We have migrated all our financials in Manager and adopting one after another module for full integration of all features. In continuation, we would like to transfer our inventory and fixed into Manager by creating all the Inventory and Fixed Asset items.
We were using separate module for these both and do accounting on a monthly basis in Manager.
Now, we have decided for complete integration therefore we need your guidance to transfer the balance of inventory and fixed asset; as these needs to be assigned items wise along with accumulated balance for fixed assets.
However you finally decide to approach this, do not make the mistake of entering inventory and fixed assets and accumulated depreciation as starting balances. Starting balances are only for migration from a prior system. You have now been using Manager for a time. But I wonder how, if you have not included these important assets on your balance sheet.
Creating the inventory items and fixed assets is straightforward. It can be done manually or by Batch Create. The more challenging aspect will be adding values and quantities. Where will these come from if you have been using split systems? Journal entries are the way to enter the numbers. But you will need to figure out which account(s) you are going to credit to balance the debits of the new assets.
You might consider beginning fresh. Set a new start date and migrate all your balance sheet account numbers, including inventory and fixed assets. These are the challenges raised by having operated with only part of an accounting system.
Obviously, this is the reason after exploring most of the possibilities thought to seek your guidance.
We do have included fixed assets as a single item and entered the starting balances. As we were learning and exploring Manager features one after another therefore it was difficult to opt for all the options at once.
I was also thinking like this but it does not have the option of price/rates. One can use the same inventory account for credit to off-set the transaction effect. We already have total value (NRV/BV) in financials just we need to assign value to items to reclassify items and take up from there.
It takes years of team efforts to transit to Manager and gradually we understood while working on it and gather a lot data. Now taking a fresh start it not an option.
I hope being a software team at back, will be able to assist us in managing this challenge.
Fixed Assets first
So to be clear, you entered all of your Fixed Assets with one starting balance = Net Book Value at start date?
Did you enter Full original cost and accumulated depreciation ?
How many years of depreciation entries have you since the start?
Have you purchased or disposed of any Fixed assets since the start date?
It will be possible to enter the assets but depending on the number of assets, it will be quite an effort.
I would suggest that entering them manually may turn out to be the easiest but that’s up to you.
You will have to setup the Fixed Asset control accounts that you want - for example Building, Computer Equipment (two B/S accounts for each control group) and separate depreciation expense accounts for each control group.
You might also want to setup some custom fields to hold information which is not included in Manager for example location, tracking code, life of asset, scrap value, etc
Then you can enter the original cost and accumulated depreciation at the start date for each asset. The total should equal the original values entered.
The automatic depreciation calculation in Manager uses Reducing Balance and may not be useful.
You will have to enter the depreciation amount for each asset period by period - you can clone each month and adjust for any changes because of new assets, disposals etc
Some of these could be done using the Batch create but this will invlove quite a lot of work in Excel to prepare the files.
Thank you @Joe91 for quick response and few suggestions.
However, you still recommended to edit the earlier entries since start. Is it not possible to continue from current time / month.
If Reducing Balance is not useful than Manager should allow us to opt of Depreciation Method.
I hope you can understand the workflow, this is one of the reason we parked it for future. Depreciation is charged on each item and one need to ensure depreciation is charged on each item on monthly basis; there are a lot of items. Therefore, automation is preferable for detailing.
Ture, a lot with coding also Batch option have some technical error to pick and understand the dates.
There is no automatic option for any depreciation method other than reducing balance.
But if you are using a normal method, then the depreciation charge will not differ much from one period to the next - unless you are using days rather than months
And I don’t see how you could start with the current value - as you have to enter the original acquisition and accumulated depreciation. Presumably you have a list of the depreciation entries in any case
@Rajwani, please forgive me if I sound dismissive. But you have created a lot of work for yourself by grouping all your assets together in Manager no matter how you resolve this problem. You can ignore my earlier comment about not using starting balances, because it seems you effectively did use them, but for groups rather than individual assets and items.
You have not mentioned how you have been handling inventory, so my first comments apply only to fixed assets. The fixed assets need to be broken out individually. Regardless of the approach, you need to create all the fixed assets first, assigning them to the proper groups and accounts (for acquisition, depreciation, and disposal).
Once you do that, I see two possible choices:
For each individual asset, go back and enter what the starting balances for cost and accumulated depreciation would have been. Presumably, you have this information somewhere, or you could not have generated your lump sum amounts for Manager. When that is finished, delete all entries for your grouped asset, then delete that grouped asset itself. Then, you will have to recreate the depreciation entries that would have been made for each asset over the past two years. You should also have this information available.
Use journal entries to apportion the acquisition cost and accumulated depreciation from your grouped asset to the individual assets. When finished, the grouped asset can be made inactive, but cannot be deleted.
I do not understand what you mean by either of these statements. How do prices or rates apply to fixed assets? And what prices/rates are you referring to? What inventory account and transaction effect are you referring to?
I do not know why not. Your learning period is over. You know how you want the program to be set up. A new business can be created quickly and starting balances can be entered. None of that team effort would be lost. You could save the old business file for reference purposes.
What do you mean by this? If you think there is a team at NGSoftware that will help, you are wrong. Help on this forum comes from other users.
Thank you Manager Team, our issue of Inventory Management has been resolved to a great extend through the timely guidance and points coming the discussions. I thought important to share the development, as our inventory was managed in another module and bulk accounting we done here therefore we opt to create Purchase Return for all items and Create fresh PO items wise followed by PI and GRN this way we managed to resolve our issue for inventory management. Now inventory system is working very effectively!!
We will be working on Fixed Assets, as discussed above and will seek further guidance once we reach to a stage. Thank you once again!
@Tut In light of above discussion, we have not reclassified the assets yet as it is very lengthy exercise.
At present, we have disposed one of the asset from this group asset. We have read the guidelines https://www.manager.io/guides/9106 and https://www.manager.io/guides/9121 which seems very effective and automated. Yet, we have not reclassifed the same is there any possibile to partically dispose of the assets.
Also clarifies as it is mentioned to use accumulated depreciation in Journal Entry but it does shows in drop down list, how we can select it then.
No. You were told what you needed to do to correct your horrendously bad accounting practices. You did not do it. You cannot now expect there to be a workaround in the program. Failure to correct your past mistakes just makes life harder as time goes on.
What are you referring to? Where is this mentioned?
