How to Merge Assets (Transfer Cost from one Asset to Another)


We have just completed a fixed assets verification exercise and are now in the process of cleaning up the register. One of the areas that we needed to fix are sub-components that had initially been booked as separate assets, and we need to merge them.

As a simple illustration, you have a machine and its installation cost both initially captured as independent assets. Now we want to maintain the complete machine as a single complete asset. To do this we would like to transfer the cost (and accumulated depreciation) from the 'installation asset' to the main machine.

In values this would work out as follows:
Current values for the installation: cost 1,000 acc depreciation 400.
Current values for the machine: cost 10,000 acc depreciation 4,000.
We would now like to transfer the value from the 'installation' to the machine so that we end up with a machine at a cost of 11,000 and acc depreciation of 4,400.

The asset transfer transaction only gives options for transferring/changing the object account, location, category, etc. And the asset splitting transaction only allows transfer of cost to a new asset.

Any ideas on how to transfer the cost from one asset to another existing asset?
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We stumbled on a workaround. Using the financial journals, but indicating the asset number in the Asset field. Two cautions though:
1. do not enter the asset numbers under the subledger field/option
2. take a note of the depreciation rules for the receiving asset. For example if the depreciation is based on straight line-remaining period, then the subsequent depreciation (after the transfer) will be distorted

Any other thoughts?