Transferring Assets

An asset transfer records the movement of part or all of an asset from one location to another.

You can transfer an asset after it has been capitalized and before it is disposed. For each transfer, you must indicate the date on which the transfer must take effect. If this date is in a prior period, LN must reverse any depreciation that occurred in the source asset from that period till the current period.

You can transfer all or part of the asset. If you transfer the full quantity or percentage cost of an asset, this is a complete transfer. If you enter less than 100% of the quantity or percentage cost as the transfer criteria, LN performs a partial transfer and retains a percentage of the cost, accumulated depreciation, quantity and other values of the source and in most cases transfers the remainder to the destination.

As a result of transfer, LN adjusts the values of the source asset and creates a new destination asset. LN also creates journal entries for the source and destination assets based on the values in the asset's General Ledger (GLD) book. For more information, see Transfer Journals.

You enter a date for each transfer to determine when it takes effect. If the transfer date is in a prior period, LN must reverse any depreciation that occurred between the transfer date and the present. If the transfer date you enter is in a current period, LN uses this date on any journals it creates.

In addition to recording transfers on an asset-by-asset basis, you can record mass transfers if you need to transfer a large number of assets at once. For more information, see Transferring Mass Assets. Assets subject to asset depreciation range (ADR), or modified accelerated cost recovery system (MACRS) group tax reporting, have additional transfer options available.