Issue/Symptom/Question

What are the accounting entries that happen when you transfer a Fixed Asset between OUs?

Applies To

Fixed Asset Management > Transfer Fixed Assets Between OUs

Resolution/Fix/Answer

The Transfer Fixed Assets Between OUs window allows you to transfer a Fixed Asset along with all Fixed Asset account and accumulated depreciation account balances from one organizational unit (OU) to another OU. Transfers can be between OUs that belong to the same balance sheet OU or between OUs that belong to different balance sheet OUs.

Notes:

If System Option 107 (“Prevent Inter-Balance Sheet Entries”) is Y (meaning PENTA prohibits intercompany transactions), you can only transfer assets within a balance sheet OU.

System Option 194 (“Parent/Child Asset OUs Must Equal”) controls whether a “child” (or subordinate to a “parent”) Asset must belong to the same OU as the Parent Asset. If this System Option is set to:

Y –The child Asset’s OU equals the Parent Asset’s OU and you must perform Asset transfers at the parent job level. Transferring the Parent Asset will also transfer any child Assets. PENTA will prevent transfers of only the child Asset and issue an error message.

N – The Parent Asset and child Asset’s OUs can be different and you can perform transfers at either the Parent Asset or child Asset level.

Prerequisites

You must have authorization to use this window.

You must have authorization to make entries to OUs that you are transferring assets from and to.

You must have authorization to post to closed accounting periods if you are transferring assets within closed accounting periods.

You must set up intercompany information for the OUs if the Fixed Asset transfer involves multiple balance sheet OUs.

Additional Considerations for Accounting Entries

Depreciation Expenses

PENTA calculates depreciation as part of the Fixed Asset Transfer process.

PENTA calculates depreciation expense through the day prior to the transfer date. PENTA posts these entries to the “From OU,” using the Transfer Date.

If PENTA calculated depreciation for the Fixed Asset for any future dates (e.g., depreciation projection entries), it will reverse this depreciation during the Fixed Asset Transfer process. If PENTA should apply the depreciation to the new OU (the “To OU”), you must reprocess the depreciation projection for the new OU.

PENTA will not move depreciation expense entries dated before the Transfer Date to the Fixed Asset’s new OU.

Balance Sheet Accounts

PENTA will transfer the accumulated depreciation account balance for the asset from the existing balance sheet OU to the Fixed Asset’s new balance sheet OU in cases where the transfer crosses balance sheet OUs.

Accumulated depreciation account balance transfers will occur as of the Transfer Date.

PENTA will transfer the account balance for the Fixed Asset from the existing balance sheet OU to the Fixed Asset’s new balance sheet OU in cases where the transfer crosses balance sheet OUs.

Asset account balance transfers will occur as of the Transfer Date.

Fixed Equipment Expenses

PENTA calculates fixed equipment expenses as part of the Fixed Asset Transfer process.

PENTA calculates fixed equipment expenses through the day prior to the Transfer Date and posts these entries to the “From OU,” using the Transfer Date.

If PENTA calculated fixed equipment expenses for the Fixed Asset for any future dates (e.g., depreciation projection entries), it will reverse the fixed equipment expenses during the Fixed Asset Transfer process. If PENTA should apply the future fixed equipment expenses to the new OU, you must reprocess the fixed equipment expense for the new OU.

PENTA will not move fixed equipment expense entries dated before the Transfer Date to the Fixed Asset’s new OU.