Asset Scrapping and Revenue Accounting.

[Former Member]

Hi Experts

I am carrying out Asset Scrapping in Asset Module. Creating a Non valuated material in MM and from SD module carrying out Sale of Scrap and accounting revenue from Sale.

Doing this activity i have net loss in Asset Module and Revenue amount from SD in Revenue GL. There is no accounting of revenue amount in Asset.

My Client wants to account the revenue againt the Asset Code, so that the Net loss will be less.

Eg. Asset Book value 10000

      Dep                      1000

     Net book value       9000

In Asset Scrapping Loss of Rs 9000 is accounted for in Asset Module

From SD we sell so Revenue Amount 5000

My Client wants to show Net loss of Rs 4000 in Asset (9000-5000).

Please advice how this can be achieved.

Thanks In advance.

[Former Member · Accepted solution]

Hi Archana,

If you scrap assets with revenue you could use T code F-92 Sale with revenue with customer or ABAON if without customer in stead of T code ABAVN.

It will help calculating the net loss after considering the revenue from customer.

Hope it solves your issue.

Regards,

G.Sethuraman

[Former Member · Accepted solution]

Hi Archana,

In addition to the above reply, if you have to pay excise duty or other taxes, follow the below steps.

1)Create asset number as a material code

2)Upload initial stock value to the material code(Value shall be same as revenue)

3)Then create Sale order for the material code.

4)Then create deliveries and do Post goods Issue

5)Create Billing with Excise and other applicable taxes.

Hope it solves.

Regards,

G.Sethuraman

[Former Member · Accepted solution]

Hi Sethuraman,

I have advised the client , asset Retirement F-92 for considering net loss in sale of asset.

However, I want to know that if we carry ABAVN in Asset and sale from SD then is there any linkage to arrive at net loss.

Please advice.

Regards

Archana

[ajaycwa1981 · Accepted solution]

Hi Archana

You can do ABAON (Retirement with out customer) which will Debit a Clearing Account

During Sale from SD, Credit the Same clearing account.. That should auto net off

Also, there must be simpler way of managing excise impact rather than uploading stock value every time

Br. Ajay M

[Former Member]

Hi Archana,

Use TCode ABAON if you are doing asset scrapping without customer. Whatever amount you give in the revenue field will be debited to some GL account and loss of some amount will be in different GL account. By this client can show that net loss is 4000 from particular asset.

Regards,

Guneetinder Singh