Moving equipment from Fixed Asset to inventory

Outcome

When equipment is moved using this functionality, these updates are performed:

• Two records are created in 'Stock Transaction. Display History' (MWS070) for the warehouse where the equipment is located. One record reflects a positive quantity of 1, and the other reflects a negative quantity of 1. Both records are assigned transaction identity (TTID) = REC and transaction type (TTYP) = 98.
  • The reference text for both records is set to 'Transfer from FA.'
  • The inventory accounting price in (MWS070) is set according to the actual cost specified in 'Move to Inventory. Open' (MMS272). The acquisition cost in (MWS070) reflects the acquisition cost of the Fixed Asset.
  • The transaction reason defined in (MMS272) is recorded in table MITTRA for both transactions.
• The FA is disposed of, and its status in 'Fixed Asset. Open' (FAS001) is updated to 9. The depreciation plan is adjusted accordingly. FA values in 'Fixed Asset. Connect Value Types' (FAS003) are updated based on the planned depreciation value at the time of disposal.
• The lot cost in 'Lot/Serial Number. Open/Connect to Item' (MMS235) is updated according to the actual cost specified in (MMS272).
• The FA number and sub-number are cleared in 'Equipment/Serialized Item. Open' (MMS240).
• A record is created in 'Actual Cost. Update/Display' (PCS265), referencing the original purchase order, if applicable.

Before you start

To perform an FA transfer to inventory, these conditions must be met:

• The inventory accounting method must be set to 4 (Actual Cost) in 'Item. Connect Facility' (MMS003) for the selected item.
• The equipment must exist as an FA with status 1 (normal FA) or status 8 (fully depreciated) in (FAS001).
• The item/serial number must not have active allocations, such as pending deliveries on a rental agreement. The system verifies this against table MITALO.
• The stock must not be located in an on-hire or X-on-hire warehouse. This is verified against table STDEPO.

Follow these steps

1. Open (MMS240).
2. Select the equipment to be moved and use Related Option 58='Move to Inventory'. This opens (MMS272), which facilitates the transfer from an FA to inventory.
3. Set the required values in these fields:
   • 'Depreciation type': The default is retrieved from 'Fixed Asset. Connect Depreciation Types' (FAS002). If multiple depreciation types are assigned to the FA, this field is blank and must be manually selected. It is recommended to use the prompt function (F4) to select the depreciation type, allowing the 'F/A Value Cur' and 'Actual Cost' fields to display their values before confirming (MMS272).
     • The selected depreciation type must be assigned to the FA in (FAS002) with status 1 or 8 and must be configured in 'Settings. Fixed Asset Disposal' (FAS945).
   • 'FA value': A protected field displaying the remaining value of the FA based on the selected depreciation type.
   • 'Actual cost': The default is the remaining FA value. The specified value determines the actual cost in (PCS265), the lot cost in (MMS235), and the inventory accounting price in (MWS070). A value of 0 is not allowed. If left blank upon confirmation, the actual cost is automatically set to the FA’s remaining value.
   • 'Transaction reason': This field is blank by default and must be set before confirming the transaction. The specified reason is recorded in table MITTRA for both transactions.
4. Confirm (MMS272) to complete the transfer.

Additional considerations

• After the transfer, the equipment’s previous connection to FAs remains available. The item is recorded with status 9 in (FAS001), and references to the item, serial number, and original FA number remain in (MMS240).
• If equipment is moved multiple times between FAs and inventory, a new sub-number is created each time it is reclassified as an FA.