PeopleSoft Asset Management 9.1 PeopleBook

Retiring Assets

This chapter provides an overview of asset retirement and discusses how to:

Retire financial assets.
Retire nonfinancial assets.
Reinstate assets.
Run the Tax Retirement Capital Gains report (AMTX3210).

Understanding Asset Retirement

PeopleSoft Asset Management enables you to fully or partially retire assets in the past, present, or future. Occasionally, a retirement transaction may require a reversal. In that case, you can reinstate a retired asset using the pages in the Asset Retirements component.

You retire assets when they are either disposed of or no longer in use. When you retire an asset, PeopleSoft Asset Management creates all the necessary journal entries. For example, when you sell an asset, the system calculates depreciation through the date of the sale, as well as any gain or loss. In addition, you can have the system create journal entries corresponding to each of these events. Gains and losses are booked to separate accounts, providing flexibility in updating general ledger journals and balances.

An asset is retired by its book designation; therefore, you can retire an asset in one book, but it is still available for depreciation in others. You can reinstate retired assets at any time. When assets are reinstated, depreciation starts again for them if they are not fully depreciated.

Retirement Types

Assets are fully or partially retired by quantity or by cost. You can also enter retroactive retirement information for assets that were actually retired in a prior accounting period.

Full Retirement

When the full quantity and total cost of an asset are retired, the asset is considered fully retired. The asset is taken off the books after the retirement has been fully processed and accounting entries have been created. No further depreciation accrues.

Partial Retirement

You can partially retire an asset, and the system continues to process depreciation for the amount that remains. Two types of partial retirement are available:

By quantity

You can partially retire assets by quantity. For example, if you have 250 computers, and you sell 50 of them to employees, you enter the 50 units as the quantity retired. PeopleSoft Asset Management calculates the corresponding cost.
By cost

You can partially retire assets by cost. For example, suppose that you partially retire a computer for the price of the computer monitor, 400 USD, and you sell the monitor for 100 USD. The total cost of the computer is 1500 USD. The cost (400 USD) is the amount retired, and the 100 USD is the proceeds from the sale. PeopleSoft Asset Management automatically calculates the gain or loss based on these amounts.

Prior Period

To enter a retirement transaction for an asset that was actually retired in a prior accounting period, you must enter transaction and accounting dates that reflect the actual retirement and the accounting period in which you want the retirement posted. For example, suppose that an asset sold on April 30 was processed as a retirement in PeopleSoft Asset Management on June 30. By the time the asset is entered as a retirement, depreciation expense for May and June post to the general ledger. That posting results in overstated accumulated depreciation and an incorrect gain or loss. To correctly process this retirement, you would specify April 30 as the transaction date and—assuming all prior periods are closed—June 30 as the accounting date. PeopleSoft Asset Management then reverses the accumulated depreciation attributable for May and June and calculates the correct gain or loss on the asset.

Retiring Financial Assets

This section discusses how to:

Retire an asset.
Define other retirement options.
Select retirement transactions by ChartField.
Select child assets.
Review a capital gain summary for retirements.
Integrate retired asset information with PeopleSoft Billing.
Specify how value-added tax (VAT) is calculated for asset retirement.
Auto-retire fully depreciated assets.
Initiate asset retirement using the disposal worksheet.
Put assets up for auction.

Pages Used to Retire Financial Assets

Page Name	Definition Name	Navigation	Usage
Retire Assets	ASSET_RETIRE_01	Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Asset	Retire or reinstate an asset. Click the appropriate button to access other fields based on your selection.
Like Kind Exchange	LIKE_KIND_EXCH	Click the Like Kind Exchange Info (like-kind exchange information) link on the Retire Assets page. In the Retire As field, select the Like Kind Exchange option to display the link.	Enter fair values and descriptions for each asset to add multiple assets as part of a like-kind exchange.
General Info	CUST_GENERAL1	Click the Customer General Info link on the Retire Assets page.	Search for and select customer information to add for retirements by sale or trade.
Retire/Reinstate Assets - Other Options	ASSET_RETIRE_02	Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Assets, Other Options	Select assets to be retired based on gain or loss and on other options.
Retire/Reinstate Assets - By ChartField	ASSET_RETIRE_03	Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Assets, By Chartfield	Override PeopleSoft Asset Management calculations when shared assets are partially retired.
Child Assets	CHILD_ASSETS	Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Asset, Child Assets	Select child assets to include in a retirement transaction that you have initiated against the parent on the Retire Assets page.
Child Asset Retirement Options	AM_PARCHD_RET01	Click Child Details on the Child Assets page.	Specify retirement overrides for a specific child asset. For example, you might specify a different retirement disposal code for the child asset.
Advanced Transaction Details	FULL_PART_SEC	Click Child Details on the Child Assets page.	Specify transaction overrides for all child assets at once.
Proceeds and Removal Cost Allocation	AM_PARCHD_ALLOC	Click the Allocation Option link on the Child Assets page.	Specify allocation options to calculate removal cost and proceeds for the parent (if selected) and selected children.
VAT	AM_VAT_TRANS_RET	Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Asset, VAT	Specify options to use to calculate VAT on an asset retirement.
Auto-Retire Fully Depr Assets (automatically retire fully depreciated assets)	RUN_AMRETFDA	Asset Management, Asset Transactions, Asset Disposal, Auto-Retire Fully Depr Assets	Identify run-control parameters to initiate the Auto-Retire Fully Depreciated Assets process (RUN_AMRETFDA).
Auto-Retired Assets	RUN_AMRET001	Asset Management, Financial Reports, Retirement, Auto-Retired Assets Report	Identify run-control parameters to generate the Auto-Retire Assets report.
Proceeds and Removal Cost	ASSET_RETIRE_SEC1	Click the Base Amounts and Exchange Rate icon.	View the transaction in the base currency, alternate currency, and associated exchange rate.
Capital Gain	ASSET_RETIRE_05	Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Assets, Capital Gain	View the calculations for capital gains or losses for a retirement transaction.
Bill Information	ASSET_RETIRE_07	Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Assets, Bill Information	Define default values for PeopleSoft Billing.
AM/BI Interface (Asset Management - Billing interface)	RUN_AMBI_INTFC	Asset Management, Send/Receive Information, Load Interface, Interface AM to Billing	Run the PeopleSoft Asset Management - Billing interface.
Disposal Worksheet	AM_EXPRESS_RET1	Asset Management, Asset Transactions, Asset Disposal, Disposal Worksheet	Identify and submit assets for disposal.
Asset Information, Retirement Information, Other Accounting Information	AM_DISPOSAL_00	Click the Retrieve button on the Disposal Worksheet page.	Retrieve assets according to the search criteria entered. The system displays the Asset Information, Retirement Information, and Other Accounting Information tabs.
ChartField Search Criteria	AM_LOOKUP_CF_SEL	Asset Management, Asset Transactions, Asset Disposal, Disposal Worksheet Click the ChartField Search Criteria link.	Select ChartFields to use as search criteria.
Ownership Details	AM_DISPOSAL_01	Asset Management, Asset Transactions, Asset Disposal, Disposal Worksheet Click the View Ownership Details link.	View the original asset owner selection attributes.
Approve Disposals	AM_DISP_APPR01	Asset Management, Asset Transactions, Asset Disposal, Approve Disposals	Deny or approve a retirement disposal, or place it on hold.

Retiring an Asset

Access the Retire Assets page (Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Asset, Retire Assets).

Trans Date (transaction date)

The transaction date reflects the date that the retirement actually occurred. Usually, an actual transaction occurs before you enter it in PeopleSoft Asset Management. The transaction date and the prorate convention determine how much of the depreciation taken in PeopleSoft Asset Management must be recovered.

Acctg Date (accounting date)

The accounting date determines when the retirement transaction is posted to the general ledger.

Rate Type

Select an exchange rate type for the transaction if you use multiple currencies in processing and the retirement transaction is not in the base currency of the business unit.

In Physical Use

This flag is informational only on the Retire Assets page. Only those assets that are selected for physical use are included in the ITAM comparison process. If this flag was selected before retirement, it is automatically deselected after the asset is retired. This flag can be selected or deselected on the Basic Add page or the Define Asset Operational Info page.

See Working with the Asset Repository.

Book

Book Name	Enter the book in which this asset retirement is recorded.
Retire As	Specify the type of retirement transactions to process by selecting from the list of disposal codes. Then, depending on the asset's status, click GO or Reinstate.. Until you click one of these buttons, you cannot enter information into other fields. Note. To reinstate a specific retired transaction, scroll to the transaction and select the Reinstate check box before clicking the Reinstate button.
Copy Changes to Other Books	Selected by default, this option keeps all books in sync by copying this transaction to all other books that are defined for the asset. Deselect the check box if you do not want to copy changes to other books.
Base Currency, As of Quantity and Cost	These fields display the corresponding information as defined for this asset in the selected book before you save your changes. You can use this information as a reference when you enter quantity or amount information to partially retire an asset. Note. If you process asset transactions in multiple currencies, the retirement transaction can be performed in a currency different from that of the asset base currency or the book currency. The Base Currency field is informational. It displays the default currency from the selected asset's business unit.

Disposal Codes

Disposal codes reflect the Retire As action that is selected to initiate the retirement transaction. PeopleSoft Asset Management calculates gain or loss amounts depending, in part, on the disposal code that you select. This table describes the available options in the Retire As field:

Code	Usage	Gain/Loss
Abandonment	Select when the asset has no resale value and it is left behind. For example, consider leasehold improvements. At the end of the lease term, the improvements are generally left behind and no removal costs are incurred when you turn over the improvement to the lessor.	Gain/loss calculations are based on the asset net book value.
Auto-Retire Fully Depr Asset	Select when the asset is fully depreciated.	Gain/loss calculations are based on the asset net book value.
Cannibalize for Other Assets	Select when the asset has been dismantled and the parts are reused within the organization. For example, if an employee reuses a monitor that is part of an unused computer, you would retire the monitor as cannibalized. Typically, cannibalized assets are partially retired. They have no proceeds and no removal costs.	Gain/loss calculations are based on the asset net book value.
Casualty Loss	Select when an asset is unintentionally destroyed. If the asset cannot be sold, you may incur removal costs disposing of it. Retiring an asset as a casualty may have tax consequences if you have tax credits and the asset is not fully depreciated.	PeopleSoft Asset Management deducts the accumulated depreciation from the retirement amount and adds the removal costs to determine the amount of the casualty loss.
Disappeared Assets	Select when an asset cannot be located and you are not sure whether the asset was abandoned or stolen. Disappeared assets have no proceeds or removal costs.	Gain/loss calculations are based on the asset net book value.
Disposal Due to Theft	Select when an asset has been stolen.	Stolen assets have no proceeds and no removal costs.
Donated to External Group	Select when an asset is donated. You typically use this option when assets are donated to nonprofit organizations for tax purposes.	PeopleSoft Asset Management deducts the accumulated depreciation from the retirement amount, treating proceeds and removal costs as appropriate, to determine the gain or loss. Note. VAT is applicable for VAT business units.
Expensed	Select when an asset has adjustments to the original cost that requires reclassification from capital asset to expensed asset due to its cost. If the Capitalization Threshold feature is enabled, Asset Management automatically assigns this disposal code through the Capitalization Threshold Validation process if the original cost falls below the capitalization threshold. See Setting Up Capitalization Thresholds.	The accounting entry template for this disposal code reflects the loss account as the expense. Previous depreciation expense is recognized as expense too. The Interface Type is RET.
Like Kind Exchange	Select to process like-kind exchanges under U.S. federal tax code.	See Like-Kind Exchange Processing.
Missing Asset	Select when an asset is missing. Missing assets have no proceeds and no removal costs.	Gain/loss calculations are based on the asset net book value.
Retirement by Sale	Select if you sell an asset. (If you sell the entity that owns the asset, you must retire all assets that are owned by the entity.) You can use the interface with PeopleSoft Billing to generate the bill.	The proceeds and removal cost from the sale, less the net book value of the asset, determines the gain or loss. Note. VAT is applicable for VAT business units.
Returned to Inventory	Select when the asset is returned to a common internal pool where it is available for others to use.	PeopleSoft Asset Management deducts the accumulated depreciation from the retirement amount, treating proceeds and removal costs as appropriate, to determine the gain or loss. Note. VAT is applicable for VAT business units.
Scrapped Assets	Select when the asset is no longer useful and has no resale value.	The gain/loss calculations include removal costs; accumulated depreciation is deducted and then the removal costs are added to derive the amount of the gain or loss.
Traded In for another Asset	Use when you are trading one asset for another. See Processing Trade-Ins.	PeopleSoft Asset Management deducts the accumulated depreciation from the retirement amount, treating proceeds and removal costs as appropriate, to determine the gain or loss. Note. VAT is applicable for VAT business units.

Quantity	When you select a disposal code, the system automatically populates the Quantity field with the total number of units, and the Retirement Amount field with the total cost for all units. Adjust either the quantity or the cost for a partial retirement. If you adjust the number of units, the cost is recalculated. If you adjust the cost, the quantity is recalculated. When performing a full retirement, it is not necessary to adjust quantity or amount retired; enter any proceeds from the sale of this asset and any removal costs that you may have incurred. When performing a partial retirement, change either the quantity or cost that will be retired.
Removal Cost and RC Curr (removal cost currency)	Enter the amount of any cost for removal and select the currency for the cost.
Proceeds and Pr Curr (proceeds currency)	Enter the amount of the proceeds for the transaction and select the currency of the proceeds.
	When you have transactions involving currencies other than base currency, click the Base Amounts and Exchange Rate icon to access the Proceeds and Removal Cost page. You can review base amounts and exchange rates. You cannot make changes on this page.
Convention	Specify the convention to use to calculate depreciation through retirement. Generally, the same depreciation convention is used to retire an asset as was used when the asset was in service. However, you can change the convention to manipulate depreciation processing. For example, assuming a calendar year, an asset retired on April 15 will be depreciated as follows: Actual Day: (asset is depreciated through April 15) Actual Month: (asset is depreciated through March 31) Following Month: (asset is depreciated through April 30)
Transaction Code	Select to identify the reason for the retirement or reinstatement.
Retire Option	Select the retirement calculation option to be processed for the transaction. Options are: Calculate Gain/Loss Select to calculate gain or loss that is associated with the retirement of an asset without fully depreciating the asset. Select if assets should not be fully depreciated at retirement so that the accounting entries passed to the general ledger will include gain or loss information. Fully Depr no Future Expense Select to process the asset as fully depreciated with no future depreciation expenses, regardless of how much depreciation has actually been calculated. The accounting entries passed to the general ledger will not include gain and loss information. (This remains true as long as no proceeds or removal cost have been assigned for that particular asset.) This option is used generally within the utility industry for group assets and assumes that assets are fully depreciated at retirement regardless of how much depreciation has actually been calculated. Depreciation expense is debited for the full cost basis of the asset at the time of retirement, resulting in no gain or loss. Net book value (NBV) will remain, however. Fully Depr with Future Expense Select to process the asset as fully depreciated, regardless of how much depreciation has actually been calculated, but future depreciation expenses may be created. The accounting entries passed to the general ledger will not include gain and loss information. (This remains true as long as no proceeds or removal cost have been assigned for that particular asset.) The depreciation close process (AM_DPCLOSE) generates the accounting entries for any remaining expense. Note. Fully depreciated assets are also called fully reserved assets. For example, if you retire an asset with an original cost basis of 10,000 USD and accumulated depreciation of 8,000 USD, the NBV is 2,000 USD. When you run the Accounting Entry Creation process (AM_AMAEDIST) to create accounting entries, the system looks at the selection for the Retire Option field: If you select Calculate Gain/Loss, the system creates the following accounting entries: Debit Accumulated Depreciation for 8,000 USD; Debit Loss for 2,000 USD; and Credit Fixed Asset for 10,000 USD. If you select Fully Depr no Future Expense, no gain or loss is recorded, and the accounting entries are Debit Accumulated Depreciation for 10,000 USD and Credit Fixed Asset for 10,000 USD. If you select Fully Depr with Future Expense, the accounting entries are Debit Accumulated Depreciation for 10,000 USD; Credit Fixed Asset for 10,000 USD; Debit Depreciation Expense for 2,000 USD; and Credit Accumulated Depreciation for 2,000 USD. Note. When you select Fully Depr with Future Expense, the first two rows are created by the Accounting Entry Creation process (AM_AMAEDIST.) The last two rows are created by the Depreciation Close process (AM_DPCLOSE.) Note. The default for the Retire Option is from the Asset Book level. If the Retire Option at the Asset Book level is blank, the default value comes from the Asset Profile table. If this is also blank, the default value is Calculate Gain/Loss.
Retirement Amt (retirement amount)	Displays the amount of the retirement transaction in the base currency.
Base Removal Cost	Displays the base removal cost, translated to the base currency.
Base Proceeds	Displays the base proceeds, translated to the base currency.
Accum Depr (accumulated depreciation)	Displays the accumulated depreciation for the asset, which is displayed after you have run the depreciation calculation process (AM_DEPR_CALC).
Gain/Loss	Displays the amount of the gain or loss on the transaction after you run the depreciation calculation process (AM_DEPR_CALC).

Customer/Ship from Information

This region of the Retire Assets page enables you to retrieve customer information that is related to a retirement-by-sale transaction. The fields appear only when this value is selected as the retirement option or if the retirement option is Traded In, Donated, or Returned to Inventory and the business unit is VAT-enabled.

Ship from Loc (ship from location)	The default ship-from location is the asset location. If no asset location is defined, the default is the business unit location. This field is required only for business units that are VAT-enabled.
Customer ID	Enter the customer ID for the customer who is billed for the transaction. The value that is entered determines VAT values. When you enter the customer ID, default values for customer location, bill-to-location, sold-to, and ship-to information are supplied automatically, if applicable. Click the Search button to view a list of the valid customer IDs for the business unit. When you enter a customer ID, the location is set to the default location and the ship-to and sold-to Customer IDs and locations are set to the same values.
Loc (location)	Enter the location ID for the customer location that is associated with the customer ID. Note. Click the Search button to view a list of the valid customer location IDs for the business unit.
Sold To Customer	Enter the customer ID for the customer that ordered and purchased the asset. This value is not necessarily the same as the value in the Customer ID field.
Sold Loc (sold location)	Enter the location ID for the customer that ordered or purchased the asset. This value is not necessarily the same as the location in the Loc field.
Ship To Customer	Enter the customer ID where the assets will be shipped. Depending on the PeopleSoft Billing interface options that you selected, this field appears when shipping information is associated with the selected customer ID. This value is not necessarily the same as the value in the Customer ID field.
Ship Loc (buyer location)	Enter the location ID associated with the ship-to customer. Customers can have several location addresses associated with them, each identified by a location number.
Create Bill	Select to generate a PeopleSoft Billing invoice when the disposal method is Retirement by Sale. This option does not appear if PeopleSoft Asset Management is not integrated with PeopleSoft Billing or if you did not enable the interface at implementation.

See Integrating with PeopleSoft Asset Management.

See Integrating with PeopleSoft Billing.

Customer General Info

Click the Customer General Info (customer general information) link to access the Customer General Information page. A new window opens and displays the page.

See Maintaining General Customer Information.

VAT

To access the VAT page, click this link or select the VAT tab at the top of the page. This tab and link appear only for VAT-enabled business units.

Note. The VAT default values are automatically applied the first time that you access the page by clicking the link. However, if you change the customer, ship-from, or ship-to information after the VAT default values are applied, the default values are not automatically updated. In this case, go to the VAT page and click the Reset All VAT Defaults button to redetermine all the defaults. This action is not necessary if only the proceeds information has changed.

The fields that appear on the VAT page are specific to the transaction that is recorded. In addition to depending on proceeds, the VAT default values that appear depend on the customer ID, location, ship-to ID, ship-to location, and ship-from location (or the ship-to country, ship-to state, buyer's registration country, and ship-from location if no customer information is available). The VAT drivers also determine which default values appear. The VAT drivers for assets are, in descending order of precedence: asset class, customer location, customer, PeopleSoft Asset Management business unit definition, VAT entity registration, and VAT country. The algorithm for the defaults selects information from asset class first, followed by customer location, followed by customer, and so on.

VAT is enabled based on the disposal code that is used in the transaction. VAT applies for the following disposal codes:

Retirement by Sale
Traded In for Another Asset
Donated to External Group
Returned to Inventory

See Specifying How VAT Is Calculated for Asset Retirement.

Traded-In Asset Processing

To retire an asset by trading it for another asset:

Retire the asset using the disposal code in the Traded-In for Another Asset field.
Enter the amount that is gained through the trade-in into the Proceeds field.
Run depreciation to calculate the gain or loss amount.
Add the new asset by using the Asset ExpressAdd component and select Trade-in as the acquisition code.
Enter the asset ID of the asset that you traded into the Trade-in field.

Note. Be sure to run depreciation whenever you retire an asset. This process calculates the gain or loss amount. The proceeds are offset against the cost of the asset that is acquired as part of the exchange.

Like-Kind Exchange Processing

Access the Like Kind Exchange page by clicking the Like Kind Exchange Info link on the Retire Assets page. For the Retire As field, select the Like Kind Exchange option to display the link.

PeopleSoft Asset Management supports 1031 Like-Kind Exchange regulations under the U.S. federal tax code. It enables you to:

Retire an asset using a like-kind disposal code, recognize the gain that results, and roll the correct tax basis over to the newly acquired asset.
Verify, through a comparison of the disposition date and the replacement date, that the 180-day exchange rule is met.
Generate appropriate accounting entries for like-kind exchanges.
Run reports that detail each like-kind transaction and show the carry forward of the tax basis from the old assets to the new assets.

Click the Like-Kind Exchange Info link to enter retirement information that is specific to a retirement transaction.

To process like-kind exchanges:

Retire an asset using the like-kind exchange disposal code.
- Enter any cash that is received as part of the exchange in the Cash field. Cash that is received in a like-kind exchange is taxable and is often referred to as boot.
- Enter the fair value of the like asset that you will be adding in the FV Like-Kind field.
  
  For example, if you are retiring a building and adding another building that is valued at 60,000 USD, enter 60,000 into the FV Like-Kind field. If you plan to add more than one like asset, select One to Many to access the one-to-many list, where you can enter the values and descriptions of assets that you are adding.
- If you will also receive non-like property as part of this exchange, enter its fair value in the FV Non Like-Kind field.
  
  A gain that is realized through the acquisition of non-like property is taxable.
- Enter the amount of your liability into the Net Liability field.
  
  For example, if you are surrendering a building with a mortgage of 70,000 USD and acquiring a building with a mortgage of 30,000 USD, then enter 40,000 USD as the net liability.
The system sums the values in the Cash, FV and Net Liability fields and populates the Proceeds field with the result. You cannot change this amount.

PeopleSoft Asset Management prorates basis calculations when you perform a one-to-many exchange.
Run the Depreciation Calculation process, which calculates both the realized gain and the recognized gain.

You can view the result of this calculation in the Gain/Loss field on the Retire Assets page. Any realized loss is not recognized.
Add the new asset by using the Asset ExpressAdd component.

Select Like-Kind Exchange as the acquisition code, and select the asset ID of the retired asset.

The asset category automatically displays the category of the retired asset, and the cost fields are populated with the cost basis for the new asset. You cannot change either the category or the cost amounts.

Note. The FV entered on the Like Kind Exchange page is not automatically assigned as the fair value of the newly acquired asset.

See Adding and Maintaining Asset Information.

PeopleSoft Asset Management prorates basis calculations when you perform a one-to-many exchange.

One to Many ID	Enter a one-to-many ID to identify the exchange.
Transaction Trade In Value/Description	For each asset that you add, enter a trade-in value and description.

Like-Kind Exchange Example

If the owner of Building A wants to exchange it for Building B, Building A is retired using the like-kind disposal code, and Building B is added through the Asset ExpressAdd component.

Transaction	Building A (Retiring)	Building B (Adding)
Cost	85,000 USD	60,000 USD
Liability (Mortgage)	70,000 USD	30,000 USD
Accumulated Depreciation	10,000 USD	None

PeopleSoft Asset Management calculates boot, which is any cash or non-like property that is involved in the transaction, like this:

(Cash Received) + (FV of Non-like Property Received) + (Liability Assumed) = Boot

Note. Boot is money or other property that does not qualify for nonrecognition of gain.

In this example, boot is calculated like this: 0 + 0 + 40,000 = 40,000.

When you run the Depreciation Calculation process, the process identifies the recognized gain as the lesser of the boot amount or the realized gain.

In this example, in which the boot amount is 40,000 and the realized gain is 25,000, the recognized gain is 25,000.

PeopleSoft Asset Management calculates the cost basis of the property exchanged (retired) like this:

(Cost) − (Accumulated Depreciation) = (Cost Basis of Property Exchanged)

In this example, it is calculated like this: 85,000 – 10,000 = 75,000

PeopleSoft Asset Management calculates the cost basis of the added property added like this:

(Basis of Retired Property) − (Boot Amount) + (Recognized Gain or Loss) = (Basis of the Added Property)

In this example, it is calculated like this: 75,000 − 40,000 + 25,000 = 60,000

Defining Other Retirement Options

Access the Retire/Reinstate Assets - Other Options page (Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Assets, Other Options).

Gain/Loss Calculations

PeopleSoft Asset Management provides three methods for calculating retirement gain or loss. You can use these methods separately or in combination. Select the appropriate check box in the Gain/Loss Calculations group box.

Use Original Cost and Basis Reduction Code	Select to exclude certain kinds of transactions from the calculation. Do this by selecting a basis reduction code (this selection is required when Use Original Cost is selected). For example, if you revalued an asset but want to exclude the revaluation from the gain/loss calculation at retirement, then you would select the basis reduction code that you set up to exclude revaluations. PeopleSoft Asset Management reverses the revaluation and calculates gain/loss using the resulting net book value. Note. For the Use Original Cost option to work correctly, any transaction types that you want to exclude must have distinct transaction codes.
Recalc Cost Using Index (recalculate cost using index), Index Name, and SubIndex	Select to adjust the cost of an asset, as well as any subsequent transactions, according to any index that you have set up in PeopleSoft Asset Management. For example, if you have set up an index to account for inflation, you can calculate gain/loss using the original cost and any subsequent transactions adjusted for inflation. This enables you to book the gain or loss adjusted for inflation. When you select this check box, you must enter an index and subindex to use in the recalculation.
Reference Code	Enter information to track the asset, such as retirement documentation or asset ID. This field is optional.
Include Non-Capitalized Costs	Select to include any noncapitalized costs in the net book value of an asset.
Trade In Asset	Displays the ID of the new traded-in asset.
Auto-Retired	Indicates that the asset was automatically retired by the Auto-Retire process (AMRETFDA).

Conversion

Voluntary and Involuntary

Select one or the other to indicate whether this is a Voluntary or Involuntary retirement. This selection is informational only

Type

Ordinary and Extraordinary

Select to indicate how the gain or loss that results from the retirement should be reported. This selection is informational only.

Selecting Retirement Transactions by ChartField

Access the Retire/Reinstate Assets - By ChartField page (Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Assets, By Chartfield).

Override the system selections by entering an amount in the Retire Amt (retire amount) field or the Quantity field. Typically, you use this page only when assets are split between departments or partially retired.

For example, suppose that the Sales and Marketing departments share 40 color monitors worth a total of 10,000 USD, and these assets are added to PeopleSoft Asset Management. Based on projected use, the Sales department is allocated 70 percent of the total cost and quantity and Marketing is allocated 30 percent. After a couple of years, all the color monitors are upgraded to flat screen, resulting in the retirement of monitors with a total cost of 10,000 USD. Based on the original allocation of cost, the system fully retires the assets with 70 percent of the retirement amount allocated to Sales (department 21101) and 30 percent to Marketing (department 22001).

However, if Sales decides that some of their monitors are worth keeping, only 50 percent, rather than 70 percent, of the total cost is retired. To make these changes, either override the amount in the Retire Amt field with 5,000 USD allocated to the Sales department or override the amount in the Quantity field with 20 allocated to Sales.

Note. When you perform a retirement by ChartField, for each ChartField combination you can retire only a cost or quantity that is less than or equal to the amount that was originally apportioned to that ChartField combination.

Selecting Child Assets

Access the Child Assets page (Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Asset, Child Assets).

Note. The Child Assets page appears in several different components of PeopleSoft Asset Management. Within the Asset Retirements component, use the Child Assets page to select child assets to include in the retirement transaction that you have initiated against its parent on the Retire Assets page. Also, you cannot view or perform transactions on child assets whose parent was created using the Asset Parent page.

Click Select All to include all child assets with the parent in the transaction that you have initiated.

Note. Parent assets created on the Parent Asset page (parent-only assets) do not have cost or basic information. They cannot be viewed in the Parent Child Basic Information component, nor can they be viewed or transacted against in the Asset Cost/Adjust Transfers component, the Asset Retirements component, or the Parent-Child NBV component. If you want to use a parent asset as a reporting umbrella only and access these pages for manipulating child assets in mass, we suggest creating a zero-cost parent asset rather than a parent-only asset. Also, to transact against parent and child assets at one time, parent and child must use the same asset profile. Also, be aware that physical asset components will not be retired when the physical parent component is retired.

To include only some child assets, select the Selected check box for the appropriate rows.

Tag Number	The tag that is assigned to the child asset. Parent and child assets can share the same tag number.
Description	The child asset description.
Child Asset ID	The asset ID that is assigned to the child asset.
Cost	The cost of the child asset.
Currency	The currency in which child asset costs are stored.
Acq Date (acquisition date)	The date the asset was acquired.

The Include Parent Asset check box is selected by default. Deselecting it enables you to perform transactions on child assets while excluding the parent asset from the transactions. However, the transaction details must be specified on the parent.

Child Details

Click the Child Details link to access the Child Asset RET Overrides page, where you can specify overrides for a specific child asset for the transaction, including disposal code, removal cost, proceeds, quantity, retire amount, transaction percentage, convention and retirement option.

Asset Information

Click the Asset Information link to access another copy of the Retire Assets page. The page will open populated with the child asset.

Advanced Transaction Details

Click the Advanced Txn Details (advanced transaction details) link to access the Parent Asset Adv Txn Options page, where you can specify overrides that will be applied to all child assets at one time.

Proceeds and Removal Cost Allocation

Click the Allocation Option link to access the Proceeds and Removal Cost Allocation page. This link is only visible for retirements on the Child Assets page.

Allocation Type

Select one of the following allocation types:

Proportion: The cost of the selected child assets is divided by the cost of the parent asset to determine the percent of removal cost and proceeds to allocate. The removal cost and proceeds are then multiplied by the respective percentages to determine the allocation ((child cost / parent cost) * proceeds or removal cost).

Prorata: This allocation type can be based on cost or quantity, depending upon your selection in the Alloc. Basis field. The total cost or quantity for all selected assets is summed. (If the Include Parent Asset check box is selected, the parent cost or quantity is also summed. For each child selected on the Child Asset page, include the cost or quantity. Then for each individual asset, the cost or quantity is divided by the summed amount to give the assets percentage of the total for all assets. This number will then be multiplied by the Removal Cost and/or Proceeds to determine that assets share of the amounts entered: ((asset cost / summed cost) * proceeds or removal cost). This can also be quantified as: (proceeds/parent cost) * child cost .

Evenly: The amounts entered for removal cost and proceeds are distributed evenly between the selected assets (children and parent, if selected).

Copy: The amounts entered for removal cost and proceeds are copied as is to the selected assets (children and parent, if selected).

Alloc. Basis(allocation basis)

This option is only available when the Allocation Type field value is Prorata. Select to allocate proceeds and removal cost based on:

Cost

Quantity

Removal Cost and RC Curr (removal cost currency)

The default value is the parent's removal cost. Retain this original value or change the removal cost to be allocated.

Proceeds and Pr Curr (proceeds currency)

The default value is the parent's proceeds. Retain this value or change the proceeds to be allocated.

Include Parent Asset

This check box retains the value of the Include Parent selection from the Child Asset page. If the check box is not selected on the Child Asset page, the selection is not available for the Proceeds and Removal Cost Allocation page. This selection determines if the parent asset's cost or quantity will be considered for the allocation chosen. This only affects the Prorata and Evenly allocation types and determines if the parent asset value changes. If this option is not selected, the parent asset will not be considered in the calculation or disbursement.

Click OK to trigger the allocation calculation and disbursement of the removal cost and proceeds to the selected assets according to the options that are specified. The Child Asset page will then display. You can run the allocation as necessary; the latest values override any values that already exist on the selected assets. Rounding differences are placed in last asset child that is processed.

Reviewing a Capital Gain Summary for Retirements

Access the Capital Gain page (Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Assets, Capital Gain).

The Capital Gain tab appears when the business unit is enabled for Australian tax. The capital gains or losses for the retirement transaction are summarized on this page after retirement processes have run.

Integrating Retired Asset Information with PeopleSoft Billing

Access the Bill Information page (Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Assets, Bill Information).

Note. Only assets that are retired with the disposal code Retirement by Sale are affected.

PeopleSoft Asset Management can be fully integrated with PeopleSoft Billing to automatically create bills when you retire assets using the Retirement by Sale disposal code. If you have implemented PeopleSoft Billing with PeopleSoft Asset Management and you have activated the PeopleSoft Asset Management-Billing interface for the processing business unit, this additional retirement tab is enabled.

BI Unit (billing business unit)

Select the PeopleSoft Billing business unit that processes the asset sale to generate an invoice for the sale transaction. The PeopleSoft Billing business unit is defined at the business unit level, but it can be overridden at the asset level.

Trans Status (transaction status)

Displays the transaction status of the invoice within the PeopleSoft Asset Management process. Values are:

Pending

When you opt to generate an invoice through PeopleSoft Billing for a retirement transaction, the default status is Pending until the transaction is processed by the PeopleSoft Asset Management-Billing interface (AM_BI_INTFC).
In Progress

When the PeopleSoft Asset Management - Billing interface is running, the transaction status is updated to In Progress.

Complete

When the retirement transaction has been loaded into PeopleSoft Billing for processing, the transaction status is updated to Complete.
Ignore

If you reinstate this asset before the PeopleSoft Asset Management-Billing interface is processed, the bill create and credit bill transactions appear in the interface. In this case, the PeopleSoft system cancels the initial retirement and the status of the billing request changes to Ignore. To proceed with the retirement, you must reenter the retirement transaction. You cannot generate a reinstatement until PeopleSoft Billing creates the invoice number (after BIIF0001 is run). If you reinstate this asset before the PeopleSoft Asset Management-Billing interface is processed but after running depreciation calculation for the retirement, the system cancels the initial retirement and the status of the billing request is changed to Ignore.

Invoice

When the transaction has been processed in PeopleSoft Billing, the invoice number that is assigned appears for future reference.

Line Seq (line sequence)

When the invoice for the sale transaction has been processed in PeopleSoft Billing, the line sequence number for this transaction appears. This value identifies the invoice line number for the asset sale, and it appears when the invoice is generated by PeopleSoft Billing.

PeopleSoft Asset Management sends retirement information to the PeopleSoft Asset Management-Billing business unit (usually the one with the same general-ledger business unit) and then PeopleSoft Billing generates the invoice to the customer (also a general-ledger business unit). Depending on which PeopleSoft Payables business unit has been defined in the InterUnit billing definition (general ledger business unit definition), PeopleSoft Billing sends asset InterUnit information to PeopleSoft Payables, taking the vendor and location from the retired asset's general-ledger business unit.

If a retirement is processed due to an InterUnit transfer, the information is also sent to PeopleSoft Payables, including asset ID, asset profile, and cost type. When you are performing an InterUnit transaction, you must complete additional information.

AM Unit	Enter the business unit where the system adds or adjusts the asset through the interface with PeopleSoft Payables.
Asset ID	By default, the value is Next, but you can select another existing asset ID.
Profile ID	Select the profile for the asset.
Cost Type	(Optional) Select a cost type.

When you click Save, the retirement-by-sale create bill transactions are assigned the transaction status Pending. Select the pending transactions to be included when you are ready to run the PeopleSoft Asset Management-Billing (AMBI_INTFC) interface.

Processing Retirement with Sale Transactions in the PeopleSoft Billing Interface

Access the AM/BI Interface page (Asset Management, Send/Receive Information, Load Interface, Interface AM to Billing).

After you enter retirement transactions for assets that PeopleSoft Billing invoices, you can initiate the process to load the transactions for the AM/BI Interface process (RUN_AMBI_INTFC). Before you launch this process, the retirement entries must be generated.

Enter the run control ID to use or add a new one. Enter the business unit and the asset ID range to be processed, and click Run.

The process assembles the pending transactions that you have entered, attaches an interface ID, changes the transaction status to In Progress, and displays the transactions in a view page (PS_INTFC_BI). The transactions are loaded into PeopleSoft Billing for processing.

You can run the AM/Billing Transaction Status report to review the transactions that were processed. You can review accounting entries before or after the PeopleSoft Asset Management-Billing interface has been run.

Note. Reinstatements are processed according to two rules. First, if the reinstatement is performed before sending the retirement information to PeopleSoft Billing, neither transaction is processed by the PeopleSoft Asset Management-Billing interface. Second, reinstatements cannot be performed until the PeopleSoft Asset Management-Billing interface application (BIIF0001) has been run for the asset's previous retirement.

When transactions between PeopleSoft Asset Management and PeopleSoft Billing occur, the system provides a clearing account, Proceeds to Billing, which accumulates the income from the transactions and matches the transactions to the PeopleSoft Asset Management accounting entries. This maintains balanced accounting entries between the applications.

Running the AM/Billing Transaction Status Report

Access the AM/Billing Transaction Status page (Asset Management, Send/Receive Information, Load Interface, Interface AM/ Billing).

Enter the appropriate PeopleSoft Asset Management business unit, and range of dates for the transactions that you want to review. Click Run to generate and view the report.

Note. When processing a retirement-by-sale for a parent asset, you cannot generate an invoice for each child asset in the same transaction. You have to dispose of each child asset separately.

Specifying How VAT Is Calculated for Asset Retirement

Access the VAT page (Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Asset, VAT).

If asset transactions involve VAT, the Retire/Reinstate Assets component includes the VAT page.

You must complete the following tasks before you can access this page:

Set up the VAT defaults.

Associate the business unit with a general ledger business unit that is associated with a VAT entity.
Enter customer ship-from information.
Enter a proceeds amount on the Retire Assets page.
Select Create Accounting Entries on the Business Unit/Book Definition page.

When you retire an asset, the VAT information is recorded with a VAT account entry type of VO (VAT output). If you reinstate an asset that you have retired with VAT options, the reinstatement reverses the VAT entries. When you reinstate an asset, the reversal of the VAT is recorded with a VAT account entry type of VORE (VAT output reinstatement).

The VAT page contains several collapsible sections. Each section contains fields that are blank or that display default values. VAT entries are created for all books that generate accounting entries if the associated general ledger business unit is linked to a VAT entity.

The Book collapsible section displays information that is supplied by default from the book that is associated with this asset.

The Retirement collapsible section displays information that is supplied by default from the current retirement transaction that is being processed, or it contains blank fields. Within this section are several group boxes that contain blank and populated fields.

The VAT Calculations collapsible section shows the calculated totals for the VAT transaction based on the values that are selected on the page. It also displays the default VAT information for the business unit, customer, and location.

Physical Nature

This collapsible section describes the physical nature of transactions. Options are Goods and Services. PeopleSoft Asset Management manages transactions for goods only.

Physical Nature

Indicates whether an object is a good or a service. In many countries, you must report the sale or purchase of goods separately from services.

VAT Locations

You use location information to directly determine the reporting country, defaulting state, customer registration country, and treatment. This information is in turn used to determine customer exception type, VAT controls, and VAT details.

Ship From Country	By default, this field displays the same value that is entered in the Ship from Loc field on the Retire Assets page. This is the asset location or the PeopleSoft Asset Management business-unit location.
Ship From State	If the ship-from country is defined as tracking VAT by state or province, by default this field displays information (when available) based on the Ship from Loc field on the Retire Assets page.
Ship To Country	By default, this field displays the customer's shipping address. This field always has an initial value.
Ship To State	If the ship-to country is defined as tracking VAT by state or province, by default this field displays the information (when available) from the customer's shipping address. .

VAT Defaults

VAT Registrations	The fields in this collapsible section are: Reporting Country: Displays the country for which this VAT is reported. This is the VAT entity's VAT registration country, and it determines many of the VAT defaults. Customer Registration Country and Customer Registration ID: Display the registration country and ID of the bill-to customer. Customer Exception Type: Displays the exception that is granted to the customer. Options are None, Exonerated, and Suspended. This value is specified for the bill-to customer. Defaulting State: If the reporting country requires that VAT be tracked by state or province, this field displays the state within the reporting country that is used to retrieve values from the VAT Defaults table. Certificate ID: If applicable, displays the ID of the VAT exception certificate that may have been issued to the customer.
VAT Controls	Calculate at Gross or Net: Indicates how VAT is calculated. Options are: Gross: The system calculates VAT before it applies any early payment discounts. Net: The system calculates VAT after it deducts early payment discounts. If two percentage discounts exist, the system uses the larger of the two when it calculates VAT. The system does not use discount amounts, only discount percentages. The default value comes from the VAT entity registration driver. Note. PeopleSoft Asset Management does not manage payment discount. Consequently, net and gross produce the same result. When the retirement transaction is passed to PeopleSoft Billing and a prompt payment discount is available on the invoice, the final VAT that PeopleSoft Billing calculates differs from the estimated VAT that PeopleSoft Asset Management calculates. Recalculate at Payment: Select to enable the recalculation of VAT at payment time to allow for any early payment discounts if you are calculating VAT at gross. This selection causes the system to adjust the VAT amount at the time of payment if the discount has been taken. This value is set by the VAT entity registration driver. If you select Net as the VAT calculation method, recalculation at payment is not permitted. You can select recalculation at payment if the entry is passed to PeopleSoft Billing. Calculation Type: The default value comes from the PeopleSoft Asset Management business unit driver. Options are: Exclusive: VAT is not included in the proceeds. The VAT basis amount is equal to the proceeds amount. The system calculates the VAT amount by multiplying the VAT basis amount by the VAT rate. Inclusive: VAT is included in the proceeds. First, the system calculates the VAT basis amount by dividing the proceeds amount by 1 plus the VAT rate. The system then calculates the VAT amount by taking the difference between the VAT basis amount and the proceeds amount. Note. When the retirement transaction is passed to PeopleSoft Billing, only the Exclusive option is allowed. Declaration Point: Select to indicate when VAT transaction information is recognized for reporting purposes. Options are: Invoice: VAT is recognized at time of invoice. Payment: VAT is recognized at time of payment. Accounting: VAT is recognized at the time of accounting. Delivery: VAT is recognized on delivery. This value is set by the VAT entity registration driver and by the defaults in the VAT hierarchy (specifically the PeopleSoft Asset Management business unit, customer, and customer location). Note. A VAT declaration point of payment is not valid in PeopleSoft Asset Management. Declaration Date: By default, displays the date of the retirement. You can override this to the actual delivery date. Rounding Rule: Displays the VAT rounding rule. The value comes from the VAT country driver or VAT entity registration driver definition. Values are: Natural Round: Amounts are rounded normally (up or down) to the precision that is specified for the currency code. For example, for a currency that is defined with two decimal places, 157.4659 would round up to 157.47, but 157.4649 would round down to 157.46. Round Down: Amounts are rounded down. For example, for a currency that is defined with two decimal places, 157.4699 would round down to 157.46. Round Up: Amounts are rounded up with a rounding precision to one additional decimal place. For example, for a currency that is defined with two decimal places, 157.4659 would round up to 157.47, but 157.4609 would round down to 157.46.
VAT Treatments	Treatment: Displays the VAT treatment. Options for asset retirements are: Domestic Goods Sale: Sale of goods where the supplier and customer are located in the same country. EU Distance Sale: Sale of goods between European Union (EU) countries in which the supplier is registered in an EU country and the purchaser is not registered in an EU country. The VAT rate that is charged is the rate that applies in the supplier's country. EU Goods Sale: Sale of goods between EU countries. EU Sale (Simplification): A transaction between an intermediary and the purchaser in which a sale of goods occurs between EU countries involving three parties: the purchaser, an intermediary (bill-from) supplier, and the actual goods supplier. Each party is located in a different EU country and registered in that country but not in either of the other two countries. This VAT treatment differs from normal EU sales in that the supplier is required to print a different message on the invoice referencing the statute that applies to triangulation, rather than the one that references the statute for normal EU sales. No VAT Processing: Sale does not require VAT processing. Outside of Scope: Sale is outside the scope of VAT. Zero-rated Goods Export: Export of goods is subject to 0-rated VAT. Within the PeopleSoft system, detail VAT treatment values on the transaction lines are used to apply the precise defaults that apply to the transaction lines. The treatment is determined based the rules that apply to the transaction. No VAT reporting or processing can take place without this value.
VAT Details	The fields in this collapsible section are: Applicability: Options are: Taxable: VAT is chargeable. This may be at a 0 or non-0 rate. Exempt: Item is nontaxable or exempt from VAT, and no VAT is charged. Exonerated: Item is subject to exoneration from VAT. Outside of Scope of VAT: Item is outside the scope of VAT, and no VAT is charged. Suspended: This option is used when the purchasing organization has been granted suspension from paying VAT. This is the same as taxable at a 0 rate. VAT Only: This option does not apply to PeopleSoft Asset Management; it applies in PeopleSoft Payables only when you are entering a third-party voucher and within General Ledger when you are entering a journal line against a VAT account. N/A (not applicable): This is valid only for transactions that are completely non-VAT applicable. VAT Code: Displays the VAT code that defines the rate at which VAT is calculated for the line. These are established on the Tax Code VAT page. Select Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax. Tax Rate: Displays the VAT percentage. Transaction Type: Displays the code that categorizes and classifies the transaction for VAT reporting and accounting. These codes are established on the VAT Transaction Types page. Select Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax.
Adjust/Reset VAT Defaults	This collapsible section contains these elements: Adjust Affected VAT Defaults: When you change VAT defaults on this page, the VAT defaults might be associated with other unchanged VAT defaults on the page. For accuracy and consistency, click this button to have the system adjust the VAT defaults that are affected by those that you modified on this page. All changes to VAT defaults that affect other VAT defaults are retained. Note. Always click the Adjust Affected VAT Defaults button after changing defaults on the VAT page. Levels: For asset retirement, you cannot select which levels to update. The Reset option always resets the defaults at this level only. Reset All VAT Defaults: Click to have the system reset the VAT defaults based on the value at this level only. All changes that you made to VAT defaults will be lost.
	Click the Information button to list the fields that are adjusted when you select Adjust Affected VAT Defaults.

VAT Calculations

Transaction Amount	Displays the amount of the transaction in the transaction currency. This is automatically calculated based on the proceeds amount.
Transaction Amount Base	Displays the amount of the transaction in the base currency.
Basis Amount	Displays the amount on which the VAT is calculated in the transaction currency. If VAT is calculated at net, this amount is net of any discounts. Note. PeopleSoft Asset Management does not manage billing discount functionality.
Basis Amount Base	Displays the amount on which the VAT is calculated in the base currency. If VAT is calculated at net, this amount is net of any discounts.
Tax Rate	Displays the applicable VAT percentage.
Recorded Amount	Displays the amount of VAT that is recorded for this transaction in the transaction currency. This is an estimated amount. If PeopleSoft Asset Management is integrated with PeopleSoft Billing, this value is called the Estimated Amount.
Recorded Amount Base	Displays the amount of VAT that is recorded for the transaction in the base currency. If PeopleSoft Asset Management is integrated with PeopleSoft Billing, this value is called the Estimated Amount.
Recalculate	Click to recalculate the VAT for the line.

All VAT edits are applied when you click Save.

Note. In PeopleSoft Asset Management, if you retire an asset and pass the information to PeopleSoft Billing, the VAT Transaction Loader process does not retrieve the VAT information from PeopleSoft Asset Management but from the bill that is created in PeopleSoft Billing. However, if the retirement transaction remains in PeopleSoft Asset Management, the VAT Transaction Loader process gets the VAT information from PeopleSoft Asset Management.

When you run the Accounting Entry Distribution process (AM_AMAEDIST), use the accounting entry template that you would normally use for asset retirements. To make the VAT entry, the system uses an account from the VAT accounting entry template, based on the combination of VAT code, VAT account type, and VAT transaction type that is specified for the retirement. The system first determines whether VAT ChartFields are defined by the VAT code and general-ledger business unit. If no VAT accounting information is found at that level, the system then checks for VAT ChartFields that are defined at the VAT code level. If the retirement is passed to PeopleSoft Billing, PeopleSoft Asset Management does not generate accounting entries in connection with VAT because PeopleSoft Billing creates them.

Note. If PeopleSoft Asset Management is not integrated with PeopleSoft Billing, then although VAT is recorded when retiring an asset, PeopleSoft Asset Management does not generate a financial document such as a VAT invoice. If you also record the sale of an asset in PeopleSoft Billing or PeopleSoft Receivables, you might inadvertently record the applicable VAT a second time. In this case, you must ensure that the VAT is not reported on the VAT return twice.

Instead of using the VAT that is recorded in PeopleSoft Asset Management to generate the VAT return, you can use that information to enter the invoice for the sale of the asset in PeopleSoft Billing or PeopleSoft Receivables. In this case, you can copy the VAT into the VAT Transaction table. When running the VAT Transaction Loader process, do not run the process for all products and do not select Asset Management as a VAT transaction source.

Alternatively, you can exclude the PeopleSoft Asset Management VAT transactions from your VAT return. To do so, assign a specific VAT transaction type to asset retirement transactions. Then do not include that VAT transaction type on any line in the VAT report definition (or include it on an additional line in the VAT report definition but do not include the line in the report format).

Auto-Retiring Fully Depreciated Assets

Access the Auto-Retire Fully Depr Assets page (Asset Management, Asset Transactions, Asset Disposal, Auto-Retire Fully Depr Assets).

You can retire many assets without individually identifying them by running the Auto-Retire process (AMRETFDA). You enter selection criteria to qualify eligible assets for auto-retirement on the process request, and all selected assets are automatically retired by the process. Only fully depreciated assets can be retired by this process. Fully depreciated assets are assets with an end depreciation date that is less than or equal to the retirement transaction date.

Selection Criteria

Business Unit	This field is required. Select a business unit from the drop-down list. Only business units that have been enabled with the auto-retire feature appear.
Book Name	Select a business unit book from the drop-down list. Only books that have been enabled with the auto-retire feature appear.
Copy Changes to Other Books	Select to keep all books in sync. The system copies the transaction to all books that are set up for an asset.
Category, From Asset, and To Asset	Select as applicable to narrow the parameters by categories or by a range of asset IDs.
Cost Limit	Select assets that cost less than or equal to the cost limit.
Low Value Assets Only	Select this check box to retrieve only low-value assets.
Clustered Assets Only	Select this check box to retrieve only clustered assets.
Trans Date (transaction date) and Acctg Date (accounting date)	Enter the applicable transaction or accounting date to define the selection criteria.

Retirement Options

Convention	Enter a retirement convention to override the asset profile default.
Transaction Code	Select a transaction code to identify the reason for the retirement.
Reference Code	(Optional) Enter information to track the asset, such as retirement documentation or an asset ID.

Initiating Asset Retirement Using the Disposal Worksheet

PeopleSoft Asset Management provides the Disposal Worksheet page as a quick method to select assets to retire based on the following elements: ChartField combination, location, department, manufacturer, or other fields that are related to the assets.

Use of the worksheet depends on the establishment of asset-to-owner relationships as well as owner-to-operator relationships to enable the selection, review, and approval of asset disposal. When the Asset Owner and Asset Owner User links are defined, the asset owner can generate and submit a disposal worksheet for processing or approval. After the approval process has been established, an asset owner can review asset disposal requests from worklist entry notifications. Requests can be approved, denied, or designated as pending. Upon approval of the request, you can submit the disposal worksheet for processing through the AMIF1000 transaction processor.

See Establishing Asset Ownership.

Generating the Disposal Worksheet

Access the Disposal Worksheet page (Asset Management, Asset Transactions, Asset Disposal, Disposal Worksheet).

This page provides numerous selection options to retrieve assets for retirement. Assets that are available for retrieval are determined by asset ownership and user ID.

You can search for assets using ChartField search criteria, and you can view asset ownership information by clicking the View Ownership Details link.

Asset Search Criteria

Identify assets that are eligible for disposal based on the user's established asset ownership. Assets can be identified based on:

Unit
Book
Category
Serial ID
Asset ID
Location
Tag Number
Profile ID
More Filter Options - select to further limit the search by ChartFields.

Acquisition Details

To further identify assets for disposal, complete the following fields:

PO Unit (purchasing unit )
Receipt Unit
AP Unit(payables unit)
PC Bus Unit (projects business unit)
PO No.(PO number)
Receipt No(Receipt number)
Voucher
Project ID

When you click Retrieve, the result set appears in the tabbed grid at the bottom of the disposal worksheet. You can begin again by pressing the New Search button, and use the link to view ownership details.

Asset Action

The system returns a list of assets that meet the search criteria. You can review and reselect options to create a new list of assets.

So that you can process assets for disposal, retirement information is specified to indicate the date and reason for an action.

Disposal Code	(Optional) Select the disposal code for all assets in the worksheet list to identify the reason for the disposal of the assets.
Retire Dt (retirement date)	Enter a retirement date, which can be retroactive or future-dated. This date is applied to all assets in the worksheet list. The default is the current date.
Accounting Dt (accounting date)	Enter the accounting date to be recorded if different from the current date. This date is applied to all assets in the worksheet list.
Set All	Click to apply the retirement information to all assets in the list.

The list is presented on three tabbed views: Asset Information, Retirement Information, and Optional Accounting Information (such as cost). The information may be hidden, depending on established permissions.

Asset Information

This tabbed view displays the asset ID, description, tag number, category, and serial ID.

Submit for Disposal, Select All, and Deselect All

Select assets for disposal individually by selecting the Dispose check box, or select (or deselect) all.

Retirement Information

This tabbed view displays the asset ID, cost, quantity, retire quantity, proceeds, proceeds currency, removal cost, and removal cost currency.

Retire Qty (retire quantity)	Enter the number of assets to be retired.
Proceeds, PR Curr (proceeds currency), Removal Cost, and RC Curr (removal cost currency)	Enter any proceeds or removal cost along with the currency in which the proceeds or costs were incurred as applicable.
Disposal Code	Select disposal codes for each asset individually by entering the code in this field.
Retire Dt	Enter the retirement date.
Detail	Click to view the Asset Details (AM_DISPOSAL_02) page.

Optional Accounting Information

This tabbed view displays the asset ID and accounting date.

Accounting Date	Enter the accounting date for the retirement transaction.
Trans Code (transaction code)	Enter a transaction code to be applied to each asset individually.

Submit Asset Disposal Information

Click Submit for Disposal when you have completed the disposal worksheet. The disposal request is processed when you run the Transaction Loader process. It is routed for approval, if required, depending on the permissions that are established for the operator.

Approving Disposal Worksheet Requests

Access the Approve Disposals page (Asset Management, Asset Transactions, Asset Disposal, Approve Disposals).

The approval process is managed by the workflow settings for your organization. If the worksheet that you submit for disposal requires approval before being processed by the Transaction Loader process, a worklist entry is created and routed to the approver. Multiple assets can be associated with one worklist entry. The user who receives the worklist item approves or denies the disposal request.

The approver has the following three approval-status disposal options:

Denied	The request is not approved and an email notification is sent to the disposal requestor.
Approved	The request is approved and the item is loaded to the Transaction Loader process for processing.
Pending	No action is taken on the item, and the request is placed on hold.

The approver can then select Mark As Worked for the worklist item.

Putting Assets up for Auction

When a bid is awarded through Strategic Sourcing, the bid price is returned to PeopleSoft Asset Management as proceeds for the asset that was sold. This transaction updates the asset with the appropriate information for completing the retirement transaction.

Note these points assets that are put up for auction:

For you to enter an asset as a line item for sale in an auction event, the asset must not have the PeopleSoft Asset Management statuses other than Disposed and Transferred. It must not be a Lease Asset, or a Hazardous Asset. The auction status is equal to Allowed to be auctioned.
When you post the event, the PeopleSoft Asset Management auction status changes to Sent to Auction.
The auction status remains at Sent to Auction until the event is awarded or canceled.

If the event is not approved or is not awarded, you must set the status to Allowed to be Auctioned to remove the Sent to Auction status for the asset. When the event is awarded, Strategic Sourcing sends information to PeopleSoft Asset Management, and you must run the Transaction Loader (AMIF1000) process to finalize the retirement. Strategic Sourcing changes the auction status to Sold in Auction.

Note. PeopleSoft Asset Management does not allow PeopleSoft Strategic Sourcing to access data for hazardous materials, intangible assets, or partial retirements. Assets with a status of Sent to Auction are excluded from any transactions in PeopleSoft Asset Management until the status is changed by PeopleSoft Strategic Sourcing.

Retiring Non-Financial Assets

This section discusses how to retire a non-financial asset.

Page Used to Retire Non-Financial Assets

Page Name	Definition Name	Navigation	Usage
Non-Financial Retire	ASSET_RET_NF_01	Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Non-Fin Asset	Retire non-financial assets.

Retiring a Non-Financial Asset

Access the Non-Financial Retire page (Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Non-Fin Asset).

Select a Trans Code and Ret Type type. Because the asset is a non-financial asset, there is no gain or loss calculation result.

To retire the non-financial asset, click the Retire button.

Note. Nonfinancial assets and operating leased assets do not have cost information. The retirement process, therefore, only involves changing the status of the asset to Inactive (or Disposed.) In the case of an operating lease, any future lease payments are stopped.

Reinstating Assets

This section provides an overview of asset reinstatement and discusses how to reinstate an asset.

Understanding Reinstatement of Assets

On occasion, you may need to reinstate an asset that has been retired.

When you reinstate an asset, all fields on the Retire Assets page become unavailable for data entry. If you want to subsequently retire this asset after reinstatement, you must access the page again.

Reinstatements generate credit lines in PeopleSoft Billing if the retirement has been passed to PeopleSoft Billing. You cannot generate a reinstatement until PeopleSoft Billing creates the invoice number (after the BIIF0001 process is run). If you reinstate an asset before the PeopleSoft Asset Management-Billing interface is processed but after running the depreciation calculation for the retirement, then the PeopleSoft system cancels the initial retirement and the status of the billing request changes to G (ignore). In the AM/Billing Transaction Status report, you can track the original invoice for each reinstatement.

Note. Reinstatement of non-financial assets involves changing the asset status to In Service. In the case of an operating lease, it involves restarting future lease payments.

Pages Used to Reinstate Assets

Page Name	Definition Name	Navigation	Usage
Retire Assets	ASSET_RETIRE_01	Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Asset	Retire or reinstate an asset.
Non-Financial Asset Retire	ASSET_RET_NF_01	Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Non-Fin Asset	Retire or reinstate non-financial assets.

Reinstating an Asset

Access the Retire Assets page (Asset Management, Asset Transactions, Asset Disposal, Retire/Reinstate Asset).

Scroll through the retired transactions and select the Reinstate check box for the retirement transaction that you want to reinstate for a financial asset. Then, click the Reinstate button. For a nonfinancial asset, from the Non Financial Asset Retirement page, select Reinstate.

Note. Only one retired asset transaction can be reinstated at a time. If several retired assets transactions are selected for reinstatement, only the first selected transaction in the list is reinstated.

If no retirement transaction is selected for reinstatement and you click the Reinstate button, the last retirement transaction against the assets is reinstated.

PeopleSoft Asset Management performs the reinstatement automatically. The Proceeds, Removal Costs, Accumulated Depreciation, and Gain/Loss fields are reset to 0, and the amount in the Retire Amt field is added back to the balance sheet (for financial assets only).

If depreciation has not been calculated for the gain/loss on retirement, selecting Reinstate causes the retirement rows that you previously created to be purged from the system.

All journal entries that were created by the retirement are reversed. To ensure that asset information posts correctly, the system generates a depreciation request when you reinstate assets. The transaction date is automatically set to the retirement date. If you accidentally or erroneously retired an asset in the wrong period, you have to deduct depreciation from the time the asset was actually retired. Any depreciation to which you were entitled during the accounting periods in which this asset was retired will be calculated and posted to the current accounting period as prior depreciation.

Running the Tax Retirement Capital Gains Report (AMTX3210)

This section lists prerequisites and the pages used to run the Tax Retirement Capital Gains report.

Prerequisites

Before you can run the Tax Retirement Capital Gains report, you must run these processes:

Open Trans - Tax Report

This process assigns open transaction IDs for the transactions of assets that do not use straight-line depreciation.
Depreciation Calculation Tax

This process calculates straight-line depreciation for all the pending assets in the process and marks the status as complete.

Pages Used to Run the Tax Retirement Capital Gains Report

Page Name	Definition Name	Navigation	Usage
Run Open Trans Tax (run open transaction tax)	RUN_AMTXOPEN	Asset Management, Depreciation, Processing, Process Open Trans for Tax, Process Open Trans for Tax	Run a process that assigns open transaction IDs to the transactions for assets that do not use the straight-line depreciation method.
Calculate SL Depr for Tax	RUN_AMDPCALC_TAX	Asset Management, Depreciation, Processing, Calculate SL Depr for Tax, Calculate SL Depr for Tax	Run the process that calculates straight-line depreciation for all the pending assets in the AMTXOPEN process and mark the status as complete. Note. For corporations, you must select the Corporation Sec. 291 check box on the Book - Tax page to have the system calculate the ordinary gain and the Sec. 291 gain differently.

Page Name

Definition Name

Navigation

Usage

Run Open Trans Tax (run open transaction tax)

RUN_AMTXOPEN

Asset Management, Depreciation, Processing, Process Open Trans for Tax, Process Open Trans for Tax

Run a process that assigns open transaction IDs to the transactions for assets that do not use the straight-line depreciation method.

Calculate SL Depr for Tax

RUN_AMDPCALC_TAX

Asset Management, Depreciation, Processing, Calculate SL Depr for Tax, Calculate SL Depr for Tax

Run the process that calculates straight-line depreciation for all the pending assets in the AMTXOPEN process and mark the status as complete.

Note. For corporations, you must select the Corporation Sec. 291 check box on the Book - Tax page to have the system calculate the ordinary gain and the Sec. 291 gain differently.

Trans Date (transaction date)	The transaction date reflects the date that the retirement actually occurred. Usually, an actual transaction occurs before you enter it in PeopleSoft Asset Management. The transaction date and the prorate convention determine how much of the depreciation taken in PeopleSoft Asset Management must be recovered.
Acctg Date (accounting date)	The accounting date determines when the retirement transaction is posted to the general ledger.
Rate Type	Select an exchange rate type for the transaction if you use multiple currencies in processing and the retirement transaction is not in the base currency of the business unit.
In Physical Use	This flag is informational only on the Retire Assets page. Only those assets that are selected for physical use are included in the ITAM comparison process. If this flag was selected before retirement, it is automatically deselected after the asset is retired. This flag can be selected or deselected on the Basic Add page or the Define Asset Operational Info page. See Working with the Asset Repository.

Allocation Type	Select one of the following allocation types: Proportion: The cost of the selected child assets is divided by the cost of the parent asset to determine the percent of removal cost and proceeds to allocate. The removal cost and proceeds are then multiplied by the respective percentages to determine the allocation ((child cost / parent cost) * proceeds or removal cost). Prorata: This allocation type can be based on cost or quantity, depending upon your selection in the Alloc. Basis field. The total cost or quantity for all selected assets is summed. (If the Include Parent Asset check box is selected, the parent cost or quantity is also summed. For each child selected on the Child Asset page, include the cost or quantity. Then for each individual asset, the cost or quantity is divided by the summed amount to give the assets percentage of the total for all assets. This number will then be multiplied by the Removal Cost and/or Proceeds to determine that assets share of the amounts entered: ((asset cost / summed cost) * proceeds or removal cost). This can also be quantified as: (proceeds/parent cost) * child cost . Evenly: The amounts entered for removal cost and proceeds are distributed evenly between the selected assets (children and parent, if selected). Copy: The amounts entered for removal cost and proceeds are copied as is to the selected assets (children and parent, if selected).
Alloc. Basis(allocation basis)	This option is only available when the Allocation Type field value is Prorata. Select to allocate proceeds and removal cost based on: Cost Quantity
Removal Cost and RC Curr (removal cost currency)	The default value is the parent's removal cost. Retain this original value or change the removal cost to be allocated.
Proceeds and Pr Curr (proceeds currency)	The default value is the parent's proceeds. Retain this value or change the proceeds to be allocated.
Include Parent Asset	This check box retains the value of the Include Parent selection from the Child Asset page. If the check box is not selected on the Child Asset page, the selection is not available for the Proceeds and Removal Cost Allocation page. This selection determines if the parent asset's cost or quantity will be considered for the allocation chosen. This only affects the Prorata and Evenly allocation types and determines if the parent asset value changes. If this option is not selected, the parent asset will not be considered in the calculation or disbursement.