1. Using Assets
  2. How You Transfer Assets to Another Book

How You Transfer Assets to Another Book

You can transfer a fixed asset from one entity, location, or employee to another, across different asset books.

The originating (source) and receiving (destination) books can be part of the same ledger or in different ledgers. For transfers across ledgers, the only valid transfer type is Net book value method, because this asset transfer is treated as a related party sale.

The valuation, depreciation rules, and other specifics of the destination asset are governed by the transaction rules specified.

During the transaction process, you can record other charges, such as removal costs, freight charges, nonrecoverable 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.

The depreciation reserve for the transferred asset is determined based on the accumulated reserve balance from the period before the transfer period.

The application generates independently balanced accounting entries in the source book to close out asset balances. The destination book creates a separate set of balanced entries, to start the opening balances. With this process, intercompany entries are generated automatically for transfers with different balancing segment values. This eliminates the need for you to manually create journal entries in Oracle General Ledger.

You can transfer assets using any of these methods:

  • Transfer Assets page
  • Transfer Assets Application Development Framework desktop integration (ADFdi) spreadsheet
  • Fixed Asset Mass Transfers Import file-based data import (FBDI) template

You can view the details of the asset number and the destination book the asset is transferred to in the Asset Inquiry page. You can also view the assignment details for the destination book.

The asset cost appears in the Book Transfer column in these reports when you use the Gross method transfer type.

  • Cost Detail Report
  • Cost Summary Report
  • Reserve Summary Report
  • Reserve Detail Report

In the source book, the asset cost is deducted and appears as a negative value, while in the destination book, the asset cost is added and appears as a positive value in the Book Transfer column. Note that this paragraph doesn't apply to transfers done using the Net book value method transfer type.

When you use the Net book value method transfer type, in the source book the net book value of the asset appears in the Retirement column of the four reports listed, and in the Additions column for the destination book.

Subledger Accounting Rules

Configure Oracle Subledger Accounting (SLA) rules and mapping sets to change your accounting rules.

Use the Book Transfer predefined journal entry rule set for the Book Transfer event class, using natural accounts for intercompany Receivables and Payables transactions from the Book Controls table of your source and destination books.

This journal entry rule set uses 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).

Set up the natural accounts for these as AR Intercompany account and AP Intercompany in the source and destination book setup. Use either CSV Export and Import or the Book Setup REST API to enter both these accounts.

The standard journal entry rule set doesn't automatically include the intercompany segment, but it can be easily updated using these sources:

  • Counterparty book
  • Counterparty primary balancing segment value
  • Counterparty secondary balancing segment value
  • Counterparty tertiary balancing segment value
  • 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 lists book B as the counterparty book and company code 02 as the counterparty company code. Conversely, the destination transaction lists 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 update it to meet your specific needs. This enables you to populate the Source Receivables, Source Recoverable Charges Receivable (includes freight, miscellaneous and nonrecoverable taxes), and Destination Payables journal line rules with your chosen values. You can either use the Counterparty Primary Balancing segment directly or apply an account rule or mapping set to use 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.

After you finish the Subledger Accounting setup, run the Update Subledger Application Options process.

Accounting for Transfers Between Books

Oracle Subledger Accounting (SLA) rules govern how asset transfer transactions between books are recorded. The application generates accounting entries automatically, following the guidelines set by these SLA rules.

You use the SLA Book Transfer event class for both source and destination books. It automates the creation of intercompany Payables and Receivables entries,which enables you to update the intercompany segment through the SLA rules.

In the following example, you transfer an asset to another book. The asset was transferred with a cost basis of Net book value of the source asset. The original cost of the asset was $207,000.00 with depreciation reserve of $69,000.00 and a net book value of $138,000.00. The asset was transferred from company 3241 to company 4305.

This table shows the net effect of the accounting entries when you use the Gross method transfer type and the intercompany segment value of 3321:

Line Event Account Class Debit Credit
1 Book Transfer 3241-000-0000-40116-3321 Receivable 207,000.00
2 Book Transfer 3241-000-0000-17490-0000 Accumulated Depreciation 69,000.00
3 Book Transfer 3241-000-0000-17400-0000 Cost 276,000.00
NA NA NA Total 276,000.00 276,000.00

This table shows the accounting entries in the destination book. Note that the intercompany segment value of 3241 has been populated:

Line Event Account Class Debit Credit
1 Book Transfer 3321-000-0000-17400-0000 Cost 276,000.00
2 Book Transfer 3321-000-0000-40116-3241 Accounts Payable 207,000.00
3 Book Transfer 3321-000-00000 -17490-0000 Accumulated Depreciation 69,000.00
NA NA NA Total 276,000.00 276,000.00

The application generates other cost clearing entries, in addition to these accounting entries.

In this example, you transfer the asset with a cost basis of Net book value of the source asset. The original cost of the asset was $22,000.00, with depreciation reserve of $5866.67 and a net book value of $16,133.33. This asset was transferred from company 3241 to company 4305.

This table shows the net effect of the accounting entries for the source book when you use the Net Book Value method transfer type:

Line Event Account Class Debit (USD) Credit (USD)
1 Book Transfer 3241-000-41210-0000-0000 NBV Retired 16,133.33
2 Book Transfer 3241-000-41210-0000-0000 Cost 22,000.00
3 Book Transfer 3241-000-40116-0000-4305 Receivable 16,133.33
4 Book Transfer 3241-000-17490-0000-0000 Accumulated Depreciation 5,866.67
5 Book Transfer 3241-000-56025-0000-0000 Proceeds of sale 16,133.33
NA NA NA Total 38,133.33 38,133.33

The asset in the destination book was created with a cost of $16133.33 cost and zero reserve using Net book value of the source asset as the cost basis. The intercompany segment was populated to 3241 to indicate the source entity.

This table shows the net effect of the accounting entries for the destination book when you use the Net Book Value method transfer type:

Line Event Account Class Debit (USD) Credit (USD)
1 Book Transfer 4305-000-17400-0000-0000 Cost 16,133.33
2 Book Transfer 4305-000-40116-0000-3241 Accounts Payable 16,133.33
NA NA NA Total 16,133.33 16,133.33