User can manage and treat identical fixed assets as one single item, with specification of the quantity. Identical fixed assets can be grouped together if they share identical:
- acquisition date,
- acquisition cost, and
- asset group
For example, when a user purchase 5 identical computers, they could be managed under one single asset. Eventually, however, there will be variants to these 5 computers. Some computers may need to be transferred to another location, some may require repairs, and some may need to be disposed or sold. To record these transaction, users need to split the assets individually and apply certain actions accordingly.
Two Types of Asset Split
- Split by quantity: when the identical assets can be divided by quantity, use “Split by quantity” tab to divide the asset. Fixed Asset Connect will automatically create a new asset based on the new quantity. Asset split doesn’t change the aggregate book value and accumulated depreciation. Hence, there is no journal entry created from this action.
- Split by value: when the identical assets can’t be easily split by quantity, user can split the asset based on the book value of the identical asset.