Use Fixed Assets Transfer or Asset Class Transfer

[ivy_zhang]

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:

1. You can transfer an asset to a New asset or an Active asset, fully or partially.


2. Source asset will become inactive if full APC (Acquisition and Production Cost)/Quantity is transferred.


3. 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.


4. 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.


5. 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:

1. User define an Asset Master Data with asset class “Under construction”.


2. User records the asset value by adding AP invoice/Capitalization/Sub capitalization for this asset.


3. The asset does not post any depreciation with the asset class “Under construction”.


4. 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.


5. 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.

[Joselito]

 

It would be very good if you provided a numeric example, (screen shots), so we can see the before and after.

[kenan_jaddeny]

whenever I'm trying to transfer any fixed asset regardless of the capitalization date or other staff, I'm getting this error, any ideas?

regards, Kenan.

[Joselito]

You need always to verify in the depreciation types of the asset 'source' and 'target' how the definitions that will rule when the Asset source is  'retired' (will have to end depreciating under that asset), and when that value is going to be capitalized in the target asset (when is going to start being depreciated under that other asset).

The system has a mechanism to avoid double depreciation, on target and source, in same period. Which manifests with that system message error

You must be specially careful to tune-in that setup for transfers in the depreciation types specially if you are using some 'monthly' system in company details, for fixed assets, as this will make that any 'exact daily' setup done in the depreciation types may become effectively as 1st day of the calendar month in question resulting in overlap.

 

[former_member768149]

Hello,

 

How can we fix a wrong account determination in the asset class? This year it was correct but in the middle of the year, it was changed and posted wrong GL accounts. When I change account determination, it gives me an error. Can you show me or share the best way to fix it or work around to make it work? Asset transfer doesn't work due to wrong GL account entries if I change the depreciation type of the asset. Looking for your help.

Error "You cannot change account determination; asset class has associated transactions"

[ivy_zhang]

Asset Class cannot be updated if any asset assigned to the same asset class has transactions.

By system design, the accounts selected in Account Determination can be changed except the Asset Balance Sheet Account.

If the Asset Balance Sheet Account in the current account determination is correct, you can update other accounts as needed. Please note the changes will affect all the asset class with this account determination.

If the Asset Balance Sheet Account in the current account determination is not correct or you just want a different account determination, you can define a new asset class with new account determination and post asset transfer.

[too_muihwee]

Hi Ivy,

How about company with Branch function enabled? Can transfer from asset class branch 1 to asset class branch 2? Noted on SAP note 2002062 but is there solution for Version 10?

If it cannot be transfer between branch, need to retire asset on branch 1 and then capitalize on branch 2 asset class? By doing this, the history info will not be accurate in the FA report, example accumulated depreciation, the new capitalization on branch 2 will be the NBV at the time it is transfer to Branch 2 asset class so actual accum depr will be more than what it will reflect in the report.

[ivy_zhang]

Hi Mui Hwee,

As far as I know, there is no behavior change in this regard on Version 10.

Regards

Ivy

[haseebbaig]

Asset can't transfer.

how to transfer asset class?

[ivy_zhang]

One of the prerequisite to post Asset Class Transfer is:

The asset does not post any depreciation with the asset class “Under construction”.

Technically, you can perform the asset class transfer only if the asset uses the depreciation types with the No Depreciation method in all areas during the transfer period.

You can also refer to Online help: Transfer Window | SAP Help Portal

 

[kedalenechong]

Hi Ivy

 

What is the best workaround solution for asset class transfer for Asset already posted with Depreciation?

 

Kedalene Chong

 

[ivy_zhang]

Hi Kedalene,

 

Asset class transfer is designed for the asset under construction scenario only. In this scenario, no depreciation should be posted before asset class transfer since the asset is not ready for use when it is under construction.

 

If an asset has depreciation posted, I assumed it is a normal fixed asset. It is not possible to change the asset class for capitalized asset in Asset Master Data.

You can use Asset Transfer to transfer the value to another asset with expected asset class.

 

Regards

Ivy

[Joselito]

The "Asset Class" is a property that defines the asset master data during all its life cycle: All the fiscal years,  Not just one specific fiscal year.

Is because of that, for traceability, in a majority of the business scenarios, the "Asset Transfer", is preferible to "Asset Class Transfer"

Example: Of not recommended use of Asset Class Transfer

If you have an asset that has been depreciating for several fiscal year, and then you decide that you need to change its Account Determination, but continue depreciating. Is not recommended to change the Depreciation Type to No-Depreciation, just to allow an Asset Class Transfer.

If you do that , you may find that in Asset History Sheet, is not possible to get accurate reporting by Asset Class and Accounts, as it will display values for the current Asset Class and Accounts, even for past fiscal years, when the asset was depreciating to a different set of GL Accounts.

 

 

 

 

 

[kedalenechong]

Hi Ivy

 

Is it not possible to stop Fixed Asset Depreciation for few month only and resume Depreciation at future date without counting on the skipped months?

 

 

Kedalene Chong

[kedalenechong]

Hi Ivy

 

Is it not possible to stop Fixed Asset Depreciation for few months only and resume Depreciation at future date without counting the skipped months?

 

 

Kedalene Chong