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Asset Retirement or Shut Down

former_member1279634
Participant
0 Kudos

Hi Gurus,

We have a store that was burned out by fire last 2009. The asset continues to depreciate in SAP upto now.

Should we use asset shutdown or asset retirement for this asset? A new store was built in replacement to the damaged store.

The damage will be paid by the insurance company. Kindly advise if we will use asset shutdown or retirement and then set-up a new asset for the new store built?

Thanks,

Ellicec

Accepted Solutions (1)

Accepted Solutions (1)

atif_farooq
Active Contributor
0 Kudos

Dear:

Since you got reimbursed from insurance company for the loss caused to asset , its better to retire the asset F-92 with revenue and create a new asset.

Regards

former_member1279634
Participant
0 Kudos

Hi Atif,

Thank you very much for your immediate reply.

However, I have a few questions. What if we do not want to recognize any gain from the payment made by the insurance company? Also, how are we going to treat the depreciation postings made after the fire incident?

Regards,

Ellicec

Answers (0)