Creating Initial Balance

This page allows you to enter the initial balances for the assets. Tell me more.

Select the “Create Initial Balance” link under the “Asset Migration” business component.

The “Create Initial Balance” page appears.

Enter the following fields:

Depreciation Book Code	Use the drop-down list box to select the code identifying the depreciation book in which the initial balance entries are to be posted. All the depreciation books that have been deployed in the login organization unit will be available for selection in the ascending order. The code identifying the “Corporate Book” will be displayed by default at the launch of the page.
Financial Year	Use the drop-down list box to select the financial year in which you want to make the initial balance postings in the depreciation book. The system displays the last financial year by default at the launch of the page. The financial year selected must be a valid one for the selected depreciation book.
Financial Period	Use the drop-down list box to select the financial period in which you want to make the initial balance postings in the depreciation book. All the financial periods that have been defined for the financial year will be available for selection in the ascending order.

Enter the following fields in the “Search Criteria” group box:

Finance Book	Use the drop-down list box to select the code identifying the finance book in which the initial balance entries are to be posted. All the finance books that have been deployed at the login organizational unit and for which initial balance entries have not been created will be available for selection in the ascending order.
Asset Class Code	Use the drop-down list box to select the code identifying the asset class to which the assets belong. The system displays all the asset codes that are available in the login organization unit in alphabetical order.

Click the “Get Assets” pushbutton to retrieve the asset information.

Note: The system retrieves the asset details only if the initial balances have not been entered earlier.

The system displays the following in the “Initial Balance Information” multiline based on the search criteria entered:

Asset No.	The number identifying the asset.
Tag No.	The number identifying the asset tag.
Asset Cost	The cost incurred while purchasing the asset.

Enter the following field in the “Initial Balance Information” multiline:

Note: At least one row of data must be available in the multiline.

Depreciation Charge

The depreciation charges incurred (Decimal). The value entered in this field must be equal to or greater than zero.

Note: In case some depreciation charge is already available for the asset the value entered in this field will be added to the earlier amount..

The system displays the following in the “Initial Balance Information” multiline:

Cumulative Depreciation Amount

The cumulative depreciation amount of the asset.

Enter the following fields in the “Initial Balance Information” multiline:

Note: Data must be available in at least one row of the multiline.

Revaluation Type	Use the drop-down list box to select the method in which the asset has been revalued from “Upward” or “Downward”.
	Upward – indicates that the appreciated value of the asset has been calculated.
	Downward – indicates that the depreciated value of the asset has been calculated.

The system displays “Blank’ by default at the launch of the page.

Revaluation Date

The date on which the asset was revalued (Date Format). The date entered in this field must be a valid one in an “Open” Financial year.

Note: This field must not be left blank if revaluation type is selected as either “Upward” or “Downward”.

Revaluation Amount

The amount to which the asset has been revalued (Decimal). The value entered in this field must be equal to or greater than zero.

Note: This field must not be left blank if revaluation type is selected as either “Upward” or “Downward”.

Revalued Depreciation

The depreciation amount after revaluation (Decimal). The value entered in this field must be equal to or greater than zero.

Note: This field must not be left blank if revaluation type is selected as either “Upward” or “Downward”.

Click the “Compute” pushbutton to compute the book value of the asset.

The system displays the following in the “Initial Balance Information” multiline:

Asset Book Value

The value of the asset as per the books of account.

Note: This book value is calculated using either of the following formulas:

If the revaluation type selected is “Upward”, Asset Book Value = Asset Cost – Cumulative Depreciation Amount + Revaluation Amount.

If the revaluation type selected is “Downward”, Asset Book Value = Asset Cost – Cumulative Depreciation Amount – Revaluation Amount – Revaluation Depreciation.

Click the “Create Initial Balance” pushbutton to create the initial balance for the assets in the selected depreciation book.

The system saves the initial balances, if depreciation charges already exist the recalculated charges will be saved.

To proceed, carry out the following

Select the “Complete Initial Balance” link at the bottom of the page to close the initial balance entries.

Creating Initial Balance – An overview

You can select the code identifying the depreciation book, the financial year and period for which you want to enter the initial balances of the assets. You can carry out a search to retrieve the code identifying the finance book and the asset class for which you want to enter the initial balances. Initial balances can be entered if the asset details have been entered or uploaded earlier in the selected finance book. If you have completed entering the initial balances earlier you cannot enter it again.

You can enter initial balance information and the revaluation details. You can set the method in which the asset must be revalued, the date on which it has been revalued earlier and revalued amount. The details will be saved temporarily till the entry is completed in the “Complete Initial Balance Entry” page.