Fixed Asset Transfer (FT)

Purpose

During the life of an asset, it is possible that the asset will be transferred to a new Responsibility Center designation (Department, Unit or other organizational designation).  For example, Department A no longer needs a particular piece of equipment, but Department B needs the identical type of equipment.  The two departments arrange for the equipment to be relocated to the new Department.  In this case, Department B becomes the new custodian of the asset and the asset’s Responsibility Center (and Location) needs to be updated to reflect the use by the new department.  You record change in the Responsibility Center of an existing asset using the Fixed Asset Transfer (FT) document code.

FT processing may or may not have an accounting impact.  If the Depreciation Structure is set to “Responsibility Center”, then the FT will update depreciation through the transfer Date of Record and charge the expense to the old Responsibility Center.  If the Depreciation Structure is Funding Line, then depreciation is not updated. It will be updated during the next normally scheduled deprecation run.

NOTE: The Fixed Asset Transfer (FT) document may also be system-generated by an offline process when you need to change the Responsibility Center of groups of related assets.  This may be necessary, for example, when organizational units are merged.  In this case, the organizational changes are entered on the Fixed Asset Reorganization (FARO) table.  The entries are then used by the FARO offline process to generate FT or FM documents as appropriate.  See the “Change Responsibility Centers “ section for more details.

 The Transfer document exists to record the transfer of responsibility or location information for an asset or component with the event type FA06. The FT document does not allow transfer from one fund or sub fund to another fund or sub fund. This is allowed only when both the funds are GCA funds or if the RCP is no. Any transfer from one fund or sub fund to another fund or sub fund is handled as an internal sale. For additional information on the internal sale please refer the FS document and the FD document.

If the asset transferred has responsibility center as the depreciation structure then depreciation is calculated up till the reorganization date (record date of the FT document) and is recorded for the old COA elements. The following steps are followed for the calculation of depreciation:

• If eligible records are found in the Depreciable Element Change Table (DEPEC) for example, when the reorganization date is greater than the effective date on the active DEPEC record.

• • Calculates Component Depreciation using values from DEPEC

• Update the DEPEC record [Set it as inactive]

• Insert the calculated Depreciation Amount in Depreciation History (DEPH) using the values of DEPEC.

Else

• Calculates Component Depreciation using values from the Fixed Asset Registry (FAR).

• Apportions the amount to accounting line level.

For additional details on the depreciation calculation please refer the section on "Fixed Assets Depreciation".

The following main events occur when processing a FA Transfer document:

• The document calculates the depreciation when the Depreciation structure indicator is Responsibility Center. If the Depreciation structure indicator is not Responsibility Center, then no depreciation will be calculated on the FT document.

• The document validates the new COA elements entered at the RC section irrespective of the depreciation structure indicator.  This is because the new elements should be valid when any downstream documents are processed.

• Using this document, only the RC elements can be changed and no other field can be changed in this document.

• The FA registry header is updated for the new responsibility center COA values.

• If the asset is a composite asset the reorganization date on the FA registry header is also updated with the record date of the FT document.

• The FA registry component is updated for the location, sub location and complex/ building and the reorganization date.

• If the asset is depreciated then the accumulated depreciation and net book value on the FA registry tables are also updated.

• Records are inserted to the FA component Journal.

• Records are inserted to the FA accounting Journal.

Structure

The Fixed Asset Transfer (FT) document has four sections found on the secondary navigation panel.  Each is broken down into various subsections that contain groups of related fields.  Details on the individual fields can be found in the individual field help files for each field.  Many fields are not editable on this document either because of edits or the fields are protected.  Only those fields to record the transfer are editable.  All others are completed with the Auto Apply action found on the Header and Component Line which bring information into the document from the Fixed Asset Registry tables.

• Header

  Lists general information about the document as well as information that applies to the asset as a whole versus the individual components of the asset. Click the Fixed Asset Equity Sources button to modify, add, or view existing equity sources for the selected Fixed Asset Number. Refer to the “Fixed Asset Equity Sources” section for more information.

  • General Information: This section contains descriptive fields and date information common to most document headers.  In addition to these common fields are ones for identifying a Fixed Asset Number, Event Type, Asset System Number and Asset System Description.

  • Extended Document Description:  This section contains the standard extended description field that is associated with the document.  It is not an extended description for the asset as it is not stored on any asset information tables.

  • Responsibility Center: This section contains Chart of Account (COA) fields defined as being responsible for the asset as well as the Custodian.  Not all changes are allowed with respect to Fund and Sub Fund.  See the field help for the New Fund field for more information on restrictions. The New department and new unit are required fields on the FT document. Any field that is present on FARHDR and not entered, left blank, on the FT for the New COA element will remain on FARHDR and as part of the RC Posting.  If you do not want to retain the Old COA elements you must enter BLNK in the appropriate New RC fields.  New RC fields with BLNK will update the FARHDR with BLNK when the document is finalized.

  On providing the New Responsibility Center COA values and clicking on auto apply or validating the FT document, the system generates a dummy AL with the new responsibility COA values. The dummy AL is generated with a line amount of $zero to validate the new COA values. No posting lines are generated for the dummy AL.

  

  • Composite Asset Information: This section contains many asset definition fields which serve as defaults to the individual Components of the asset.  Many of these fields control depreciation.

  • Document Information: This section is common to all documents where fields are shown for who and when a document was initially created.  Two additional fields record who was the last to perform a save on the document and when that occurred.

• Component

  Lists specific attributes of each asset component.  Components may be added during the life of the asset but cannot be added with this document.  The Auto Apply action is also available on this page to retrieve values from the Fixed Asset Registry table for only the specified components.

  • Component General Information: This section contains descriptive field which are recorded for informational reporting on the component.  Many fields have specific labels which correspond to descriptive information recorded for particular types of assets, while others contain a generic "Description #" label that allows for any client-specific use. The Asset System Number and Asset System Description are inferred from the FA document when Auto Apply is used.

  • Acquisition Details: This section contains fields to capture acquisition details.  Many are pre-populated with information from the disbursement that led to the creation of a Fixed Asset shell document.

  • Component Location Details: This section contains the same location information as the Header for recording such details at a component that may be located at a different location as not all components may be physically attached to one asset.  Additional fields exist for this document to record an inventory taken for the component for reporting purposes and for updates to the Infrastructure Maintenance table. The New Location, New Sub Location and New Complex/Building can be manually updated.  If you wish to retain the original location information these fields can be left blank. The New Location and New Sub Location are always validated against the New Responsibility Center Department.

  • Component Classification: This section contains many of the same fields found on the Header for asset definition that will control depreciation.  Other fields include the Fixed Asset Classification field, which controls how the asset is recorded for accounting purposes, as well as fields to record the Balance Sheet Accounts that will be used for the asset.

  • Cost, Valuation, & Depreciation: This section contains several informational fields for valuation and replacement reporting needs, other fields that control depreciation, and a field to enter a depreciation amount for the component.  The system will automatically populate the Depreciation Amount when the Depreciation Method is Straight Line.  Manual entry of an amount is not allowed in that case, but is allowed when the Depreciation Method is Manual. Depreciation amount is calculated or allowed only when the depreciation structure is responsibility center. The depreciation is allotted to the ALs on the basis of the net book value.

  

• Accounting

  Lists the Chart of Account (COA) details for how each asset component was funded.  All information at this level is protected and will be brought in from the Fixed Asset Registry Accounting Line table or from the Disposition document Header. Accounting lines on the FT document are generated only when there is depreciation amount i.e. when the depreciation structure indicator is responsibility center.

  • General Information: This section contains descriptive fields and date information common to most document accounting lines.  The Event Type field in this section is protected as it defaults from the Header.  Various amount are displayed that will be used in the various Posting Lines created for the Accounting Line.

  • Fund Accounting: This section contains the COA fields common to the section as found on other documents.

  • Detail Accounting: This section contains the COA fields common to the section as found on other documents.

• Posting

  Lists the system-generated details used to recognize the financial impact of a specific accounting line.  If a fixed asset document has an accounting impact, the system uses the posting line information to update the fixed asset and general accounting journals and other accounting tables such as Balance Sheet Balance (BBAL).  The fields and sections on this page are like those of other documents with the addition of a section to provide the Fixed Asset Number and Component Number.

  The FT document generates posting lines for debiting the depreciation expense and crediting the accumulated depreciation. The posting line is generated with the old responsibility center COA values and not with the new responsibility center COA values.

Tasks

• To create a Fixed Asset Transfer (FT) document, go to Transfer Fixed Assets.