Asset Transfers: Process Activity

The following activity will walk you through the process of transferring fixed assets.

Story

Suppose that on April 30, 2024, one of the computers and one anti-virus software license were transferred from the Administrative department of the Head Office branch of SweetLife Fruits & Jams to the Sales department of the company's Retail branch. Acting as a SweetLife accountant, you need to record this transfer in the system.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

  • On the Enable/Disable Features (CS100000) form, the Fixed Asset Management feature has been enabled.
  • On the Chart of Accounts (GL202500) form, the needed GL accounts have been created.
  • On the Fixed Assets Preferences (FA101000) form, the Automatically Release Transfer Transactions check box has been cleared, which means that transfer transactions will be created with the On Hold status. You will have to release these transactions manually on the Release FA Transactions (FA503000) form.

Process Overview

In this activity, you will first update the fixed asset preferences on the Fixed Assets Preferences (FA101000) form. You will then transfer one of the assets on the Fixed Assets (FA303000) form and review the generated transfer transactions. On the Transfer Assets (FA507000) form, you will transfer the other asset. On the Journal Transactions (GL301000) form, you will review the generated GL transaction. You will return to the Fixed Assets form and review the location of one of the transferred assets. Finally, you will review the list of assets for a specific branch on the Asset Summary (FA402000) form.

System Preparation

Before you begin transferring a fixed asset, do the following:

  1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as an accountant by using the johnson username and the 123 password.
  2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, click the Business Date menu button, and select 4/30/2024 on the calendar.
  3. In the company to which you are signed in, be sure that you have implemented the fixed asset functionality by performing the following prerequisite activities: Fixed Assets: To Configure the System for Fixed Asset Management, Fixed Assets: To Configure the Fixed Asset Functionality, and Fixed Assets: To Create Fixed Asset Classes.
  4. Make sure that you have entered the needed fixed assets by performing the Conversion of a Purchase: To Convert a Purchase to Multiple Assets prerequisite activity.
  5. On the Company and Branch Selection menu on the top pane of the MYOB Acumatica screen, select the SweetLife Head Office and Wholesale Center branch.

Step 1: Updating the Fixed Asset Preferences

To update the fixed asset preferences, do the following:

  1. Open the Fixed Assets Preferences (FA101000) form.
  2. In the Posting Settings section, select the Automatically Release Transfer Transactions check box to make the system automatically release the transfer transactions that you will create later.
  3. On the form toolbar, click Save to save your changes.

Step 2: Transferring the Desktop computer Asset

To transfer the Desktop computer asset, do the following:

  1. On the Fixed Assets (FA303000) form, open one of the Desktop computer assets.
  2. On the General tab, in the Branch box, select RETAIL.
  3. In the Department box, select SALES.
  4. On the form toolbar, click Save to save the changes.
  5. Review the generated and released transfer transactions on the Transactions tab, as shown in the following screenshot.
    Figure 1. The generated transfer transactions


    The system has generated the following transfer transactions:

    • The Transfer Purchasing transaction debits the Fixed Assets account (15300) and credits the same account (15300) to transfer the cost between departments.
    • The Transfer Depreciation transaction debits the Accumulated Depreciation account (16300) and credits the same account (16300) to transfer the accumulated depreciation. Because the asset has not yet been depreciated, the transaction amount is 0.00.

    Both transactions are posted to the asset's current period—the nearest period in which the asset should be depreciated.

Step 3: Transferring the Anti-virus Software Asset

To transfer the Anti-virus software asset, do the following:

  1. Open the Transfer Assets (FA507000) form.
  2. In the Selection area, specify the following settings:
    • Transfer Date: 4/30/2024 (inserted automatically)
    • Transfer Period: 04-2024 (inserted automatically)
    • Reason: Antivirus software for desktop
  3. In the Asset Transfer From section, specify the following settings:
    • Branch: HEADOFFICE
    • Department: ADMIN
  4. In the Asset Transfer To section, specify the following settings:
    • Branch: RETAIL
    • Department: SALES
  5. In the table, select the unlabeled check box in the row of the Anti-virus software asset, as shown in the following screenshot.
    Figure 2. Transfer settings


  6. On the form toolbar, click Process. The system generates the transfer transactions.
  7. On the Fixed Assets (FA303000) form, open the Anti-virus software fixed asset, and go to the Transactions tab. Click the link in the Batch Nbr. column in the row for the Transfer Purchasing transaction, and review the generated GL transaction on the Journal Transactions (GL301000) form, which is opened.

    The cost of the fixed asset was transferred from the HEADOFFICE branch to the RETAIL branch.

Step 4: Reviewing the Settings of the Transferred Asset

To review the settings of the transferred fixed assets, do the following:

  1. On the Fixed Assets (FA303000) form with the Anti-virus software asset opened, go to the Locations tab.
  2. Review the list of locations. The fixed asset has been located in the ADMIN department of the HEADOFFICE branch since 2/1/2024 (the placed-in-service date of the asset). On 4/30/2024, the fixed asset was transferred to the SALES department of the RETAIL branch. The most recent location is displayed at the top of the list of locations.
  3. Open the Asset Summary (FA402000) form, and specify the following settings in the Selection area:
    • Company/Branch: RETAIL
    • Department: SALES

    The table displays the fixed assets that currently belong to the Sales department of the Retail branch.