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Hi, we process a mass transfer of assets. We noticed that the transfer created FAMXF source documents, that took depreciation as part of the transfer. Why would this happen? We just transferred the account group and location.
Thanks,
Steve
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Hi Steve,
This is normal behaviour, although in many companies irrelevant if there is no actual GL impact in the transfer. What it's doing is calculating depreciation up to the date of transfer since the last depreciated to date. From the help file, here's the literal wording of what occurs:
"Enter the date that the transfer is effective. If the transfer date is before the placed-in-service date of the asset, an accounting entry is created to back out depreciation to the transfer date, and re-enter it using the new account. If the transfer date is after the placed-in-service date of the asset, depreciation is entered for the asset using the previous account through the transfer date. After the transfer date, the new account is used."
The assumption is if you are transferring to a new set of accounts at a certain date then the financial activity has to be trued up to that point using the old set of accounts. This eliminates the need to manually do an entry.
I hope that helps.
Jen
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