FIXED ASSETS SALE

[evangelos1]

Dear Experts,

Could someone describe me the procedure of fixed asset's sale step by step and what journal entries should be created?

The version is SAP HANA 9.3 PL:06

Thank you very much!

[Joselito]

Hi,

When you do a sales of a fixed asset, what you are doing is a retirement type 'sales'

This retirement type sales, can be Gross or NET, as defined in the depreciation Area,

I will give you a detailed example of one and the other, explaining all the accounts and from where the values come from, I used a demo DE in 10.0 Patch 01, for convenience (it comes with most of the accounts defined)

The Depreciation type, is Net Book Value /Remaining useful life (calculation monthly), and with a convention for retirement , Pro rata temporis, last day current period,

I defined Indirect Depreciation, for clarity of the postings

The fiscal year is 12 sub periods month , start 01.01.2020 end 31.12.2020

The Asset has Total useful Life of 24 months

Period 1: Acquisition 01.01.2020, Qty 2, Total APC 4800,00, consider Quantity (checked)

Period 4: A/R Invoice Partial Retirement, Retired Qty 1, APC retirement (left in blank), Unit Price 3000,00

Please see the png showing GL account determination and values for the asset, depreciation-chart.jpg

If you decide having a depreciation area with retirement gross, please see the posting-retirement-gross.jpg

If you decide a depreciation area with retirement net, please see posting-retirement-net.jpg

[evangelos1]

Thank you very much!