FA Asset Retirement Entries - Oracle EBS R12

https://fixedasstets.blogspot.com/2019/03/fa-asset-retirement-entries-oracle-ebs.html

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

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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