https://fixedasstets.blogspot.com/2019/03/fa-asset-retirement-entries-oracle-ebs.html
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Asset Retirement
|
|||
Proceeds of Sale
Clearing Account
|
DR
|
Account Code
Combination is derived from Book Controls
|
|
Accumulated
Depreciation
|
DR
|
Account Code Combination
is derived from Asset Category Setup
|
|
Gain/Loss on
Retirement
|
DR/CR
|
Account Code
Combination is derived from Book Controls
|
|
Asset Cost Retired
|
CR
|
Account Code Combination
is derived from Asset Category Setup
|
|
Cost of Removal
Clearing Account
|
CR
|
Account Code
Combination is derived from Book Controls
|
Create AR Miscellaneous Receipt
| |||
Bank A/c
|
DR
| ||
Proceeds of Sale Clearing Account
|
CR
| ||
Create AP Invoice
| |||
Cost of Removal Clearing Account
|
DR
| ||
AP Liability A/c
|
CR
| ||
Payment of AP Invoice
| |||
AP Liability A/c
|
DR
| ||
Bank
|
CR
|
Asset Cost Retired + Cost of Removal – Accumulated Depreciation - Proceeds of Sale = Gain/Loss
If we want to Book Gain and Loss on Proceeds of Sale, Cost of removal and NBV Retired, then the Accounting Entries will be as below:
Asset Retirement
|
|||
Proceeds of Sale Clearing Account
|
DR
|
Account Code Combination is derived from Book Controls
|
|
Accumulated Depreciation
|
DR
|
Account Code Combination is derived from Asset Category Setup
|
|
Cost of Removal
|
DR
|
Account Code Combination is derived from Book Controls
|
|
Net Book Value Retired
|
DR
|
Account Code Combination is derived from Book Controls
|
Balancing Figure
|
Asset Cost
|
CR
|
Account Code Combination is derived from Asset Category Setup
|
|
Proceeds of Sale
|
CR
|
Account Code Combination is derived from Book Controls
|
|
Cost of Removal Clearing Account
|
CR
|
Account Code Combination is derived from Book Controls
|
|
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Partial Retirement
Cost
|
8000
|
||
NBV
|
7833.33
|
||
Accumulated Dep
|
166.67
|
||
Life
|
4 Years
|
||
DIS
|
31-Jul-06
|
||
Prorate Date
|
16-Jul-06
|
||
Remaining Life
|
3 Years & 11 Months
|
||
Asset Retirement
|
Amount
|
||
Current Cost
|
8000
|
||
Cost Retired
|
5000
|
Calculate Accumulated Depreciation on this Figure
(5000/4)/(12) = 104.1667
|
|
Proceeds of Sale
|
3500
|
||
Cost of Removal
|
0
|
||
Gain/Loss
|
1395.83
|
||
Asset Cost Retired +
Cost of Removal –
Accumulated
Depreciation - Proceeds of Sale = Gain/Loss
|
|||
Accounting Entries
|
Debit
|
Credit
|
|
Asset Cost Retired
|
5000
|
||
Accumulated Depreciation
|
104.1667
|
||
Proceeds of sale
|
3500
|
||
Cost of Removal
|
0
|
||
Gain/Loss
|
1395.83
|
Loss on Retirement
|
|
Accounting Entries
|
DR
|
CR
|
Account Selection
|
Proceeds of Sale Clearing
|
3500
|
Clearing Account from Book Controls
|
|
Accumulated Depreciation
|
104.1667
|
Account Code Combination is derived from Asset Category Setup
|
|
Net Book Value Retired Loss
|
7895.8333 |
Loss
Account from Book Controls
|
|
Cost of Removal
|
0
|
Loss Account from Book Controls
|
|
Asset Cost Retired
|
8000
|
Account Code Combination is derived from Asset Category Setup
|
|
Proceeds of Sale Gain
|
3500
|
Loss Account from Book Controls
|
|
Cost of Removal Clearing
|
0
|
Clearing Account from Book Controls
|
|
---------------------------------------------------------------------------------
Full Retirement
Cost
|
35000
|
||
NBV
|
32666
|
||
Accumulated Dep
|
2333.32
|
||
Life
|
5 Years
|
||
DIS
|
23-Jan-18
|
||
Prorate Date
|
16-Jan-18
|
||
Remaining Life
|
4 Years & 8 Months
|
||
Asset Retirement
|
Amount
|
||
Current Cost
|
35000
|
||
Cost Retired
|
35000
|
||
Proceeds of Sale
|
5000
|
||
Cost of Removal
|
450
|
||
Gain/Loss
|
28116.68
|
||
Accounting Entries
|
Debit
|
Credit
|
|
Asset Cost Retired
|
35000
|
||
Proceeds of Sale Clearing Account
|
5000
|
||
Accumulated Depreciation
|
2333.32
|
||
Cost of Removal Clearing Account
|
450
|
||
Gain/Loss
|
28116.68
|
Loss on Retirement
|
|
Accounting Entries
|
DR
|
CR
|
Account Selection
|
Proceeds of Sale Clearing Account
|
5000
|
Clearing Account from Book Controls
|
|
Accumulated Depreciation
|
2333.32
|
Account Code Combination is derived from Asset Category Setup
|
|
Cost of Removal Gain
|
450
|
Loss Account from Book Controls
|
|
Net Book Value Retired Loss
|
32666.68
|
Loss Account from Book Controls
|
|
Asset Cost Retired
|
35000
|
Account Code Combination is derived from Asset Category Setup
|
|
Proceeds of Sale Gain
|
5000
|
Loss Account from Book Controls
|
|
Cost of Removal Clearing Account
|
450
|
Clearing Account from Book Controls
|
