Asset Relocation/Internal Sale

If you wish to change the physical location of one or more assets in the company, you might wish to do so by relocating/selling the current assets internally.

This also applies if you wish to sell assets to another department in the company or a subsidiary, when such a company is considered as a separate legal entity.

The physical location of an asset is changed by redefining the dimension and user information of the asset including the company association of the asset. Asset relocation transfer and sale is done in the window Asset Relocation.

If an asset is internally relocated, the user information and the dimension values of the asset are changed according to the specifications made by the user. However, this does not mean that a new asset is created, but only that the company association of the asset and other dimension values are redefined; the remaining standard information remains unchanged. When relocating assets between two companies, the necessary inter-company balances are created in the G/L module, unless the system parameter “Create intercompany entries for companies with same parent company” is not marked, and the two companies involved are both assigned to the same parent company.

As the asset changes are registered and the necessary G/L entries are made, Maconomy creates an asset adjustment of the type “Relocation,” which is automatically approved. The approved asset adjustments are displayed in the window Asset Adjustment. When approving an asset adjustment, Maconomy also creates a posting journal of the type “Asset Journal,” which is then posted in the G/L module.

If an asset is sold internally, the asset is removed from the company selling it, and a new asset is created in the company to which the asset is sold. The new asset will be treated like an acquisition, and its sales price will be the book value registered at the time of sale. The company selling the asset has to ensure that possible depreciations are made before the sale is completed. The company buying the asset will take over the depreciation period as well as the depreciation method from the company selling the asset.

At the same time, an asset adjustment is created and automatically approved. The entries in such asset adjustments are of the type “Internal sale.” The approved asset adjustments are displayed in the window Asset Adjustment. Furthermore, Maconomy creates an asset journal to be posted in the window Posting in the G/L module.