Last updated on MARCH 09, 2017
Applies to:PeopleSoft Enterprise FIN Asset Management - Version 9.2 and later
Information in this document applies to any platform.
The retirement of an ARC asset causes the Asset Retirement Obligation (ARO) accretion schedule to stop accretion expense prior to remediation.
In the normal course of business while the ARC asset would be retired, the Accretion of the liability does not cease until the remediation work is started. There can be years between the two. An example would be a plant that closes in 2009, but the remediation clean-up of the plant doesn't start until 2013. Therefore, the Retirement of the ARC asset should not automatically trigger the cessation of the accretion of the liability.
The RET of the ARC asset should occur, but the RET of the Accrection Liability should be staged for review and only cease when accepted as part of a separate process to process Liability Retirements.
Steps to accomplish functionality:
1. Accretion should not cease with ARC retirement. The "closure" of the ARO liability should be a separate retirement of ARO process with notification sent to the ARO schedule to be reviewed and processed when actual remediation begins.
2. A report should be created to show all "Pending" ARO retirements.
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