater than $5,000 were listed on the UNSW Assets
Register as capitalised assets.
From January 2014 onwards, equipment equal, greater than or less than (if you wish to track) will be listed
on the UNSW Assets Register for tracking purposes, as follows:
•
•
Equipment equal or greater than $5,000 is to be listed on the Register as capitalised (depreciated)
assets.
Equipment under $5,000 is to be listed on the Register as non-capitalised (expensed) assets for
tracking purposes. This is up to the Business Unit to decide if they wish to track the equipment or not.
Artwork
 Paintings
 Prints
 Ceramics
 Photographs
PO Item Categories
Computer Equipment








Servers
Mainframes
Monitors
Base Units
Modems
Multi-controllers
Notebooks
Laptops








PCs
Desktop printers
Plotters
Barcode Readers
Image Device Scanners
Digitisers
Sensitisers
Interface Cards
Lab & Plant Equipment






Tractors
Farm Machinery
Mowers
Maintenance Machinery
Forklifts
Trailers





Laboratory
Generators
Pumps
Surgical Equip
Gym Equip
 Aeroplanes
 Music instruments
Other Equipment
Office
Equipment
 Photocopiers
 Fax Machine
 Air Conditioning Unit
(Portable)
 Fridge**
 Shredders
**only for office use not for research purposes
Audio Visual







Projectors
TV
Video
Microphones
Camcorders
Editing equip
Studio equip
Photography




Camera
Lenses
Floodlights
Processing equip
Motor Vehicles




Cars
Motor Bikes
Quad Bikes
Vans
PO Item Categories
Motor Vehicles for transportation only. Motor Vehicles for research purposed should be categorised under lab/plant
equipment.
Important
 Software – Not an asset. Expense A/C 5260 is used
 Software included in a package – It is an Asset. Use
Software category
 Computer accessories are not included in assets
 Furniture – No longer regarded as an asset.
Expense A/C 5600 is used
 Direct Associated cost should be included in the
total cost of a capitalised asset. e.g. freight,
installation, tax & levy.
 Additional insurance cost, annual fee, training &
maintenance should not be included in Asset
 Only the cost of acquiring the asset should be
added not the cost of maintenance
Asset Tags
Tags are issued in advance of the purchase of an asset
Issued by Asset Management Unit (AMU)
Issued to Business Units (Faculties, Schools & Divisions)
Issued to one designated staff in each area
Contact designated staff in your dept to get a tag
Tags should be affixed to assets at the time of receipt
Apply the tag in the front of the equipment
Buying an Asset
Assets should ONLY be bought using a Purchase Order.
Purchase Orders for assets can be created via eProcurement or Purchasing.
should not be
ASSETS
Purchased
Procurement
Card
PR1 Form
Expense Claim
Unless they are bought using a Purchase Order, there is no way of entering the
Asset Management information e.g. owner, tag no, serial no, asset location,
dept etc. Contact Asset Management Unit for more information.
Buying an Asset -Prepayment
Payment in advance for goods or services
Create a PO – Standard process
Contact AP and provide details for prepayment
Receipt when goods are physically received or
commissioned*
Notify AP via email and write prepayment in the subject line
*Process by which equipment (installed or near completion) is tested to verify if it functions according to the requirement
Asset Purchasing Process
Is this
owned by
UNSW?
*1
N
Code to
relevant
Expense
accounts
Y
Have all
costs been
identified?
N
Need to
identify all
costs *3
Y
Is the
total cost
≥ $5k
(excl
GST
Y
Raise
Assets PO
Check if
the correct
category
code is
used
Submit
PO for
approval
N
Do you
want to
track it?
Y
Y
Prepayment?
*2
N
Code to
relevant
Expense
accounts *4
Examples:
*1 - Research Equipment, lab Equipment, computer equipment & etc
*2 - Consumable goods, Services related costs & etc
*3 Inclusion of all parts/components costs of the asset, Freight cost, installation cost & etc
*4 - Furniture, equipment not owned by UNSW, equipment <$5k (not tracked) etc
N
Send PO
to
supplier
Contact
AP
Create a PO for Asset
Asset
Category
Asset
Account
Asset Category will
default the Asset
Account code and
Profile ID.
DO NOT CHANGE
PO Item Categories
Manufacturer ID
Purpose:
To associate PO lines to an Asset
Identifies:
Components, built-ins, upgrades, Trade-ins
Manufacturer ID
Description
ASSET_BUILT_IN
Component of an EXISTING asset
ASSET_COMPONENT
Component of a NEW asset
ASSET_CORE
Core asset of a NEW asset with multiple components
ASSET_TRADE_IN
Trade-in for a NEW asset
ASSET_UPGRADE
Replacement of an EXISTING asset with newer version
Asset PO - Description
Description of the Asset
Description & Comments
• Description field is limited - only 30 characters will display to Assets
Management. (incl. spaces, commas, etc)
• Ensure the name of the asset is entered in the description field first
• Attachments – scan and attach quotes, supporting documents, etc.
Asset PO - Comments
Asset PO - Category
Refer to PO Item Categories
Asset Category
When a Purchase Order for Asset is created, the buyer must select an Asset Category
This defaults the appropriate Asset account & Profile ID
Purchase will only be receipted as an Asset if a proper Asset Category is selected
Most Important
Manufacturer ID
Asset PO - Distribution
Asset PO - Distribution
Asset Account Code has been defaulted according to the Asset Category. Please DO NOT change Account Code
Enter FUND, Program/Class & PROJECT and then click Asset Information Tab
AM Unit & Profile ID
Defaults from
Category Code
Additions – Existing Asset
Core Asset
Trade-in
Built-in
Component
Components
Component A
Core
Asset
Component B
Example:
MacBook Pro
Keyboard
Delivery Fee
– Core Asset
– Component A
– Component B
Built-ins
Core
Asset
Built-in
It enhances the Core Assets capabilities/ functionalities or extends the useful life of an asset
Example 1:
Pump of an existing Cryogenic chamber
Example 2:
Additional freight costs for a piece of an equipment that has already been receipted
and made an asset
Trade-ins
Core
Asset
Trade-in
This refers to the sale of one asset, with the proceeds to this sale going towards the purchase
Price of the new asset. New asset tag to be used for the new equipment.
Asset Component Scenario
Asset Component Scenario
Line 1: Core Asset
Line 2: Warranty is not considered as a part of an asset
Line 3: Service is also not considered as a part of an asset
Line 4: Keyboard is an accessory and is not considered as a component of the asset
Line 5: Dell computer which is totally different from MacPro. The category above is used to track this item. If you do not
want to track this item then use category code COMP_NONASSET
Asset Component Scenario
PO
Receipt
Asset Receipting Process
Has the
asset
been
physically
received?
N
No
Action
Required
Y
Has the
asset
been
installed
and
commissi
oned*1?
Y
Go to
receipt
Menu to
receipt
the PO *2
N
No Action
required
Can you
see
Pending
link to
enter
Asset
details?
Y
Enter
Asset Tag,
Serial no &
Mfg ID(if
appl) in the
system
Add
Custodian,
Dept and
Asset
Location in
the system
Save
Receipt
number in
the system
N
PO was
not
raised
correctly.
Contact
AMU
Email AP with
details and
write
Prepayment in
the subject line
Y
Was
Prepayment
done?
N
Send a copy of
invoice to AP
with PO no and
receipt no for
payment
*1 Process by which equipment (installed or near
completion) is tested to verify if it functions
according to the requirement
*2 Asset PO cannot be receipted via Portal Menu
Receipting Assets
Receipt when goods are installed / commissioned*
Receipt once all items related to the asset have been received,
assembled/configured, tested and are ready to use
3
Asset
information
via
Pending
Link
1
Go to Pending link
2
 Tag Number
 Serial ID
 Dept Owner
 Asset Location
 Mfg ID
Employee ID
4
*Process by which equipment (installed or near completion) is tested to verify if it functions according to the requirement
More
Details
via
Pending
Link
Asset Receipting
Asset Receipting
Asset Receipting
If “Pending” link is not displayed, then you did not correctly select
an Asset Category when the PO was raised
•
•
•
If there is no voucher processed against this PO, then amend the PO with right category and re dispatch it (covered later in the presentation)
If there is voucher processed against this PO, contact AP to cancel the voucher and then amend the PO
If AP is unable to help, contact Asset Management Unit
Receipt PO
Employee ID
Employee ID
Asset Custodian
Tag Number & Serial ID
Asset
Information
 Tag Number
 Serial ID
Tag Number & Serial ID
Tag Number
Six digit number provided by
AMU for tagging Asset
Serial ID
Serial Id of the item
Asset ID
Asset ID
PLEASE DO NOT CHANGE.
Should always be NEXT
Leave blank
Please DO NOT Click this icon.
Dept Owner
Dept Owner
Department who owns the
asset
Location of the Asset
Location
Should be the location of the Asset. By default
it is Ship to location from your profile. If this is
not changed then it will be blank when asset
details are transferred to AM system
Format of the location should be Building / Level / Room
Manufacturer ID
Mfg ID
To associate PO lines to an Asset like
Components, built-ins , upgrades or trade-ins
///
Scenario 1
Scenario 1: One Line PO – Single Asset and one chartfield
Single Asset
1 line PO
Qty 1
Chartfield 1
Qty 1
TAG1
SN1
Scenario 2 - PO
Scenario 2: One Line PO – Single Asset with split chartfield
Chartfield 1
Qty 0.7
Single Asset
1 line PO
Qty 1
Chartfield 2
Qty 0.3
Scenario 2 - Receipt
Scenario 2: One Line PO – Single Asset with split chartfield
Chartfield 1
Qty 0.7
TAG1
SN1
Chartfield 2
Qty 0.3
TAG1
SN1
Single Asset
1 line PO
Qty 1
Tag no and Serial ID should be same for both the distribution lines at the time
of receipting
Scenario 3 - PO
Scenario 3: One Line PO – Single Equipment multiple quantity and same chartfield
Single Asset
1 line PO
Qty 3
Chartfield 1
Qty 3
Scenario 3 - Receipt
Scenario 3: One Line PO – Single Equipment multiple quantity and same chartfield
Single Asset
1 line PO
Qty 3
Chartfield 1
Qty3
TAG1
SN1
TAG2
SN2
TAG3
SN3
When you go to create a receipt and click Pending link, you will see 3
lines. All 3 are separate Assets not part of one asset. Each distribution line
Should have a separate Tag no and Serial ID.
If you use the same tag number, receipt will be saved in “Fully Received” status. However, this will create issues at the time of
physical scanning of the equipments.
If you use the same serial ID, receipt will be saved in open status which is incorrect and Asset will have problems transferring to Asset
register. Amend the serial ID and save. Receipt status will be changed to “Fully Received”
Scenario 4 - PO
Scenario 4: One Line PO – Single Equipment multiple quantity and multiple chartfield
Chartfield 1
Qty 1
Single Asset
1 line PO
Qty 3
Chartfield 2
Qty 2
Chartfield 3
Qty 3
Scenario 4 - Receipt
Scenario 4: One Line PO – Single Asset multiple quantity and multiple chartfield
Single Asset
1 line PO
Qty 3
Chartfield 1
Qty 1
TAG1
SN1
Chartfield 2
Qty 2
TAG2
SN2
Chartfield 3
Qty 3
TAG3
SN3
When you go to create a receipt and click Pending link, you will see 3
lines. All 3 are separate Assets not part of one asset. Each distribution line
Should have a separate Tag no and Serial ID.
If you use the same tag number, receipt will be saved in “Fully Received” status. However, this will create issues at the time of
physical scanning of the equipments.
If you use the same serial ID, receipt will be saved in open status which is incorrect and Asset will have problems transferring to Asset
register. Amend the serial ID and save. Receipt status will be changed to “Fully Received”
Scenario 5 - PO
Scenario 5: Multiple Line PO – Asset with several components
Asset 1
Core
Qty 1
Chartfield 1
Qty 1
Asset 1
Component A
Qty 1
Chartfield 1
Qty 1
Asset 1
Component B
Qty 1
Chartfield 1
Qty 1
Asset Category should be used for all the lines including freight and installation
Scenario 5
Scenario 5: Multiple Line PO – Asset with several components
Asset 1
Core
Qty 1
Chartfield 1
Qty 1
TAG1
SN1
Asset 1
Component A
Qty 1
Chartfield 1
Qty 1
TAG1
Component A
Chartfield 1
Qty 1
TAG1
Component B
Asset 1
Component B
Qty 1
TAG number for all three lines should be same. You can write Serial ID of the Core component and Use Component A and
Component B for associated items
Manufacturer ID
Asset_Core
Asset_Component
Asset_Component
Line1
Line2
Line 3
Scenario 6 - PO
Scenario 6: Single Asset PO – Addition to an Existing Asset on UNSW Asset Register
Chartfield 1
Qty 0.5
Asset
Qty 1
Chartfield 2
Qty 0.5
Line 1 – Asset 1 – EEG Enhancement – BUILT IN to an existing Asset (previously purchased and receipted)
Scenario 6 - Receipt
Scenario 6: Multiple Asset PO – Addition to an Existing Asset on UNSW Asset Register
Chartfield 1
Qty 0.5
TAG #
Existing
Asset
Chartfield 2
Qty 0.5
TAG #
Existing
Asset
Asset 2
Qty 1
Asset_Built_in Manufacturer ID should be selected - MANDATORY
BUILTIN
BUILTIN
Amend PO – After dispatch
There is no Pending link at the time of receipting the PO
•
•
•
If there is no voucher processed against this PO, then amend the PO with right category and follow the steps given in the next slide
If there is voucher processed against this PO, contact AP to cancel the voucher and then amend the PO
If AP is unable to help, contact Asset Management Unit
Amend PO – After dispatch
1. Change the category to relevant Asset Category
2. Click OK – “Change Order message”
3. Click Save
4. Click Yes – “VAT driver Information message”
5. Click OK – “VAT message”
6. Click Header VAT link
7. Click “Reset All VAT Defaults”
8. Return to Main Page
9. Click Save
10. Check Budget
11. Then go and receipt the PO
Asset Reports
1.
PO Error Alert – Correct Invalid Asset Account
2.
PO Tracking Query: F91_PO_tracking_3
3.
PO Tracking Query: F91_PO_Dept_Summary
4.
Asset Tracking Report: F91_AM_AGING_COST_NBV_3
Troubleshooting
1.
When I go to receipt the PO, there is no Pending link.
Asset Category Code was not selected at the time of creating the PO.
•
Check if there is any voucher processed against the PO
•
If there is a voucher then contact AP to cancel the voucher
•
If there is no voucher then amend the PO with correct category.
2.
I receipted all the lines of the PO but the receipt is still in Open Status.
•
•
3.
Check if the Tag number and Serial ID is entered correctly
Make sure that the Asset ID is “NEXT”
I am buying an Artwork for my Dept. What should I do before raising a PO
Contact Asset Management Unit
Knowledgebase
Support & Guidance
Purchasing
Finance Help - Ext. 53330, Email - [email protected]
Find My Buying Network http://www.fin.unsw.edu.au/OurServices/FinancialOperations_Purchasing_FindBuyingNetw
ork.html
Accounts Payable
Finance Help- Ext. 53330, Email - [email protected]
Payment of Invoices, Email- [email protected]
Finance Website – Purchasing
http://www.fin.unsw.edu.au/OurServices/FinancialOperations_Purchasing.html
Treasury
Ext. 59742
Asset Management Unit
Francine Porto Gomes- Ext. 53865, Email – [email protected]
http://www.fin.unsw.edu.au/OurServices/FinancialControl_AssetManagement.html
User Support & Training
• Finance Website – Training
https://www.fin.unsw.edu.au/NSF_KnowledgeBase/FKB_Training.html
• Training Enquiries
Ext. 57665, Email [email protected]
Questions
Email to [email protected]

similar documents