Question regarding AO90 & F-92 entries

[Former Member]

Hi all,

I have attached 2 screenshots below.

1st one relates to AO90 showing the GLs linking to Asset Accounting. (please see below)

2nd screenshot below shows F-92, Asset retirement with customer entries:

My questions:

1) Are all entries in screenshot 1 correct?

2) Screenshot 2- shouldn't the posting key 50 (line item 002) AND posting key 40 (line item 005) show sale of asset instead of asset clearing account?

Regards,

Jacob

[Former Member]

Ajay has provided the correct answer. I can't find answered button, so am writing it here

[former_member198650]

This message was moderated.

[sanju_ms]

Hi,

Dr customer(Posting key 01)

Cr asset sale clearing(Posting key 50)

you have to activate asset retirement option for your second line item.

then a window will pop up to enter the asset details.

In detail go through below thread

kind regards,

Sanju

[ajaycwa1981]

Hi Jacob

1. Yes, Its correct

2. Upon Sale, the Asset Sale Clearing account is Debited and Credited in the same transaction. Thats how SAP is designed (line item 2 and 5 in your 2nd screenshot)

Ajay M

[Former Member]

Hi Ajay,

Thank you very much for your reply. I have two more doubts.

From my understanding, a clearing account is a temporary account where you hold amounts and later transfer it to another account e.g. income summary transferred to retained earnings at year end.

So how can Asset sale Clearing account be used here?

As per your answer, will the books get cleared properly and will the asset be retired completely as per accounting standards (IFRS) followed by the company?

If you require any more inputs from configuration or scenario, please let me know.

Regards,

Jacob

[ajaycwa1981]

Hi Jacob

Clearing account has many purposes. What you said as the purpose if the purpose of the open item managed account

The way SAP uses Asset Sale Clearing account is perfectly fine. It retires the asset properly and is in full compliance to Accounting Standards

Ajay M

[Former Member]

Thank you Ajay.