Fixed assets reclassification

Recently shared a blog post about Change fixed asset group this post will highlight the Reclassification function of the fixed asset, this used in case it is required to reclassify the asset from the accounting perspective and grouping as well. This function changing the asset group by canceling the old one and create a new fixed asset, and will  generate a financial entry.

The scenario here as the following we have an original fixed assets, and it is already acquired, then it will be reclassified to a new fixed asset ID, and this will close the original asset, reverse its acquisition entry, in the other hand will acquire the new asset. The below diagram illustrate the reclassification process between the original, and new asset.

In order to reclassify acquired fixed asset, go to  Fixed assets| Periodic| Reclassification.

In the dialog box identify the required information, the asset of which will be reclassified, and the new asset.

You’ll see the two assets the old and the new.

 The old is closed, by reversing the acquisition entry and the new is acquired.

The following screen shot represent the old asset

The following screen shot represent the new asset

The old asset acquisition transaction is reversed

The new asset is acquired

The reversal of old acquisition entry and the new acquisition entry are in the same voucher, the debit and credit side are representing the following;

Debit is representing the acquisition account of the new asset. Credit is representing the acquisition account of the old asset.