Asset Retirement in PeopleSoft Maintenance Management
During the course of an organization's operations, physical assets deteriorate and are ultimately retired when the cost of maintaining the asset exceeds the cost of disposing, retiring, and replacing the asset. Depending on the size and complexity of the asset, an organization may need to demolish and remove it during the retirement process, and possibly sell, auction, or donate the asset. You can retire an asset directly in PeopleSoft Project Costing without using Oracle's PeopleSoft Maintenance Management. While this process is useful for the partial retirement of assets, it requires substantial user intervention and time. To expedite the full retirement of an asset, however, you can create a work order and identify the asset action as Retire for the work order task in PeopleSoft Maintenance Management. PeopleSoft Maintenance Management triggers a process in PeopleSoft Project Costing to automatically perform a full retirement of the asset with little or no user involvement.
In PeopleSoft Maintenance Management, the two methods for retiring an asset using a work order are:
Retire an asset using a work order associated with a work order-managed project.
Retire an asset using a work order associated with a Project Costing-managed project.
Specific rules apply to the retirement of an asset in PeopleSoft Maintenance Management:
PeopleSoft Maintenance Management only performs full retirement financial assets.
You must set up the Work Order Management options in the Asset Management business unit Interface Options page.
If the asset is marked Retire in PeopleSoft Maintenance Management, then it will be retired from PeopleSoft Maintenance Management.
PeopleSoft Project Costing processes the cost of removal based on the retirement filter set up in PeopleSoft Project Costing.
When you create a work order task associated with a work order-managed project to retire an asset, there are basic setup requirements:
Set up the work order-managed project in PeopleSoft Project Costing.
Set up the filter rules and criteria for the Project Costing business unit.
Set up project activity in PeopleSoft Project Costing to derive the asset identification from the work order. The user can enter the filter in the Work Order Task Accounting page, which is updated in PeopleSoft Project Costing when you perform a batch close of the work order (WM_CLOSE).
Asset retirement workflow:
Create a work order in PeopleSoft Maintenance Management.
Create a work order task in PeopleSoft Maintenance Management for a work order-managed project.
The project activity is automatically generated.
Select Retire as the asset action for the work order task and select the labor, inventory, purchased and on-hand materials, and tools required for the removal, and then execute the work order task.
Change the work order task status to complete.
This action updates the asset integration rules and the status for the activity in PeopleSoft Project Costing to Retirement.
This action updates PeopleSoft Asset Management for processing asset transactions and creates staging information for PeopleSoft Asset Management to process. The retirement of the asset is completed by the PeopleSoft Asset Management transaction loader process.
Close the work order.
This process triggers PeopleSoft Project Costing to send the costs of transaction related to retirement to PeopleSoft Asset Management.
An organization normally creates a project in PeopleSoft Project Costing that involves the retirement of large-scale assets. Usually these projects can last more than a few days, involve multiple assets, and entail a complex effort that must be actively managed. Project managers can create work orders from PeopleSoft Project Costing that authorize work order tasks that involve the demolition and removal of assets.
When a work order is created from a Project Costing-managed project to retire an asset, the user selects the asset action Retire for a work order task on the Requirements page or the Schedules page of the work order, selects the Retirement radio button and the retirement filter directly in PeopleSoft Project Costing. The work order does not drive the cost of the transaction for this type of retirement. Instead the costs are sent directly to PeopleSoft Project Costing without closing the work order. PeopleSoft Project Costing integration rules determine when to send the cost of retirement from PeopleSoft Project Costing to PeopleSoft Asset Management.