epro users 2/16/10 1. if certain determinations regarding assets and leases are made and recorded...
TRANSCRIPT
ePro Users 2/16/10
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If certain determinations regarding assets and leases are made and recorded in the purchase order, many hours of adjustments and corrections in later processes can be prevented.
Requisitioners, as well as buyers, are important in this process.
Communication with others is the key to success in making this system work.
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The State of Indiana requires that approximately 99% of capital assets be purchased through ePro.
If critical information – fund, account, department, asset profile, etc. – are entered correctly in ePro, the entire system benefits greatly from that point on.
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Receivers contain correct information Vouchers contain correct information Capital assets can be loaded into AM
without additional work and research
Please take the time and effort to get this information up front; it will save countless hours for you and others if no corrections are necessary.
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Question #1: Will the item being purchased have a useful life of greater than one year? If yes, is a capital asset; if no, is probably
supplies inventory. Question #2: If #1 is ‘yes’, is the cost of the
item $500 or greater? If yes, must be considered as an asset and
applicable asset chartfields added – account beginning with 55, asset profile (first 3 digits must match last 3 digits of account number).
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Option of each Business Unit (BU) to include assets under $500; if your BU has adopted this option, treat same as capital assets valued at $500 or more. If not, use an account NOT beginning with 55 (ex. Supplies account begin with 54).
BU might have policy to include only certain items of low value (ex. Firearms).
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For each UNSPEC code from a vendor, we must have assigned a default account number (and possibly a profile).
PLEASE DO NOT ASSUME that the default is always correct; assess the treatment of the item and change the account/profile if necessary.
Example – Copy machine toner might be defaulted to a 55 account and thus, a profile. Since the useful life of toner is less than 1 year (and cost probably less than $500), this should be considered supplies (54 account).
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On the purchase order, assume that a lease is NOT an asset.
Use accounts beginning with 59 – Rentals and Leases.
Do NOT complete asset profile or other asset information.
Fill out IDOA form and send required information to IDOA Controller ASAP.
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Most leases have a term of several years. Since go-live, a PO for a 4 year lease, for
example, needs to be entered in the system only once (at the beginning of the term). Zero based budgets are in the system for
future years which allow this entry. NO further entries are necessary during the
life of the lease. If you are entering a ‘continuation’ lease PO,
enter ALL remaining years now.9
IDOA will enter leases in Asset Management, using information you have sent them.
They will also enter other required data. System will calculate, using criteria of
FASB #13, and determine whether a ‘capital’ or ‘operating’ lease.
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If an item is determined by calculations to be a ‘capital’ lease, it will be included in AM as an asset for the term of the lease.
For financial reporting purposes, these leased assets are treated the same as capital assets you have purchased – costs, depreciation, etc. and will be moved to profiles beginning with a 9.
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If an item is determined by calculations to be an ‘operating’ lease, it will be listed as a ‘non-financial’ asset (no cost, depreciation, etc. will be calculated). These ‘rentals’ will continue to be reported in the 59 accounts in which you initially entered them. AM will also account for them in profiles beginning with 8.
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Fred VanDorp, Asset ??? [email protected]
Mike Degner, Controller, IDOA [email protected]
Lynne Lewis, GMIS Asset Management Analyst [email protected]
Marilyn Rudolph, ENCOMPASS, SBOA [email protected]
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