The City’s new financial system tracks assets from Acquisition, through Depreciation and Service/Maintenance, and finally to disposal.
In This Article:
- What is included in Lifecycle management
- Standardization of useful asset lives
- Where depreciation is recorded
Full lifecycle asset management provides detailed cost control including: definition, capitalization, maintenance, and retirement. In the system, new assets can be created from project transactions. The project costing module manages transaction costs associated with any assets from inception to cost value adjustment to retirement. And configuration can be modified for each Project and Activity as needed.
Functions include the following business processes:
- Using the PeopleSoft Asset Lifecycle Management (ALM) solution and the asset repository
- Establishing asset management business units and cost generating units
- Establishing asset processing
- Setting up accounting entry and financial processing
- Setting up depreciation processing
- Setting up tax processing and tax reporting
- Integrating PeopleSoft Asset Management with other products
- Understanding the loader table data dictionary
- Configuring PeopleSoft ALM background processes
The process of determining the useful life of an asset will no longer be delegated to departments set their own useful lives, and instead will be standardized. During the design phase of the new financial system, the project team worked with departmental stakeholders and subject matter experts to determine the standards. AOSD will distribute policies.
The asset profile specifies the book where depreciation will be recorded. There are two places that depreciation accounting entries are recorded:
1) Asset Management module –used for agency reporting
2) General Ledger –used for CAFR reporting.