SAP Business One Fixed Assets solution provides two Transaction Types for the functionality of Fixed Assets Transfer:
Assets Transfer /
Asset Class Transfer. Do you know the difference of usage between the transaction types? This article will give you some instruction.
Asset Transfer
Applicable business scenario
- Assign a different set of G/L accounts to an asset
If you want to change the G/L accounts for a certain asset, transferring the asset offers an alternative to creating a completely new asset. You only need to assign the new set of G/L accounts to the target asset. Then transfer the value from source asset to target asset.
- Create different asset master records for the same asset
If you use a certain type of asset in multiple locations, it may be necessary to maintain different master data records for this asset. Transferring the asset enables you to create and store different master records for an asset, and you do not need to create a completely new asset in the system.
- Change the asset class of an asset for which bookings have already been carried out
Process and consequence:
- You can transfer an asset to a New asset or an Active asset, fully or partially.
- Source asset will become inactive if full APC (Acquisition and Production Cost)/Quantity is transferred.
- After the transfer, the system continues carrying out the asset’s depreciation and transactions with the depreciation type and new set of G/L accounts in asset class of the target asset. Therefore you have to make sure the Depreciation Convention settings for Transfer in Depreciation Type will not cause no duplicated depreciation for the same period.
- If the target asset is a new asset, the target asset will be capitalized with APC as the transferred value. And the target asset’s useful life will be equal to Source Asset’s remaining life.
- The posted depreciation for the source asset will be transferred to the target asset at the proportion of the transferred value.
Asset Class Transfer
Applicable business scenario
- Change the asset class when an asset construction has been completed.
For an asset under construction, it is often necessary to reflect the asset at the end of the year in the asset history sheet. To achieve this, as well as monitor the construction progress, you may need to create a specific asset class for this asset. After the construction is completed and the asset is ready to be used, you can move the asset to a designated asset class.
Process and consequence:
- User define an Asset Master Data with asset class “Under construction”.
- User records the asset value by adding AP invoice/Capitalization/Sub capitalization for this asset.
- The asset does not post any depreciation with the asset class “Under construction”.
- When the asset can be put into its intended use, user creates a new asset class with proper depreciation type and account determination and post Asset Class Transfer document to transfer the asset to the new asset class.
- After the asset class transfer, the asset is capitalized again and system calculates the planned depreciation for it according to the transfer date and the depreciation type in the new asset class.
