Combine Assets

Explanation:

 

This option lets you combine two existing assets into one. After a successful combination, the Parent Asset survives,
and the Child Asset is deleted.

 

There are certain requirements before this can be done: both assets need to have been acquired in a previous year,
and no additions or disposals are allowed for these assets in the current year prior to combining.  These restrictions
are checked just before combining the assets, and will prevent any changes occurring.

 

i_yellow_sm.jpg These restrictions do not prevent you carrying out a 'combination'. If one of the Assets has been added in the
current year, simply edit the value of that asset to zero, and then dispose of that Asset. Then make an addition to
the Parent Asset. If there are additions or disposals in the current year, simply record the details, delete those
transactions, combine the Assets, then reapply any additions or disposals to the Parent after combination.

 

A warning that you may override will be given in any of the following cases:

 

The depreciation methods and rates are not the same.

The group, branch or departments are not the same.

The 'child' asset is older than the Parent.

 

A typical example could be a spare item held previously as a separate asset that normally would be part of a larger item, such as vehicle canopies and major assemblies of plant machinery.

 

bm1.gif  If the Parent Asset needs to have a damaged or obsolete part disposed, the asset should be combined first, and then  dispose of the old part.

Accounting

The effect on the ledger is that all costs & accumulations are combined. Ongoing depreciation will be based on the Parents rules, and back dates to the beginning of the current year. Period based calculations will move any adjustment into open period.

How to do it.

The menu option brings up this window. Select the Parent Asset from the list, using the Search Key and groupings to speed your selection.  Note the Parent Asset is shown in the text box. Click Next to proceed to the next step.

 

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Select the Child Asset by the same procedure. Click Next to proceed to the next step.

 

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Now both items are shown in the text boxes, and you can click Next to proceed to the final warning!

 

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Click Yes to combine the Assets.  As explained earlier, various rules will be tested, and warnings or a message preventing the Assets being combined may be displayed.

 

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That's all there is to it.