How to transfer Fixed Asset to Inventory

Eugene

Is there a transfer order or something like that ?
or should i just completely depreciate the Fixed Asset in question and then enter new item card manually ?

Marije_Brummel

I have never heard of such a functionality :?

What do you want to use it for?

nunomaia

Legally an item it’s different from a fixed asset. You can insert manually insert an item using item journal, but have you sure that you want do to that?????

ssingla

Dear Eugene,

Customization needs to be done for acheiving the same. In my earlier organization we did it for our client. The add-on is also available is you need to save time. Contact them on www.euroinfosys.com.

Alex_Chow

A couple of questions:

1. Was the fixed asset entered as fixed asset as a mistake?
2. Fixed assets typically are not and should not be classified as regular inventory items. What is the business requirement for doing so?
3. Do you know you can sell a fixed asset on the sales order?

Miklos_Hollender

I don't know much about the accounting rules of Lithuania but I assume it's the same as everywhere: it's an Item if you intend to sell it within the year, a Fixed Asset if you do not.

However, this rule basically wants you to don't classify Items you intend to sell as Fixed Assets and thus don't save on costs in the Income Statement. But the other way around it's completely OK: you can sell a Fixed Asset within the year without any legal problem. This is the general rule, I don't know your local rules. Therefore just sell it with an Invoice as Fixed Asset and no problem.

ssingla

Dear All,

The bussiness situation in which we made the customization is as under:

Client was involved in trading of computer hardware and software. Also it was involved in BOT (Build- Own - Transfer) contracts for setting up Computer Labs for various Educational Institution. There was a constant transfer of inventory of hardware and software items to fixed assets and vice versa due to nature of bussiness. Further linking of fixed assets with the vendor was also required as the item was initially booked as inventory purchase.

If the scenario is the same them customization is required.

philippegirod

How to know if the good is a fixed asset or not ?
Generally (France, England, Swtitzerland) answer to those questions:

Did you buy it to resale it or to use it to make something to sale ?

If not, is the value more than a certain amount (depends of the country) ?

If yes it's a fixed asset.

- To transfom a Fixed Asset in an Item :

suppress the fixed asset (with a FA Ledger Entry : Disposal)

and create the Item (with an item ledger entry).

A the end, it's like if your Fixed Asset has never been created.

ssingla

Dear All,

Quite true that a F.A. to be trf to Item should involve the two steps :

Disposal of the F.A
Creation of the Item

But how the transactions will be posted? Let me guess (Please correct me if I am wrong):

Disposal of FA : FA G/L Journal will be used by using FA posting Type as "Disposal" but which other account to be used for matching the dual concept of equal debit and credit. Probably a Suspence or Clearing account needs to be created.

Creation/Positive adjustment of Item : Item journal will be used and the accounting entry will be :
Inventory Account Debit
Inventory Adjustment account Credit

After this a journal entry needs to be posted for balancing the suspence/clearing account and the inventory adjustment account.

It will be long process and can be used when there are few transaction but if the transaction are of recurring nature it is better to customize else you also loose the flow/navigation of item purchase to vendor