Transfer Journals

LN identifies data for journal creation each time you transfer an asset. LN creates two journals for each transfer:

For the company transferring the asset, LN credits the asset account, debits the accumulated depreciation account, and debits the intercompany account with the destination company.

For the company receiving the asset, LN debits the asset account, and credits the intercompany account. For transfers within legal companies, LN also credits the accumulated depreciation account.

Note: For transfers of assets with intercompany distribution lines, LN makes no special entries in addition to the ones listed above. Any restatement of depreciation as a result of transfer will cause a reversal of previous journal entries for both companies.