Migrate intangible assets from prior accounting system

When migrating to Manager from a prior accounting system, intangible assets must be carried forward at their book values from the previous system. This is accomplished in Manager in two steps:

  • Create the intangible asset.
  • Enter starting balances for purchase cost and accumulated amortization to date being carried over from your old account system. (Manager will automatically calculate book value.)

These steps can be accomplished separately, or they can be combined into a single operation as the asset is being created. There is no difference in the final results.

Set a start date

Starting balances cannot be entered unless a start date is set. To set a start date, follow procedures in this Guide.

Create the intangible asset

Before you can enter any transaction related to an intangible asset, the intangible asset itself must be created in Manager. If the Intangible Assets tab has not already been enabled, click Customize below the left navigation pane. Check the box for Intangible Assets and click Update below the list:

To migrate a fixed asset, return to the left navigation pane, click Intangible Assets, then New Intangible Asset:

Complete the entry:

  • Name is the name that will appear for the intangible asset in reports and lists.
  • Code is an optional alphabetic or numeric designation for the intangible asset. Numeric entries will control the position of the asset on lists.
  • Amortization rate is the annual rate of amortization for this intangible asset. This rate will be used by the Amortization Calculation Worksheet in the Reports tab.
  • Description accepts detailed information about the intangible asset.
  • The Control account — At cost field appears only when a custom control account made up of intangible assets exists. Otherwise, the asset is assigned to the Intangible assets, at cost control account by default.
  • The Control account — Accumulated amortization field appears when a custom control account for intangible assort amortization exists. Otherwise, the asset’s amortization will be accumulated in Intangible assets, accumulated amortization.
  • If the Custom amortization expense account is checked, any regular expense account can be selected for posting current amortization. Otherwise, current amortization will be posted to Intangible assets - amortization.

Click Create.

Enter starting balances

Original purchase cost and accumulated amortization to date from your old accounting system must be entered as starting balances. General procedures for entering starting balances are contained in this Guide. Read it first.

When migrating intangible assets, go to the Intangible Assets tab. Click Edit for the asset you are migrating and enter Acquisition cost and Accumulated depreciation in the Starting balance fields. These amounts should be the closing balances for equivalent figures from your old accounting system.

Example
Brilliant industries is migrating its accounting to Manager. It owns one intangible asset, the patent for an electronic controller. Following procedures described above, it creates the patent as an intangible asset, then enters starting balances:

Results

The intangible asset, with starting balances carried over from your old accounting system, will show under the Intangible Assets tab. The purchase cost of the intangible asset will be combined with any other intangible assets’ costs and displayed under the Assets category on the Summary page. A contra account, Intangible assets, accumulated amortization, will record amortization to date for all intangible assets. The difference between the two account balances represents current book value of all intangible assets. Of course, if you assign the cost and accumulated amortization of an asset to custom control accounts, applicable figures will be summed there, instead.

Example
After migrating its intangible asset, the patent, Brilliant’s intangible asset list and Summary show the results:



AND

Note
When migrating many intangible assets, consider using batch operations to accomplish the steps described above.

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