Splitting an asset

Screen management

This window is made up of a header displaying, as a reminder, the identification of the asset as well as the following two tabs:

- the Parameters tab that is used to enter the asset splitting parameters, then to view the assets generated as a result of the split.

- the Linked expenses tab displays the expenses linked to the asset and, in case of a split by expense, it is used to select the expenses to be linked to the generated asset.

Header

 

 

Tab Setup definition

 

 

Setup of the split

The first stage consists in specifying the split method. It means defining whether the split takes place by distribution of the quantity, by distribution of an amount -of which it is necessary to specify the nature - or by distribution of the attached expenses, then by specifying the total number of assets expected at the end of the split (this quantity includes the asset at the origin of the split).

1/ Split by distribution of the quantity

This type of split is authorized if the asset quantity is larger than or equal to 2. If this quantity is larger than 2, this type of split is only authorized if the quantity is expressed in a unit accepting decimal digits.

Specifics: When the asset is linked to several expenses with at least one expense linked to a subsidized investment project, the split by distribution of the quantity is authorized only if the expense split has been requested (see the paragraph below Impact on expenses).

The number of assets to create must be indicated; the maximum number of resulting assets cannot exceed the original asset quantity.

The Distribute qty check box is automatically active and cannot be deactivated.

Quantities and Amounts assigned to the assets arising from the split

• The quantity specified for each of the assets obtained at the end of the split is calculated by distributing the quantity of the original asset. The quantities obtained are rounded according to the unit; the balance is assigned to the original asset. These quantities remain modifiable by the user in so far as the sum of the quantities of the generated assets added to the quantity of the original asset after split remains equal to the quantity in the original asset before the split. The quantities entered must be greater than or equal to 1, except if they are expressed in a unit that accepts decimals, in which case they can be between 0 and 1. When a quantity is modified manually for one of the generated assets, select Quantity report from the Action icon in that field to renew these quantities for all generated assets. The residual quantity is assigned to the original asset.
   
• The amount specified on each asset corresponds to the Ex-tax CoA receipt value in company currency. This amount is calculated in proportion to the number of created assets, based on the ex-tax CoA value of the split asset if the amount is different from 0; if not, it is based on the ex-tax IAS value. Click Distrib amts in the Action panel  to re-calculate the CoA ex-tax receipt value for each of the assets pro rata of the quantities.

2/ Split by distributing the amount

Specifics when the asset is linked to several expenses with at least one expense linked to a subsidized investment project, the split by distribution of the amount is authorized only if the expense split has been requested (see the paragraph below Impact on expenses).

The distribution can be carried out by choosing the CoA ex-tax receipt value (value by default), the IAS/IFRS ex-tax receipt value, the CoA balance sheet value, the IAS/IFRS balance sheet value, the CoA revaluated balance sheet value or the IAS/IFRS revaluated balance sheet value. This type of split is allowed only if the selected amount is greater than 0.

The number of assets to create must be indicated; the maximum number of resulting assets is limited to 999.

The Distribute quantity check box is activated by default when the quantity is superior to 1. It makes it possible to specify whether the quantity must be distributed between the assets generated at the end of the split. This flag can be deactivated; in this case, the original asset quantity will be equally transferred to each asset generated by the split.

The Distribute in %age check box is active. It authorizes, when activated, the modification of the distribution percentage on each asset coming from the split. Amounts are recalculated after modification in order to take into account the new distribution.

Quantities and Amounts assigned to the assets arising from the split:  

• If the asset quantity must be distributed, the quantity linked to each asset will be determined by distributing the original asset quantity and can be modified. The quantities obtained are rounded according to the unit; the balance is assigned to the original asset.
   
• If the asset quantity is not distributed, the quantity linked to each asset will be the same as the quantity of the asset to be split, and it can be modified.
   
• The amount type displayed on each asset corresponds to the amount of the asset that the user chose as the split reference. This amount is automatically calculated in proportion to the number of created assets.
   
  It can be modified:
   
  - Directly, by entering a new amount
  - Or if the Distribute in %age check box has been activated, by changing the distribution percentage of the assets arising from the split, in which case their amount will be automatically recalculated.
   
  The modification is authorized if the total of all generated assets amounts remains strictly inferior than the amount of the original asset before the split. The difference between these two values will load the the original asset amount after split.

Impact on expenses

• If the asset is attached to a single expense: the expense is split according to the same rule as the asset. Each asset created at the end of the split will have an expense attached.
   
• If the asset is linked to several expenses, there are two possibilities:
  - The expenses are not split (the Split expenses check box is not selected). The expenses are still linked to the original asset, and the assets created further to the split have no linked expenses
  - The expense split has been requested. Each expense is split according to the same rule as the asset. Each asset created further to the expense split will be associated with as many linked expenses as the original asset.
  
  If at least one of the expenses is linked to a subsidized investment project, the split by distribution of the quantity or amount of the asset is authorized only if the expense split has been requested It is necessary to ensure that the subsidy amount for each asset is equal to the total of the subsidies associated with the linked expenses.

3/ Split by distributing expenses linked to the asset

This type of distribution is prohibited:
- If the asset is attached to a single expense,
- If the CoA value of the asset is different from the total of the values of the capitalized expenses with respect to the CoA follow-up,
- If the IFRS value of the asset is different from the total of the values of the capitalized expenses with respect to the IFRS follow-up.

The number of assets to be created is automatically determined as a function of the number of expenses, in such a way that the expense is attached to an asset (the main expense remains attached to the original asset). It can be modified but can only take the value 2 (the user must select the expense(s) to be linked to the generated asset in the Linked expenses tab; unchecked expenses remain attached to the original asset).
If the main expense is selected to be attached to a generated asset, it is the first of the non selected expenses in the list that will become the new main expense attached to the original asset.
The Distribute in %age is deactivated and cannot be accessed.

Quantities and Amounts assigned to the assets arising from the split:

• If the split is carried out with the creation of one asset per expense, the quantity of each of the assets arising from the split is equal to the quantity that appears in the expense to which it is attached ; this quantity remains modifiable.
   
• If the created asset is linked to several expenses, the quantity of the generated asset is equal to the total of the linked expenses quantities and can be modified.
   
• The amount of each asset originating from the split is equal to the amount of the linked expense, or to the total of linked expenses amounts if several expenses are linked to the asset.

The second stage is to set up the numbering mode to apply to the asset originating from the split. The following options are available: 

• None means that no automatic numbering is applied. The reference must be entered by the user in the Generated assets grid. The Increment  field cannot be entered.
  This option is not available if the automatic numbering has been defined as being mandatory based on the ASSAUTNUM - Financial asset numbering parameter setting.
• Add a numeric increment means automatically assigning a reference identical to that of the original asset with the addition of an Increment for which a value must be entered.
   
• New number means that a new reference will be assigned to each of the asset resulting from the split. This reference is automatically generated during the entry of the split for the original asset and cannot be entered if the automatic numbering is defined as being mandatory based on the ASSAUTNUM - Financial asset numbering parameter setting.. If the automatic numbering is defined as being optional, the reference of the new assets can be entered in the Generated assets grid.
  The New number option is only available if a sequence number counter has been assigned to the Financial asset object in the parameters; see the Sequence number counter assignment documentation.

Setting up the split

Click Split in the Action panel to begin the process.

It loads:

• The Quantity and Amount information after the split of the original asset.
   
• The Generated assets gird, with as many lines as there are created assets.

For each asset, the information is entered as follows:

Reference: Depending on the setup carried out at the level of the Numbering for the split field, the reference can be entered automatically or must be entered.

Description: the description of each of the assets generated is automatically loaded with the description of the original asset. It can be modified.

Quantity: The quantity determined for each of the assets depends on the type of split. See detail above, at the level of the Setting up the split paragraph.

Amount: The amount type corresponds to that selected by the user as the basis of the split if the split has been carried out by distribution of an amount, or to the CoA Ex-tax receipt value in the company currency (or to the Ex-tax IAS/IFRS entry value if the ex-tax CoA entry value is equal to 0) if the split has been carried out by distribution of the quantity or by expenses.
- The amount calculated for each of the assets is a function of the split type. See the detail of the calculation above at the level of the paragraph Setting up the split.
This amount, compared with that of the original asset before the split, is used to determine a ratio used to calculate the distribution of the other asset amounts.
- The +/- sign for the Ex-tax amount for each of the lines must be identical to the sign of the Ex-tax amount of the asset to be split.
- An asset generated by a split may have a zero amount.

Rules linked to the fields of the type Amount:

- The VAT amounts - VAT collected for the asset, from its depreciation plans and its events - are distributed on the basis of the ratio obtained between the amounts of each of the generated assets and the amount of the original asset before the split (the amount taken into account for the ratio calculation corresponds, either to the CoA receipt value in company currency (or to the Ex-tax IAS/IFRS entry value if the Ex-tax CoA entry value is equal to 0) if the split is carried out by quantity or by expenses, or on the basis of an amount specified by the user if the split is carried out by the distribution of an amount).

- the Free fields of the type Amount are distributed if the setup of the Properties of the free fields allows it.

Rules linked to the status of the generated assets:

The status of these assets depends on that of the original asset:

 Split of an asset with the status Autonomous

The assets arising from the split of an asset whose status is Autonomous will have the status Autonomous and will have no link to the original asset.

 Split of an asset with the status Principal

The asset arising from the split of an asset whose status is Principal will have the status Component and will be attached to this main asset.

 Split of an asset with the Component status (or Component waiting attachment)

The assets coming from the split of an asset which status is Component (or Component waiting attachment), will have the same status and will be linked to the same main asset, if the link to a main asset exists.

Impact of events

All events linked to an original asset are transferred to the generated assets. The amounts are split and recalculated on the same split bases as the asset.
In case of split of the linked expenses, the amounts of their associated events are split too.

Tab Linked expenses

 

 

Validation of the splitting process

Click OK to validate the chosen setup and to return to the original asset, displayed with its new values.
The assets arising from the split will not be created in the database until after the validation. They will appear in the left list after refreshing it using the F5 key your keyboard.

The asset which has been split, as well as assets coming from the split, can be identified in the Fixed asset management function, at the level of the Other info tab:
- The Split check box is set to Yes for the split asset.
- Assets from the split have the value Entry origin: Split. They inherit the same group number as the split asset's (if there are successive splits, the group number of the original asset is kept). The list of assets generated from the slip can thus be accessed in the Assets of the group section of the Assets management function.

Specific Buttons

This button is used to split the asset by applying the entered parameters. The assets resulting from the split are displayed in the Generated assets grid.

This button is accessible only after a split has been carried out by distribution of the quantity. It is used to recalculate the ex-tax amount of each asset in proportion to the new quantities entered.

Error messages

In addition to the generic error messages, the following messages can appear during the entry :

Invalid number of splits

The number of assets coming from the split must be greater than or equal to 2.

• For a split by distribution of the amount, the maximum number of assets arising from the split is limited to 999.
• For a split by distribution of the quantity, it is mandatory that the number of assets arising from the split is less than or equal to the quantity carried by the asset to be split.
• For a split by expense, the maximum number of assets arising from the split is limited to the number of expenses.

Split not possible: asset only attached to one physical asset and the number of expenses is <2

In this situation, you need to link at least one additional physical asset to the fixed asset. This allows the split of asset by physical asset.

Failure when recording the split

This error linked to a defect in the database. If the problem continues, please contact support.

Tables used

Refer to documentation Implementation