Set this indicator, if you want to post the net book value of assets instead for a company code. The liability is commonly a legal requirement to return a site to its previous condition. How to analyze negative nbv in asset history sheet of sap. The net impact of this would be a gross block of asset in the balance sheet 100 less accumulated depreciation credit 40 60 being the net book value of the asset just prior to the time of asset retirement. Sap ag asset accounting fi aa icons icon meaning caution example note recommendation syntax april 2001 3. Value which gets reduced over time as depreciation and ultimately becomes zero when depreciated fully. Instead it creates a loss made on asset retirement without revenue posting in the amount of the net book value being retired. Kzrbwb indicator post net book value for retirement. Assets creates journal entries for either the gain or the loss accounts for the following components.
Asset usefull life3 years i got depreciation for fiscal year 2016243228 i tried to have simulation for fiscal year 20172018. Should the retirement amount be less than the net book value. You can set an indicator to specify that the system post the net book value from an asset retirement to a clearing account for revenue from asset sale or a clearing account for sales to an affiliated company. When you use this posting option, the system does not create revenue and gainloss postings. In this detailed example, we will analyze how the system calculates the base value 24 net book value for the transaction. An acquisition value exists for each asset in depreciation area 02. In trying to close the fiscal year in the asset accounting subledger in our q test. You can specify that the system posts net book value from asset retirements to a clearing account for revenue from asset sale, or a clearing account for sales to an affiliated company. I need to configure net book value posting instead of gain loss posting for asset retirement. The net book is the calculated value of an asset using the historical cost of the asset minus any accumulated depreciation. Hi gurus, im facing a little problem on asset depreciations for italy. If you see negative nbv in asset history sheet report, it might be caused by overposted depreciation. Img asset transaction retirement gain loss posting post nbv.
Therefore the book value of the asset is 60 which you are disposing and the customer promises to pay 50 against it during asset sale. Fixed asset retirement in the same month of acquisition. Therefore, it is not logical to have negative values of apc of an asset in other words, your asset carries a price or a fully depreciated asset is valued at zero. In the below picture, you can find the retirement transaction for the asset, as well as the necessary value adjustment made proportional values. Retirement without revenue transaction posts nbv to one account specified in account determination for each reason of disposal. Asset retirement sap library asset accounting fiaa. See here to view full function module documentation and code listing, simply. A business should recognize the fair value of an aro when it incurs the liability and if it can make a reasonable estimate of the fair value of the aro. The fixed asset does however still have a net book value higher than zero.
Retirement is the removal of an asset or part of an asset from the asset portfolio. An asset retirement obligation aro is a liability associated with the eventual retirement of a fixed asset. Net book value the value of an asset in the accounting book which is calculated. How an assets retirement affects the net book value. I have one asset with aquisition datestart depreciation date on 31. However even after making according account determination. Click delete to remove a fixed asset id or subasset id from the list. Now display balance for gl account 30000004 profits on asset disposal sale after doing asset retirement and notice that system has posted the same value to both ledger i. Question asset accounting ordinary depreciation greater than. Post it, the assets are retired from the company at the current net book value excluding revenue.
Journal entries for retirements and reinstatements oracle assets. Hi experts, i am working on group asset retirement for india. Net book value is calculated as the original cost of an asset, minus any accumulated depreciation, accumulated depletion, accumulated amortization, and accumulated impairment the original cost of an asset is the acquisition cost of the asset, which is the cost required to not only. Below is the pattern details for this fm showing its interface including any import and export parameters, exceptions etc as well as any documentation contributions specific to the object. An option to create journal entries for asset transfers at any time has been added. The net book is the calculated value of an asset using the historical cost of. I have found a place where you can tick and select company code concerned by those types of postings. You must clear or reverse down payments and investment support measures, which are in the same posting year as the retirement, before you post the complete retirement.
I have a problem after setting up a new transaction type for retirement and limiting it to depreciation area 15. A retirement without revenue is the removal of an asset from the asset portfolio without any revenue, for example, by scrapping. As we know, the net book value nbv of a fixed asset owned by a company should never be negative. The complete retirement of a fixed asset is only possible if all transactions to the asset were posted with a value date before the asset value date of asset retirement. Instead it creates a loss from an asset retirement without revenue posting in the amount of the net book value being retired. But why the depreciation amount is zero in the future year. After saving complete retirement or complete transfer posting, 1 jpy or 1 eur remained in area 01 and the asset is not deactivated field anladeakt in asset master data is empty cause inconsistent customizing in tcode.
Now, decide to do a partial retirement of the asset. If you want to see net book value of asset, then you can go for for asset explore t. Carry cost accounting information from marketing documents. Use in the standard system, for an asset retirement by sale or scrapping, the system posts a gain or loss posting. Ive retired an asset by document type scrapping, for the full value and the journal entry seems to be incorrect. How to view depreciation simulation for future number of. A fixed asset was migrated with a deactivation date and a last retirement date.
The net book value for group asset is calculated correctly. You have configured the asset valuation views in such a way that a negative value is not permitted for the net book value of assets, you have posted a supplier invoice which is resulted in the creation of the fixed asset and later you have performed depreciation as well, now when you cancel the supplier invoice, you notice that. Memo value have been maintained in oayi, the net book value for the problem asset is is below the memo value. It seems like it is not possible to post the complete retirement in the same acquisition month. Asset cannot be deactivated, despite its complete retirement or complete intracompanyintercompany transfer, because the net book value is not zero in at least one. So in our case, after the first year the trucks value will be 4000. If you want the asset to be retired in nbv choose which depreciation area e. The restriction of posting logic to certain depreciation areas is done in classic asset accounting using area types as set out in sap note 1069166. Sap business one fixed assets solution also ensure that the nbv of fixed assets in the application is greater or equal to zero. Set the flag negative values allowed for the problem asset. Master asset acquisition asset transfer asset retirement retirement with scrap. Specify rounding of net book value andor depreciation. As the fixed asset is already retired and deactivated it is not being considered by the depreciation run.
Net book value is the amount at which an organization records an asset in its accounting records. Sap recommends this procedure in preference to the second option described below, if it is possible to calculate the data per asset. You make this specification in the definition of the asset company code. Asset xxxxx will not be deactivated, it has a net book. Codear02, here also same asset code and year, you have to give. Definition specifies that at asset retirement the net book value of the asset is posted. Fixed assets in sap business one introduction vina system. Depreciation on retired assets finland sap documentation. If up to now you have been using the post net book value at retirement logic, note the following.
Net book value with proportional value adjustments 27. And finally, the user can retire a fixed asset using an ar invoice. Review sap functionality for retirement handling for capital assets and lva. Retire asset with or without revenue sap erp modules. A retirement or partial retirement was already posted on the asset after the date entered. Straightline, net book value calculation method net book value remaining life. Meaning if an asset is retired, use the gainloss logic in the ifrs depreciation area, and the nbv logic in the french ledger.