EAM: After an Asset Interunit Transfer and the Old Asset is Retired, the Remaining Cost is Recorded in a Loss Account, not Proceeds. (Doc ID 3036047.1)

Last updated on JULY 22, 2024

Applies to:

Symptoms

When an interunit transfer of an Asset is made, the old asset gets retired and new asset gets created under the new Business Unit with Remaining Book Value or remaining cost.
Reviewing the accounting entries of old asset, the remaining cost is appearing in Loss accounts of Asset. However, this believed to be not a loss but should be considered as Proceeds.
The asset is not lost, damaged or of no use, hence, it should not be considered as a Loss.

Steps to replicate:

  1.  Record an Asset.
       (Asset Management > Asset Transactions > Owned Assets > Basic Add)    
  2.  Run Depreciation Calculation.
       (Asset Management > Depreciation > Processing > Calculate Depreciation)    
  3.  Create Accounting Entries.
       (Asset Management > Accounting Entries > Create Accounting Entries)    
  4.  Run Close Depreciation.
       (Asset Management > Accounting Entries > Close Depreciation)    
  5.  Review Financial Entries.
       (Asset Management > Accounting Entries > Review Financial Entries)    
  6.  Perform an InterUnit Transfer:
       (Asset Management > Asset Transactions > Financial Transactions > Cost Adjust/Transfer Asset)    
  7.  Run Depreciation Calculation.
       (Asset Management > Depreciation > Processing > Calculate Depreciation)    
  8.  Create Accounting Entries.
       (Asset Management > Accounting Entries > Create Accounting Entries)    
  9.  Run Close Depreciation.
       (Asset Management > Accounting Entries > Close Depreciation)    
10.  Review Financial Entries.
       (Asset Management > Accounting Entries > Review Financial Entries)    
11.  Verify in AM Accounting Entry Template:
       (Set Up Financials/Supply Chain > Product Related > Asset Management > Accounting > AM Accounting Entry Templates)   

Changes

Cause

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