Description
This program eliminates intercompany profit or loss for transferredassets by interpreting the asset retirement table in which the usermust enter the book value of assets transferred within the group andproceeds from their retirement. These values can either be enteredmanually or automatically carried accross from AM.
In the year of transfer, the system reduces/increases book value of theasset for the acquiring company by the profit/loss, with an affect onnet income. In the following years and, if necessary, in the year oftransfer also, depreciation adjusting entries are made to thecalculated intercompany profit/loss. The system reads the relevantamounts from the table showing the course of depreciation. The user canaccess this table via Entry Maintenance in the asset retirement table.