Scrapping In Asset

[former_member760787]

Hi,

can any one tell me how the Scrapping value are maintained in SAP Asset.

My main concern is what will be the nature of Scrap GL?How it is maintaind in GL master or Account determination.

Thanks in advance.

Regards

Rizwan

[Former Member]

hi

First when you procure asset it sits on one GL (expense) Asset under construction-AUC,

After capitalization it sit on another GL (for one asset class) under asset it's asset number.

ordinary depreciation(expense GL non-cash) getting posted to another GL.

Book value remains as acquisition value- depreciation .

Scrape value you can maintain in tcode AFAMA(screen shot) through cut off key(tcode ANHAL) or you can maintain in in individual asset in "asset value tab"(screen shot)

As per latest income tax act 2013  5 % asset value to be maintained and Depreciation is WDV instead staright line.

This value remains on where it was at the time capitalization.

If you scrape any asset,it will debit the same GL where it is capitalized and credit revenue account of asset sale.

saikat

[Former Member]

Hi,

Not sure you are talking about the scrapping value (Residual value) or the scrapping for retirement.

If you are talking about the residual value, you will update the scrapping value in the asset master and the depreciation base will be the total cost -  the scrapping value.

If you are talking about the retirement, then you will use the retirement w/o revenue (ABAVN). And the AO90 account determination you will define the retirement loss account.

[jogeswararao_kavala]

Hello MOHAMMAD,

I feel your query will be better answered at

Regards

KJogeswaraRao

[Former Member]

Hi,

You need to scrap the asset w/o revenue. However, you can maintain the  depreciation GL account in AO90 for the purpose of Scrap.... Hence, the scrap will also get accounted in Depreciation GL account.

Apart from this, I suggest take help from your FICO team.Below threads for study

Scrap Value and Cutoff Value - Asset Accounting (FI-AA) - SAP Library

Regards

Vivek