<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/000142" xml:lang="en">
   <Header>
      <Title>Disposing Assets</Title>
      <Keyword type="header" order="d1e1983336">
         <Level1>Disposing</Level1>
         <Level2>assets</Level2>
      </Keyword>
      <Keyword type="header" order="d1e1983341">
         <Level1>Transactions</Level1>
         <Level2>Asset disposal</Level2>
      </Keyword>
      <Keyword type="header" order="d1e1983346">
         <Level1>Assets</Level1>
         <Level2>Disposal</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>An asset disposal removes
		or reduces an asset from service in one or more of an asset's related books. It
		also prevents the asset from accumulating any more depreciation in those books.
		You can dispose of part of, or all of an asset's quantity or cost, or you can
		dispose of the asset in some but not all of its related books. For example, you
		may want to remove an asset from your financial books before you remove it from
		your federal tax books due to timing differences based on federal tax
		regulations.</Paragraph>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>Due to complexities in
		  tax law, you may want to retain the asset in some books but not in others. This
		  requires you to make an asset disposal by book. For more information, refer to <Link href="/baanerp/tf/onlinemanual/000172" role="manual">Disposing Asset Books</Link>.</Paragraph>
      </Note>
      <Paragraph>You can dispose of the
		full quantity of the asset or of a portion of it. You indicate the amount to
		dispose of on each distribution line. ERP Enterprise makes sure that depreciation has
		been calculated up until the date on which the disposal takes effect, then it
		removes the indicated quantity from service in all of the asset's related
		books.</Paragraph>
      <ExampleSection>
         <SectionTitle>Example</SectionTitle>
         <Paragraph>If you dispose of an
		  asset in March 2001 but periodic depreciation was last calculated in December
		  2002, ERP Enterprise must generate depreciation for January and February before it
		  disposes of the asset. If you dispose of an asset in June, but make the
		  disposal effective for a previous month, ERP Enterprise must reverse any depreciation
		  that occurred in the months after the effective date.</Paragraph>
      </ExampleSection>
      <Paragraph>You can record proceeds
		for any type of disposal. For example, you can use the <GUIRef href="/baanerp/tf/fam/tffam1204m000#form.proa" role="manual">Proceeds Amount</GUIRef> field in the <GUIRef href="/baanerp/tf/fam/tffam1204m000" role="session">Asset Disposal (tffam1204m000)</GUIRef> session to record the fair market value of an asset
		that you disposed of through a charitable contribution. ERP Enterprise records journal
		entries for all types of proceeds.</Paragraph>
      <Paragraph>As a result of a
		disposal, ERP Enterprise changes the status of all disposed books from <GUIRef href="/baanerp/tf/domains/fam.bsta#depr" role="option">Depreciating</GUIRef> to <GUIRef href="/baanerp/tf/domains/fam.bsta#disp" role="option">Disposed</GUIRef> in the <GUIRef href="/baanerp/tf/fam/tffam1510m000" role="session">Asset Books (tffam1510m000)</GUIRef> session. You can purge disposed assets from ERP Enterprise by
		processing the <GUIRef href="/baanerp/tf/fam/tffam8208m000" role="session">Archive/Delete Disposed Assets (tffam8208m000)</GUIRef> session. If an asset is only partially disposed of, you can still adjust,
		transfer, and depreciate it.</Paragraph>
      <Paragraph>ERP Enterprise creates journal
		entries from disposals by using the values in the default-posting book. For
		more information, refer to <Link href="/baanerp/tf/onlinemanual/000151" role="manual">Disposal Journals</Link>. In addition to recording
		disposals on an asset-by-asset or book basis, you can record mass disposals.
		For more information, refer to <Link href="/baanerp/tf/onlinemanual/000160" role="manual">Disposing Mass Assets</Link>. Assets subject to
		ADR or MACRS group tax reporting have additional disposal options available.
		For more information, refer to <Link href="/baanerp/tf/onlinemanual/000073" role="manual">Disposing Vintage/Group Accounts</Link>.</Paragraph>
   </GeneralSection>
</ManualTopic>