Transfer capitalised Assets to Inventory items

[Former Member]

Hi,

There is a Material which is procured as ASSET & has been capitalised & available in books as ASSET. Now, there is a requirement to transfer this ASSET in value & quantity from Books of assets to Inventory. The transfer may be in parts also. Can anyone suggest the way to go about. Thanks.

Regards,

JND

[Former Member]

Would an expert in the oil and gas or mining areas have an answer? Natural resources are assets. At some point in time the material becomes inventory. The process transactionally must be similar.

[ajaycwa1981]

Hi

Use 242 movement type to convert asset into Inventory... This is the Standard approach... I dont think you need to separately scrap it.. Also, I dont think you can do 242 for partial value of the asset..

Another option is to do ABSO with 101 trans type and reduce the asset partially to a cost center and do a 202 movement type to generate inventory.. however, this would generate inventory at the material master price...

BR,Ajay M

[Former Member]

Thanks. Will try both the options.

Regards,

JND

[Former Member]

Hi Experts,

please share your Valuable inputs. i am facing the same issue.

[Former Member]

Hi Experts,

Any reply?

[Former Member]

Hi

1.You have to use 242 movement type to transfer asset value to inventory.(Fully or Partly) (Inventory DR ,To Offsetting GL CR)

2. In the FI and asset books you have to retire asset with offsetting gl.

[Former Member]

Hi,

There is no direct process for converting assets into inventory..

Alternative procedure :

1. Asset Scrapping

2. Create material number for the above asset

3. Tag same GL (Loss on sale of asset scrapping) in OBYC for ZOB key in GBB

3. Do goods receipt with 501 movement type

Thanks,

Padmaja