NetAsset - Asset Splits

Use Case: A situation may arise where an existing asset may need to be represented as more components than it was when it was purchased as or split out into its component parts for individual sale.


STEP BY STEP PROCESS

  • Navigate to the Split Asset page by selecting NetAsset > Update or Modify Assets > Split Asset or directly from the asset record itself by clicking the Split button.
  • Selecting your asset from the 'Asset' drop-down field will allow key asset information to automatically populate for quick reference purposes. It will also populate the New Asset sublist with staged child assets to be created.
    • If you navigated to the page via the Split button on the NetAsset record this will already be filled in.
  • Next, update the Assets to Generate field indicating the number of assets to be created and enter any notes related to the split in the Note field.

  • Values on the New Assets sublist can be adjusted, so long as the sum of the Capitalized Asset Value and Accumulated Depreciation columns add up to the corresponding balance fields on the original asset to split.
  • After double-checking inputs for the asset split, click Submit.
  • You will be navigated to a new page where you can monitor the creation of new assets in the New Assets sublist.

  • Clicking the hyperlink to the original asset will reveal the Status has been updated to Split. You should also see an NetAsset Split Entry created in the Effective Split Date Period and the removal of all subsequent depreciation schedule lines.

  • NOTE: Assets that have not yet had a journal booked against them will not generate an NetAsset Split Entry.
  • Click on the hyperlink to the NetAsset Split Entry and note that asset has been removed from Fixed Assets and placed back into the Fixed Asset Clearing account (or Construction In Progress account).
    • Debit Asset Type’s “Accumulated Depreciation Account” for the original asset’s current “Accumulated Depreciation”
    • Credit Asset Type’s “Fixed Asset Account” for the original asset’s current “Gross Asset Value”
    • Debit Asset Type’s “Fixed Asset Clearing Account” or “Construction in Progress Account” for the original asset’s current “Net Book Value”

  • On the Split Asset’s Related Records subtab there is a Child Assets sublist where you should see the generated child assets.

  • Click the hyperlink to one of these assets and note that they are in a Pending Status.
  • These new child assets need to have schedules generated.
  • Once the schedules have generated, they will be ready to be queued for capitalization and capitalized.

  • On any of the new asset’s Related Records subtab there is a field indicating the Parent Asset from which the asset was created.

 

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