Frankenmuth Insurance Modernizes Fixed Asset Management by Replacing Legacy System with PeopleSoft Asset Management

Frankenmuth Insurance identified a need for more automation with our legacy fixed asset system. Our legacy fixed asset system did not integrate with PeopleSoft and required a manual process to upload fixed asset journals into the General Ledger. The Asset Management implementation has significantly streamlined this process by enabling the seamless interface of fixed asset related Accounts Payable vouchers and the automatic generation of journal entries for posting to the General Ledger.

Drive for Implementation:

• Legacy system did not integrate with PeopleSoft.
• Manual fixed asset journal entry upload into the general ledger.
• No approval workflow with our legacy system.
• Exceptions between legacy system and general ledger for ongoing projects.

Improvements:

• Interface Accounts Payable fixed asset vouchers into Asset Management.
• Spreadsheet upload for additions and retirements into Asset Management.
• Approval workflow for AP interface additions, disposal worksheet retirements and asset cost adjustments.
• Generation of Asset Management journals automatically in the General Ledger.
• Work In Progress account created instead of using spreadsheets for tracking projects.
• Additional user roles for added security.

Challenges:

• We spent 2024 researching and building out the implementation. Our go live date was January 2025 with a phased rollout for minimal disruption.
• The enactment of the One Big Beautiful Bill Act (OBBBA) and the reinstatement of 100% bonus depreciation resulted in inaccuracies within our automated depreciation calculations for vehicle assets due to the depreciation limits applied to those assets. The calculated depreciation would take the limit amount for the first year but then skip five years before continuing with depreciation limits. A service request was submitted and a resolution was implemented; however, the fix subsequently exposed an issue affecting depreciation calculations for vehicle cost adjustments which left a NBV balance at the end of the useful life. A second service request was therefore submitted to address and resolve the related depreciation calculation issue.
• Asset Management reporting lacks functionality, so queries were created for more robust asset detail reporting.

User Feedback:

• Since we have a small PeopleSoft team, we adopted a phased approach to the Asset Management implementation to promote a smooth transition and minimize organizational disruption. We began by converting assets at the first of the year and ran parallel to our legacy system allowing the fixed asset team to gain confidence and validate results. In the third quarter, we turned on the interface between Accounts Payable and Asset Management, expanding the implementation to include the Accounts Payable and administrative assistant teams. This phased rollout allowed us to introduce new functionality incrementally, providing focused training and support for each team rather than deploying all changes simultaneously. As a result, teams were able to adapt more effectively, and the implementation has been met with positive feedback.
• Our fixed asset team really enjoys working with Asset Management as compared to the legacy system.

Implementing Asset Management has enhanced the user process by making it more productive by allowing our fixed asset team to interface account payable vouchers and upload disposals into Asset Management while having security controls in place using approval workflow. This has improved efficiency, reduced manual effort, and strengthened overall financial process controls.