Understanding Retiring Assets Step 1 Two types of partial retirements are available: by Quantity and by Cost.
Understanding Retiring Assets Step 2 Assets are retired by book designation; therefore, you can retire an asset in one book but continue to depreciate it in others.
Understanding Retiring Assets Step 3 Prior period depreciation is any depreciation for the previous period that must be expensed to the current period. The system calculates prior period depreciation when the transaction date is earlier than the accounting date for an asset transaction.
Understanding Retiring Assets Step 4 You can retire assets in the designated transaction currency or another currency. You can use different currencies for proceeds and removal costs.
Understanding Retiring Assets Step 5 The system books gains and losses to separate accounts depending on which type of retirement method you selected on the accounting template ID: Gain/Loss or Net Book Value NBV.
Understanding Retiring Assets Step 6 When you retire an asset, you must specify a disposal code, or a Retire As action, to initiate the retirement transaction. In conjunction with other information, the system uses the disposal code to calculate any gain or loss amounts.
Understanding Retiring Assets Step 7 This concludes the Understanding Retiring Assets topic. End of Procedure.