There are situations in which assets that have been defined as one Asset Type (for example, Construction-in-Progress) need to be redefined as another Asset Type. To modify the Asset Type, of a specific asset, the Fixed Asset Type Change (FX) document code is processed with the default Event Type (FA08). The FX document can only be used to change the asset type of non-memo assets that have not been previously depreciated. Once an asset is depreciated, the Asset Type may not be changed. The processing of FX documents is appropriate to correct the Asset Type of an asset that was incorrectly entered, or to reclassify an asset from an Asset Type that is not subject to depreciation to a depreciable Asset Type.
For example, the typical use of the FX is to change the Asset Type of records associated with a construction project from Construction in Progress to Buildings, Infrastructure, or some other depreciable asset type. During the construction phase, payments are capitalized as Construction-in-Progress assets. Once the construction project is substantially complete, you can reclassify the Construction-in-Progress balance using the Fixed Asset Type Change (FX).
NOTE: See the Fixed Asset Type (FATP) Table and corresponding documentation for more details on how your site has defined the fixed asset types.
The general steps required to process the FX document are highlighted below:
Using the Document Catalog, create a new Fixed Asset (FA) document by entering the FX Document Code, a Document Department, Document Unit (optional), and Document ID. Result: A blank document opens.
In the General Information subsection, use the Fixed Asset Number field’s pick list to select the number for the asset you need to change. Result: The system fills in the document with the available information on this asset from the Fixed Asset Registry (FAR).
Select Auto Apply to infer all asset components and component details associated with the selected Fixed Asset Number.
If the Composite Indicator check box is selected for this asset, you must make the changes in the document’s Header section. If the Composite Indicator check box is not selected for this asset, you make the changes in the document’s Component section. (See the Record Composite Assets section for more details about composite assets.)
Move to the Asset Type Change Detail subsection of either the document’s Header or Component section and make the necessary updates to the New Fixed Asset Type and New Fixed Asset Group fields. Since the Fixed Asset Group is keyed by FA Type, a new FA Group typically accompanies a change in Asset Type.
NOTE: For composite assets, the system will automatically copy values entered in the Header section to the component lines when the document is validated or processed, overwriting any values on the asset’s Component Lines.
When you’ve finished making changes, validate and submit this document.
The Event Type associated with the FX document code invokes certain updates at the time the document is accepted into the system. Event Type FA08 - Fixed Asset Type Change is available for the Fixed Asset Type Change (FX) document code. The following actions will take place:
Debits the Capital Asset Balance Sheet Account for the New Asset Type.
Credits the balance sheet account for the Old Asset Type.
Updates the asset’s entry on the Fixed Asset Registry (FAR) and creates new records on the Fixed Asset Component Journal (JFACJ), Fixed Asset Accounting Journal (JFAAJ), and general Accounting Journal (JACTG).
The document also updates the balance sheet balances associated with both the old and new asset types on Balance Sheet Balance (BBAL).