| # Disposing Asset Books Disposals are performed on a book-by-book basis for an asset. There are several types of disposals that can be recorded against an asset. The impact on financial reporting varies according to the type of disposal. You dispose of assets by book when you want to remove a depreciating asset from service in one or more but not all of its related books. For example, you can depreciate assets for an additional two months in your federal tax - U.S. book after you take them out of service in your financial - U.S. book due to timing differences in federal tax guidelines. You can dispose of the assets in their financial books, but not in their federal tax books. Note You can also dispose of an asset in all of its related books at once. For more information, see the Disposing Assets topic. You dispose of assets by book in the Asset Book Disposal (tffam1213m000) session. When you dispose of an asset by book, you enter identifying information for the disposal, such as a disposal type, date, and reason. If the disposal resulted in proceeds, you can optionally record the amount of the proceeds. First, select the books in which ERP Enterprise must dispose of the asset. Then, enter the disposal information. ERP Enterprise removes the asset from service in each book you specify. When you dispose of an asset by book, ERP Enterprise verifies that depreciation has been calculated up to the period in which the disposal takes effect. For example, if you dispose of an asset in March 2002, but periodic depreciation was last calculated in December 2001, ERP Enterprise must generate depreciation for January and February before it disposes of the asset in the indicated books. If you dispose of an asset in July 2002, but make the disposal effective from the previous February, ERP Enterprise must reverse any depreciation that occurred between February and the present. When you dispose of an asset-book relationship within an asset, the asset-book entry still appears on the asset. ERP Enterprise does not delete the asset-book relationship, but changes its status. The status of the asset-book relationship changes to indicate that it has been disposed of. It stops depreciating and no other transactions can be recorded against that asset book. |