Retirement through Sale

A fixed asset is sold with a profit or loss. If you want to specify the customer information for the asset sale, you can create an A/R invoice to retire the asset. Upon the creation of the A/R invoice, a retirement document is generated automatically. However, if you do not want to specify the customer information, you can directly create a retirement document using the Sales type.

Retirement through Scrapping

If a fixed asset leaves the asset portfolio without any profit or loss being made, you can retire the asset by creating a retirement document with the scrapping type. In this case, the system posts the remaining book value of the asset during retirement as an expense.

Complete or Partial Retirement

A retirement can refer to an entire asset (complete retirement) or part of an asset (partial retirement). You can trigger the partial retirement of an asset by entering the retired acquisition and production costs or the retired quantity. When you enter the retired acquisition and production costs or quantity, the system determines the percentage that is deducted from the asset.

When you create a partial retirement for an asset, the retirement reduces the asset's acquisition and production costs and thereby affects the planned depreciation. The date on which the partial retirement reduces the assets's acquisition and production costs is calculated based on the asset value date in the retirement document and the retirement convention you specified for the asset's depreciation type.

When you retire an asset completely, the asset becomes inactive and you can no longer carry out any transactions with it.