Intangibles

for Projects Process Notes

Created by:

Galina Jones

Updated by:
Reviewed by:

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Contents
Required Access and Support ,.
.....3
Overview of Intangibles for projects
.........4-5
Capitalising
Intangibles
6-13
Reversing Intangibles in the UK GAAP
.13
Reconsiliation of
Intangibles
.14-16
Adding Intangibles on Anaplan..
.17-18

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Required Access
Access

Environment

Request Route

Required System

Life Capital UK Fixed

Assets Team User

Oracle

ARIA

Citrix

Input Capital
Expenditure Actuals

Anaplan

Adam Davies

Swiss Re

Support
Type of Query

Name

Team

Email address

Fixed Assets Module

Olujimi Akinola

IT

Anaplan

Adam Davies

Commercial Finance

jimi.akinola@adminre.c
o.uk
Adam_Davies@rcomex
t.com

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Overview of Intangibles for Projects

Intangible assets relating to Quicken and Graphene will be capitalised following
the same process as tangible assets and posted into the Fixed Asset module in
Oracle. The process will be run automatically with postings being made into the
Common Ledger under current configuration mapping rules. A manual journal
will be done by the Financial reporting team to reverse the transaction out of
the UK Ledger ensuring that this process is captured in the US GAAP ledger
only.
Step 1
Intangibles get reviewed and signed off by PM making sure the split is correct
for Opex, Capex, tangibles and intangibles.
Step 2
Management Accounts team to receive confirmation from PM/BP by email
which assets need to be capitalised. They then post new intangibles into the FA
clearing account (Debit 1439998 Intangibles Asset Clearing account, Credit
7013200 Intangible Capex Intangibles).
Management Accounts Team to post intangible assets into Fixed Assets Module.
Fixed Assets Module is mapped to make the following entries for Intangibles:Debit - 1423000 Intangible asset Cost (Balance Sheet)
Credit 1439998 Intangible asset clearing account
Debit - 7142400 Intangibles amortisation Expense
Credit - 1423050 Accumulated amortisation for intangibles
Depreciation charges will begin in the month of capitalisation.
Step 3
Reverse Intangible asset posting in UK ledger, Financial Reporting team to post
only.
Post Standard Journal in the UK ledger.
Credit - 1423000 Intangible Asset Cost cc1000 (Balance Sheet)
Debit - 7013200 Intangibles Capex - Intangible
Credit - 7142400 Intangibles amortisation expense
Debit - 1423050 Accumulated amortisation for intangibles (Balance Sheet)
Step 4
Management Accounts team to add new intangibles on Anaplan.
Step 5
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Use US GAAP ledger for Swiss Re submission.

Step 6
Intangible depreciation to be included in GFA upload performed by Financial
Reporting team.

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Capitalising Intangibles
Currently we have intangibles for Quicken and Graphene. The spreadsheet for
new intangibles is received from the Project Manager. Usually sent to BP who
then forward it to the Managements Accounts team (step 1)
Manual journal to move costs from P&L into the clearing account on
the Balance Sheet (step 2)
In order to capitalise the intangibles, the cost which initially hit the P/L needs to
be moved into the Fixed Assets clearing account.
The following journal needs to be posted:

The cost centre will differs for different projects.

Manual Integration Journal into Oracle Fixed Asset module
The manual integration journal can be uploaded from Oracle.
Log on to Oracle via Citrix.

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Click on 'Life Capital UK

Fixed Assets Super User
Mass additions
Additions integrator

Follow the steps:

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The journal is too long to fit on a screenshot but once in the system it should
be clear what you need to do using the simplified versions below. You can
enter multiple assets on one journal.
Part 1 of the journal:

Part 2 of the journal:

'Date of Service' is the month you are posting it into.

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Once the journal is prepared it can be uploaded into the ledger as shown
below:

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Journals created by the system

Once uploaded the Integrator Journal, you need to run the 'Post mass additions'
Process.

Once this is completed you will need to run the 'Create accounting process' - see
below.

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Enter in General Ledger Batch Name a brief description (e.g. Intangible Graphene).
The above process will automatically create and post the below journals in the
system.

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Amortisation of Intangibles

The next stage is to run an amortisation for new intangibles.

Note the FA module runs all Depreciation at the same time. (i.e. amortisation is
run at the same time as tangibles depreciation via the module). If the
depreciation was run for existing assets already, then when you come to this
stage the FA module will run the amortisation ONLY for new intangibles.

Check if Depreciation run is complete.

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After Depreciation run is complete you need to Create Accounting

This is the summary of what amortisation run that was done above via FA
Module.

Reversal of the Intangibles in the UK GAAP (step 3)

Currently the Reporting Team posts the journal for us. The contact person is
Satwant Kaur <Satwant_Kaur@rcomext.com>
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Run EBS 014 - Transaction Report from Business Objects.

Export it to Excel.

The new intangible should appear in the transaction report.

Prepare the journal to reverse:

Total cost of Intangible that was capitalised (total of the journal on page
3)
Amortisation charge in the period (the one that exported from
Transaction report above).

Once the journal is ready, send it to Sat to post. Beware of the month end
deadline for posting the journals. This needs to be reversed by Sat BEFORE the
deadline.
Once this final journal has been posted by Sat complete the reconciliation to
ensure the completeness.

Reconciliation of Intangibles
Use the Intangibles Reconciliation Template which is saved in the same location
as this document.
1) Update the Tab 'Tony Schedule' with his latest summary.
The schedule contains all existing intangible. You will need to update the
schedule with new intangible which were just posted. Simply add them in the
bottom.

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2) Update the amortisation summary manually.

Amortisation charge will be the total of new intangibles divided by 36 months
(amortisation period) starting from current month and spreading across 3
years.
3) Use the Fixed Assets Report from Oracle as a unique source.
Follow the steps to export the report:

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Paste the report in FA Report tab.

The report will contain all clearing accounts. You only need 1423000 and
1423050 which will appear in the first part of the report. You can hide the other
part.
Get the total summary as shown in the template.

4) Export the TB for both accounts from US and UK GAAP.

The TB can be exported from Business Objects. Use EBS009 Live GL
Trial Balance report.
Entre the following parameters.
Period begin: Current
Period end: Current
Legal entity: 7300
Reporting Ledger: US GAAP
Click Run Query.
Export the report into Excel. Filter on the relevant account code (i.e.
1423000 and 1423050) and paste it into TB Tab in the reconciliation
document.
Do the same exercise for UK GAAP.
5) Update the Summary tab.
Link the TB, Rec Report and Tony Sheet number to the summary table.
There should no variances in column E. That would mean that the
process has been done correctly.

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Adding Intangibles on Anaplan (step 4)

The last step to complete the Intangible process is to add them to Capex on
Anaplan.
Log on to Anaplan
Click on 'Cost Centre Managers Dashboard'
Click on 'Input Capital Expenditure'

Click 'Input Capital Expenditure Actuals'

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In the next available row (e.g.17) and complete column: Project cc, Entity,
Classification
Enter the value of the intangibles capitalised in the current month (i.e. Sep 16)

End of the process

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