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Normally these transfers are without cash out (of the Solvay Syensqo group), except property transfer tax or similar expenses.

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GENERAL PRINCIPLE
The redeemable spare parts are managed by means of warehouse records, but only in quantity because its price on record is zero; it means that the consumptions are free of charge. The value of these pieces is registered in fixed assets and the cost centers receive the expenses by depreciation.
The following criteria are valid, both for the replacement of the current pieces, and for those of new creation.

CRITERIA
1. - A spare part is considered redeemable if its value is over to 3.000 € and belongs to a single facility.
2. - The owner of each facility is also responsible for their redeemable spare parts.
3. - The administrative management of these kinds of pieces will be centralized by the stock manager.
4. - In order to easily recognize these sorts of pieces in any document that makes reference to them, the short and long texts are prefixed by the character "$", which allows to identify them. 
5. - When a breakdown takes place and an available redeemable spare part is used, the stock manager will consult the responsible for the Maintenance Service or the owner of the facility, regarding the destination of the piece removed: 
  a) It should be repaired.
  b) It is not repaired and a new one has to be bought.
  c) It should neither be repaired nor purchased.
6. - For the acquisition of a spare part that was not a fixed asset until the present and now we need to convert it into one, an investment budget will always be necessary. 

PROCEDURES
For the cases specified in the 5th point, we need to define the procedure that has to be followed for their appropriate treatment.
We have to bear in mind that, in every case, the removed piece has been replaced by one on record with value zero; that is, without charge.

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b) It is not repaired and a new one is purchase
Before the purchase, the stock manager will request from the piece owner his agreement and the budget to buy this piece.
Then, the stock manager will ask the accountants for a budget order and will register two bookings on the record:

1. One positive type 'N' (not warehouse)
2. One negative type 'L' (return to warehouse)
   Starting from this, the purchase order will be created and, when the material arrives, the receipt is entered on the budget order and the piece is returned to the record with value zero.
   
   Then, a new piece asset has to be created by the Accounting Service (Transaction AS01). The creation procedure is the same as for another fixed asset but paying special attention to three specific fields:
   Asset Class
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   Quantity and Unit of Measure: The number of pieces that have been purchased with the same budget order and the unit of measure (usually PC=Piece).
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   Material Number: It is the record identification
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   At the same time, Accounting will write off the damaged piece in the fixed assets, following this procedure:

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To transfer the value of the redeemable piece asset, that has been taken out of the warehouse (with an asset class Z_X9) to a new facility asset (asset class ZX_0) which has to be created (transaction AS11) as a sub-number of the corresponding facility asset (the redeemable piece assets are associated to different accounts from the facility assets).
For the transfer, we have to use the transaction ABUMN
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To find the piece from the facility that was sent to scrap, to proceed to its disposal. If this element isn't easy to find (it can belong to a group), we will write off from the facility a value equal to 50% of this redeemable spare part value.

For the partial retirement, we have to use the transaction transaction ABAVN


And then, click "Partial Retirement"

c) It should neither be repaired nor purchased
Accounting will write down the damaged piece, following the procedure explained in the previous point.
The stock manager, on the other hand, will delete the corresponding record, with the authorization of the piece owner.

PARTICULAR CASES
Exceptional situations are analyzed here. These situations will always demand a previous negotiation with the owner.

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The same as in the previous case, but the new piece to replace the one from the warehouse will be charged on a special order created by Accounting to collect the expenses relating to the accident. 
In this case, the piece always has to be replaced.

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In field "Asset" you have to enter the asset you want to transfer.
You have two options to transfer the values to:
An existing asset
or by a new asset
Fill-in Document date, Posting Date, Asset value date.

Important to consider when you perform an Interco Transfer:
How has this operation to be reported in BFC, as Transfer (Flow F70) or as Sale (Flow F30 on seller side)?
1) If it has to be reported as Transfer (Flow F70) you have to put in the Text ZZZ + additional non formatted texts, as well as ZTT (second screen) in transfer variant.
   
2) If it has to be reported as purchase (Flow F20 on the buyer side) ZZZ has not to be used in the text. The transfer variant depends on the specific parameter of the transaction (contract).

For Flow F70 the text field needs to start with "ZZZ" for Transfer (Flow F70).

Use the Transfer Variant ZTT on "Additional Details" tab.


When the posting is reflected in FI side the system will read the code "ZZZ" and will use automatically the transaction type F70, in the FI posting. 2.1)

For intercompany transfer with Flow F30 / F20 F20 
"ZZZ" has not to be put in front of the text as mentioned above.



For both cases there are 3 possible values:

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1. No revenue, this means that in the sending company the difference between Acquisition and Accumulated Depreciation will be posted as Lost, In the receiving company will be posted in a waiting account B742000000 and 2742000000

2. Manual Revenue. This means you have to enter the value of the "Sale", in this case the system calculates the difference between Acquisition and Accumulated depreciation versus the revenue. If the result is negative, it is a lost if it is positive it is a gain. The amount entered in Manual revenue is posted on accounts B742000000 and 2742000000

3. Rev from NBV. In this case the system posts the net book value of the depreciation area selected as revenue. This result neither in profit nor in loss in the depreciation area selected. The revenue is posted on accounts B742000000 and 2742000000.

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Profit Elimination

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If a sale, scrapping or a transfer was made by mistake, the posting can be reversed by using transaction AB08.



Select the line that belongs to the posting to be reversed (check Transaction type and Text to be sure ) and click on button.

The system simulates the reverse post:

Save the document in order to post it.

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