The final page on asset depreciation will focus on the two additional Asset application actions Swap Depreciation Schedules and Split Depreciation Schedules. But we’ll take a look first at what happens to the depreciation schedules when you move an asset.
- When you issue a rotating asset from a storeroom to an operating location there is no change to the depreciation, GL transactions or depreciation history records.
- When you move an asset from one location to another within the same site there is no change to the depreciation or GL transactions, but you do get a depreciation history record of type MOVED with the Previous Asset field referencing the asset that was moved.
- When you move an asset from one location to another in a different site there is no change to the depreciation or GL transactions, but you do get a depreciation history record of type MOVED with the Previous Asset field referencing the asset that was moved.
- On source site the asset record is now at DECOMMISSIONED state.
- On destination site the new asset record at NOT READY state has the same depreciation record and history but not the GL transactions.
The DEPRECIATION table references the ASSETID attribute and not ASSETNUM, and so the depreciation is effectively against the same physical asset even if the asset number has changed.
The DEPTRANS table that has the GL transactions for asset depreciation is referencing the ASSETNUM and SITEID, and not the ASSETID attribute.
- When you move an asset from one location to another in a site that is part of a different organization then:
- You receive a warning that the depreciation schedule will not be moved.
- You get a depreciation history record of type MOVED with the Previous Asset field referencing the asset that was moved.
- The depreciation schedule is removed from the record at the originating site although the GL Transactions and depreciation history are still present.
- There is no depreciation schedule on the asset record in the destination site, there are no GL transactions on this organization, however, the depreciation history is present indicating the move from the source site and asset.
- The current value of the asset at both the source site and destination site is set to null.
- You can set up a new depreciation schedule for the asset in the new site and organization.
- If the asset that was moved had a child asset that had depreciation, the child asset is also moved but there is no change to the depreciation on either the source site or the destination site.
When you swap one asset with another you might wish to keep the depreciation schedule of the original asset rather than inheriting the one associated with the new asset. There is an action for this called Swap Depreciation Schedules. We’ll see that in action but first let’s understand what happens when you perform an asset swap.
Asset 2082 has a current value of $225 with depreciation starting on 03-Apr-20 for 8 quarters with a salvage amount of $25. It is in the CENTRAL storeroom.
Asset 2112 has a current value of $162.50 with depreciation starting on 03-Apr-19 (a year earlier) for 8 quarters with an original starting cost of $300 and with a salvage amount of $25. Asset 2112 is at operating location BOW-W1.
In Inventory we issue item PUMP100 and select rotating asset 2082 with a location of BOW-W1.
In Assets application we select asset 2112 and use the Swap Asset action and select asset 2082 as the replacing asset.
The result is no change to their depreciation schedules or current value. The only change is that asset 2112 has a depreciation history record to indicate that it was moved. There is no history record for asset 2082, this is because you do not get one when you issue the asset, and I had issued the asset to location BOW-W1.
Swap Depreciation Schedules
There are two screen shots for the Swap Depreciation Schedules, top is the left side, bottom is the right side of the dialog.
After pressing OK then:
- Asset 2082 has a current value of $162.50 it was $225.00, its Depreciation ID is now 1055
- Asset 2112 has a current value of $225.00 it was $162.50, its Depreciation ID is now 1054
The Swap Depreciation Schedules action has swapped the Depreciation ID between the two asset records which means that they have swapped the depreciation schedules and depreciation periods.
The GL transactions and depreciation history have not changed. The depreciation history on both asset records has a SWAPPED audit record with the Previous Asset column indicating the previous asset number that owned the depreciation schedule, in this case for asset 2112 it was asset 2082.
Split Depreciation Schedules
Maximo allows you to split depreciation from the parent to the child assets or to split depreciation from one asset to several others, which may not be related. When you split depreciation, you can split a proportion or all of the assets current value.
Split Depreciation to Child Assets
In this example we will split 20% of the parent pump’s depreciation to the child motor of the pump, retaining 80% of the current value to be depreciated on the pump itself.
You can split depreciation to child assets with the Split Depreciation Schedule action. Here I have a pump with value of $225 depreciating over 8 quarters to a salvage amount of $25, with a start date of today, 02-Apr-20.
I am just focusing on the right-hand side of the Split Depreciation Schedules dialog. I have used the “Add All Child Assets” button to add the child motor asset as a target asset and entered a 20% allocation to this asset leaving 80% depreciation on the pump itself. The Schedule Definition for asset 2124 will default to start today. If you are starting the depreciation of the main asset on a different day then you may need to change the start date on the schedule for each asset to that day as well. Maximo doesn’t assume that.
After pressing OK and saving the effect of the split depreciation then, if you navigate to the child asset 2124 and view its depreciation schedule, you’ll find the same schedule depreciation but for 20% of the current value of its parent asset. 20% of $225 is $45. The salvage amount is similarly scaled, 20% of $25 is $5. The last date of depreciation is 02-Apr-2022.
If you navigate back to the parent asset and use the View Depreciation Schedule then this should now only be 80% of the depreciation, a quarterly amount of $20 instead of $25. What I think we see here is an issue. The number of periods has been reduced from 8 to 7, it should be 8. While there are the right number of periods there is no depreciation on 02-Jul-20, it should be $20. The Current Value of the parent asset is $225, it should be $180, and that of the child asset is $45, which is correct.
The History tab will show that it was SPLIT, but there is no record that I could find of indicating where it was split to.
Split Depreciation to Selected Assets
In this example we will split 100% of an asset’s depreciation to three new assets which are entirely unrelated to the other asset. The proportion to the other assets will be 50%, 30% and 20%.
We’ll start with the asset on which we will split 100% of its depreciation. It has a Starting Cost of $12,000 and Salvage Amount of $2,000 with depreciation over 8 quarters, starting today.
In the Split Depreciation Schedules dialog, we have selected three new assets that I created specifically for this test.
- Asset 2167 receives 50% of the depreciation
- Asset 2168 receives 30% of the depreciation
- Asset 2169 receives the remaining 20% of the depreciation
The asset against which we split depreciation has its schedule periods removed apart from the next one with its amount set to the Salvage Amount. There is no depreciation amounts on the two records. There is an issue here in that you’ll find that we have split the starting cost and salvage amount over the three other records and so the depreciated value on the second record should be zero. Its date should also be 07/04/20 as the current value will still indicate $12,000 until 07/07/20.
The History Tab shows that the asset was SPLIT shortly after it was created.
For asset 2167 which received 50% of the split depreciation the starting cost and salvage amount are half the values as the originating asset and the depreciation schedule is over 8 quarters starting on 07-Apr-20, as we would expect.
For asset 2168 which received 30% of the split depreciation the starting cost, salvage amount and depreciation schedule are all as we would expect.
For asset 2169 which received 20% of the split depreciation the starting cost, salvage amount and depreciation schedule are also as we would expect to see them.
The history tab for asset 2169 does not show a CREATION record, only a SPLIT History Type, but it doesn’t show the asset from which it was split.
Cron Task for GL Depreciation
There is a background Cron Task called DepreciationFinTransCronTask which will create the GL transactions when depreciation occurs. It also marks the column Transaction Created on the Current Schedule tab. GL transactions are written to table DEPTRANS.
If the Transactions Created checkbox is not being marked then in the first instance check that the Cron Task is active and running and then check the schedule frequency to see when it should run next, you may just have to be patient.
The Cron Task does the following:
- It checks that the “Create GL Transactions” on the depreciation schedule is set to 1
- It reads the depreciation record for the depreciation schedule
Then if the deprecation schedule is DATE based it:
- It selects the depreciation schedule periods where the depreciation date <= time now and “GL Transaction Created” is not set to 1 and orders the records by depreciation date.
If the deprecation schedule is METER based it:
- It selects from the asset and asset meter to determine the current meter reading
- It selects the depreciation schedule periods where the depreciation meter life to date <= asset meter reading and “GL Transaction Created” is not set to 1 and orders the records by depreciation meter life to date.
Then for both DATE and METER based it:
- It selects a record from financial periods where timenow >= period start and timenow < period end
- It selects from depreciation transaction table DEPTRANS to ensure the unique key will not be broken (OrgID, DeprecationNum, DepSchedNum, PeriodNum, TransDate) by inserting the record.
- It then inserts a record into the depreciation transaction table DEPTRANS.
- It then updates the depreciation schedule periods record (DEPSCHEDPERIODS) and marks GL Transaction Created attribute to 1.
Unless you mark the depreciation schedule to Create GL Transactions you do not have any visible way of seeing how far through the current schedule you have reached. For DATE based it is obvious because you just compare the depreciation date with today, for METER based it is not obvious as you would first need to look up the current meter reading.