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Former Member
Oct 02, 2014 at 08:36 PM

ABUMN issue : Asset transfer

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Hi folks,

When I do an asset transfer using ABUMN the old asset has a planned depreciation for a certain amount for the next period.

Say for example the asset has an acquisition Value of 10000.The original depreciation start date for old asset is Period 1 of 2005 and the useful life is10 years. So it’s depreciating 1000 each year. At the end of 2010 it will have NBV of 5000. Now in 2005 we run depreciation for 6 months i.e. $500. Therefore the NBV at this point is 4500. Now we decide to an asset transfer to a number of reasons. So we create a new asset, then use ABUMN and give the asset value date of P7/1/2010. The NBV that gets transferred to the new asset is 4300 and $200 gets posted as planned in the old asset for P7. And the new asset starts depreciating from P7 with a NBV of 4300.

Any idea as to why it is doing this? I know it is not standard as I have seen it doing it right in the past. Is there any piece of configuration that I am missing ?? Any response will be appreciated.

If the above example is not clear please let me know and will explain in detail.

Thanks,

Kunal