Asset Transfer to Another Book
Transfer assets from one book to another within the same ledger and generate intercompany entries between the two books when required. Descriptive and depreciation details are moved to the newly transferred asset automatically for continuity and audit.
This feature enables you to seamlessly transfer of a fixed asset from one entity, location, or employee to another, across different asset books. Both the originating (source) and receiving (destination) books must be part of the same ledger. The valuation, depreciation rules, and other specifics of the destination asset are governed by the transaction rules specified. An audit trail helps users to track and query counterparty or affiliate party details for both the source and destination assets.
The source book generates independently balanced accounting entries to close out asset balances. The destination book creates a separate set of balanced entries to initiate the opening balances. This process automates the recording of intercompany entries for transfers involving different balancing segment values, eliminating the need for manual General Ledger entries. By doing so, it reduces the burden of manually reconciling these entries in Oracle Assets.
There are two transfer methods available:
- Gross Method: The asset transfer is recorded as a transfer-out transaction in the source book and as a unique transfer-in addition in the destination book.
- Net Book Value (NBV) Method: The asset transfer is treated as a related party sale. In this case the transfer is documented as a specific book transfer retirement transaction in the source book and as a unique transfer-in addition in the destination book.
In addition to transaction type, both methods use a transaction key to indicate the direction of the transfer, whether it's into or out of the book. The transaction key is only employed for transfers across books, not for regular intra-book transfers.
During the transfer, use either of the following cost basis types to determine the cost and accumulated depreciation in the destination book.
- Cost and Reserve of the source asset: The destination asset balances are initialized with the cost and reserve amount of the source asset.
- Net book value of the source asset: The destination asset cost is initialized with the net book value of the source asset. The depreciation reserve is initialized to zero.
The depreciation reserve for the transferred asset is determined based on the accumulated reserve balance from the period before the transfer period.
Transfer asset to another book
When transferring an asset, you can choose a different asset category for the destination book. You can either keep the depreciation rules from the source asset or opt for those of the destination book and category. The date placed in service for the new asset can be set as the original asset's date placed in service or the transfer date. You can backdate the transfer date, as long as it follows the asset's latest transaction. During the transfer, you can conveniently copy source line details, descriptive flexfield values, and asset key information.
The asset number in the destination book must be unique and can either be generated by application or you can define it manually. Additionally, the tag number should be distinct across all books, and you can decide to retain the tag number for either the source or destination asset. Each tax book requires an independent transfer process: the transfer isn't copied from the corporate book.
During the transaction process, you can record additional charges such as removal costs, freight charges, non-recoverable taxes, and miscellaneous fees. All charges except removal costs are capitalized in the destination asset and are included in the intercompany Receivables amount, which the receiving entity owes.
As expected, the depreciation expense account, location and employee information can be changed at the time of transfer to the destination book.
Transfer asset to another book
Subledger Accounting Rules
Configurable Oracle Subledger Accounting (SLA) rules and mapping sets allow you to customize your accounting rules. A new predefined journal entry rule set is available for the Book Transfer event class, using natural accounts for intercompany Receivables and Payables transactions from the Book Controls of your source and destination books.
This journal entry rule set employs the Book Controls Receivables Account for the Intercompany Receivables Account (source book) and the Book Controls Payables Account for the Intercompany Payables Account (destination book).
You can populate the Intercompany Payables and Receivables accounts in Manage Asset Books using the REST import and export services.
The standard journal entry rule set doesn't automatically include the intercompany segment, but it can be easily customized using the newly introduced sources: counterparty book, counterparty primary balancing segment value, counterparty secondary balancing segment value, counterparty tertiary balancing segment value, and counter party cost center.
For instance, when transferring an asset from Book A, company code 01 to Book B, company code 02, the source transaction will have Book B as the counterparty book and company code 02 as the counterparty company code. Conversely, the destination transaction will have Book A as the counterparty book and company code 01 as the counter party company code.
When incorporating the intercompany segment, copy the Book Transfer journal entry rule set and customize it to meet your specific needs. This allows you to populate the Source Receivables and Destination Payables journal line rules with your chosen values. You can either directly use the Counterparty Primary Balancing Segment or apply an account rule or mapping set to leverage another counterparty value.
Remember to integrate the correct journal entry rule set into your custom Subledger Accounting method and ensure that the Subledger Accounting Method is correctly specified for the ledger options.
Accounting Impact
Subledger Accounting (SLA) rules govern the recording of asset transfer transactions between books. The application generates accounting entries automatically, following the guidelines set by these SLA rules.
This feature introduces a new SLA Book Transfer event class for both source and destination books. It automates the creation of intercompany Payables and Receivables entries, allowing customization of the intercompany segment through SLA rules.
The net effect of the accounting entries for the gross method is shown as follows, with the intercompany segment value of 3321:
Gross Method
Create Accounting
| Line | Event | Account | Class | Debit | Credit |
|---|---|---|---|---|---|
| 1 | Book Transfer | 3241-000-0000-0000-40116-0000-0000-3321 | Receivable | 86,000.00 | |
| 2 | Book Transfer | 3241-000-0000-0000-17490-0000-0000-0000 | Accumulated Depreciation | 34,000.00 | |
| 3 | Book Transfer | 3241-000-0000-0000-17400-0000-0000-0000 | Cost | 120,000.00 |
Accounting entries in the destination book are as follows. Note that the intercompany segment value of 3241 has been populated:
Create Accounting
| Line | Event | Account | Class | Debit | Credit |
|---|---|---|---|---|---|
| 1 | Book Transfer | 3321-000-0000-0000-17400-0000-0000-0000 | Cost | 120,000.00 | |
| 2 | Book Transfer | 3321-000-0000-0000-40116-0000-0000-3241 | Accounts Payable | 86,000.00 | |
| 3 | Book Transfer | 3321-000-0000-0000-17490-0000-0000-0000 | Accumulated Depreciation | 34,000.00 |
In addition to the accounting entries above, the application generates additional cost clearing entries.
Asset Inquiry
The details of the asset number and the destination book to which the asset is transferred can be viewed from the Asset Inquiry page. You can also see the assignment details for the destination book.
Asset Inquiry Source Asset
Asset Inquiry Page
Similar information is also available on the destination book.
Destination Book
Reporting
The asset cost appears in the Book Transfer column in the following reports. In the source book, the asset cost is deducted and shown as a negative value, while in the destination book, the asset cost is added in the Book Transfer column.
- Cost Detail Report
- Cost Summary Report
- Reserve Summary Report
- Reserve Detail Report
The business benefits include :
- Streamlines asset management by seamlessly transferring assets between books within the same ledger.
- Generates intercompany entries automatically.
- Ensures continuity and accuracy by transferring descriptive and depreciation details to the newly transferred asset, eliminating the need for manual retirement and addition transactions in separate books.
- Enhances efficiency, reduces errors, and supports smoother audit trails.
Steps to Enable
Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.
Offering: Financials No Longer Optional From: Update 26A
- Use the opt-in for Fixed Assets Transfer Between Asset Books in Financials to enable this feature.
- Setup and Maintenance > Financials > Change Feature Opt In > Fixed Assets> Edit Feature > Fixed Assets Transfer Between Asset Books feature in Financials.
- Setup and Maintenance-> Manage Asset Books -> Select an asset book to Allow transfer to another Book
Tips And Considerations
- To continue with the source asset’s life and depreciation rules, don't select the "Inherit depreciation rules of destination category" option and "Use transfer date as the date placed in service" option on the Transfer Asset to Another Book page.
- The transfer process needs to be executed individually in each of the tax books. The Mass Copy feature is not applicable for transfer across books.
- If the source corporate book has a higher number of tax books than the destination, you must manually retire the asset for tax books without a corresponding destination book. This can be done using the standard retirement feature. Conversely, when the destination has tax books without a source match, an asset addition is required in these books, which can be managed as a regular addition transaction.
- If the number of reporting currency books isn't the same in the source and destination, use the NBV method of transfer.
- This feature applies only to transactions performed using the Transfer Asset to Another Book page. Volume based book transfers aren't available in this release.
- The Intercompany Payables accounts and Intercompany Receivables accounts in the Manage Asset Books page can be populated using REST import and export services and can't be entered using the Create or Edit Asset Book page.
- This feature is limited to capitalized assets and doesn't apply to group assets and their members and to leased assets.
Key Resources
- How You Transfer Assets to Another Book
- Access Requirements for Transferring Assets to Another Book
- Guidelines for Transferring Assets from One Book to Another
- Guidelines for Transferring Project Assets to Another Book
- Transfer Assets to Another Book
- This feature originated from the Idea Labs on Oracle Cloud Customer Connect: Idea 540334
Access Requirements
This feature provides a new privilege called ‘Transfer Fixed Asset to Another Asset Book’.
In addition, there is a new data security policy called - ‘Transfer Fixed Asset to Another Book’ which dictates the books assets can be transferred to. The data resource of this policy is the ‘Fixed Asset Book’.
Configurable SLA rules and mapping sets allow for fully customizable accounting rules.
Seeded Journal Entry Rule Set for Book Transfer Event Class.
- Uses Book Controls Receivables Account for Intercompany Receivables A/C (Source)
- Uses Book Controls Payables Account for Intercompany Payables A/C (Destination)
The Intercompany segment isn't populated as part of the standard journal entry rule set. It is fully customizable using the SLA sources of counterparty book and counterparty balancing segment values (primary, secondary, and tertiary), and counterparty cost center.
Note that the Intercompany Payables accounts and Intercompany Receivables accounts in the Manage Asset Books page can be populated using the REST import and export services.