Steps to Move Assets to a Newly Created Plant Fund (95) Account for a Recharge Center Organization
- The accounting principle of historical cost requires that we record our assets at their original cost. However, as time goes by, our assets are not typically worth what we originally paid for them. In order to reflect this on our financial statements, the assets are depreciated over their useful life.
- The asset cost, accumulated depreciation and depreciation expense are reported in the plant fund (95) account(s).
- The KFS Capital Asset Module uses the payment information and organizational data to determine which plant fund account will record the capital asset and associated depreciation. The flowchart below shows how the system selects the appropriate plant fund.
- Moveable equipment (Capital Leases, Fabrications and Moveable Equipment) uses the organization plant fund account.
- Non-moveable (Library Books, Art & Museum, Intangibles, Buildings, Land, and Improvements) uses the campus plant fund account.
- For Auxiliary & Recharge Center Units, the organization plant fund account and the campus plant fund account listed in the organization document should be the same.
In the event that the organization or campus plant fund account numbers listed on the organization inquiry are not specific to the recharge center capital assets, a recharge activity may not be able to recover depreciation in the recoverable rate. For more information please refer to RSOP #3: Including Annual Depreciation Expense in Recoverable Rate. Therefore, it is important that your recharge organization record capital assets in their own dedicated 95 account. Below are detailed instructions for moving assets to newly created plant fund account(s).
- Run the IUIE Organization Hierarchy Report- This will be used to determine which accounts are within the reporting organization.
- In the IUIE go to Master Catalog->Kuali Financials->Chart of Accounts->Organization Hierarchy report.
- Enter in COA-Org Code
- Click on include associated accounts
- Select the option to return the output in excel
- Click run
- Go to the Chart of Accounts Module
- Click on the Lookup for Organization
- Enter Chart Code and Organization Code
- Click Search
- Click on Organization Code hyperlink.
- In the IUIE go to Master Catalog->Kuali Financials->Capital Asset Management System->CAMS Depreciation Reports->Asset Reconciliation
Select Report Type: Asset Reconciliation Detail (default)
Select Database: Production
Select Asset Category: Moveable
Plant Fund Chart-Account: Enter chart and newly created plant fund account (XX-95XXXXX)
Include depreciation through: current month end date
Include additions through fiscal period <=: Current period
- Run Light Microscopy Imaging Center (BL-LMIC) Org Hierarchy Report
IU-UNIV UNIVERSITY LEVEL
BL-BL BLOOMINGTON CAMPUS
BL-RUGS VICE PROVOST FOR RESEARCH
BL-RCEN RESEARCH CENTERS
BL-LMIC LIGHT MICROSCOPY IMAGING CENTE
BL-2343070 LMIC OPERATIONS
BL-6642903 LIGHT MICROSCOPY IMAGING CENTER
BL-9242903 LIGHT MICROSCOPY IMAGING CENTER
- Determine the moveable and non-movable plant fund account(s) associated with the organization.
- Create a 95 account specific to the recharge activity.
- Send an email to Bill Overman firstname.lastname@example.org indicating the following: “Please change the organizational plant fund and campus plant fund for BL-LMIC to BL-9542903.”
After the asset balances have been moved by the Capital Asset Office, the organization can run the Asset Reconciliation report to ensure all of the asset balances associated with the recharge center activity have been moved correctly.