Fixed Assets · Daily operations · 8 min read

Transfer, impair or revise an asset

Propose a transfer, an impairment or an estimate change on a running asset and have it approved by a second person.

Before you begin

• The asset is Running. Changes cannot be made to drafts or disposed assets.
• The asset has no other change waiting. Only one open change per asset is allowed.
• For an impairment: the category has Impairment expense and Accumulated impairment accounts, and you hold written evidence, for example a valuation report.
• Two people are needed. The person who proposes a change cannot approve it.

Steps: propose a change

1. Open Fixed Assets > Assets and open the running asset.
2. Press Transfer, Impairment or Estimate change.
3. Fill in the dialog (see below).
4. Enter the Effective date and the Reason (up to 500 characters; required).
5. Press Send for approval. The change appears under Fixed Assets > Changes to approve as To approve.

Transfer

Enter a New location (up to 160 characters) and/or a New department (up to 80). At least one is needed. No journal entry is made; the book value is unchanged and the change keeps the "before" values.

Impairment

1. Enter the Recoverable amount. It must be below the current carrying amount (cost less depreciation less impairment). The dialog shows the book value now.
2. Enter the Valuation evidence (up to 300 characters).

Worked example. Cost AED 1,200.00 with AED 300.00 depreciation posted gives a carrying amount of AED 900.00. A recoverable amount of AED 700.00 gives a loss of AED 200.00. On approval: debit impairment expense 200.00, credit accumulated impairment 200.00. The book value is AED 700.00. The nine remaining planned rows are re-planned to total AED 700.00. An impairment can only lower value.

Estimate change

Enter Months left from now, a New residual value, or both. Posted months are kept: the new life is the months already used plus the months left.

Worked example. An AED 1,200.00 asset over 12 months has 3 months posted (AED 300.00). Months left 18 gives a life of 21 months. The three posted rows stay, and 18 new rows of AED 50.00 follow (900.00 / 18).

Steps: decide

1. A different user with asset.approve opens Fixed Assets > Changes to approve. The tabs are To approve (default), Approved, Rejected and All.
2. Press Approve on the row, or Reject and give a reason (up to 300 characters).

What happens next

On approval the effect is booked, not at proposal. Only rows not yet posted are re-planned. A rejected change books nothing and keeps your reason; you can propose a new one.

Good to know

• An impairment whose recoverable amount is at or above the carrying amount is refused when proposed.
• An impairment without the impairment accounts is refused when approved, and the change stays To approve.
• A residual above what is left of the asset is refused.
• A proposer cannot approve; the approver sees buttons only on rows still to approve. A proposer can reject (withdraw) their own change.
• Journals are dated with the effective date and refused in a locked period.