Asset Maintenance
Written by Brandy Burch
Updated at March 20th, 2025
Table of Contents
Overview
Asset Maintenance contains all of the information necessary to maintain your depreciation entries. Paying careful attention to the setup of the assets can make a big difference in how the system can be used.
Pak Accounting has streamlined asset entry by creating a way to Import Assets from G/L (General Ledger). Pak Accounting recommends using the Import rather than manually entering your assets. However, if you choose not to Import, you can manually add assets in Asset Maintenance.
Also, see Fixed Assets Overview.
Entering/Adding an Asset
Click on Add. Pak Accounting will attempt to pre-number the asset, but the asset number can be overridden. If the asset number already exists, the user may still use the same asset number if it is given a new Seq# (sequence number).
The AMT column can only be edited using User Defined Class Codes.
| Asset Maintenance | |
|---|---|
| Asset Number | 1-10 characters, can be automatically assigned or designated by you. |
| Seq# / Split | Sequence number of the asset. If an asset is split the next sequential sequence number is assigned. |
| Asset Class | The class this asset falls into. Information such as Depreciation Method, Life, and Convention, about the class can be seen at the Asset Class. |
| Description | Description of the asset. |
| Location | Location of the asset. Free-form field. Not required. |
| Listed | This refers to whether or not the asset is supposed to be listed on the Tax Report the user runs to help prepare Form 4562. If set to No, the asset will not be listed on the Tax Report. If set to Yes, the asset will be listed on the Tax Report if the asset is purchased in the year that the Tax Report is being run for. |
| New / Used |
All assets are marked by default as New. If the asset is used, the user must change the option. This information is critical regarding whether or not an asset is eligible for bonus deprecation. |
General Tab
G/L Accounts - the Account Code links to Master File Maintenance > Account Code and may be filled in by typing in the Account Code or selecting it from the drop-down.
This link is how Pak Accounting knows which General Ledger Asset and Accumulated Depreciation Accounts to tie out to when generating the G/L Verification Report. It also determines the Accumulated Depreciation and Depreciation Expense account that is to be used when creating the G/L Entries.
If an asset is attached to an Account Code that has a depreciation expense account that is attached to a Sub-Table, then the Depreciation Expense Sub needs to be selected for the asset. If the depreciation expense account does not have a Sub-Table attached, the field is disabled.
| Date placed in Service | This is the date that will be used when calculating depreciation. The date placed in this field will pre-populate all other date fields. |
|---|---|
| Date of Acquisition | Typically, this is the effective date for the asset on the General Ledger. This date pre-populates with the Date placed in Service. It is not part of the tabbing sequence, but if the date needs to be overridden, click in the field to change it. This is the date that will prompt an asset to be added to the depreciation schedule. However, the asset will not start depreciating until the “Date placed in Service.” |
| Cost | The amount that was paid for the asset. |
| Impairment Adj | The amount of change in the asset value. |
| Impaired Value | The new value of the asset after it has been impaired. |
| Depreciation Method | This will be pulled based on the Asset Class but can be overridden to a different depreciation method for the G/L book and any user-defined book. The depreciation method for the TAX book cannot be overridden unless it is a user-defined class. The AMT book may not be overridden. There are three methods currently supported by Pak Accounting: Straight-Line, MACRS 200, and MACRS 150 (AMT is generally MACRS 150). The depreciation method can also be set to None. |
| Depreciation Life | This is the number of years, or useful life, for a particular asset. The life of an asset is defaulted based on the Asset Class, but the GL book and any user-defined book may be overridden at the asset level. The AMT and TAX books may not be overridden unless they are attached to a user-defined class code. |
| Convention |
This is an assumption about when the property was placed into service. Three IRS-supported conventions are Half-Year, Mid-Quarter, and Mid-Month. Pak Accounting also supports a monthly convention. These are defined in the glossary located in the appendix. Like the Depreciation Method and Life, the convention pulls from the Asset Class but may be overridden for the GL and any user-defined book at the individual asset. The Convention for AMT and TAX may only be overridden when they are attached to a user-defined class code. These are defined in the glossary. |
| Salvage Value | The estimated resale value of an asset at the end of its useful life. The salvage value reduces the depreciable dollars of an asset, so the cost less the salvage value is the depreciable value of the asset. |
| Bonus Depr % | This is the applicable percentage of bonus depreciation taken for the asset. This is crucial for TAX and AMT books. Pak Accounting does calculate this for the GL book, too, but the user may override the calculation if they want to keep their GL books purely straight line. The bonus depreciation will auto calculate for assets that are attached to an asset class that allow bonus depreciation based on the parameters in the company limits. The asset must be a new asset to have bonus depreciation calculated. The user may also remove the depreciation calculation at the asset level for TAX and AMT books. |
| Bonus Depreciation Amount | This is an accelerated tax deduction that allows a large percentage of the asset purchase price to be deducted up front. |
| Section 179 Amount | This is the user defined dollar amount that is being taken for Section 179. This will be grayed out for assets that are part of a class that is not subject to Section 179. The system will not auto apply the Section 179 amount. In most cases, Section 179 application is for the full amount of the asset. However, if the user doesn’t have enough Section 179 dollars available to fully depreciate an asset, they may take a partial portion to Section 179. Section 179 may also be used in conjunction with Bonus Depreciation in years that both apply. This is a Federal tax deduction, and it does not typically apply to the GL Book. |
Changing Depreciation Values
If you choose to change the values for an asset, the Depreciation Detail will regenerate when the asset is saved after the changes.
The following values may be overridden:
- Salvage Value, Bonus Depreciation percentage (provided the percent is less than the allowable percent for that period), and Section 179 dollar value.
- The TAX and AMT books will mirror each other, so only the TAX book can be overridden.
- All other books G/L and user defined may be overridden on this screen, too.
The Depreciation Detail may be overridden by clicking on the corresponding book’s button in Asset Maintenance.
This opens up the detail, and the user may override the Depreciation Amt field. Once an override is made the line will be marked as “manual”
Purchase Tab
| Purchased From | Free-form 40 digit field allowing the user to define whom the asset was purchased from. If the asset was Imported from G/L (General Ledger) this field will import the first line of the description. |
| Invoice Number | Free-form 15 digit field allowing the user to enter in the Invoice Number associated with the purchase. If the asset was Imported from G/L (General Ledger) this field will import from the invoice number field. |
| Comments | Free-form 100+ digit field for the user to add additional comments. If the asset was Imported from G/L (General Ledger) this field will import from second line of the description. |
| Model Year | 4 digit free-form field. |
| Model Make | Free-form 10 digit field to further describe the asset. |
| VIN | Free-form 20 digit field to define the VIN or serial number of an asset. |
| Unit Number | Free-form 10 digit field for internal tracking of unit numbers on assets. |
| License State | Drop-down options for the 2 digit state code. |
| License Plate | Free-form 10 digit field to record the vehicles license plate number. |
| License Exp Date | m/yyyy format for the month/year that the license will expire. |
| Insp Exp Date | mm/yyyy format for the month/year that the inspection will expire. |
| G/L (General Ledger) Entry Info | If assets are Imported from G/L (General Ledger) this section shows the specific information about the General Ledger entry, it will be used when importing new assets to keep from importing the same assets multiple times. |
Document Tab
If authorized for scanning, this is where documents can be attached that pertain to the asset in question. Some examples include original invoice, sales sheet, maintenance reports, insurance information, etc. It is recommended that the client place a date at the beginning of the description because this field stores in alphanumeric order. Either documents or pictures can be added.
Transfer Tab
This is used to transfer an asset from one cost center (Sub-Account) to another in the Fixed Assets Module. Performing transfers timely will ensure that the depreciation is booked to the correct cost center. This only works on a change from one cost center (Sub-Account) to another. The user may not use the option to transfer from one general ledger account to another. For example, if there are producing leases in one asset account and non-producing leases in another asset account, the transfer cannot be used to take a lease from non-producing to producing. The asset would have to be disposed in the old account and added to the new account.
From Date/Thru - Restricts the transfers to the date range defined.
Transfers are created when the Depreciation Expense Sub-Account is changed. You can manually create a transfer by adding a Sub-Account on the General Tab. The transfers are used to create General Ledger Entries and to sort the Depreciation Schedule.
NOTE: In order to create a Transfer the Depreciation Expense account defined in Account Codes must have a Sub-Table defined on your Chart of Accounts.
Disposal Tab
This is where the disposal date is entered for an asset that has been sold or otherwise disposed. Entering in the Sold Date is the only necessary field, but having the amount entered in the amount field will help when running reports. Disposing journal entries still have to be manually created in the General Ledger.
Currently, all information needed to create the manual general ledger entry can be obtained by looking at the detail for the accumulated depreciation and the original cost of the asset. Credit the asset account, debit the accumulated depreciation account, debit cash for the sold amount (or AR if the set up a payment arrangement with the purchaser), and the difference goes to gain/loss on sale of asset. It is recommended to dispose of the asset prior to creating the General Ledger entry to make sure that the depreciation for the final year is accurate.
NOTE: Assets disposed of in the first year will be allowed to retain the GL book depreciation.
| Asset Maintenance - Disposals Tab | |
|---|---|
| Date | Date asset was disposed of. This date will be the as of date used to stop depreciating the asset if it is still being depreciated. If the asset is fully depreciated this will be used for informational purposes only. When an asset is disposed of as of the last day of the month, the GL Verification Report will recognize that. |
| Amount | Amount the asset was sold for. This is for informational purposes only and will not affect depreciation calculations. |
Utilities Button
Change Asset Number
This utility allows the asset number to be changed at the top of the screen.
To change an asset number find the asset in Asset Maintenance, choose Util (Utility), Change Asset# (Asset Number). This will open the Change Asset Number Utility.
Fill in the new asset# (Asset Number) you would like to assign and press OK.
NOTE: Pak Accounting recommends leaving the Seq# (Sequence Number) Zero when using this utility. The Seq# (Sequence Number) is designed to be maintained by the system when Splitting and Unsplitting assets.
Regenerate Asset
This utility allows for the asset to be recalculated for depreciation. If any manual overrides are made in the depreciation, the system will ask if you would like to keep them.
Split Asset
This utility allows the asset to be split into multiple pieces based on an amount or a percentage.
To Split an asset go to Asset Maintenance, find the asset to split, and press the Split button (or you can choose Util, Split Asset).
This will open a Fixed Asset Split Utility. You will be asked to enter the number of pieces to split the asset into and if you want to split by amounts or percentages.
Next you will be asked to enter the amount to split the asset by.
Then you will choose Split. This will split the assets into the number of pieces you requested, assigning the new sequence number as needed. the cost center information will be copied to all of the split pieces.
Unsplit Asset
This utility allows for a split asset to be put back into one piece.
To unsplit an asset, find the asset to unsplit (Only assets that have been Split through Fixed Assets can be unsplit), and press the Unsplit button (or you can choose Util, Unsplit asset). If the unsplit button does not appear this asset is not eligible to be unsplit.
This will open the Fixed Assets Unsplit utility. You will be asked to select the sequence number of the asset to unsplit. The system will verify that all of the cost center information is the same before allowing the unsplit.
Then you will choose unsplit. This will unsplit the selected assets and merge back into one asset.
List Button
The Asset Master listing supplies basic information in regards to the asset or assets selected.
When all the options above are selected, this is an example of the output:
Asset Master View
This is where the power of Pak Accounting Grid Views comes into play. There are several uses for the grid views: vehicle reports for governing bodies, run specific groups, etc. Asset Master Views works just like all the other grid views in the system.
Asset Detail Listing
Provides a detail listing for an asset or range of assets for the specified book:
