Purchasing an Asset (AM1- Part 1) Course Overview The Purchasing an Asset user guide (AM1-Part 1) covers the steps necessary to generate assets in the Asset Management Module (AM) from information entered during the Purchasing, Receiving, and Vouchering processes (the Purchasing Integration process). The Asset Management (AM1-Part 2) User Guide covers how assets are created and maintained in the Asset Management Module (AM). Assets can also be entered manually in AM. After assets are created, they are maintained in AM throughout their life cycle. Physical Information, such as Location, Custodian, or Tag Numbers, can be added or changed. Financial Information, such as adjustments to costs, funding, or depreciation, is also entered in the Asset Management Module. Eventually, the asset will be retired. Asset Life Cycle Before learning how to to understand some key concepts and terms which are purchase assets, you’ll need summarized in the following overview. Types of Assets An important consideration when purchasing an item is to determine whether the item qualifies as an asset, and if so, what type of asset. You will need to consider such things as the cost of the asset, whether the asset has acquisition costs that will be depreciated over the useful life of the asset, and if it is a capital asset that must be reported in the Comprehensive Annual Financial Report (CAFR). The below table describes the three overall types of assets, along with some general guidelines. Type of Asset Costs Cost Depreciable CAFR CAFR Capital Asset Depreciated over Over $30,000 for most assets Most depreciate Yes Useful Life Over $300,000 for Buildings (Life of more than 2 All Land years) For specific values, see the Chapter 1 - Financial Management Reporting link below. Non-CAFR Capital Depreciated over Less than $30,000 but greater Most depreciate No Asset (NCP) Useful Life than agency threshold for Sensitive Items Sensitive (SEN) Expensed with no Less than agency policy Do not depreciate No depreciation threshold (typically $5,000). Includes items that your agency wants to track such as firearms, computers, printer, cell phones, cameras, and TV’s
Purchasing an Asset (AM1- Part 1) Course Overview The Purchasing an Asset user guide (AM1-Part 1) covers the steps necessary to generate assets in the Asset Management Module (AM) from information entered during the Purchasing, Receiving, and Vouchering processes (the Purchasing Integration process). The Asset Management (AM1-Part 2) User Guide covers how assets are created and maintained in the Asset Management Module (AM). Assets can also be entered manually in AM. After assets are created, they are maintained in AM throughout their life cycle. Physical Information, such as Location, Custodian, or Tag Numbers, can be added or changed. Financial Information, such as adjustments to costs, funding, or depreciation, is also entered in the Asset Management Module. Eventually, the asset will be retired. Asset Life Cycle Before learning how to purchase assets, you’ll need to understand some key concepts and terms which are summarized in the following overview. Types of Assets An important consideration when purchasing an item is to determine whether the item qualifies as an asset, and if so, what type of asset. You will need to consider such things as the cost of the asset, whether the asset has acquisition costs that will be depreciated over the useful life of the asset, and if it is a capital asset that must be reported in the Comprehensive Annual Financial Report (CAFR). The below table describes the three overall types of assets, along with some general guidelines. Type of Asset Costs Cost Depreciable CAFR CAFR Capital Asset Depreciated over Useful Life (Life of more than 2 years) Over $30,000 for most assets Over $300,000 for Buildings All Land For specific values, see the Chapter 1 - Financial Management Reporting link below. Most depreciate Yes Non-CAFR Capital Asset (NCP) Depreciated over Useful Life Less than $30,000 but greater than agency threshold for Sensitive Items Most depreciate No Sensitive (SEN) Expensed with no depreciation Less than agency policy threshold (typically $5,000). Includes items that your agency wants to track such as firearms, computers, printer, cell phones, cameras, and TV’s Do not depreciate No
swift-am-am1-part1-purchasing-assets-user-guide.docx