Analysis Of Depreciation Cases Of Enterprise Fixed Assets

Depreciation of fixed assets in enterprise management is one of the most important tasks in the financial system of enterprises.

Depreciation of fixed assets and various prepaid expenses will have a very important impact on the future costs and profits of enterprises.

The following case focuses on the use of information technology to assist financial analysts to predict the depreciation cost of enterprises, the occurrence of various deferred expenses in the future, and the impact on the profits of enterprises, so as to make the budgets made by enterprises become more rational and scientific.

In this case, the disposal methods of the prepaid expenses are the same as those of fixed assets depreciation, so we only elaborate on depreciation of fixed assets.

There are two aspects to be considered in the forecast of fixed assets depreciation in the future period. One is the depreciation of purchased fixed assets and the other is the depreciation of fixed assets purchased in the future.

For the depreciation of purchased property, all accounting departments of enterprises have strict financial systems, and depreciation is made according to different types of fixed assets and different depreciation periods and specific depreciation rates.

The depreciation of fixed assets that will be purchased in the future will be a comprehensive application of fixed assets purchase budgets, continuous adjustment of budgets, and calculation of depreciation costs for future financial periods.

However, we notice that every month there may be new fixed assets purchase, and there may be some fixed assets to complete depreciation every month. Therefore, the prediction of depreciation cost is a rolling prediction process.

We know that cash flow management in enterprise operation is very important.

In fact, the cash flow management of enterprises is closely related to the financial budget management of enterprises. A slight negligence on this issue will bring great difficulty to the management of cash flow for enterprises.

When the enterprise's financial budget is often overdrawn, the risk of enterprise operation will suddenly rise, and the risk of cash flow management will be aggravated.

Recently, we have successfully implemented the depreciation management project of fixed assets for an enterprise by using Applix TM1. We have made a rolling prediction of the depreciation cost of fixed assets in any future financial period by assisting financial analysts to help enterprises complete the integration of asset depreciation management, enterprise budget management and cash flow management of enterprises. From the implementation effect, the depreciation and analysis system of fixed assets fully meets the management needs of depreciation of fixed assets, and strengthens the management of enterprise's financial budget and the management of cash flow of enterprises.

Fundamentally, the conflict between purchase of enterprise assets and budget management and cash flow management caused by emergencies has been eliminated.

The system structure on the enterprise's existing financial system, ERP system, complements the function of the enterprise financial system to predict rolling financial data, and becomes the effective assistant for financial analysts to make budgets.

The difference between traditional asset depreciation management system and traditional asset depreciation management system

The traditional asset depreciation management system focuses on the management of information on the entry time, asset value, depreciation period and residual value of a fixed asset, and calculates the depreciation cost of fixed assets during the financial period, and finally generates financial statements.

The system under this case focuses on forecasting the depreciation of fixed assets in the future financial period.

The system not only includes the management of book fixed assets, but also includes the management of fixed assets for pre planned procurement in the future.

The two parts of the data are dynamically aggregated and analyzed by multi angle data, so that financial analysts can grasp the impact of future asset depreciation costs on enterprise costs.

At the same time, the system provides a customizable workflow mechanism for the declaration, approval and level by step of the pre purchase fixed assets.

Because the system provides a rolling prediction mechanism for depreciation charges of fixed assets, financial analysts can monitor the execution process of the plan in real time according to the actual depreciation of the fixed assets, and make real-time amendments to the plan.

system architecture

The system is divided into 4 subsystems: data acquisition, data calculation, data analysis and dynamic report.

The data acquisition system receives the budget data of enterprise financial system data (such as accounting system, P&L, Balance Sheet, etc.), and the departments and subordinate departments.

The system also provides ETL and customized manual workflow engine for data collection.

The collected data are refined to each fixed asset entry.

Data computation is the process of calculating and processing the collected data according to the classification of fixed assets and the depreciation algorithm formulated by financial analysts, and finally to form a multidimensional data set (Cube).

Data analysis receives the financial period or time point specified by the analyst, and carries out multidimensional data analysis on the history and future depreciation of fixed assets. The data analysis methods include rotation, slicing, cutting, drilling and so on.

The indicators for analysis include: depreciation charges for the current period, fixed assets, assets residual value, net value and so on.

From the angle of data analysis, data can be stereospecific according to the classification of projects, fixed assets, branches, departments, data version (forecast, reality).

Dynamic report system supports user defined reports. The report system uses Excel embedded dynamic formula to produce. It has no special requirement for report format. It can be used to generate report forms from scratch at the same time.

The report can be released to Web quickly, and the data that will be viewed in Web will be updated in real time with the change of system data.

At the same time, it provides a wealth of DashBoard data display solutions.

System characteristics

L based on multidimensional database for data analysis, making data processing and analysis faster.

L organically combines the actual data with the budget data, and makes comparative analysis from different angles, so as to make the budget establishment reliable.

L budget data collection uses workflow mechanism, supports unlimited level of approval process, and the data flow process is highly customized.

L rich client: provide the tightly integrated client with the Excel used by analysts, and turn Excel into the front end of data presentation skillfully. Web client enables decision-makers to grasp the execution of enterprise plan anytime and anywhere, and eliminates the maintenance pressure of IT personnel.

L powerful drilling function: the system supports deep drilling in Excel, Web data tables and Chart on the concerned data, and can drill to the level of fixed assets entry. Besides, drilling paths can be carried out in the system, and can also be drilled into the financial or other application systems of enterprises.

L supports data status in any future period.