Contents of the Manage Disposal Transactions Screen
Use the fields and options to configure the Manage Disposal Transactions screen.
When disposals are posted, the system completes the following steps:
- For depreciable records and for non-depreciable records for which the
Post Disposal to G/L check box has been selected on the Manage Asset Master Information screen, the Fixed Assets Journal is posted to the General Ledger for the G/L Book.
Note: Only G/L Book data for eligible disposals can be posted to the General Ledger. Although disposal data is created for and written to the Asset Master records and to the FA_DEPR_HS table for other books, no posting takes place.
- For both depreciable and non-depreciable records (regardless of the status of the Post Disposal to G/L check box):
- Disposal information and posting data display in the Disp Info tab of the Manage Asset Master Information screen (and on the Manage Asset Disposal Information screen);
- The Asset Master record status is changed by the system from Active to Disposal; and
- Disposal data is cleared from this screen, the Manage Disposal Transactions screens.
The gain or loss that displays on this screen is only the expected gain or loss based on the expected disposal price. Regardless of the gain or loss displayed on this screen, the book value amount from the Asset Master record is always posted as the gain or loss.
For a non-depreciable asset for which you have selected the Post Disposal to G/L check box on the Manage Asset Master Information screen or on the corresponding field on the Manage Asset Description Information screen, the cost value with the sign reversed is always posted as the gain/loss amount.
For depreciable assets only, you can use this screen to enter a depreciation adjustment to the disposal, which will be posted as a separate entry in addition to the disposal entry. Disposals of depreciable assets (and non-depreciable assets, as applicable) are always posted for the G/L Book. However, neither disposal entries nor depreciation adjustment entries are ever posted for optional books 2 to 10, although the disposal data is written back to the Asset Master record and to the FA_DEPR_HS table for these books. (Disposal data is written to and stored in the FA_DEPR_HS table for optional books 2 to 10 during the Fixed Assets period close process.)
Depreciation adjustment entries are designed to add to or reduce depreciation expense by debiting and crediting depreciation expense and accumulated depreciation. To illustrate the effect of the depreciation adjustment on expected disposal proceeds, the system automatically includes the adjustment in the calculation of gain/loss for display on this screen only. The depreciation adjustment entered on this screen is always posted separately and is never included in the posted gain or loss.
A depreciation adjustment entered on a disposal screen does not automatically have any effect on the gain/loss posted as a result of the disposal. To preserve the audit trail for a depreciation adjustment made on a disposal screen, the depreciation adjustment only debits or credits the depreciation expense and accumulated depreciation accounts, as in a standard depreciation posting. Currently, if you have entered a depreciation adjustment on the Manage Disposal Transactions screens, you will need to manually make a concluding G/L entry to move the balance created in the accumulated depreciation account to the gain/loss account.
To "automatically" include an adjustment to depreciation in the posted gain/loss amount, you must calculate depreciation or manually enter depreciation in the G/L Book Info tab of the Manage Asset Master Information screen (or the Manage Asset General Book Information screen) and post before you enter the disposal on this screen. The adjustment to depreciation will then already be included in the asset's accumulated depreciation, and you will have eliminated the need to create a separate depreciation adjustment entry.
In addition to using this screen to create and edit disposal and depreciation adjustment entries, you can also select previously entered disposals for posting or place disposals on hold. All selected entries must be posted before you close the current Fixed Assets accounting period. Both the posting and closing processes ignore disposals that have been placed on hold.
When a disposal record is posted, the posting process changes its status from Active to Disposal in the Asset Master record. After posting has taken place, data for the disposal is cleared from this screen and is written to the Disp Info tab, where you can view the historical disposal information.
Before you can enter disposal information on this screen, the asset you are disposing of must already exist as an Asset Master record. You can enter disposal data on this screen at any time. In some instances, however, you may want to calculate (and post) depreciation prior to posting disposals. Doing so may help you avoid timing and presentation problems related to gain/loss and/or depreciation adjustments.
The posting process for disposals writes data to the General Ledger for the G/L Book for depreciable assets and for non-depreciable assets for which you have selected the Post Disposal to G/L check box (in the Depreciation Status group box in the Desc Info tab of the Manage Asset Master Information screen). In addition, the posting process for disposals writes data (such as description, document number, timing, and so on) to fields in the Disp Info tab for both depreciable and non-depreciable assets. Once disposal data is posted, you cannot enter disposal information on this screen for the same Asset Master record unless the disposal posting for the asset(s) was reversed using the Reverse Posted Fixed Assets Entry screen within the same period as the original disposal posting. (In the very rare instance that you have historical disposal information, you should enter this data directly on the Disp Info tab on the Manage Asset Master Information screen.)
Identification
The fields in this group box display the asset number, item number, and description of the Asset Master record selected for disposal.
| Field | Description |
|---|---|
| Asset No |
Enter, or click
If the asset/item number combination entered exists and the record is active, the system automatically displays the appropriate data in the Short Desc field and the field in the Depreciable Status group box. If the record is depreciable (or if the record is non-depreciable and you have selected the Post Disposal to G/L check box on the Manage Asset Master Information screen), and you have set up a default gain/loss acct/org/proj combination on the Configure Fixed Assets Settings screen, the fields in the Default Gain/Loss Account for G/L Book group box will automatically display the defaults. |
| Item No |
Enter, or click
After you enter the item number and tab out of the field, the system validates that both asset and item numbers exist in combination and that the asset is active. If confirmed, the system automatically displays the appropriate data in the Short Desc field and the field in the Depreciable Status group box. If the record is depreciable (or if the record is non-depreciable and you have selected the Post Disposal to G/L check box on the Manage Asset Master Information screen), and you have set up a default gain/loss acct/org/proj combination on the Configure Fixed Assets Settings screen, the fields in the Default Gain/Loss Account for G/L Book group box will also automatically display the defaults. |
| Short Desc |
The short description, if entered on the Manage Asset Master Information screen, displays in this non-editable field. To edit the short description or to add a short description, you must do so on the Manage Asset Master Information screen or on the Manage Asset Description Information screen. |
| Fill Table |
Click this button to populate the table window with cost details associated with the values in the Asset No and/or Item No fields. |
to select, the number of the asset for which you are creating the disposal in this required field. You can only dispose of Asset Master records with an
Selection Status
This group box displays the options for selecting the record for posting and updating processes.
| Field | Description |
|---|---|
| On Hold |
This option is the system default. Records on hold are automatically excluded from the posting and update process. |
| Selected for Posting |
Select this option to take the record off hold and include it in the posting and update process. |
Depr/Lease Status
The non-editable fields in this group box display depreciation status and the posting eligibility to the General Ledger for non-depreciable assets.
The asset's depreciation status automatically displays in the non-editable field in this group box after you enter the asset/item number combination in the Identification group box. Asset Master records are assigned Depreciable, Non-Depreciable, or Captalize status on the Manage Asset Master Information screen, or on the Manage Asset Description Information screen, wherein Capitalize status is not allowed.
| Field | Description |
|---|---|
| Post Disposal to G/L |
If the record is non-depreciable and you have selected the Post Disposal to G/L check box on the Manage Asset Master Information screen or on the corresponding field on the Manage Asset Description Information screen, Y displays in the Post Disposal to G/L field in this group box. If the record is non-depreciable and the Post Disposal to G/L check box is clear, N displays in the Post Disposal to G/L field in this group box. |
Posting Sequence No
| Field | Description |
|---|---|
| Seq No |
If a system failure occurs during posting, or if this disposal is currently being posted, the entry's posting sequence number will display in this non-editable field. Identical posting sequence numbers are given to all entries posted in a particular session. A sequence number displays only for disposals that were unsuccessfully posted or when the system is in the process of posting the entry. If the record has a posting sequence number, you will not be able to edit, delete, or save the disposal data entered for it on this screen. You cannot view or edit disposals that have been successfully posted using this screen. |
Gain/Loss Account for G/L Book
When you post a disposal for a depreciable asset (or a non-depreciable asset for which the Post Disposal to G/L check box has been selected), the system ignores the disposal price and/or the depreciation adjustment, and only posts the book value amount to the gain/loss account/organization/project combination specified in these fields.
Any gain/loss on the disposal, as applicable, will be posted to the gain/loss account/organization/project/ref1/ref2 combination specified in these fields. A valid gain/loss account combination in these fields is required if you are creating a disposal for a depreciable asset (or for a non-depreciable asset for which you have selected the Post Disposal to G/L check box on the Manage Asset Master Information screen). If you previously set up a default gain/loss account combination on the Configure Fixed Assets Settings screen, these fields will be automatically populated if the asset is depreciable (or if the asset is non-depreciable and you have selected the Post Disposal to G/L check box). You can edit default or manual entries in these fields as necessary.
| Field | Description |
|---|---|
| Account |
If the asset is depreciable, or if the asset is non-depreciable and the Post Disposal to G/L check box has been selected on the Manage Asset Master Information screen, this is a required field. This field is inactive for non-depreciable records for which the Post Disposal to G/L check box is not selected. If you previously set up a default gain/loss account on the Configure Fixed Assets Settings screen, this field automatically displays the default account. To post the gain or loss on the disposal to a different account, enter, or click
Use caution when you select or edit data for this field. Because this is a standard Lookup to the ACCT table, you may find that you have selected an account from the Lookup that is inappropriate for recording gain/loss data. As you tab past this field, the system validates that the account is not a summary account and that the account is active. |
| Organization |
If the asset is depreciable, or if the asset is non-depreciable and the Post Disposal to G/L check box has been selected on the Manage Asset Master Information screen or on the Manage Asset Description Information screen, this is a required field. This field is inactive for non-depreciable records for which the Post Disposal to G/L check box is not selected. If you previously set up a default gain/loss organization on the Configure Fixed Assets Settings screen, this field automatically displays the default organization. To post the gain or loss on the disposal to a different organization, enter, or click
Use caution when you select or edit data for this field. Because this is a standard Lookup to the ORG table, you may find that you have selected an organization that is inappropriate for recording gain/loss data. As you tab past this field, the system validates that the organization is active. When you save the record, the system validates that the organization is linked to the account. |
| Project |
If the asset is depreciable, or if the asset is non-depreciable and the
Post Disposal to G/L check box has been selected on the Manage Asset Master Information screen or on the Manage Asset Description Information screen and you previously set up a default gain/loss project on the Configure Fixed Assets Settings screen, this field automatically displays the default project. If you want to post the gain or loss on the disposal to a different project, enter, or click
Use caution when you select or edit data for this field. Because this is a standard Lookup to the PROJ table, you may find that you have selected a project that is inappropriate for recording gain/loss data. This field is optional, so you do not need to enter a project number if you are not posting gains or losses to projects. If you do enter a project, however, the system checks that the project is valid for the account and organization. |
| Ref 1 (Or your label) |
If the asset is depreciable, or if the asset is non-depreciable and the
Post Disposal to G/L check box has been selected on the Manage Asset Master Information screen or on the Manage Asset Description Information screen and you previously set up a default gain/loss Reference 1 number on the Configure Fixed Assets Settings screen, this field automatically displays the default reference number. If you designated a different label for Reference 1 on the Configure General Ledger Settings screen in Costpoint General Ledger, your label automatically displays as the field heading (for example, AC 1). To designate a reference number other than the default, enter, or click
Use caution when you select or edit data for this field. Because this is a standard Lookup to the REF_STRUC table, you may find that you have selected a reference number that is inappropriate for recording gain/loss data. This field is optional. If you enter a reference number, however, the system checks that it is valid for the account/organization/project combination. |
| Ref 2 (Or your label) |
If the asset is depreciable, or if the asset is non-depreciable and the
Post Disposal to G/L check box has been selected on the Manage Asset Master Information screen or on the Manage Asset Description Information screen and you previously set up a default gain/loss Reference 2 number on the Configure Fixed Assets Settings screen, this field automatically displays the default reference number. If you designated a different label for Reference 2 on the Configure General Ledger Settings screen in Costpoint General Ledger, your label automatically displays as the field heading (for example, AC 2). To designate a reference number other than the default, enter, or click
Use caution when you select or edit data for this field. Because this is a standard Lookup to the REF_STRUC table, you may find that you have selected a reference number that is inappropriate for recording gain/loss data. This field is optional. If you enter a reference number, however, the system checks that it is valid for the account/ organization/project combination. |
Disposal Info
Use the fields in this group box to enter a disposal date, price, description, type, and disposal document number.
| Field | Description |
|---|---|
| Date |
Enter, or click
After posting, the disposal date from this field will automatically display in the Disp Info tab of the Manage Asset Master Information screen and on the Manage Asset Disposal Information screen. |
| Price |
Enter the disposal price in this field. The disposal price cannot be negative, and "0.00" automatically displays as the default value. The system uses the disposal price to calculate the gain or loss that displays in the table window for each book. When you edit the disposal price, the system recalculates the gain or loss and displays the new value in the Gain/Loss column of the table window. After posting, the price from this field, if entered, will automatically display in the Disp Info tab of the Manage Asset Master Information screen and to the Manage Asset Disposal Information screen. Note: The disposal price will be ignored for gain/loss purposes when the entry is posted to the G/L Book. Only the book value (for depreciable assets) or a negative entry equal to the cost for non-depreciable assets (for which the
Post Disposal to G/L check box has been selected on the Manage Asset Master Information screen or in the corresponding field on the Manage Asset Description Information screen) will be posted as the gain/loss amount.
|
| Desc |
Enter a description of the disposal. After posting, the description data from this field, if entered, will automatically display in the Disp Info tab of the Manage Asset Master Information screen and on the Manage Asset Disposal Information screen. |
| Disposal Type |
Enter, or click
After posting, the disposal type data from this field, if entered, will automatically display in the Disp Info tab of the Manage Asset Master Information screen and on the Manage Asset Disposal Information screen. |
| Document No |
Enter a disposal document number or any other data you want to associate with this disposal. After posting, the document number data from this field, if entered, will automatically display in the Disp Info tab of the Manage Asset Master Information screen and on the Manage Asset Disposal Information screen. |
to select, the desired disposal date in this field. Today's system date displays automatically in this field as a default. The disposal date is used only to organize report data, and is not used in any system calculations.
Table Window
For depreciable assets, the system automatically populates the Book No, Book Name, Cost, Accum Depr, and Gain/Loss fields from existing or calculated data that cannot be edited for depreciable assets. The only editable field in the table is the Depr Adj (Depreciation Adjustment) field, although it is inappropriate to enter data in this field after a disposal has been posted.
If the asset is non-depreciable and the Post Disposal to G/L has been selected on the Manage Asset Master Information screen or on the Manage Asset Description Information screen, the system automatically populates the Cost and Gain/Loss columns in the table window, which cannot be edited.
| Field | Description | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Book No |
The numbers of the books you defined on the Configure Fixed Assets Settings screen display in this non-editable field. Book numbers are displayed in ascending order beginning with Book 1, the G/L Book. (The system always displays a row for the G/L book.) Rows for optional books 2-10 automatically display in this table window for any book set up on the Configure Fixed Assets Settings screen, even if there is no cost or accumulated depreciation data for that book. |
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| Book Name |
This is a non-editable field. The system automatically displays the names of the books as they were defined on the Configure Fixed Assets Settings screen. Rows for optional books 2 to10 automatically display in this table window for any book set up on the Configure Fixed Assets Settings screen, even if there is no cost or accumulated depreciation data for that book. |
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| Cost |
This is a non-editable field. The system automatically displays the value from the Total Cost field in the Cost Info tab and Other Books Info subtask of the Manage Asset Master Information screen or the corresponding fields on the Manage Asset Cost Information screen for the G/L book and for books 2 to 10, as applicable. When the disposal for this record is posted for the G/L Book, the system normally will post a credit to the asset acct/org/proj combination for the amount in this field. If there is a negative value in this field, the system will post a debit. In addition, for depreciable assets, the system normally will post a debit to accumulated depreciation and a debit or credit, as necessary to balance the entry, to the gain or loss account. (Gain or loss posted by the system is the result of subtracting accumulated depreciation from cost; the system thus posts net book value as the gain or loss.) For non-depreciable assets for which the Post Disposal to G/L check box has been selected on the Manage Asset Master Information screen, the system will normally post a debit to the gain or loss account and a credit to the asset acct/org/proj combination for the cost amount. Note: Edits to cost fields in an Asset Master record will update data in this table window prior to posting. If you edit the cost for any book in an Asset Master record after a disposal record is saved, but before posting it, the revised cost will display in this field the next time you use this screen. The system will use the new (edited) cost to compute the gain/loss that is posted, as well as the gain/loss that is displayed in the table window and written back to the Asset Master.
See Related Topic , Creating and Posting Disposals, for more information on how the system uses cost in its disposal calculations. |
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| Accum Depr |
The system automatically displays (for depreciable assets only) the following value(s) in this non-editable field:
Note: Edits to any of the fields used to calculate accumulated depreciation in an Asset Master record will update data in the table window before posting. If you edit the
FYTD Depreciation, the
Prior FY Depreciation, and/or the
Current Pd Depreciation fields for any book in an Asset Master record after a disposal record is saved, but before posting, the revised accumulated depreciation value will display in this field the next time you use this screen. The new (edited) accumulated depreciation value will be used to compute the gain/loss that is posted, as well as the gain/loss that is displayed in the table window and written back to the Asset Master record.
See Related Topic, Creating and Posting Disposals, for more information on how the system uses accumulated depreciation in its disposal calculations |
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| Gain/Loss |
This is a non-editable field. For depreciable assets, the system automatically calculates gain or loss for display purposes only for each book by subtracting the book value (cost minus accumulated depreciation) from the disposal price and adding or subtracting any depreciation adjustment. The system posts the book value as the gain or loss and does not use any disposal proceeds for the computation. The two examples that follow demonstrate this calculation. The gain/loss amounts computed in these examples are for display purposes only on this screen, and are not posted to the General Ledger. |
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| Example 1: |
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| Example 2: |
When the system posts a disposal entry, the disposal price and/or depreciation adjustment is ignored, and only the book value (cost minus accumulated depreciation) is posted as the gain/loss amount. The gain/loss amounts that display in this table window will only be posted to the General Ledger as displayed if you have not entered a disposal price and a depreciation adjustment. For non-depreciable assets for which the Post Disposal to G/L check box has been selected on the Manage Asset Master Information screen, the system automatically calculates gain or loss for display purposes only for each book by subtracting the cost from the disposal price. The system posts the cost value with a reversed sign as the gain or loss for the GL Book and does not use any disposal proceeds for the posting. See Related Topic, Creating and Posting Disposals, for more information on how the system calculates and posts gain/loss amounts. |
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| Depr Adj |
Note: A depreciation adjustment might be needed if the disposal information is communicated "after-the-fact." For example, if you now learn that an asset was sold (or scrapped, and so on) two periods ago, you may want to use a depreciation adjustment to reverse two months of depreciation posted to the General Ledger. In this case, you may find it easier to enter and post two months of negative depreciation before you enter and post the disposal from this screen. See Related Topic, Creating and Posting Disposals, for more information on special cases and depreciation adjustments.
The value in this field (for depreciable assets only) defaults to "0.00." Enter either a positive or negative value in this field for the amount of the adjustment to depreciation. This field is not available for non-depreciable assets. If the depreciation adjustment is positive, it will be posted as a debit to depreciation expense and a credit to accumulated depreciation. If the depreciation adjustment is negative, it will be posted as a credit to depreciation expense and a debit to accumulated depreciation. A depreciation adjustment is always identified as a separate "DADJ" entry, with debits and credits posted only to depreciation expense and accumulated depreciation accounts, as appropriate. Any depreciation adjustment in this field will, however, be automatically included in the calculation of gain/loss that displays in this table window. Note: A positive depreciation adjustment displays as a positive value in the
Depr Adj field. A positive value will increase (debit) the depreciation expense account(s) and increase (credit) the accumulated depreciation account when the depreciation adjustment is posted.
A negative depreciation adjustment displays as a negative value in the Depr Adj field. A negative value will decrease (credit) the depreciation expense account(s) and decrease (debit) the accumulated depreciation account when the depreciation adjustment is posted. |