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May 28, 2018 at 06:12 PM

Funds Management -Asset process

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Dear FM Experts,

Greetings!

I am new to FM.

Need your suggestions on Asset budgeting process in Funds management.

1)Please correct me if my understanding is wrong on below mapping.

Asset Aquistion GL 30/3

Accumulated Depreciation GL 30/3

Depreciation GL 30/3

Asset Down payment GL 50/3

Gain/loss on sale of Asset GL 50/2

Asset sale clearing accounts GL 50/3

2 ) Why system is allowing the Accumulated depreciation posting (30/3) even though budget is not maintained.

3 ) is it not the duplicate If the budget is consumed at both Acquisition and depreciation ?

Eg. Low value asset is acquired on 01.01.2018 with 5000/- and the value is depreciated on 31.01.2018.

In this case the consumed budget is 10,000/- which is not correct logically.

Could you please clarify on this.

4 ) Whenever the Asset Acquisition account is credited, then the system is increasing the budget. Eg. Asset sale with customer.

I guess this is not a correct behaviour since most of the times Asset acquisition year and sale of asset year may differ. If so reversing the budget for the previous year’s acquisitions is not suggestible. How to overcome this situation ?

Please share your thoughts on this.

Thanks Advance for your time and support,

Seshu