EDUCAÇÃO E TECNOLOGIA

Post Retirement – By Scrapping (In all Ledgers or Specific Ledger)

Asset retirement is the removal of an asset or part of an asset from the asset portfolio. This is called asset retirement or asset scrapping. Organizational considerations or the business transaction leads to the retirement.

There are different types of retirement:

  • When user sell an asset with revenue and Customer
  • When User sell an asset, which is with revenue and without customer. This is posted against clearing account.
  • When asset is scrapped, and no revenue earned
  • When asset is sold to an affiliated company

In this blog, we will discuss Post Retirement – By Scrapping app. An asset is retired from the fixed assets without revenue (for example, by scrapping). Users post an asset retirement by scrapping. The system then creates the posting Loss made on asset retirement without revenue in the amount of the net book value being retired instead of the revenue and gain/loss posting to all ledgers or specific ledger.

We will also see how to reduce balance from one ledger and all ledgers.

Step 1

Manage Fixed Assets App

With this app, you can display worklists for asset master data, manage asset master records and display asset values in various valuations.

Following asset data has been considered in example below –

  • Asset Code – 50000095-0
  • Acquisition Value – 10000 EUR
  • Acquisition Date – 01.09.2021
  • Useful Year – 6 years
  • Ledger – 0L and 2L

Manage%20Fixed%20Assets%20App

Step 2

A) Post Retirement – By Scrapping in all ledgers

User wants to retire (complete retirement) an asset by scrapping in all ledgers. Enter the information as below –

  • Enter Company code, Main asset number and asset sub-number
  • Keep ledger field as blank (This will scrap asset in all ledger)
  • Enter Document date, Posting Date and Asset Value Date

Step%202

Click on “Partial Retirement Tab”

In next window, select “current year or prior year acquisition” radio button based on asset acquisition and then simulate the posting.

Step%203

Following screen shows impact of asset scraping. It will decrease APC value minus deprecation calculated from asset value. In this scenario system will post separate accounting documents for each ledger.

Step%204

B) Post Retirement – By Scrapping in the specific ledger

If the user wants to retire an asset by scrapping in the specific ledger and specify retirement amount (partial retirement). Enter the information as below –

  • Enter Company code, Main asset number and asset sub-number
  • Enter Ledger – 2L
  • Enter Document date, Posting Date and Asset Value Date

Step%205

Click on “Partial Retirement Tab”

In next window, enter Amount Posted and select “current year or prior year acquisition” radio button radio button based on asset acquisition and then simulate the posting.

Following screen shows impact of asset scraping. It will decrease APC value by the amount entered minus deprecation calculated. In this scenario posted is affected to 2L ledger – IFRS.

Click the save button to post the document.

Step 3

Manage Fixed Assets App

To view the result of Asset scrapping, go to “Manage Fixed assets App”.

Enter information as below –

  • Company Code – 1010
  • Main Asset Code – 50000095
  • Asset sub-number – 0

Now click on Valuation and select 2L ledger. We have posted 1000 EUR in 2L ledger as asset scraping. The same reflects in the month of Sept 2021.

Next, click on 0L Ledger.

There is no reduction in APC value (1000 EUR) in 0L ledger.

Accounting Entry posted in 2L Ledger

Asset Accounting document posted in 2L ledger.

Hope this blog clarifies on how to reduce asset value (by scrapping) in a specific ledger or all ledgers from Post Retirement – By Scrapping Fiori App.

You can find more information about apps from below links:

https://help.sap.com/viewer/3e5fcf2c768746049b5627bd5a42f720/2108.500/en-US/f0a16409fbc649b896add04c1c0a624e.html?q=asset%20Retirement%20-%20By%20Scrapping

https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/#/detail/Apps(‘ABAVN’)/S26

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