sap - perform disposal of assets

Copyright © 2009 Accenture All Rights Reserved. 1

Accenture Advanced Enterprise SolutionsPerform Disposal of Assets

Copyright © 2009 Accenture All Rights Reserved.

Copyright Information

Copyright © 2010 Accenture.

All Rights Reserved.

Neither this document not any part thereof may be copied or reproduced in any form or by any means, or translated into another language without the prior

consent of Accenture. The information contained in this document is subject to change and supplement without prior notice. All rights reserved

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Agenda for Discussion

●Course Objectives

●Process Overview

●Asset disposal transactions

●Knowledge / Skill Checkpoints

●Disposal of Assets-Demo

●Course Summary

●Questions

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Course Objectives

Upon completion of this course, you will be able to:

●Define Disposal of Asset

●Transfer of Assets

●Types of Transfers-Intra company and Inter Company

●Perform Retirement of Assets

●Perform Mass Retirement of Assets

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Process Overview

Disposal of Asset:

●Companies may dispose of assets voluntarily through sale, abandonment, exchange, or donation. Regardless of the method of disposal, the objectives in the accounting for the disposition are:

- To eliminate the book value of the asset disposed off.

- To record the consideration received (if any).

- To record any resulting gain or loss.

●The activities for asset disposals classified as retirement by scrapping, other asset disposals are handled by the following:

- Asset donation.

- Asset Sale.

- Asset Retirement due to theft.

- Asset retirement due to Casualty Loss.

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Process Overview

Transfer of Assets:

An asset transfer may be necessary for one of the following reasons:

●The physical location of the asset has changed, making it necessary to assign the asset to a new company code.

●The organizational structure of the affected group concern has changed, requiring organizational changes to be made.

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Process Overview

Types of Transfers-Intra company and Inter Company:

In Asset Accounting, there are two types of transfer,

● Intra-company asset transfer: Sending asset (or component of an asset) is transferred to a target asset within a single company, for example, if the asset was created in the wrong asset class.

- Using intra-company asset transfer, a fixed asset is transferred, or an asset component, to a different asset master record. The target asset has to be in the same company code as the sending asset. Intra-company transfer may be necessary for one of the following reasons:

- An asset was created in the wrong asset class. Since you cannot change the asset class in the asset master data, you have to transfer the asset to a new master record.

- You split up an asset or move part of an asset (transfer from asset to asset).

- You settle an asset under construction and transfer it to a finished asset.

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Process Overview

Types of Transfers-Intra company and Inter Company: (Cont…)

●Inter-company asset transfer: Sending asset (or component of an asset) is transferred to a target asset that is assigned to a different company. An asset transfer between company codes refers to the internal transfer of an asset between two company codes. An asset transfer may be necessary for one of the following reasons:

- The physical location of the asset has changed, making it necessary to assign the asset to a new company code.

- The organizational structure of the affected group concern has changed, requiring organizational changes to be made.

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Process Overview

Retirement of Assets:

●Asset retirement is the removal of an asset or part of an asset from the asset portfolio. This removal of an asset (or part of an asset) is posted from a bookkeeping perspective as an asset retirement.

●An asset is retired by scrapping or selling it and it occurs for new assets, those acquired in the current fiscal year, or old assets that were acquired in previous years. Depending on the organizational considerations, or the business transaction which leads to the retirement.

●There are two common reasons that contribute to the need to retire assets in SAP:

- The asset must be disposed off.

- The asset is obsolete.

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Process Overview

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Retirement

Sale Scrapping

With Customer

Without Customer


Process Overview

Mass Retirement of Assets:

●When an enterprise sells a large portion of the asset portfolio (such as a plant or a building), it is necessary to post the retirement of all the individual assets which make up the whole. Since the number of assets involved can be extremely high, the FI-AA component makes it possible to carry out the retirement using mass posting.

●The selection of the assets involved and the basic procedure for mass retirement is carried out using the same functions as a mass change to asset master data. When a work list for mass retirement, the purpose has to be entered as either "retirement with revenue" or "retirement without revenue, the following entries are needed for posting the mass retirement:

- Posting date

- Transaction type

- Revenue and type of revenue distribution

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Knowledge / Skill Checkpoints

● If the consideration received exceeds the book value of the asset given up, a Gain arises, If the book value of the asset given up is greater than the consideration received, a loss results.

● When an asset has fully depreciated, it should be possible to continue tracking the asset and not force the asset to be retired. Even though an asset may have no accounting value it's possible that the asset would still have some real value.

● An asset retirement can refer to an entire fixed asset (complete retirement) or part of a fixed asset (partial retirement). In both cases, the system automatically determines, using the asset retirement dates entered, the amounts to be close out for each depreciation area.

● Retirement by scrapping is normally carried out when the commercial operation of an asset ceases or an asset is abandoned for operation.

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Asset disposal transactions

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Transaction Transaction Code

Transfer of Assets

Transfer the assets between different company codes

Transfer the assets with in same company codes

ABT1N

ABUMN

Perform Retirement of Assets

Retirement of Asset with customer

Retirement of Asset without customer

Retirement of Asset by scrapping

Post the revenue to the already retired asset

Post the cost to the already retired asset

F-92

ABAON

ABAVN

ABNE

ABNK

Perform Mass Retirement of Assets

Mass retirement of Assets AR01


Asset Transfer- Intercompany

● Intercompany Asset Transfer --: T.Code: ABT1N

Enter the company code, asset number and in transaction data enter date and other relevant details

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● Enter the location and other relevant details in interco. Transfer to new asset.

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● In the additional details tab enter the posting period, transfer variant and other details then enter and save it.

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Asset Transfer- within same company code

● Transfer asset within same company code: T.code: ABUMN


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● Enter the location and other relevant details in interco. Transfer to new asset

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● In the additional details tab enter the posting period, transfer variant and other details then enter and save it

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● Retirement of Asset with customer: T.Code: F-92

Enter the Document date,type, posting date, company code and other relevant details as per the below screen shots.

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● Retirement of Asset without customer:-- T.Code: ABAON


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In the additional details tab enter the posting period, reference and other details then enter and save it

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Asset Retirement by Scrapping

● Asset Retirement – T.Code: ABAVN


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In the additional details tab enter the posting period, reference and other details

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In Partial retirement tab enter the percentage rate and other details then enter and save it

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● Post revenue to an already retired Asset :- T.Code : ABNE

Enter the company code, asset number, date and other relevant details then enter and save it

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Post the Cost to the already retired asset

● Post the cost to already retired asset :- T.Code: ABNK

Enter the company code, asset number, date and other relevant details then enter and save it

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Mass retirement of Assets

● Mass Retirement of asset- Tcode: AR01

Steps :

1. In AR01 mention the company code and execute.

2. In the Asset Balances output screen select WL button and create WL.

3. Mention the posting details and continue as work queue would be created.

4. In Transaction code AR31 mention the work queue generated in the WL field

5. Execute and now check your report it is done.

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Course Summary

● Companies may dispose of assets voluntarily through sale, abandonment, exchange, or donation.

● Asset retirement is the removal of an asset or part of an asset from the asset portfolio. This removal of an asset (or part of an asset) is posted from a bookkeeping perspective as an asset retirement.

● There are three ways to retire an asset: by sale, by scrap, or by loss. Selling an asset is the transfer of the asset to an outside receiver for some sort of compensation. This compensation can be the same as, more than, or less than the value of the asset. Scraping an asset is essentially the same as throwing the asset out.

● When the amount of the acquisition and production costs that are being retired, the system determines the percentage to be deducted from the fixed asset starting from the first depreciation area in which posting is to take place. The quantity can be entered, provided that a specific retirement amount or percentage rate has not been entered.

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Questions

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sap - perform disposal of assets

Documents

asset retirement

asset component

target asset

sending asset

asset disposals

asset accounting

asset donation

asset sale