I’ve been trying to find a way to move a single stock item into an asset. Let’s say I purchase laptops and sell them. But among the bought laptops, I want to use one/multiple laptops for office work which should be assets. Now, the item code/name everything is same. Let’s say, among 100 laptops, I want to use 5 and sell the rest.
As asset item can not be stock item, I couldn’t find any resolution to this. The best way-around I found is that, I transfer all the stock item, making stock adjustment. Ref: Moving Asset from Stock Item to Fixed Asset Item
That would be useful to me too. In another ERP I managed this kind of flow by creating both assets and stock items. Stock items would have batch number same as asset number so their tracable. Not very easy solution though.
@fnrfarid
if laptop issued for internal usage you should perform an internal issue transaction where below journals will be created.
Dr used account at internal usage issue trx account @average cost
Cr material account @average cost
at this point your stock value and qty are correct, used account is holding a value which is wrong, since it’s clearing account it should be cleared.
as mentioned in the article “Ref: Moving Asset from Stock Item to Fixed Asset Item” you should create manually an asset and complete steps there for depreciation and assignment and so on…
@nmami I’m not really sure if I understand your concept and I’m still on V10, I don’t think I have the option to make an account as Inter Company Account/ Internal Issue transaction.
Also, the main issue was while creating an asset, I will need to select an item, which is still a stock item.
Thank you for your help, but I think this is complicated for me and there should a much simpler way.
Hi. Did you manage to come up with your own solution? We have a similar situation to the topic author- we sell printers and use several of them at our offices. It seems entirely impractical to create a secondary item code purely for assets, especially since it would mess up analytical reports based on item code.
Hi. Having items as fixed assets is a requirement. It is best to create generic products (in a different branch of item group) for different types of fixed assets that can be linked to asset categories. So it is enough to create a few. Then, when creating each asset, the generic products are used and it is only in the Name of the asset where you can put the original product, its series and more. Personally, in the Stock Entry: Material Issue to output the inventory of the product, I select in the Item table the account of the fixed asset to be registered. So I don’t need to make another Journy Entry.
I hope some of these ideas if you are not applying them help you to simplify something at least
Hi Malvin. Thank you for that, our accountant and I actually sat down and discussed the asset register after I posted this question. During our discussion, I realised that the reason you need a new stock item code is that you don’t want your asset depreciation affecting your stock accounts (which it would if you were able to use the same item code). So for an existing asset, do you recommend using a Material Issue to remove the item from stock then using another Stock Entry to bring it in as the asset item code? If you do that, will it safely update the relevant Serial No document?
Hi Archais. Step1. Create a new item code as a fixed asset, I recommend it to be generic to use with all fixed assets of the same category (and thus it is enough to have few Items of the fixed asset type). (As: FA-Vehicules, FA-Fornitures, FA-Electronics devices, FA-Tools).
As the items of the fixed asset type do not keep stock, it is not necessary to create a Stock Entry for them.
You can create too a new item group for the fixed assets items.
Step 2. Create the Fixed Asset. Use the new item code of fixed asset created on the Item code field.
I recommend Enter the text referring to the name and serial number of the original product on the field Asset Name to thereby recognize that particular fixed asset.
You can track the location and the movements of the fixed assets within the fixed assets module totally independent of the inventory.
As for the item that you remove from stock, its serial number will look like it came out of the inventory linked to the Stock Entry of type Matrial Issue.
This doctype automatically makes the Journal Entry with the credit to the inventory account and the debit to the fixed asset account that you must select on the item row of the item table.
I mean simply drop the assets you are using into a Fixed Assets Warehouse. In the Chart of Accounts, move the Stock Account of the warehouse into the Net Block section of the chart of accounts (a little bit of scripting to change the filter of the warehouse account) should help you do this. A Background Job that revalues the valuation of the items to account for depreciation and use the Depreciation Expenses account as the difference account should solve most of your issues.
Thank you Jay. I will probably go with Malvin’s solution as it does not require any scripting and using a Material Issue does make sense as a process since your theoretical stores person would “issue” the item in question from stock then accounts would add it to the asset register.