This process is used to dispose an object and to create accounting transactions
for the disposal.
To dispose an object, it is required
that at least one voucher type that is not connected to a book and of which
the ledger type GL, Affect IL exists for the company. At the same time,
at least one transaction reason which can be used as a disposal reason must
exist. If the object to be disposed is not a rotable pool object, its status
must be Active at the time you carry out the disposal. On the other hand,
if the object is a rotable pool object, its status must be Allow Scrap.
You can dispose an object by selling, scrapping or transferring the asset.
A sale of an object takes place when the disposal of the object generates an income for the company. When this operation is carried out, an amount greater than zero must be entered as the sales value. In addition to the accounting transactions created, you can write off the acquisition value, acquisition value adjustments per book and the depreciation. This operation also results in posting accounting transactions to the sales income. Selling an object results in a change in the object status from Active to Sold.
The posting control for postings types FAP7 and FAP8 must be defined to counter-post the acquisition value and accumulated depreciation. The sales income is posted using FAP9 - Sale, Income and counter-posted using FAP10 - Sale, Interim Posting. If profit/loss postings from the sales are required for one or several books posting types FAP35, FAP36, FAP37 and FAP38 must be defined. For objects with acquisition value adjustments per book posting types FAP43, FAP44, FAP45 and FAP46 must be defined.
A scrap of an object takes place when the disposal of the object does not generate any income for the company. Accounting transactions are created in the system to write off the acquisition amount, the acquisition value adjustments per book and the depreciation. This operation can also be carried out in the Fixed Assets Physical Counting flow. Scrapping an object results in a change in the object status from Allow Scrap or Active to Scrapped.
The posting control for postings types FAP11 and FAP12 must be defined to counter-post the acquisition value and accumulated depreciation. For objects with acquisition value adjustments per book posting types FAP45 and FAP46 must be defined. For scrapping rotable pool objects the posting types FAP19, FAP20 and FAP27 must be defined.
A transfer of an object takes place when an object is transferred from one company to another. It is a disposal of an asset for a sending company and an acquisition of an asset for the receiving company. The transfer of an object may or may not generate income for the sending company. If an income exists, the operation also results in posting accounting transactions to the sales income. The accounting transactions are created in the system to write off the acquisition amount, the acquisition value adjustments per book and the depreciation in relation to the disposal. Transfer an object results in a change of the object status from Active to Transferred.
There are a number of posting types involved for the disposal part of an asset transfer. The posting control for posting type FAP51 and FAP52 should be defined to counter-post the the acquisition value and and accumulated depreciation. The transfer income is posted using FAP53 - Transfer, Income and counter-posted using FAP54 - Transfer, Income, Interim Posting. Optionally, the inter company transaction can be created to counter-post the transfer income using FAP55 - Inter Company Due From Affiliated Company. If profit/loss postings from the transfer are required for one or several books posting types FAP58, FAP59, FAP60 and FAP61must be defined. For objects with acquisition value adjustments per book posting types FAP62, FAP63 must be defined.
When selling, transferring or scrapping an object a check can be performed to find out whether depreciations have been posted until the period defined in the disposal principle of the depreciation method. If all depreciations have not been posted yet, then the process can either be interrupted to create missing depreciations or continue without creating missing depreciations.
The posting types used to handle the accounting transactions for disposal of fixed assets differ according to the nature of the disposal (i.e. whether the disposal is sale, transfer or scrap) as well as the disposal posting method connected to the object being disposed via books.
The voucher type used to create accounting transactions for a disposal of an object can be the voucher type specified for the book connected to the object being disposed or the voucher type you select at the time the disposal is carried out.
The following scenarios illustrate how the accounting process for a disposal of an object varies according to the book connected to the object.
Sale of Object: The acquisition amount is counter posted using FAP7 - Sale, Counter Posting, Acquisition Value. The sales income is posted using FAP9 - Sale, Income and counter-posted using FAP10 - Sale, Interim Posting.
Scrap of Object: The acquisition amount is counter posted using FAP11 - Scrap, Counter Posting, Acquisition Value/FAP19 - Scrap Pool Object, Counter Posting, Acquisition Value.
Transfer of Object: The acquisition amount is counter posted using FAP51 - Transfer Sale, Acquisition Value, Counter Posting. The transfer income is posted using FAP53 - Transfer, Income and counter posted using FAP54 - Transfer, Income, Interim Posting, or FAP55 - Inter Company Due From Affiliated Company.
The voucher type that you specify at the time
you carry out the disposal will be used to create the accounting transactions
for the disposal.
The acquisition amount will be written off using FAP0 Posting Without Posting Control, Fixed Assets. The counter-posting for writing off the acquisition amount, accumulated depreciations and acquisition value adjustments depends on the type of the disposal transaction.
Sale of Object: The acquisition amount is counter posted using FAP7 - Sale, Counter Posting, Acquisition Value. If any depreciation exists for the object, it will be written off using FAP0 - Posting Without Posting Control, Fixed Assets and the counter-posting for writing off the depreciation is carried out using FAP8 - Counter Posting, Accumulated Depreciation. If any acquisition value adjustments exist for the object, they will be written off using FAP0 - Posting Without Posting Control, Fixed Assets and the counter-posting for writing off the adjustments is carried out using posting types FAP43/FAP44.
If the disposal transaction is a sale, the sales income is posted using FAP9 - Sale, Income and counter-posted using FAP10 - Sale, Interim Posting.
Scrap of Object: The acquisition amount is counter posted using FAP11 - Scrap, Counter Posting, Acquisition Value or FAP19 - Scrap Pool Object, Counter Posting, Acquisition Value. The accumulated depreciation will be written off using FAP12 - Scrap, Counter Posting, Accumulated Depreciation or FAP20 - Scrap Pool Object, Counter Posting, Accumulated Depreciation. If acquisition value adjustment exists, it will be handled by FAP45/FAP46.
Transfer of Object: The acquisition amount
is counter posted using FAP51 - Transfer Sale, Acquisition Value,
Counter Posting. If any depreciation exists for the object, it will be written
off using FAP0 - Posting Without Posting Control, Fixed Assets
and the counter-posting for writing off the depreciation is carried out
using FAP52 - Transfer Sale, Accumulated Depreciation, Counter Posting.
If any acquisition value adjustments exist for the object, they will be
written off using FAP0 Posting Without Posting Control, Fixed Assets and
the counter-posting for writing off the adjustments is carried out using
posting types FAP62/FAP63.
If the disposal transaction is a transfer, the transfer income is posted
using FAP53 - Transfer Income and counter-posted using FAP54 - Transfer,
Income, Interim Posting. Optionally, the inter company transaction can be
created to counter-post the transfer income using FAP55 - Inter Company
Due From Affiliated Company.
The voucher type that will be used to
create accounting transactions to write-off the acquisition amount, acquisition
value adjustments per book, accumulated depreciation and the sales/transfer
income (if the disposal transaction is a sale) will be determined by the
system as show in the following table.
| The ledger type of the voucher type specified for the book | The voucher type used to create accounting transactions in the internal ledger | The voucher type used to create accounting transactions in the general ledger |
| General Ledger | N/A | The voucher type specified for the book |
| Internal Ledger | The voucher type specified for the book | The voucher type you specify at the time of the disposal |
| GL, Affect IL | The voucher type specified for the book | The voucher type specified for the book |
Note: If the ledger type of the voucher type specified for the
book is General Ledger, it will be possible to continue with the
disposal transaction only if you have made it possible to post acquisition
balances without updating any of the internal ledgers. If the ledger type
of the voucher type specified for the book is Internal Ledger, it
will be possible to continue with the disposal transaction only if the voucher
type you select at the time of the disposal is excluded from being updated
to the relevant internal ledger (i.e. the internal ledger connected to the
voucher type specified for the book).
If disposal transaction is a transfer, the net cost is counter posted using FAP57 - Transfer, Net Value Posting, Cost Account.
The acquisition value adjustments per book are
counter posted using posting types FAP43/FAP44 for Sale, FAP45/FAP46 for
Scrap and FAP62/63 for Transfer.
If the disposal transaction
is a sale, the sales income is posted using FAP9 Sale, Income and counter-posted
using FAP10 Sale, Interim Posting. If it is a transfer
the transfer income is posted using FAP53 - Transfer Income and counter-posted
using FAP54 - Transfer, Income, Interim Posting. Optionally, the inter company
transaction can be created to counter-post the transfer income using FAP55
- Inter Company Due From Affiliated Company.
The voucher type(s)
that is used to create accounting transactions for the disposal is determined
in the same way as in the scenario where the object being disposed is connected
to a book for which the disposal posting method is Gross Cost.
| Condition | The effect on the Internal Ledger | The effect on the General Ledger |
| No voucher type is connected to the book | The sales/transfer income (i.e. if the disposal transaction is a sale or a transfer), the acquisition value, the acquisition value adjustments per book and the accumulated depreciation will be written off using the voucher type you select at the time of the disposal. | The sales/transfer income (i.e. if the disposal transaction is a sale or a transfer), the acquisition value, the acquisition value adjustments per book and the accumulated depreciation will be written off using the voucher type you select at the time of the disposal. |
| A voucher type of which the ledger type is General Ledger is connected to the book | N/A | The sales/transfer income (i.e. if the disposal transaction is a sale or a transfer), the acquisition value,, the acquisition value adjustments per book and the accumulated depreciation will be written off using the voucher type specified for the book. |
| A voucher type of which the ledger type is Internal Ledger is connected to the book | The sales/transfer income (i.e. if the disposal
transaction is a sale or a transfer) and the acquisition value will
be written off using the voucher type you select at the time of
the disposal. The acquisition value adjustments per book and the accumulated depreciation will be written off using the voucher type specified for the book. |
The sales/transfer income (i.e. if the disposal transaction is a sale or a transfer), the acquisition value, the acquisition value adjustments per book and the accumulated depreciation will be written off using the voucher type you select at the time of the disposal. |
| A voucher type of which the ledger type is GL, Affect IL is connected to the book | The sales/transfer income (i.e. if the disposal transaction is a sale or a transfer), the acquisition value, the acquisition value adjustments per book and the accumulated depreciation will be written off using the voucher type specified for the book. | The sales/transfer income (i.e. if the disposal transaction is a sale or a transfer), the acquisition value, the acquisition value adjustments per book and the accumulated depreciation will be written off using the voucher type specified for the book. |
Note: If the ledger type of the voucher type specified for
the book is General Ledger, it will be possible to continue with
the disposal transaction only if you have made it possible to post acquisition
balances without updating any of the internal ledgers.
If the object is connected to one or more books and it requires that the profit or loss from the sale should be posted to a separate account then the following additional postings will be created.
| Condition | Posting Types Created |
| If the income from Sale>Net value of the book | FAP35 will be created for the profit (credit) and FAP36 for the counter posting (debit) |
| If the income from Sale<Net value of the book | FAP37 will be created for the loss (debit) and FAP38 posting for the counter posting (credit) |
| If the income from Sale=Net value of the book | No additional postings will be created for profit/loss |
If the object is connected to one or more books and it requires that the profit or loss from the transfer should be posted to a separate account then the following additional postings will be created.
| Condition | Posting Types Created |
| If the income from Transfer>Net value of the book | FAP58 will be created for the profit (credit) and FAP59 for the counter posting (debit) |
| If the income from Transfer<Net value of the book | FAP60 will be created for the loss (debit) and FAP61 posting for the counter posting (credit) |
| If the income from Transfer=Net value of the book | No additional postings will be created for profit/loss |
Once the accounting transactions are created, you can roll back the disposal if necessary. This would result in a change in the object status from Sold or Scrapped to Allow Scrap or Active. If a transfer transaction is rolled back, the status of the object in the sending company will change from Transferred to Active.
The information stored in the Disposal tab in the Object window will be cleared when a disposal is rolledback.