Retirement of Asset with Revenue

[Former Member]

Hi Guys,

When retiring an asset with revenue, our end-users noticed that the entry posted through transaction ABAON transaction type 210 was:

Cr. Asset $39,000

Dr. Accum Dep $39,000

Dr. Net Gain/Loss $5,000

Cr. Net Gain/Loss $5,000

The gain/loss was net against itself to $0 rather than Dr. Cash, Cr. Gain/Loss. Would I configure the Dr. for cash in tcode A086 and if so, what field? They are currently reclassing the Dr. through a manual entry into cash.

Please help,

Pete

[former_member188826]

T-code AO90 (A O ninety)

Check the account used against <b>Clearing account for revenue from asset sale</b> . The system uses this account to clear the net revenue (without sales tax) which results from asset sales.

The offsetting account for this clearing account is the "revenue from asset sale" account that you enter during the retirement posting (debit customer, credit revenue). The system uses this revenue/revenue clearing posting with its zero balance to internally determine gain/loss without sales tax.

Note

You should be<b> aware that this account is not a balance sheet account</b>. Rather, it has to be an income statement account, just as the revenue account is.

[Former Member]

Hi Sridhar,

So if only P&L accounts are allowed within AO90, where do I put the config so that cash (Balance Sheet account) is debited by the amount of cash received from the sale of the asset during the transaction for retirement with gain?

Again, I thought that by entering into transaction ABAON, tty 210, it should be configured so that the following would happen:

Dr. Accum Dep

Cr. Asset

Dr. Cash

Cr. Gain

Is there something I'm missing? Shouldn't cash be debited through this transaction?

[former_member188826]

The system follows similar entries you have indicated, except that, instead of cash, it posts to a balance sheet account, Receivable account on sale of asset.

You can post separately the cash receipt. through cash journal or F-06, if you can remit to bank.

[Former Member]

Now I'm really confused. Here's the situation. We sell an asset to a 3rd party and have the cash in hand. Going through ABAON, transaction type 210 (retirement with revenue), we choose the asset number, choose manual revenue (say $6,000.00 - cash in hand), choose DT of AA, TTY of 210. Posting the transaction, here's the result:

Dr. Accum Dep $2,317.16

Cr. Asset $347.58

Dr. Net Gain (P&L account) $6,000.00

Cr. Net Gain (P&L account) $4,030.42

The dr and cr for the net gain are the same P&L account. Shouldn't the $6,000.00 be booked to a cash account within the Balance Sheet since it represents the cash we received in hand? Sorry for all this but there must be something that I am overlooking.

Thanks!

[former_member188826]

I guess the account under the Clearing account for revenue from asset sale

is the same as the gain/loss account!