I’m exploring whether ERPNext has a built-in feature or workflow that supports transferring an Asset from one Company to another — specifically, along with all its linked accounting entries (such as Depreciation Journal Entries).
Here’s the use case:
An asset is created under Company A and has already gone through depreciation posting.
The asset has multiple Journal Entries linked to it (depreciation, adjustments, etc.).
When performing an Asset Transfer, I’d like the system to also reflect the transfer in accounting — meaning:
The company field in all related accounting entries (e.g., Journal Entries) should change to Company B.
The accounts used should also map to Company B’s chart of accounts.
Essentially, I want to ensure that the asset and its entire accounting trail are properly reflected under the new company after transfer.
I’ve checked the existing Asset Transfer workflow but it seems to only handle asset-level movement (location, cost center, etc.), not the associated GL entries.
Is there an existing feature, hook, or best practice for this type of cross-company asset transfer with accounting adjustments?
Or would this require a custom implementation (e.g., a script to re-create or re-map the JEs under the target company)?
Any reference, documentation, or implementation insight would be greatly appreciated.
Yes, you can do so but not directly through one click because ERPNext treats each company as a separate legal and accounting entity. Here’s two options which may suit you;
Sell the Asset to Company B and this is going to be recorded as inter company transaction where company A will create sales invoice and on the other hand Company B will have Purchase Invoice automatically based on inter company transaction configured. Here is the link to inter company Documentation Inter Company Invoices.
You don’t want the GL entries to be changed to Company B. Frozen accounting periods being updated? Should not happen.
You most likely would want to see the history of that asset’s depreciation from Company B. Which we don’t currently have. You might be able to have a custom field mapping the previous Asset ID (from Company A) to this Asset document which could serve this purpose.
And as said in the previous post by @ahsantareen, Selling and Purchasing the asset as an inter company transaction with the depreciated current value being the purchase price in the new company is the proper way of doing things.
That make sense guys I agree with the solution that you have. And I think customizing this kind of feature might not be stable and hard to maintain, and yeah especially when the book is already close this is hard. Thank you for the knowledge, guys!