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LaurieH

Transferring an asset to another company

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I transferred an asset to another company in FAS, but when I try to tie out the accumulated depreciation for the company that originally had the asset, my current YTD depreciation on our Dep Exp Report is lower than our rollforward schedule by the amount of the YTD depreciation that the asset had. Is there something I'm doing wrong?

In the company that received the transferred asset did not start with a YTD depreciation amount. Should it have?

  • 0

    Not sure this is your exact situation, but I did a quick search in Sage Fixed Assets' Knowledgebase and found this:

    ----------------------------------------------

    Transferred in assets not showing up on the Depreciation Expense Report

    Transferred asset not depreciating

    Transfer to another company

    Asset not depreciating after transfer

    Disclaimer

    Backup Warning

    Use caution when working with the below product functionality. Always create a backup of your data before proceeding with advanced solutions. If necessary, seek the assistance of a qualified Sage Business Partner, network administrator, or Sage Customer Support Analyst.

    Cause

    The Business Start date is a critical value of depreciation. The Placed in Service date of an asset cannot be prior to the Business Start date and allow the program to calculate depreciation on the asset.

    The program is not supposed to allow assets to be transferred into a company when the Placed in Service date is prior to the Business Start date

    Resolution

    In Sage Fixed Assets:

    Go to File, Edit Company check to see if the Business Start Date is after the Placed In Service Date for the asset.

    Edit the Business Start Date to be prior to the Placed In Service Date of the asset.

    Note: If the original Business Start Sate setup a Short Year in the first year of the company the asset is being transferred to, two short years will be needed in order to insure no changes to the depreciation calculation occurs.

    For Example:

    Placed in Service date of the Asset being transferred is 06/01/2011.

    Business Start date of the Company the asset is being transferred to is 09/01/2013.

    Fiscal End Year of the Company is December.

    The Business Start date will need be changed to 01/01/2011 (The default of 01/01/1920 is recommended).

    On the Short Years tab:

    Year 1 will be entered as 08/2013 in all open books.

    Year 2 will be entered as 12/2013 in all open books.

    Now the Transferred asset will calculate depreciation.

  • 0
    SUGGESTED

    Hello LaurieH,

    No you did not do anything wrong.

    A transfer stops depreciation in one location, and starts it again in another. The confusing part is how the year's depreciation on an Asset's goes from Prior Accumulated + Current YTD = Current Accumulated, then once you enter a Transfer, Prior Accumulated + Current YTD from the Parent + Current YTD on the Child = Current Accumulated.

    So as you describe it, Yes, that is what you are supposed to see.

    ~Delray

*Community Hub is the new name for Sage City