Disposal Details By Book Subtask
Use the fields in this subtask to view gain/loss details for a system-generated disposal and to view/edit any applicable depreciation adjustment for each book, as applicable, for a manual disposal entry made on the Disp Info tab.
The only editable field on this screen is the Depr Adj field, which can only be changed for a manual disposal.
To dispose of an active depreciable Asset Master record, you should always use the Manage Disposal Transactions screen. When you post the disposal, the system automatically writes the data to history and displays the data on the Disp Info tab and on this screen for all applicable books for system-processed disposals.
For non-depreciable assets for which disposals are not normally posted to the G/L (unless you have selected the Post Disposal to G/L check box on the Desc Info tab), you can manually enter disposal data on the Disp Info tab and on this screen.
Disposal entries for depreciable assets can always be posted to the General Ledger. If you have indicated in the Depreciation Status group box (on the Desc Info tab of the Manage Asset Master Information screen) that the asset record is Non-Depreciable, you can also select the optional Post Disposal to G/L check box to allow a disposal entry for a non-depreciable record to be posted to the General Ledger. In the case of non-depreciable assets (for example, land), the G/L entry on disposal can consist only of debits and credits to the Cost and Gain/Loss on Disposal of Fixed Assets accounts, because there is no accumulated depreciation associated with a non-depreciable asset.
The system treats disposal data that displays in Asset Master records as a result of G/L postings as a System-Generated (SYSTEM) disposal, and you cannot edit this data. For an historical disposal that was not system-generated, you can manually enter the appropriate data during initialization. In this circumstance, the disposal data is treated as a Manual (MANUAL) disposal and you are permitted to edit the data. See the documentation for the system-generated field in the Disposal Entry Type group box on the Disp Info tab for additional information.
Rule of Thumb:
- If the Disposal Entry Type field on this screen displays MANUAL, you can change data on the Disp Info tab and on this screen for an Asset Master record with a Disposal status.
- If the Disposal Entry Type field displays SYSTEM, you cannot change data on the Disp Info tab and on this screen.
Other general rules related to MANUAL disposal entries:
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When you first manually add a historical record with a Disposal status on the Disp Info tab, you can edit all fields in the Asset Master record as needed, before you save the record for the first time.
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If you access the saved Disposal record again, however, the system automatically disables the drop-down lists in the Record Status, Depreciation Status, and Depreciation Based On group boxes on the Desc Info tab. In addition, the system will not permit you to save any edits to fields on the Cost Info tab, Acct Info tab, G/L Book Info tab, and Other Books Info subtask (if data previously existed).
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If you have mistakenly entered and saved manual data in this subtask for a record to which you have assigned a Disposal status, you can clear the data from the fields on this tab and change the record status back to Active.
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You can enter original data in the Other Books Info subtask for an asset with a Disposal status only if no data has previously been entered and saved. If saved data for any optional other books already exists, you cannot edit the data once you change the status to Disposal.
You can also see the Depr Adj field for each book on the Manage Asset Disposal Information screen, if access rights are granted to you by the system administrator. The only field available that displays on the Manage Asset Disposal Information screen is the Depr Adj field; the Cost, Accum Depr, and Gain/Loss fields do not display.
You will primarily use this screen to view posted disposal data for each applicable book, including cost, accumulated depreciation, gain/loss, and depreciation adjustment data. During the disposal posting process, the system automatically updates fields on this tab with disposal data.
In the rare circumstance that you entered a manual disposal on the Disp Info tab or on the individual Manage Asset Disposal Information screen, you can view or optionally enter/edit a depreciation adjustment for each book in this subtask.
In most cases, you will first enter disposal data to be posted on the Manage Disposal Transactions screen.
For more detailed information on the disposal posting process and the movement of data to the General Ledger, along with specific disposal examples, please refer to the documentation for the following screens:
- Manage Disposal Transactions
- Post Fixed Assets Journal
Table Window
The convention for the field name references on this screen will be as follows: (Your Book Name) Field Name. For example, if you have named optional Book 2 as your Tax book, you can find cost value information under the heading in this document titled (Your Book Name) Cost .
Regarding the actual display of the field label on this screen:
- In a Table Window format, the label for this field will read as Tax Cost.
- In a Form View format, the label for this field will read Cost and the data can be found in the Tax group box. All the other data fields like the Accum Depr, Gain/Loss and Depr Adj can also be found in this group box.
| Field | Description |
|---|---|
| Cost |
You cannot modify the cost value in this column for any book, regardless of whether the disposal entry was system-generated or manually entered. You must make all adjustments to cost in the G/L Book Info tab for the G/L Book and the Other Books Info subtask for Books 2-10. When you enter disposal data on the Manage Disposal Transactions screen, the system displays the value(s) from the Total Cost fields on the Cost Info tab and the Other Books Info subtask, as appropriate, in the Cost column of the Manage Disposal Transactions screen. The system uses this value, among others, to compute the gain or loss on a disposal for each book. The results of the gain/loss calculations are displayed on the Manage Disposal Transactions screen. When a disposal is posted, the values in the Cost column from the Manage Disposal Transactions screen display in their respective column for each book. When you enter data for an historical disposal record directly on this screen (thus bypassing the posting process), the original asset cost for the G/L Book and any optional books used display in their respective cost column. |
| Accum Depr |
You cannot modify the accumulated depreciation value in this column for any book, regardless of whether the disposal entry was system-generated or manually entered. You must make all adjustments to accumulated depreciation in the G/L Book Info tab for the G/L Book and the Other Books Info subtask for Books 2-10. When you enter disposal data on the Manage Disposal Transactions screen, the system displays the value(s) from the Accum Depreciation fields on the G/L Book Info tab and the Other Books Info subtask, as appropriate, in the Accum Depr column of the Manage Disposal Transactions screen. The system uses this value, among others, to compute the gain or loss on a disposal for each book. The results of the system-computed gain/loss display on the Manage Disposal Transactions screen. When a disposal is posted, the values in the Accum Depr column from the Manage Disposal Transactions screen are written to and display in their respective column for each book. When you enter data for an historical disposal record directly on this screen (thus bypassing the posting process), the original accumulated depreciation for the G/L Book and any optional books used display in their respective accumulated depreciation column. |
| Gain/Loss |
This column is not available for user entry. The values in this column for all books are system-computed, regardless of whether the disposal entry was system-generated or manual, and no edits are permitted. All adjustments to Accum Depreciation and Cost, from which the posted gain/loss is computed, must be made on the G/L Book Info tab for the G/L Book and the Other Books Info subtask for Books 2-10. When you enter disposal data on the Manage Disposal Transactions screen, the system computes the expected gain or loss on a disposal for each book. A gain on the disposal displays as a positive value, and a loss on the disposal displays as a negative value. This amount is not the gain or loss that is actually posted to the General Ledger. The disposal's book value is always posted as the gain or loss, regardless of any disposal proceeds. When a disposal is posted, the values in the Gain/Loss field from the Manage Disposal Transactions screen displays in this column for each book. When you enter data for an historical disposal record directly on this screen (thus bypassing the posting process), the system-computed gain or loss for the G/L Book and any optional books used display in their respective gain/loss column. |
| Depr Adj |
This column is not available for user entry if the disposal was system-generated as a result of G/L postings. This column displays any optional depreciation adjustments entered on the Manage Disposal Transactions screen in the Depr Adj column prior to posting. A depreciation adjustment is an optional, manually entered positive or negative value that is used by the system in computing the gain or loss on a disposal for each book. Timing issues often require depreciation adjustment entries. This type of entry is designed to add to or reduce depreciation expense by debiting and crediting depreciation expense and accumulated depreciation, as appropriate. One of the most frequently encountered situations requiring a depreciation adjustment occurs when disposal data is communicated "after-the-fact." If, for example, you learn that an asset was disposed of two months ago, you may want to use the depreciation adjustment to reverse two months of depreciation posted to the General Ledger. Note: Additional depreciation expense as an adjustment displays as a positive value in this column because it increases (debits) the depreciation expense account(s) and increases (credits) the accumulated depreciation account during posting. Reduced depreciation expense as an adjustment displays as a negative value in this column because it decreases (credits) the depreciation expense account(s) and decreases (debits) the accumulated depreciation account during posting.
When a disposal is posted, the value(s) in the Depr Adj column from the on the Manage Disposal Transactions screen displays in this column. You can use a depreciation adjustment to make up for too little or too much depreciation previously booked, before posting a disposal. Rather than returning to the Manage Asset Master Information screen to enter and post this type of depreciation adjustment, you can enter a depreciation adjustment directly on the Manage Disposal Transactions screen. Currently, a depreciation adjustment entered in a disposal screen does not 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 debits or credits only 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 screen, you need to manually make a final G/L entry to move the balance created in the accumulated depreciation account to the gain/loss account. Note: As a result of the G/L entry requirement in the preceding circumstances, a cleaner audit trail will result if you enter a change to depreciation (positive or negative) directly in the Current Pd Depreciation field on the tab of the Manage Asset Master Information screen or in the
Pd Depreciation column on the Manage Asset General Ledger Book Information screen and then post depreciation, rather than enter a depreciation adjustment and post it as a disposal.
For an historical disposal that was not system-generated, you can manually enter the appropriate data during initialization. In this circumstance, the disposal data is treated as a Manual disposal and manual edits are permitted. For historical data, in the rare circumstance that such an entry is necessary, enter the desired depreciation adjustment value in this optional field. |