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Former Member
Dec 05, 2008 at 07:14 PM

Asset Retirement ABAON - not triggering Accumulated Depreciation Account

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Hello Friends,

I am doing Asset Retirement without customer (transaction ABAON), retiring the asset at NBV, 01 dep area. I am able to successfully save the transaction but system is not reversing Accumulated Depreciation that was posted to the Asset.

Details of the Scenario:

Asset Acquired on 01/01/2008 with 100000 as aquisition value, 10 years as life, depreciation based on asset life and it is SLM.

Ran Depreciation till Dec. 2008. And Depreciation entry posted is.

Depreciation A/c Dr 10000

to Accumulated Dep. 10000.

So NBV as on 31st Dec. 2008 is 90000.

When I did ABAON, system is generating following entry:

Clearing Account Dr 100000

to Asset A/c 100000

Correct entry should be:

Accumulated Depreciation A/c DR 10000

Clearing Account DR 90000

to Asset Account 100000

Can anybody throw light and help me in identifying the reason for this system behavior.

Your Help is greatly appreciated.

Thanks in Advance.

Regards

Vijay