Fixed Asset transfers in Castaway

The problem

Transferring values from one fixed asset element to another creates cashflow movements in Castaway, even when there is no cashflow in real life.

In Castaway Cloud, there is an effective workaround that achieves a transfer without cashflow.

Background

There are several reasons you might want to transfer values from one Fixed Assets element to another, including:

• converting assets from a non-depreciating work In progress account to a depreciating fixed asset once they are fully installed and ready to use
• moving assets into/out of a low value deprecation pool
• reclassifying assets 

In your accounting system, you will likely process such transfers as a manual journal. In Castaway however, the natural assumption is that such movements represent an offsetting sale & purchase. This then triggers offsetting cash inflow and outflow (note that ne cashflow will report correctly), asset sale and purchase. While these net off to nil, it will leave you with some unusual figures in your funds flow or cash flow report.

This article details how you can do a transfer from one asset element in castaway to another and avoid unusual cashflow and funds flow numbers.

Transferring the asset element in an Actuals period

1. First, go into the two asset elements that are involved in the transfer, in the bottom of the settings panel
2. Choose the revaluation reporting option which is set to default as ‘revaluation reserve (BS)’
3. Change this to Gain/(loss) (PL)
4. Ensure this setting is activated in both elements.

You can now move into the Actuals data screen where you can manage the transfer.

1. In the Actuals data screen, locate your assets
2. In the month of the transfer, remove the transferred amount from the asset value
3. If your WIP is 1,000,000 and you are transferring 900,000 your new asset value for WIP is 100,000 and the 900,000 will be added to the total of the transfer location.

Next, go into the profit and loss screen within Actuals data.

1. Locate the line that says ‘Fixed asset Revaluation’ and in the same month you made the transfer enter (in this example) -900,000 in the WIP asset and 900,000 in the asset that is receiving the transfer.

Important

In your P&L, you will have a line for asset revaluation gain that will be netted off to 0, you can always collapse this line down if you do not want to see it in reports.

Transferring an asset in a projected period

Completing a transfer in the projected period is very similar in process except you complete the transfer in the element instead of the Actuals table.

Here's how:

1. Go into the elements for WIP and the element that will receive the transfer
2. In the bottom of the settings panel, there is the revaluation reporting option which is set to default as ‘revaluation reserve (BS)’
3. Change this to Gain/(loss) (PL)
4. Ensure this setting is activated in both elements.
5. Navigate to the revaluation line. In the WIP element, put a –ve amount equal to the transfer into the asset change line. Ensure this is in the month of the transfer.
6. In the asset element that is receiving the transfer, go in and add the same amount as a positive in the asset change line
7. Ensure this occurs in the same month.