Maintenance and Depreciation Processing
Purpose
Where a lease has components of maintenance these can be tracked at both the asset and lease levels and a comparison made against actual lease maintenance cost to ascertain if there are over or under recoveries of maintenance.
Access
There is no specific access point
Depreciation and Maintenance amounts are calculated and posted at the same time as Lease Instalments
Dialog Details
There are a number of fields in the Asset details section of the Lease Asset details screen that are related to Maintenance:
Process
For the system to track maintenance there must first be at least one lease cost item set up as maintenance. In the example above, this is the item called Maintenance. For the system to recognise this as a maintenance item, the lease cost detail must be set up with a Maintenance Type:
The Maintenance Type should have a maintenance category of Lease:
When instalments are posted the field Mtce Prov Exp will be updated with the proportion of maintenance applicable to that instalment posting. This is a straight line calculation. The system will divide the total of all maintenance cost items by the number of instalments. This figure is the amount added to the Mtce Prov Exp field each time an instalment is posted.
One instalment has been posted on the above lease. The maintenance provision value is $2,100/36 = $58.33. This provision will continue to increase by the same amount as each instalment is posted. This provides a recognition of the maintenance provision expense at the same time as the rental income is earned.
At this point the Mtce -/+ shows a balance of -$58.33. This means there is an over recovery because no actual maintenance has been processed.
Processing Actual Maintenance
To review actual maintenance that has been processed for a lease, or to add a Purchase Order for maintenance against a lease, the 
process is used.
The following dialog is displayed:
This is a multi purpose screen.
The top half allows the display of maintenance transactions that have been added to a lease asset. This will be all maintenance invoices added directly through the Payable System and allocated to this asset, or from Purchase Orders entered through this screen that have been matched to payable invoices entered through the Payable System.
The total of all transactions in the top half of the screen will be the amount displayed on the lease asset dialog as Actual Maintenance.
The bottom half of the screen is used to display all purchase orders that have been raised against an asset but have not been matched to a payable invoice. It also allows for the creation of new and editing of existing purchase orders.
The following screen displays:
Field | Explanation |
Payable Account | [F2] to highlight and |
Maintenance Type | [F2] to highlight and This will facilitate the posting of the maintenance to the correct GL Code |
Description of Goods | Enter the Description of the maintenance service or products being purchased |
Quantity | Enter the Quantity of the services or products being purchased |
Price | Enter the Unit Price for the service or goods being purchased |
Tax Code | [F2] to highlight and |
A completed screen may look like:
The purchase order will be given a reference by the system
A Payable Purchase Order will be created at the same time.
This can be printed if required.
The Purchase Order can be edited via the 
button if required.
This screen is split into two halves so the user can easily identify outstanding purchase orders for an asset, minimising the potential for a purchase order being loaded twice for the same service. The date and description are shown in both screens so it is an easy matter to check to make sure there are no duplications.
Once the Purchase Order has been made into an invoice, the line item moves to the top half of the screen.
The Actual Maintenance on the Lease Asset Details screen has been updated, and an under recovery now show of $140.28.
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