What Happens When You Split an Asset Item

Journal entries are created and information is updated automatically when you split an asset item.

When you split an asset item, the following things occur:

• A journal entry posting log is created automatically in the Transaction Center.

  Possible general ledger accounts for your GL book that are affected by the split are the asset account and accumulated depreciation account for the source asset item.

  Although splits do not create transactions for your general ledger for additional books that you set up for depreciation, you will see the splits for additional books listed in the journal entry posting log.

  • If you do not use organizations: on the journal entry posting log, you will see the debits and credits for the split posted to your general ledger accounts. However, the end result is no change to the balance in these accounts.
  • If you use organizations and maintain separate balance sheets by organization: when you split an asset item into a receiving asset item from a different organization, the asset amount and any accumulated depreciation for the source asset item are moved from the balance sheet accounts of the source asset item's organization to the receiving asset item's organization.

    An asset item's organization is determined by looking at the organization at the lowest level of the work breakdown structure for the project associated with the asset item (for example, the task).

  • If you use organizations and maintain separate balance sheets by organization: when you split an asset item from and to projects in the same organization, on the journal entry posting log, you will see the debits and credits for the split posted to your general ledger accounts, but the result is no change to the balance in these accounts.
• Information for the split is updated on the GL Cost tab in the Equipment hub for each asset item involved in the split:

  Asset Item	What is Updated on the GL Cost tab in the Equipment hub
  Source Asset Item	A cost row is added to the Acquisition Cost grid to show the cost amount removed from the asset item. The row has Insert in the Type field, a negative amount in the Amount field, and the Description field displays Split to, the equipment number for the receiving asset item, and the journal entry posting sequence number for the split. If the source asset item had a salvage value entered in the Less Salvage Value field below the grid, it is reduced by the amount that was moved to the receiving asset items.
  Receiving Asset Items	A cost row is added to the Acquisition Cost grid to show the cost amount that was added to the receiving asset item from the source asset item. The row has Insert in the Type field, a positive amount in the Amount field, the account from the source asset item in the Account field, and the Description field displays Split from, the equipment number for the source asset item, and the journal entry posting sequence number for the split. If the source asset item had a salvage value entered for it on the GL Cost tab, the salvage value is split in among the receiving asset items, based on the portion of the asset item cost that was allocated to each receiving asset item. This amount displays in the Less Salvage Value field on the GL Cost tab for the receiving asset item. Example: A source asset item with an acquisition cost value of $4,000 was split into two receiving asset items, one receiving $3,000 of the cost and the other $1,000. The source asset item's salvage value was $600. After the split, the salvage value of the source asset is $0. The asset item that received $3,000 of the cost received $450 of salvage value. The asset item that received $1,000 of the cost received $150 of salvage value.

• If the source asset item had an accumulated depreciation amount when it was split, the accumulated depreciation amount is split among the receiving asset items, based on the portion of the asset item cost that was allocated to each receiving asset item. You view the amounts that were moved from the source asset item to the receiving asset items on the History tab in Asset Management > Asset Review.