Fixed assets

Acquisition entries

Regarding computerized accounting, the DGI states that the software must automatically generate the accounting entries for Fixed asset management operations.
In Sage X3, the direct creation of Expenses and Accounting assets in the Fixed assets module does not trigger the generation of an acquisition entry in accounting.
These direct entries are used in the event of data recovery.
Acquisition entries are generated in Validation of purchase invoices, Validation of supplier BP invoices or when entering an actual and final accounting entry for a defined account.

Functional translation

To ensure the overall consistency of the Fixed assets database and how it translates in accounting, the application provides two parameters used for controlling the direct creation of expenses and accounting assets.
These parameters are available in the General parameters, AAS chapter (Accounting assets), FAS group (Fixed assets).

For the French legislation (FRA), these parameters default to No and can be modified in the event of data recovery. The changes made to these parameters are tracked (see Audit).

CREDIRLOF - Expenses: direct creation parameter

This parameter is used to authorize or prohibit:

• The direct creation of expenses from the Expenses function;
• The import of expenses.

When it is set to No, the expenses can only be created through the Validation of purchase invoices or the Validation of supplier BP invoices or the entry of an actual and final accounting entry on a valid account.

CREDIRFAS - Assets: direct creation parameter

This parameter is used to authorize or prohibit:

• The direct creation of assets from the Accounting assets function;
• The import of accounting assets.

When set to No, the creation or import of an asset is only authorized its holding type is one of the following: Provisional, Rented, Leased, Template.
The creation is prohibited if the holding type is: Property or Concession. In that case, an asset can only be created through the grouping of one or several expenses.

Intangible nature of previous situations

The French DGI rules on computerized accounting establish that Fixed assets data that has been subject to an accounting closing must not be modified.

Functional translation

To guarantee the intangible nature of Fixed assets totals and of the previous status of subsidies, the application provides two parameters for managing potential changes on these values.
These parameters are available in the General parameters, AAS chapter (Accounting assets), FAS group (Fixed assets) and GRT group (Subsidies).

These parameters default to No and can be modified in the event of data recovery. The changes made to these parameters are tracked (see Audit).

PRVSITUPD - Previous situation mod parameter

When set to No, this parameter can be used to guarantee that the previous situation is saved. This is the situation presented on flow reports (Fixed assets and depreciation values at the end of the last closed fiscal year).
It is only set to Yes when you first install the software, to recover the Fixed assets prior to the fiscal year.
As soon as the Fixed assets recovery has been validated, this parameter must be set to No to prohibit any operation that could modify the accounting situation prior to the current fiscal year.

When this parameter is set to No, the deletion of an asset is prohibited if this asset has:

• A posting date prior to the start date of the current FY; from the Accounting and fiscal context , if the holding type is Property or Concession, or from the IAS/IFRS context, if the holding type is Leased or Rented.
• A depreciation total for the previous FY which is different from 0.
• Depreciations relating to the interval [Current FY start date - Current period end date] which have already been posted.

GRTPRVUPD - Review earlier subsidy parameter

This parameter is used to authorize or prohibit the update after the FY closing in the Accounting and fiscal context:

• The subsidy amount allocated to expenses for subsidy calculation;
• The depreciation basis of closed assets attached to these expenses in the subsidy plan;

When this parameter is set to No, the review of earlier subsidies is prohibited.
In this case, the closing processing of the Accounting and Fiscal context automatically activates the forcing code on the subsidy amount for each expense attached to an asset whose subsidy depreciation plan was closed. This amount and the depreciation basis of the asset, displayed in the subsidy plan, are no longer updated by the subsidy calculation scripts. 
You cannot add a subsidized expense to an asset (the depreciation basis in the asset subsidy plan and the sum of subsidy amounts on attached expenses must remain equal).

Control of accounting periods

The DGI rules establish that the software must support the management of monthly periods by fiscal year.
The software must also ensure that the accounting entries of the period have been generated during the period closing process.

Functional translation

To ensure a consistent period splitting in the Financials1 Common data > General accounting tables > Fiscal years/Periods and Fixed Assets2 Setup > Fixed assets > Depreciation contextsmodules, the application provides a parameter to set up the consistency check on periods.
This parameter is available in the General parameters, AAS chapter (Accounting assets), CPT group (Accounting).

This parameter cannot be modified for the French legislation (FRA) and defaults to Yes, in compliance with the DGI rules.

ACCPERCTL - Accounting period control parameter

When set to Yes, this parameter guarantees the automatic initialization of Period and Fiscal year splits when creating the depreciation contexts. It also ensures that the Financials and Fixed asset schedules remain in sync at all times.

In this case, the depreciation plans of a context are always linked to the same ledger type:

• The depreciation plans of the Accounting and Fiscal context are linked to the 'main general ledger' type and related split.
• The IAS/IFRS depreciation plan is defined on a dedicated context relying on the IAS ledger and related split.

The context can only be created when at least one accounting fiscal year and one accounting period are opened:

• The first open fiscal year is set by default as the Current fiscal year for this context. Similarly, the first opened period is set as the Current period at the Fixed assets level;
• The next fiscal year is also created in the relevant context.

You cannot modify the period split from the Fixed assets module.
You can only split the periods again from the Financials module, and under specific conditions.
If the Financials schedule and Fixed assets schedule are out of sync, no accounting operation can be performed from the Fixed assets module. You will need to resynchronize them using a dedicated utility3 Fixed Assets > Processes > Utilities > Context synchronization.
A flag is available on the unsynchronized context and can be viewed from the Detailed status of the context4 Fixed Assets > Processes > Utilities > Context status.