Retirement Window - SAP Documentation

Retirement Window

Use this window to create retirement for assets.

To open this window, from the SAP Business One Main Menu, choose Financials Fixed Assets Retirement .

General Area Fields

Origin
Displays one of the following: RT – The abbreviation for the transaction type Retirement. It indicates the retirement document is manually created. IN – The abbreviation for the transaction type A/R Invoice. It indicates the retirement document is automatically generated as a result of the creation of an A/R invoice with fixed assets. When the retirement document is in Add mode, the field is blank.

Origin No.
Displays one of the following: If the retirement document is created manually, the field displays the document number according to the definition in the Document Numbering - Setup window. If the retirement document is automatically generated, the field displays the document number of the source A/R invoice document.

No.
Displays the document series and number according to the definition in the Document Numbering - Setup window.

Status
Displays one of the following: Posted – Indicates the retirement is created. Cancelled – Indicates the retirement is cancelled.

Posting Date
Specify the date on which the journal entry is posted.

Document Date
Specify the document date. By default, the document date is the same as the posting date.

Asset Value Date
Specify the date of the retirement. By default, the date is the same as the posting date.

Cancellation Date
Displays the cancellation date. Note The field is available only if you have canceled the retirement document. If a retirement document is automatically generated upon the creation of an A/R invoice, you must cancel the A/R invoice in order to cancel the retirement document. End of the note.

Transaction Type
Select one of the following retirement types: Sales – Indicates an asset sold with a profit or loss. If you do not need to specify the customer information, use this type; otherwise, use an A/R invoice. Scrapping – Indicates a scrapped asset, with no revenue earned. SAP Business One posts the asset's remaining book value at the time of retirement as an expense.

Depreciation Area
Select the depreciation area in which an asset's retirement takes effect. If an asset is retired completely, the retirement is effective in all depreciation areas. In this case, you must select * – All Areas in this field. By default, * – All Areas is selected.

Reference
If required, specify any additional information about the retirement.

Currency
From the dropdown list, select the currency (local, system or foreign) you want to use for the retirement. If you select foreign currency, specify the currency and the exchange rate.

Consolidate Journal Entry Rows by Projects/Distribution Rules
Select the checkboxes to consolidate the journal entry rows by projects and distribution rules. Depending on your selection, the journal entry layout can be one of the following: Consolidate Journal Entry Rows by Projects – the system consolidates the journal entry rows with the same G/L account and project into one. Consolidate Journal Entry Rows by Distribution Rules – the system consolidates the journal entry rows with the same G/L account and distribution rule. If you select both, the system consolidates the journal entry rows with the same G/L account, project, and distribution rule. If you leave the two checkboxes unselected, the system consolidates only the journal entry rows with the same G/L account. For more information, refer to the examples in Consolidation of Journal Entry Rows by Projects and Distribution Rules.

Low Value Asset Retirement
Indicates that the retirement document is relevant to low value assets only. Once you select this checkbox, you can select only low value assets in the document. Low value assets must be fully retired. Note The checkbox is available in the Germany localization only. End of the note.

Total
Displays the total amount of the document.

Contents Tab Fields

Asset No.
Specify the asset that you want to retire. Selecting the same asset twice displays an error message.

Asset Description
You can select an asset by the asset description, as an alternative to the asset number.

G/L Account
Note The field is available only if the following conditions are met: You have selected Sales in the Transaction Type field. You have selected a specific depreciation area instead of all areas in the Depreciation Area field. End of the note. Specify the general ledger account to record the revenue from asset sales. The account cannot be a control account. By default, the Revenue Account for Retirement you have specified for the asset is displayed. For an asset that retires through scrapping, you cannot specify the general ledger account. Depending on the Posting of Retirement method you have specified for the asset in the Depreciation Areas - Setup window, the retirement is posted to one of the following accounts: If the asset's retirement posting method is Gross, the asset's retired value is posted to the Leave with Expense NBV (Gross) account. If the asset's retirement posting method is Net, the asset's retired value is posted to the Retirement with Expense (Net) account.

Total
Enter the total revenue resulting from an asset sale. Based on the asset's sales revenue and its net book value on the retirement date, the system determines whether the asset retires with profit or loss. Note The field is available only if you have selected Sales in the Transaction Type field. End of the note.

Partial
Select the checkbox to indicate the asset retirement is partial, for example. Only part of the asset quantity or value is removed from the portfolio.

Quantity
Note The field is editable only if you have selected the Partial checkbox. End of the note. If you want to retire an asset partially and the asset is planned for quantity maintenance, enter the quantity you want to retire. In this case, if you enter the acquisition and production costs, the value you enter is not effective. Note After you enter the quantity, the system calculates the retired net book value as follows: Retired Net Book Value = Net Book Value on Retirement Date * Retired Quantity / Available Quantity on Retirement Date End of the note.

APC
If you want to retire an asset partially and the asset is not planned for quantity maintenance, specify how much of the asset's acquisition and production costs are retired. In this case, if you enter the quantity, it is not effective. Note The field is editable only if you have selected the Partial checkbox. End of the note. Note After you enter the quantity, the system calculates the retired net book value as follows: Retired Net Book Value = Net Book Value on Retirement Date * Retired Acquisition and Production Costs / Acquisition and Production Costs on Retirement Date End of the note.

Remarks
If required, enter the remarks about the asset.

Accounting Tab Fields

Depreciation Area
Displays one of the following: If you have selected a specific depreciation area in the Depreciation Area field in the general area, the field displays this depreciation area. Only when this depreciation area is a Posting to G/L area can the system generate a journal entry. If you have selected * – All Areas in the Depreciation Area field in the general area, the field displays all Posting to G/L depreciation areas that are associated with the selected assets in this document. In this case, for each depreciation area, one journal entry is generated.

Journal Remark
If required, enter the remark about the journal entry generated in each depreciation area. Depending on whether the retirement type is sales or scrapping, the default journal remark is Retirement – Sales or Retirement – Scrapping, respectively.

Cancellation Journal Remark
Note The field is available only if you have canceled the retirement document. If a retirement document is automatically generated upon the creation of an A/R invoice, you must cancel the A/R invoice in order to cancel the retirement document. End of the note. If required, enter the remark about the journal entry generated upon the cancellation of the retirement document.

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