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The functions related to intra-group transfers/sales are used to carry out different types of operations. This can be:

  • A provision of partial assets
    This is an operation by which at least one company (the source company) brings a part of the asset elements to a target company.

  •  A merger of companies
    This is an operation which carries out :
    - either in the form of the absorption of one or more companies by another: the merger leads to the dissolution of the absorbed company/companies.
    - or through the creation of a new company to which several companies bring their assets: the companies will disappear to build up a new company.

  •  the de-merger of companies
    This operation consists in the total and simultaneous absorption of a company by at least 2 companies between which all assets and liabilities for the de-merged company (which is immediately dissolved) are split.

  •  an intra-group sale
    This is an operation by which a company sells to another company some of its asset elements.

Operation process

The use of an intra-group transfer/sale operation is carried out is several stages that are run in the following order :

1/ Definition of the operation

This first stage consists of:
- the creation of an operation with the indication of the transfer type, as well as the companies involved,
- the definition of the selection criteria for the assets involved in the transfer,
- the setup of certain rules particularly related to the transfer/sale price, the loading of the depreciation plans for the target company/companies, as well as the management of the capital gain or loss,
- specification of the references for the information recoding process(es) (particularly the Sites) that are associated.

2/ The Pre-recording of issues

process.This second stage is used to execute the operation previously defined and to store in a temporary table the result of this process. A log file, available at the end of the process, is used to display the list of these assets as well as their sales amount.

3/ Manual adjustment of issuesProcess

This process is used to intervene in the process result by excluding the issue, if necessary, of one or more selected assets and updating their transfer/sale price if required.

4/ The Transfer/sale confirmation

process.This last stage is used to save both the issue of the assets from the source company that are stored in the temporary table, and the receipt of these assets in the target company/companies.

Note: the closure for any company used as a source or target company in an intra-group transfer operation, is not authorized as long as the transfer validation process is not completed.

Prerequisite

SEEREFERTTO Refer to documentation Implementation

Screen management

This function is the first step of a Fixed asset transfer operation within a group. It consists of:

  • a header that is used to enter the identification information for the operation,
     
  • a grid that is used to select the source company/companies as well as the target company/companies,
     
  • four tabs that are used, respectively:
     
    - to select the assets and define their transfer/sale price calculation rules,

    - to define the terms for loading the depreciation plans in the target company/companies,
     
    - to set up the different rules applied to the assets on exiting the operation,

    - to associate with the operation, one or more references to the setup of the Recoding process, to be used in the mass recoding of the different values, in particular those of the source company sites.

Header

Presentation

The header contains the transfer/sale operation information. It is used:

  • To specify:

    - its reference and description,
    - the operation type: Partial provision of assets, intra-group sale, merger, de-merger,
    - the fiscal rule associated with the operation,
    - the effective date of the operation. This is the issue date displayed at the level of the source company assets. The "effective" date of the issue taken into account at the level of the charge calculation for the fiscal year, will in reality correspond to the effective date minus 1 day.
    It is mandatory that this date falls in the current fiscal year for each of the plans in the source company and target company, used in the operation setup.
     
  • To view the operation status. This cannot be modified directly but evolves as the different stages in the transfer/sale process progress.
     
    Thus it automatically takes as its value:

    - In preparation during the creation of the transfer/sale.

    - Issues processed after use of the Pre-recording of issues process. From now on, the operation setup cannot be modified. Only by cancelling this process is it possible to return to the status In preparation.

    - Receipts processed after the Transfer/sale confirmation operation. This status is irreversible.
     
  • To enter, in a grid, the references to the companies for which the process is carried out, each line being used to associate a source company with a target company.

Notes:

  • 1/ If several source or target companies are involved in the operation, the user must carry out the setup of each source company / target company pair (selection, loading terms for the target company plans....) before adding an additional line.
  • Up to a maximum of 10 source or target companies can be specified.

 

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Fields

The following fields are present on this tab :

Description

  • Reference (field CIGCOD)

Reference for the intra-group transfer operation.

  • Description (field DES)

Description of the intra-group transfer operation.

  • Type of operation (field CIGTYP)

This field is used to identify the transfer type : partial contribution from the asset, company merger, company split or intra-group sales.

  • Operation status (field CIGSTA)

This non modifiable field shows the operation status:

  • During the creation of a transfer, its status automatically takes as its value : In Preparation.
     
    This status evolves with the different stages of the transfer process.
  • On exiting the Pre-registering of the issues process, it takes as its value: Issues Processed. The user can return to the In preparation status by cancelling this process.
  • After the Transfer confirmation process, the status passes to: Processed Receipts. It is irreversible.
  • Effective date (field EFFDAT)

This field is used to enter the effective date of the operation.
It is mandatory that this date falls in the current financial year for each of the contexts at each of the source and target companies.
This date will be used to load :

  • The issue date Displayed at the level of the source company assets.
     
    Note: the effective date of the issue taken into account at the level of the charge calculation for the financial year will in reality correspond to the effective date minus 1 day.
    No charge is in effect calculated on the issue date (irrespective of the value taken by the general parameter PADDOTJSO : No charge calculated on the issue date).
     
  • 2/ The purchase date and the first day of service for the assets, in the case where the parameterisation of this management rule at the level of the Other rules tab specifies it.
  • Fiscal rule (field CIGFIS)

Financial rule applicable to the transfer operation.
In the case of an intra-group sale, the Preferred rule is not available.

  • Process date (field OPEDAT)

This non modifiable field is empty when the status of the operation is In preparation.
It then displays, either the date on which the processing of the issues is carried out when the status has the value Issues processed, or the process date for the validation of the transfer where the status has the value Receipts process.
  • User (field PROUSR)

This non modifiable field displays the name of the user that has launched the processing.

Grid Companies

This field is used to enter the reference of the source company.
When it is a Merger or a Partial asset provision, the operation can deal with several source companies.
In this case it is necessary to enter and validate when adding a source company, the parameters that appear in the different tabs, notably :

  • selection of the assets of the source company
  • loading terms for the target company plans.

When several source companies are entered, the parameterisation displayed in the tabs at the bottom of the grid, corresponds to the source company that the user has selected. This line then appears in bold characters.
Note : the same company can be subject to several operations only in the case of a Partial asset provision or an Intra-group sales.

This field is used to enter the reference of the target company.
If it is a Merger or a Partial asset provision, the operation can deal with one target company only.
When it is a De-merger, at least two target companies must be entered.
In this case it is necessary to enter and validate when adding a target company, the parameters that appear in the different tabs, notably : selection of the assets / the source company method of loading the plans at the target company.

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Tab Selection

Presentation

  • This tab is used to select the assets that will be subject to the transfer/sale by entering one or more selection references. These selections have been previously defined in the window accessible using the right-click option "Selection tunnel." If a single asset is subject to several selections, the setups defined for the first selection will be applied to it.
     
    The user can add a filter on the assets in the selection according to their CoA account nature: FA In process and/or In service.

    Three additional criteria are also available to indicate whether the selected assets and presenting the following characteristics must be saved during the selection:

    - assets where the Holding type is In lease,
    - assets purchase since the effective date (these assets to not take the transfer/sales price but are cancelled in the source company and recreated identically in the target company),
    - the assets issued since the effective date (in this case, their issue is cancelled in the source company ; the assets are created in the target company then issued according to the terms that are set up in the source company).

    Notes:

    1/  The Components assets are automatically excluded by the selection. However, when the asset status Principal is selected, all the assets with the status Component that are attached to it, are automatically selected even it they do not meet the other selection criteria.

    2/ When an asset attached to a lease contract with the status In process is selected, all the assets attached to this contract are automatically selected, even if they do not meet the other selection criteria.
     
    3/ When a selected asset has been created by the capitalisation of expenses, with a receipt date greater than or equal to the effective date, the expenses attached to the asset are automatically transferred and recreated identically in the target company, keeping their link with the financial asset.
     
    4/ When a selected asset is assigned to physical elements, these elements are automatically issued and created again identically (except for localization) in the target company where their link with new assets is preserved.
     
    5/ The assets, for which the issue date is earlier than the effective date, are never selected.

    6/  The Inactive assets are automatically excluded by the selection.
     
  • This tab is also used to specify the calculation rule for determining the transfer/sale price. The sale/transfer price can correspond :

    - to the Net value of a specified plan on the effective date,
    - to the Gross value of a specified plan,
    - to the result of the Distribution of a global envelope; the distribution can be carried out according to the Net value or to the Gross value of a specified plan,
    - to a Transfer/sale price entered by the user, identical for each asset.

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Fields

The following fields are present on this tab :

Grid

This field is used to enter the reference for a selection applied to the assets in the source company.
The parameterisation of the selection is carried out in the window called via the right-click option Selection tunnel.
The entry of at least one reference is mandatory even if the operation is carried out for all the assets from the source company.
The entry of several selection references is authorised. In the case where a single asset is the object of several selections, it is the parameters of the first selection that will be applied to it.
It is possible, using the following fields, to apply a filter on the assets arising from the selection, with respect to their CoA account nature and their Holding type, to their receipt date and issue date.

  • Description (field CIGREXSEL)

Non modifiable displaying the description of the selection.

  • In progress (field GACACNWIP)

This field is used to filter the result of the selection by specifying if the assets where the CoA nature is Fixed asset in progress are conserved in the selection.
If it is set to No, it is mandatory that the following field that is used to filter the assets with the CoA nature Fixed asset in service is set to Yes.

  • In service (field GACACNREA)

This field is used to filter the result of the selection by specifying if the assets where the CoA nature is Fixed asset in service are conserved in the selection.
If it is set to No, it is mandatory that the previous field that is used to filter the assets with the CoA nature Fixed asset in process is set to Yes.

  • Leasing (field OWNTYPLEA)

This field is used to indicate if the assets responding to the different selection criteria and where the Holding type is In lease must be conserved in the list of selected assets.
When a asset attached to a financial lease contract of the type Lease is selected, all the assets attached to the same contract are also automatically selected.

  • Recpt >= bill date (field PURDATEFF)

This field is used to indicate if the assets responding to the selection criteria and where the purchase date is greater than or equal to the effective date are conserved in the selection.
In this case, these assets will no be declared issued in the source company but will be cancelled. They therefore do not receive the transfer price but will be taken identically with the VAT in the target company.

  • Disposal >= bill date (field OUTDATEFF)

This field is used to indicate if the assets responding to the selection criteria and whose issue date is greater than or equal to the effective date are saved in the selection.
In this case, the issue of these assets will be cancelled in the source company. These are created in the target company with the same conditions as the other assets then will be issued according to the same terms as the issue parameterised in the source company.

  • Sale price calculation rule (field SALPRIMOD)

This field is used to select the calculation rule determining the transfer price for each of the assets.

  • Specified plan (field SALPRIPLN)

This field is used to specify the plan from which the transfer price is calculated.
It is mandatory that it is entered except when the transfer price, identical for each of the assets, is entered by the user.

  • Sale price (field SALPRI)

This field is used to enter the transfer price for the assets in the currency used for the management of the company.
It is mandatory that this amount must be entered when the transfer price calculation rule corresponds either to an amount distributed according to the net value of the gross value of a plan or to an amount identical for each of the assets.

  • Default sale price (field SALPRIDEF)

This field can only be entered when then transfer price calculation rule corresponds to the Net value of the Gross value for a specifies plan.
The entry of a default transfer price is used to respond to the requirements of the companies that want to assign a symbolic transfer price to the assets transferred with no value (gross value=00 or no longer having a value (net value=0).
The amount must be entered in the company currency.

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Tab Plan to be loaded

Presentation

This tab is used to set up the loading rule for the values of each of the target company plans.

Several rules are available:

  • Values identical to the template plan specified in the next field: the Gross value, Charge and Net value will be loaded by those of the template plan in the source company. This rule is only available if the start and end dates of the fiscal year, as well as the period division are identical in the template plan and if both plans are managed in the same currency.
     
  • Identical values: the Gross value, Charge and Net value will be loaded by those of the identical plan in the source company. This rule is only available where :
    * this plan exists in the source company
    * the start and end dates of the fiscal year as well as the period sub-division are identical in the two companies in this plan,
    * their management currency is the same.
  • Gross value = Transfer/sale price. The Gross value will be loaded with the transfer/sale price. The method is entered in the next field; otherwise, the depreciation method in the source plan is used. The depreciation duration must be entered in the next field.
  • Gross value = Net value from the template plan. The Gross value will be loaded with the net value of the template plan from the source company, specified in the next field. The method is entered in the next field; otherwise, the depreciation method in the template plan is used. The depreciation duration must be entered in the next field.

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Fields

The following fields are present on this tab :

Grid

  • Target plan (field DPRPLN)

This field is used to select a plan for the target company in order to parameterise, in the next column, the rule that manages the loading of these values.
All the plans at the target company must be parameterised in this way.

  • Management rule (field RULPRO)

This field is used to select the rule for loading the plan in the target company:

  • Identical values to the template plan: the values will be loaded with those of the template plan for the source company specified in the next field.
    It is mandatory that this rule is applied to load the Source plan (with the Accounting plan for the template).
  • Identical values.
  • Gross value = Transfer/sale price.
  • Gross value = "Net value" for the template plan, from the source company, specified in the next field.
     
    The choice of one of the first two rules is only possible if the following conditions are met:

    - their start and end dates of the current financial year as well as their periodic sub-division are identical.
    - their management currency is identical.
  • Templ plan (field PLNTPL)

This field must be entered when the loading rule of the target plan makes reference to a Template plan.
It is used to select this template plan among the plans at the source company.
The following consistency controls are applied:

  • The start and end dates for the financials year as well as the periodic sub-division of the template plan must be identical to those of the target plan.
  • It must be managed in the same currency as the plan to be loaded.
  • These management standards must be compatible with those of the plan to be loaded:

    * If this plan is not standard, it is mandatory that the template plan must be non standard.
    * If this plan is managed according to the CRC 2002-10 standard, the template plan must be non standard or managed according to the CRC 2002-10 standard.
    * If this plan is managed according to the IAS/IFRS standard, the choice of the template plan is not under any restriction.
  • Method (field DPRDPM)

This field is used to enter the depreciation method for the target plan.
It can only be entered when the rule for the target plan loading has the value : Gross value = Transfer price or Gross value = Net value template plan.
By default, the depreciation method used will be:

  • that of the source plan, if the management rule has the value: Gross value = Transfer/sale price.
  • that of the template plan, if the management rule has the value: Gross value = Net value template plan.
    In the case where the method entered or used is the Digressive method and the residual duration is < 3 yrs, this method will be automatically replaced by the Linear method.
  • Duration (field DPRDUR)

It is mandatory that this field is entered when the loading rule for the target plan is either Gross value = Transfer price or Gross value = Net value template plan.
It is used to enter the depreciation duration taken into account at the level of the target plan: it can either be the Residual duration or the Renewal of the previous duration.
Note: in the case where the rule is Gross value = Net value template plan, the residual duration and the previous duration are those of the Template plan.

  • Default duratn (field DPRDURDEF)

It is mandatory that this field is entered when the depreciation duration parameterised in the previous field has the value Residual duration.
It is used to specify the depreciation duration to be taken into account in the case where the residual duration is equal to 0. The value entered must, as a minimum, be equal to 1.

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Tab Other rules

Presentation

This tab is used to define the additional management rules that determine:

  • the value used to define the tax basis,
  • the purchase date and first use date retained in the target company,
  • the status on the purchase of the asset,
  • VAT transfer rule,
  • the basis used to calculate the capital gain or loss.

    A flag is used (when activated) to request the transfer process, in the target company, of the +/- value generated during the transfer/sale. In this case it will be reintegrated in a deprecation plan and depreciated according to a method that allows the user to set up by specifying :

    - the welcome plan,
    - the re-integration date,
    - the depreciation method,
    - the depreciation duration.

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Fields

The following fields are present on this tab :

Other rules

  • TP/TF basis (field TAXBASTPF)

This field is used to select the rule determining the value for the professional or property tax basis that will be retained for the assets at the target company.
This rule is applied only to the assets meeting both the following criteria at the same time:
1/ Their holding type is In property.
2/ Their purchase date is inferior or equal to the date precised in the following field: For the assets acquired until.
For the other assets, their tax basis will be systematically equal to the contirbution value.

  • For assets purchased until (field RULTPFDAT)

The rule concerning the valuation of the professional or property tax bases, applies only to the assets with the holding type In the property and for which the purchase date falls before or at the same time as that specified in this field.
For the other assets, their tax basis will be equal to the contirbution value.
This field is filled by default with the following value: 31/12/YYYY (where YYYY represents the year of the transaction effective date - 1).
This non-editable date must fall before or at the same time as the effective date.

  • Purchase/ps date (field PURITSDAT)

This field is used to select the rule determined the value of the purchase date and the introduction of the assets in the target company.

  • Transferred VAT rule (field VATTRFFLG)

This field is used to specify whether the company needs to transfer part of the initial invoiced VAT of the company of origin to the target company, in proportion to the adjustment duration not yet elapsed. In this case, the transferred amount is calculated automatically for each asset as follows:
Transferred VAT =Initial invoiced VAT x Residual adjustment duration / Adjustment period duration
  • Purchase cond. (field PURNAT)

This field is used to indicate the purchase status of the assets in the target company.

  • Disposal VAT rate (field ISSVATRAT)

This field is used to enter the VAT rate to apply on the selected assets, during the processing of issue from the source company:

  • When the rate entered is different from 0 (case of a taxable transfer): this rate also becomes the invoiced VAT rate (GCA and IAS/IFRS) on the assets created in the target company.
  • When this rate is equal to 0 (case of a non taxable transfer), the VAT amount invoiced (CoA and IAS/IFRS) on the assets created in the target company:
    - is forced to 0, if the VAT transfer is not requested,
    - is forced with the VAT amount transferred if the VAT transfered is requested.
  • Base +/- value (field BASGAL)

This field is used to select the base value of the plus or minus reference value, for the assets in the target company.

Intra-group +/- value

  • Process +/- value (field GALPRO)

The activation of this tick box is used to indicate that the +/- value, generated during the transfer operation, must be transferred to the target company.
In this case, it is necessary to indicate in the next fields if it is the +/- value for the accounting plan or the +/- value for the financial plan, then specify the plan as well as the reintegration method for this +/- value in the target company.

Source company

  • Plan +/-value (field GALPLNSRC)

This field is used to specify if it is the +/- value for the accounting plan or that of the financial plan, retained to be transferred to the target company.

Target company

  • Plan +/-value (field GALPLNDES)

This field is used to indicate the destination plan for the +/- value at the level of the target company. Only a Free plan is authorised.

  • Reintegration date (field GALDAT)

This field is used to enter the reintegration date, that is to say the start date of the depreciation for the +/- value in the target company.
By default, this date corresponds to the operation effective date; it can be modified as it stays superior or equal to the effective date.

  • Deprec meth +/-value (field GALDPM)

This field is used to enter the depreciation method for the +/- value in the target company.

  • Depr durat +/-value (field GALDUR)

This field is used to enter the depreciation duration for the +/- value in the target company.
This duration is expressed in years.

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Tab Recoding

Presentation

This tab is used to display the reference(s) for the Recoding processes associated with the transfer/sale operation.
It is also used to add or delete one or more processes previously defined for the operation in process.
The right click is used to access, by tunnel, the Recoding function.

The recodings are used to replace, for the assets transferred to the target company/companies, the value:

- the information controlled for a miscellaneous table,
- the analytical dimensions,
- the location,
-the geographic and financial sites.

Note: a reference to the Site is unique in the application and cannot exist in more than one company. As a consequence, in order to complete the transfer/sale confirmation process, it is mandatory that a Site recoding process for the source company/companies, is associated with the transfer/sale in process.

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Fields

The following fields are present on this tab :

Grid

This field is used to view or to enter the reference for the recoding applied to the operation.

  • Description (field REFDES)

Recoding description.

  • Table name (field TABNAM)

This non modifiable field displays the reference for the table affected by the recoding.

  • Table label (field TABNAMDES)

This non modifiable field displays the description of the table that is affected by the recoding.

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Error messages

The only error messages are the generic ones.

Tables used

SEEREFERTTO Refer to documentation Implementation