Asset Reclassification Utility

This utility can be used to transfer a rental or sales product to a new Rental Product number and in the process redefine the Rental Product Class, Group, Owing Division on the Tag, and physical inventory Location (RSIL).
Associated G/L transactions are created to move the inventory value to the new "Inventory Asset Account" per the new Product Class, as of the transfer date, that are posted with the Rental Journal Transactions from Daily Close 3.

The changes to Product Class and Product Group are tracked in the Audit Log.

Note: This utility will transfer a Sales item to a Rental, but will not transfer a Rental back to a Sales product.

Use Case Example:

This processing is useful if a Rental branch of your firm requires the use of equipment that is currently on the Sales floor and is owned by and resides at a Sales branch of your firm.
The Asset Reclassification Utility can be used to convert the sales product to a rentable asset and to move the equipment to the Rental yard, complete with the relevant ownership, reclassification, and G/L transaction updates.

To be eligible for reclassification the product number must already exist in either Sales Inventory or Rental Inventory with a quantity of 1 and there can be no open documents for the product.
If the product does have multiple quantities and needs to be reclassified, use the Transfer Sale To Rentals utility to move a single quantity first, and then use the Asset Reclassification Utility to redefine the owning and classification values if required.

The prompts are:

TRANSFER DATE

Accept today's date or enter a preferred transfer action date.
This becomes the date of the location change in View Inventory Quantity Changes, and on a Sale to Rental reclassification this date becomes the Acquisition date for the rental product on the new Fixed Asset Tag that is created.

Date Range Control:
If the operator does not have the ability to over-ride the current date range, the transfer date will be checked to make sure the date is valid against the date ranges set as acceptable for module RSPM in Date Range Control.

PRODUCT

Enter the Sales or Rental product number or select it from the Inventory Search window.
This product number will not be changed, even if a sales product is being converted to a rental product.

Rules for Product to be eligible for Reclassification:

• Only an existing sales product, bulk or non-bulk rental product with a quantity of one can be selected for reclassification.
• The product cannot currently be committed on any document such as a Sales Order, Work Order, Transfer, Warehouse Receiving, Contract, Reservation, Invoice, or Bulk Disposal.
• When a Rental product is being reclassified, it must have only one Fixed Asset Tag, and that tag must be active.
• When a non-serialized Sales Part is being reclassified, it must have only a quantity of one and it is converted to a bulk rental product with a quantity of one.
• When a Serialized Sales Part is being reclassified, it must have only a quantity of one and it must have a serial number at the same location to select in the Select Serial Number window.
• When a Serialized at Time-of-Sale Sales Part is being reclassified, it must have only a quantity of one and the serial number must be entered in the Select Serial Number window after the reclassification is accepted.

Current Product Values:
The current values defined for the source Sales or Rental product are displayed for reference only, including the following:

CURRENT CLASS

This the current Product Class of the Sales or Rental product that is to be reclassified.

CURRENT GROUP

This the current Group of the Sales or Rental product that is to be reclassified.

CURRENT ASSET ACCOUNT

This is the G/L Asset Account as defined in the Current Class, that will be Credited in the adjusting posting transaction for the cost of the product when the reclassification is accepted.

CURRENT OWNING DIVISION

For Rental products this is the Owning Division on the Fixed Asset Tag, and for Sales product this is the current physical Location.

CURRENT LOCATION

For both Rentals and Sales product, the current physical Location (RSIL) of the item is displayed.
This division is assigned to the Credit transaction in the adjusting posting entry for the cost of the Rental Product, when the reclassification is accepted.

New Product Values:
Accept the default values or enter the preferred value as follows:

NEW GROUP

Enter the new Group to apply, or select it from the Group Search window.
Only Groups that are designated as Rental, determined by the Product Class assigned to them in the Groups, can be selected for the reclassification.

NEW CLASS

The Rental Product Class that is associated with the New Group is displayed.
This New Class cannot be changed and will become the Product Class for the Rental Product when the reclassification is accepted.

NEW ASSET ACCOUNT

The G/L Asset Account number that has been assigned to the New Class is displayed.
This account number cannot be changed and will be Debited in the adjusting posting transaction for the cost of the Rental Product, when the reclassification is accepted.

NEW OWNING DIVISION

Enter the Owning Division of the product to be assigned to the Fixed Asset Tag.
There is no restriction on whether this is a GL or Inventory designated division in the Divisions table.

NEW LOCATION

Enter the physical location where the product is to be transferred.
This must be designated as both a GL and Inventory division in the Divisions table, as this division is assigned to the Debit transaction in the adjusting posting entry for the cost of the Rental Product, when the reclassification is accepted.

NEW METER

For transfer or reclassification of a Rental product the meter flag is display information and cannot be changed, but the opportunity is provided to reset the readings when the reclassification is accepted.

For reclassification of a Serialized Sales product to a non-bulk Rental, select one of the following:

• Click Meter to track meter readings for this rental equipment.
  The Product Meter Information can be captured when the reclassification is accepted.
• Click Blade to track blade usage for this rental product.
  The blade information can be captured when the reclassification is accepted.
• Click Not Metered if usage is not tracked.

Finished?

Click ACCEPT to proceed with the reclassification of this product, or CANCEL to abort.
Confirmation is required.

Rates Warning:
If neither the product nor the New Group have a rental rate structure, a warning is triggered to alert the operator for follow-up.

Meter/Blade Information:
If the product is flagged to track meter or blade usage, one of the following windows will be triggered to capture any change in dates and units used.

• Product Meter Information:
  The Product Meter Information is triggered to capture any changes to the meter values.
  Changes to the meter usage are logged in Meter History.

• Product Blade Information:

  CURRENT METER READING

  Enter the current blade reading.
  This will be updated when the equipment is rented, exchanged, put off or on rent, or returned, and a new blade reading is reported.

  CURRENT METER DATE

  This is the date of the latest recorded blade reading.

  INITIAL METER READING

  This is the original blade reading of the equipment.

  INITIAL METER DATE

  This is the date of the original blade reading.

Asset Tag Update:

• When a Rental product, bulk or non-bulk, is reclassified, a single Fixed Asset Tag must already exist for the product or the reclassification will be rejected.
  The Owning Division on this tag will be updated with the new value.

• When a Sales part is being reclassified as a Rental, a new Asset Tag is automatically created and the Set New Asset Tag Values window is triggered to confirm the new tag values.
  The product Cost defaults from the Sales Part average cost or from the Serialized Sales part cost.

  Note: The Information Log lists the new Tag number but not the details of it.

Location Transfer:
A record is written for the product in View Inventory Quantity Changes to track the location transfer.

Sale to Rental Transfer:

• When a Sales product is reclassified to a Rental product, the Product number of the Sales Part becomes the product number of the Rental Product and all associated information is transferred from the Sales Inventory table to the Rental Inventory table.
• When a Serialized Sales product is reclassified to a Rental product, the option is provided to flag the new rental product as a blade or metered product.
• When a Serialized at Time-of-Sale Sales product is reclassified to a Rental product, the Select Serial Number window is triggered to capture the serial number, which will be saved on the new Asset Tag that is created.
• A transfer record is written that is reflected in the Sales to Rental Transfer Report.

Bulk/Non-Bulk Reclassification:
When a Rental product is reclassified, the bulk or non-bulk status is not changed.
When a Sales part is being reclassified as a Rental, it is always converted to a bulk Rental Product with a quantity of one, unless it is a Serialized Sales part, and then it is converted to a non-bulk and the serial number is assigned to the new Fixed Asset Tag.

Asset Classification Summary:
A summary of the old and new values is generated in a text format as outlined in Information Log.
When the summary window is closed, the product classification will be executed.

G/L Posting of Transferred Asset Value:
When a product is transferred or reclassified, G/L posting transactions are generated to transfer the cost of the product from the old product inventory account defined by the Current Class to the new product inventory account defined by the New Class.
The Divisions on the G/L posting transactions are determined by the Current Location and the New Location defined in the reclassification fields.
Both the G/L Asset Accounts and the Divisions are listed in the Information Log when the reclassification is accepted.

The following transactions are posted on the Rental Journal Transactions Report the next time the Daily Close 3:

Credit - the Asset account per the Old Class for the cost of the product, and the Old Location, on the Transfer Date where the cost for:

• Sales is average cost or serial number cost (if not zero)
• Rentals is Asset Tag cost (if not zero)

Debit - the Asset account per the New Class for the same cost and the New Location on the Transfer Date