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Intercompany asset transfer

former_member215688
Participant
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Hello Experts!

I am trying to post an intercompany asset transfer through ABT1 with manual revenuw posting. Below is the entry created in sending company code.

1. Entry in sending company code A

Fixed assets            CR      1000

Acc. Dep.                DR        100

Asset clearing sale   DR        800

Loss on asset dis.    DR        100

2. Entry in receiving company code B

Fixed assets               DR     1000

Acc. Dep.                   CR       100

Accrued. Liab.             CR       900

Above are the entries generated in respective company codes. Now the user wants the manual clearing amount of 800 needs to be the GBV in new company code B. Just curious about the different practices being followed elsewhere. Is it a normal practice every where or the entry created through ABT1 is practiced normally?

Desired entry by user -

Fixed asset                DR      800

Accrued Liab              CR      800

They want the purchase value to be the gross asset value for the new company code and with no Acc. dep. calculated.

Is it possible throuh ABT1/ABT1N? Or any other process, needs to be followed in this case.

Aprreciate a quick response.

Regards

Partha

Accepted Solutions (1)

Accepted Solutions (1)

former_member204860
Active Participant
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dear partha,  by keeping the asset at Gross value with acc. dep. will be more appropriate then booking the asset in the receiving company on net basis.    The acc. dep trace will help the receiving company to keep the depreciation rate and useful life same as in the sending company.  n.selvakumar.

ajaycwa1981
Active Contributor
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Hi

I agree with Mr. Natarajan.. Thats the best way to do

br, Ajay M

former_member204860
Active Participant
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hello ajay, Thank u for your compliment.  n.selva kumar.

Answers (1)

Answers (1)

Former Member
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Hi Partha,

The allowed transaction types for Intercompany transfers can be updated in t code AO67-For acquisition transfer and AO68-For retirement transfer.

In ABT1N you can choose Gross method or net method.

Hope it helps.

Regards,

G.Sethuraman