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 Center section for more details.
The general steps required to process the FT document are highlighted below:
Using the Document Catalog, create a new Fixed Asset Transfer (FT) document by entering the FT 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 available header information from the Fixed Asset Registry (FAR).
Select Auto Apply to infer all asset components and accounting lines associated with the selected Fixed Asset Number.
Move to the Transfer Detail subsection of the document’s Header section. Enter the Responsibility Center changes in the New Department and New Unit fields (required). New Activity, New Function, New Reporting Code, and sub codes may also be entered as necessary.
NOTE: Organizational changes to Division and Group are roll-ups that are inferred by DEPT / UNIT.
Enter any change in Location that accompanied the change in Responsibility Center. New Location, New Sub Location and New Complex / Building may be entered on either the asset header or individual component lines. If new location information is entered on the asset header, the value will be inferred to the corresponding fields on each Component Lines provided the fields are blank.
NOTE: While Location may be entered on certain Fixed Asset Document headers, the values are stored on the Fixed Asset Registry Component Lines.
When you’ve finished making changes, validate and submit this document.
The accounting event type associated with the FT document code triggers system updates at the time the document is accepted into the system. The Event Type FA06 - Transfer Fixed Asset is available for Fixed Asset Transfer (FT) document codes. The following actions will take place:
The Responsibility Center on the Fixed Asset Registry (FAR) header is updated.
A new record is created on the Fixed Asset Component Journal (JFACJ). If the document has an accounting impact (as discussed above), records are also added to the Fixed Asset Accounting Journal (JFAAJ), and general Accounting Journal (JACTG).
If depreciation is recognized the system, processing also updates the accumulated depreciation balance on Balance Sheet Balance (BBAL).
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