Split Fixed Asset

This document explains how to split a fixed asset with a quantity of one into two or more assets. Example: A personal computer is registered as one asset. Since the company needs to manage the computer screens separately – perhaps by discarding them to replace them with other screens – the computer is split into two assets, one consisting of the computer and the keyboard, the other of the computer screen.

Outcome

At least one new asset is registered in 'Fixed Asset. Open' (FAS001) together with the original asset. Both assets have status 1='Normal FA'. The new asset has the same data and the same depreciation types as the original asset, except that each asset now has an acquisition value and depreciation plan value based on the amount or percentage manually entered during the split.

  • You can check the updated amounts in the value types for acquisition cost and depreciation plan in 'Fixed Asset. Connect Value Types' (FAS003). This program is accessed from (FAS001).
  • You can discard or sell the split assets separately.
  • The updated depreciation plans will update the general ledger when you run 'FA Depreciation. Create Account Entries' (FAS001).

These tables are updated: the fixed asset master table (FFASMA), the table for depreciation types (FFASDAM), the table for value types (FFASVAL), and the depreciation plan table (FFAHIS).

Before you start

  • The asset to split must be registered and have status 1='Normal FA' in 'Fixed Asset. Open' (FAS001).
  • The value type storing the acquisition cost must be entered in 'Settings – Fixed Asset Acquisition' (FAS900/E). M3 Business Engine uses this program to identify which value type to update at the split.
  • The value type storing the depreciation plan value must be entered for the applicable depreciation type in 'FA Type. Connect Depreciation Types' (FAS077).

Follow these steps

  1. Start 'Fixed Asset. Open' (FAS001/B).

  2. Select option 15 = 'Split an asset' for the asset you want to split. This option displays 'Fixed Asset. Split' (FAS008/B).

    The amount displayed in the Deviation field on this panel represents the amount to distribute. Before you start defining the IDs of the new assets, the amount is always equal the acquisition cost of the original asset.

  3. Based on whether you want to split the original acquisition cost using a fixed amount or a percentage, select sorting order 1 = 'Amount input' or 2 = 'Percent input'.

  4. In the table below, enter the ID of the new asset or assets together with a subnumber and an acquisition cost amount or an acquisition cost percentage. Press Enter.

    You can create up to 15 new assets from the original asset. Note that any amount or percentage that is not distributed, as displayed in the Deviation field, will be stored as the acquisition cost of the original asset. If you distribute the entire acquisition cost, the original asset will automatically be assigned status 9='Sold or disposed fixed assets' when you close the program.

  5. After you enter all new assets, press F3 to exit (FAS008) and then exit (FAS001).

  6. Restart (FAS001) to display the new assets created by the split.

Splitting a Fixed Asset with Corporate Accounting and Reporting Activated

Fixed asset split creates multiple vouchers according to purpose.

The total acquisition cost-related transactions are written in a voucher that is connected to a voucher type 0-'Common'. The voucher number series used is the one defined in 'FAM Function. Open Details' (CRS406) for the FA70 FAM function.

Depreciation transactions such as adjustments, depreciations, impairments, and revaluations will be written on vouchers according to the accounting ledger that is updated by the depreciation type. These transactions are depreciation-type driven and therefore, the voucher number series used are from the voucher number substitution functionality for FA70.

The voucher number and journal number that are to be retrieved are dependent on the period type used in the division. Additional information 40 is also created for the generated vouchers.

FFAHIS will also be updated with the corresponding fixed asset transaction number, sequence number, and accounting date.

See examples in Change Fixed Asset Entry.

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