Most are confused about a true asset transfer and the process behind it. I’m here to set the record straight!
NOT a true asset transfer:
If you are just physically moving an asset from Location A to Location B but the depreciation is still maintained centrally on one set of books… then you are simply just “moving” your asset. So instead of thinking too much into it, just update your descriptive fields.
A TRUE asset transfer:
If you are moving your asset from Location A to Location B and they are responsible for keeping their own deprecation books and recording them separately (GL to GL), then this is a true fixed asset transfer. So, if Location A is stopping their depreciation on the date of transfer; Location B would be picking up the depreciation where the Net Book Value was left off at Location A. End result: Location B is now responsible for the continuing depreciation until that asset is either fully depreciated or disposed.
If you are having trouble keeping up with this process in your spreadsheet or another depreciation system, let this be known: Sage FAS 100 and 500 Asset Accounting does a FABULOUS job keeping track of this process — with standard reports and all! A Fixed Asset Manager and an Audits dream come true!
Happy asset tracking!