Separate Assets

Only capital assets can be separated. Capital assets are created based upon information mainly from Purchasing/Accounts Payable (AP) as well as G/L transactions. In some instances, information on requisitions/purchase orders may not provide a clear indication that there is more than one asset being purchased. This usually occurs when purchases are made in 'bundles,' as is the case with bulk purchases of computer equipment. Physical inspection of the asset(s) upon tagging will confirm the need to separate it into the correct number of assets. In order for an asset to be identified as such, it must meet the following capitalization criteria:

•      It must meet the capital asset threshold.

•      It must have a useful life of at least one year.

•      It must be transportable equipment.

You have three options when separating an asset:

•      Separate an asset into several assets with the same total cost: This option allows you to separate one asset to reflect more accurately the actual number of assets purchased. Use this option when all of the assets are identical, and each of the assets has the same total cost.

•      Separate an asset into several assets with different individual costs: Use this option when each of the assets is different, and when the total cost of each asset is a different dollar amount.

•      Separate a payment on an original asset into new assets with equal cost: In some cases more than one account may have been used to pay for several assets. This option allows you to separate an asset(s) to reflect more accurately the actual number of assets purchased, while selecting the payment from which to create the assets.

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