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. The posting control for
postings types FAP7, FAP8, FAP9, FAP10, FAP11 and FAP12 must be defined. If
profit/loss postings from the sales are required for one or several books then
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. 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.
For scrapping rotable pool objects the posting types FAP19, FAP20 and FAP27 must
be defined.
You can dispose an object by selling it or scrapping it.
When selling or scrapping an object a check can be performed to find out whether depreciations have been executed until the period defined in the disposal principle of the depreciation method. If all depreciations have not been executed 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 for disposal of fixed assets differ according to the nature of the disposal (i.e. whether the disposal is a sale or a 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.
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).
Condition | The effect on the internal ledger | The effect on the general ledger |
No voucher type is connected to the book | The sales income (i.e. if the disposal transaction is a sale), 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 income (i.e. if the disposal transaction is a sale), 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 income (i.e. if the disposal transaction is a sale), 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 income (i.e. if the disposal transaction is
a sale) 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 income (i.e. if the disposal transaction is a sale), 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 income (i.e. if the disposal transaction is a sale), 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 income (i.e. if the disposal transaction is a sale), 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 |
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. The disposal date will be removed from the object.