Use this screen to enter disposal information for both active depreciable and non-depreciable Asset Master records, including the disposal date, price, description, document number, and selection status. If the asset is depreciable or if the asset is non-depreciable but you have selected the Post Disposal to G/L checkbox in the Maintain Asset Master Info screen, the system also requires you to enter a General Ledger account to which any gain or loss will be posted for the G/L Book. (In the case of non-depreciable assets for which you have indicated that posting is desired (for example, land), the G/L entry on disposal can only consist 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.)
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 checkbox has been selected in the Maintain Asset Master Info screen, the Fixed Assets Journal is posted to the General Ledger for the G/L Book.
For both depreciable and non-depreciable records (regardless of the status of the Post Disposal to G/L checkbox):
Disposal information and posting data display in the Disposal Info subtask of the Maintain Asset Master Info screen (and in the Maintain Asset Disposal Info screen).
The Asset Master record status is changed by the system from Active to Disposal.
Disposal data is cleared from the Maintain Single and Multiple Disposal Transactions screens.
The gain or loss that displays in this screen is only the expected gain or loss based on the expected disposal price. Regardless of the gain or loss displayed in 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 checkbox in the Maintain Asset Master Info main screen or in the corresponding field in the Maintain Asset Desc Info 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 2-10, although the disposal data is written back to the Asset Master record and to the FA_DEPR_HS (Other Books Depreciation History) table for these books. (Disposal data is written to and stored in the FA_DEPR_HS table for optional books 2-10 during the FA 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 in this screen only. The depreciation adjustment entered in this screen is always posted separately and is never included in the posted gain or loss.
A depreciation adjustment entered in 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 in 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 in the Maintain Single/Multiple 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 (Years, Units, Leases) subtasks of the Maintain Asset Master Info screen (or the Maintain Asset G/L Book Info screen) and post before you enter the disposal in 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 Disposal Info subtask, where you can view the historical disposal information.
If you have a number of disposals for which you must enter data, you may find it more efficient to use the Maintain Multiple Disposal Transactions screen instead of this single-entry screen. The multiple-entry screen displays a table window in which data can be entered for multiple Asset Master records. System processing and posting procedures are identical, regardless of the screen in which you choose to enter data.
Before you can enter disposal information in this screen, the asset you are disposing of must already exist as an Asset Master record. You can enter disposal data in 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 checkbox (in the Depr Status group box of the main Maintain Asset Master Info screen). In addition, the posting process for disposals writes data (such as description, document number, timing, and so on) to fields in the Disposal Info subtask for both depreciable and non-depreciable assets. Once disposal data is posted, you cannot enter disposal information in this screen for the same Asset Master record. (In the very rare instance that you have historical disposal information, you should enter this data directly into the Disposal Info subtask in the Maintain Asset Master Info screen.)
The fields in this group box display the asset number, item number, and description of the Asset Master record selected for disposal.
Enter the number of the asset for which you are creating the disposal in this required field, or use Lookup to display and select an asset number. You can only dispose of Asset Master records with an Active record status. Because this is a standard lookup to the ASSET table, you may find that you have selected an asset and/or item number from the Lookup that does not meet your other selection criteria.
If the asset/item number combination entered exists and the record is active, the system automatically displays the appropriate data in the Short Desc and Depreciable/Non-Depreciable fields. If the record is depreciable (or if the record is non-depreciable and you have selected the Post Disposal to G/L checkbox in the Maintain Asset Master Info screen), and you have set up a default gain/loss acct/org/proj combination in the Fixed Assets Settings screen, the fields in the Gain/Loss Account for G/L Book group box will automatically display the defaults.
This required field defaults to "00001." If the default item number is not correct, you can enter another item number or use Lookup to display and select one. The system automatically inserts leading zeros if you enter the number manually; for example, if you enter "5," the item number will display on your screen as "00005." Because this is a standard lookup to the ASSET table, you may find that you have selected an asset and/or item number from the Lookup that does not meet your other selection criteria.
After you enter the item number and tab out of the field, the system validates that both asset and item number exist in combination and that the asset is selected. If confirmed, the system automatically displays the appropriate data in the Short Desc and Depreciable/Non-Depreciable fields. If the record is depreciable (or if the record is non-depreciable and you have selected the Post Disposal to G/L checkbox in the Maintain Asset Master Info screen), and you have set up a default gain/loss acct/org/proj combination in the Fixed Assets Settings screen, the fields in the Gain/Loss Account for G/L Book group box will also automatically display the defaults.
The short description, if entered from the Maintain Asset Master Info main screen, displays in this non-editable field. To edit the short description or to add a short description, you must do so in the Maintain Asset Master Info main screen or in the Maintain Asset Desc Info screen.
This group box displays the radio button options for selecting the record for posting and updating processes.
This radio button is the system default. Records on hold are automatically excluded from the posting and update process.
Select this radio button to take the record off hold and include it in the posting and update process.
The non-editable fields in this group box display depreciable status and the posting eligibility to the General Ledger for non-depreciable assets.
The asset's depreciable status automatically displays in this non-editable field after you enter the asset/item number combination in the Identification group box. Asset Master records are assigned depreciable or non-depreciable status in the Maintain Asset Master Info main screen or in the Maintain Asset Desc Info screen. If the record is non-depreciable and you have selected the Post Disposal to G/L checkbox in the Maintain Asset Master Info screen, "Y" displays in the Post Disposal to G/L field in this group box. If the record is non-depreciable and you have not selected the Post Disposal to G/L checkbox, "N" displays in the Post Disposal to G/L field in this group box.
The asset's depreciable status automatically displays in the previous Depreciable/Non-Depreciable non-editable field after you enter the asset/item number combination in the Identification group box. Asset Master records are assigned depreciable or non-depreciable status in the Maintain Asset Master Info main screen or in the Maintain Asset Desc Info screen.
If the record is non-depreciable and you have selected the Post Disposal to G/L checkbox in the Maintain Asset Master Info screen or in the corresponding field in the Maintain Asset Desc Info screen, "Y" displays in the Post Disposal to G/L field in this group box. If the record is non-depreciable and you have not selected the Post Disposal to G/L checkbox, "N" displays in the Post Disposal to G/L field in this group box.
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 in this screen. You cannot view or edit disposals that have been successfully posted using this screen.
The fields in this group box are inactive for non-depreciable records if you have not selected the Post Disposal to G/L checkbox.
When you post a disposal for a depreciable asset (or a non-depreciable asset for which the Post Disposal to G/L checkbox 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 acct/org/proj/ref1/ref2 combination specified in these fields. A valid gain/loss acct 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 checkbox in the Maintain Asset Master Info screen). If you previously set up a default gain/loss acct combination in the 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 checkbox). You can edit default or manual entries in these fields as necessary.
If the asset is depreciable, or if the asset is non-depreciable and the Post Disposal to G/L checkbox has been selected in the Maintain Asset Master Info main screen, this is a required field. This field is inactive for non-depreciable records for which the Post Disposal to G/L checkbox is not selected.
If you previously set up a default gain/loss account in the 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 the account number in this field or use Lookup to display and select one.
Use caution when selecting or editing 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.
If the asset is depreciable, or if the asset is non-depreciable and the Post Disposal to G/L checkbox has been selected in the Maintain Asset Master Info main screen or in the Maintain Asset Desc Info screen, this is a required field. This field is inactive for non-depreciable records for which the Post Disposal to G/L checkbox is not selected.
If you previously set up a default gain/loss organization in the 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 the organization number in this field or use Lookup to display and select one.
Use caution when selecting or editing 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.
If the asset is depreciable, or if the asset is non-depreciable and the Post Disposal to G/L checkbox has been selected in the Maintain Asset Master Info main screen or in the Maintain Asset Desc Info screen and you previously set up a default gain/loss project in the 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 the project number in this field or use Lookup to display and select one.
Use caution when selecting or editing 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.
If the asset is depreciable, or if the asset is non-depreciable and the Post Disposal to G/L checkbox has been selected in the Maintain Asset Master Info main screen or in the Maintain Asset Desc Info screen and you previously set up a default gain/loss Reference 1 number in the Fixed Assets Settings screen, this field automatically displays the default reference number. If you designated a different label for Reference 1 in the G/L Settings screen in Costpoint General Ledger, your label automatically displays as the field heading. To designate a reference number other than the default, enter a different reference number or use Lookup to display and select one.
Use caution when selecting or editing 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.
If the asset is depreciable, or if the asset is non-depreciable and the Post Disposal to G/L checkbox has been selected in the Maintain Asset Master Info main screen or in the Maintain Asset Desc Info screen and you previously set up a default gain/loss Reference 2 number in the Fixed Assets Settings screen, this field automatically displays the default reference number. If you designated a different label for Reference 2 in the G/L Settings screen in Costpoint General Ledger, your label automatically displays as the field heading. To designate a reference number other than the default, enter a different reference number or use Lookup to display and select one.
Use caution when selecting or editing 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.
Use the fields in this group box to enter a disposal date, price, description, type, and disposal document number.
Enter the desired disposal date in date format in this required 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.
After posting, the disposal date from this field will automatically display in the Disposal Info subtask of the Maintain Asset Master Info screen and in the Maintain Asset Disposal Info screen.
Enter the disposal price in this optional 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 Disposal Info subtask of the Maintain Asset Master Info screen and to the Maintain Asset Disposal Info screen.
Note that 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 checkbox has been selected in the Maintain Asset Master Info main screen or in the corresponding field in the Maintain Asset Desc Info screen) will be posted as the gain/loss amount.
Enter up to 30 alphanumeric characters in this optional field to provide a description of the disposal. After posting, the description data from this field, if entered, will automatically display in the Disposal Info subtask of the Maintain Asset Master Info screen and in the Maintain Asset Disposal Info screen.
Enter the desired disposal type or use the drop-down box to select one in this optional field. Disposal type data, although optional, is validated against disposal types set up during initialization (or thereafter) in the Disposal Types screen from the Fixed Assets Controls menu.
After posting, the disposal type data from this field, if entered, will automatically display in the Disposal Info subtask of the Maintain Asset Master Info screen and in the Maintain Asset Disposal Info screen.
Enter up to 20 alphanumeric characters in this optional field to provide 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 Disposal Info subtask of the Maintain Asset Master Info screen and in the Maintain Asset Disposal Info screen.
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 checkbox has been selected in the Maintain Asset Master Info screen or in the Maintain Asset Desc Info screen, the system automatically populates the Cost and Gain/Loss fields in the table window, which cannot be edited.
The numbers of the books you defined in the 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 in the Fixed Assets Settings screen, even if there is no cost or accumulated depreciation data for that book.
This is a non-editable field. The system automatically displays the names of the books as they were defined in the Fixed Assets Settings screen.
Rows for optional books 2-10 automatically display in this table window for any book set up in the Fixed Assets Settings screen, even if there is no cost or accumulated depreciation data for that book.
This is a non-editable field. The system automatically displays the value from the Total Cost field in the Cost Info and Other Books Info subtasks of the Maintain Asset Master Info screen or the corresponding fields in the Maintain Asset Cost Info screen for the G/L book and for books 2-10, 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. (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 checkbox has been selected in the Maintain Asset Master Info 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.
See Special Topic FA-4, "Creating and Posting Disposals," for more information on how the system uses cost in its disposal calculations.
The system automatically displays (for depreciable assets only) the following value(s) in this non-editable field:
For the G/L Book, the system sums the values from the FYTD Depreciation, the Prior FY Depreciation, and the Current Pd Depreciation fields in the G/L Book Info subtasks (Years and Usage) of the Maintain Asset Master Info screen or the Maintain Asset G/L Book Info screen.
For books 2-10, the system sums the same fields from the Other Books Info subtask of the Maintain Asset Master Info screen or the Maintain Asset Other Books Info screen.
When the disposal for this record is posted for the G/L Book, the system normally posts a debit to the accumulated depreciation acct/org/proj combination for the amount in this field. If there is a negative value in this field, the system will post a credit. In addition, the system subtracts this value from the cost to determine the amount of gain or loss to post.
See Special Topic FA-4, "Creating and Posting Disposals," for more information on how the system uses accumulated depreciation in its disposal calculations
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 in this screen, and are not posted to the General Ledger.
Example 1:
Cost |
= |
$12,000 |
Accum Depr |
= |
6,000 |
Depr Adj |
= |
+ 1,000 |
Disp Price |
= |
8,000 |
Gain/Loss |
= |
8,000 - (12,000 - 6,000) + 1,000 |
|
= |
8,000 - 6,000 + 1,000 |
Gain |
= |
$3,000 |
Example 2:
Cost |
= |
$12,000 |
Accum Depr |
= |
6,000 |
Depr Adj |
= |
- 1,000 |
Disp Price |
= |
2,000 |
Gain/Loss |
= |
2,000 - (12,000 - 6,000) - 1,000 |
|
= |
2,000 - 6,000 - 1,000 |
Loss |
= |
$5,000 (will display on screen as -5,000) |
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 checkbox has been selected in the Maintain Asset Master Info 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 and does not use any disposal proceeds for the posting.
See Special Topic FA-4, "Creating and Posting Disposals," for more information on how the system calculates and posts gain/loss amounts.
The value in this optional 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.
The FA_DISP_EDIT (Disposal Edit) table stores the results of manual entries made in the Maintain Single/Multiple Disposal Transactions screens (and also the entries created by running the process from the Create Multiple Disposal Transactions screen).
You can print the data from this table by running the Print Disposal Transactions Edit report using a variety of selection criteria.
Lookups and drop-down boxes, as applicable, access the following tables:
ACCT (Account)
ORG (Organization)
PROJ (Project)
ASSET (Asset)
FA_FY_INFO (Fixed Assets FY Info)
FA_PD_INFO (Fixed Assets Pd Info)
FA_BOOK_SETTINGS (Fixed Assets Book Settings)