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You can transfer fixed assets to inventory at the net book value. As result of this transfer, the status of the fixed asset is set to Scrapped, and the net book value is set to 0 (zero). Additionally, the quantity of a product in inventory is set to 1, and the cost price is set to the net book value of the fixed asset.
Use the standard Inventory to fixed assets journal to transfer fixed assets to inventory. For more information about the fields in the journal, see Inventory to fixed assets journal page (Field descriptions).
To transfer a fixed asset to inventory, follow these steps.
- Validate that the depreciation for the fixed asset is posted up to the transfer date.
- Create a new Inventory to fixed assets journal.
- On the journal lines, select the asset to transfer and the product to receive.
- Enter a negative quantity.
- Validate that the Cost price field has the Net book value.
- Post the journal.
- Validate that the fixed asset and inventory transactions were created correctly.