Understanding Asset Disposal

You can use the Single Asset Disposal (P12105) and Mass Asset Disposal (R12104) programs in the JD Edwards EnterpriseOne Fixed Assets system to record asset disposals. You can also record new asset costs in the event of a trade-in using the Single Asset Disposal program.

When you dispose of an asset, you can indicate a specific method of disposal, such as scrapped, theft, or charity. The system updates the asset master record with the disposal date (unless you enter a date in the asset master record) and indicates the method of disposal in the Equipment Status field. The system also creates the journal entries for the disposal.

The system creates disposal journal entries only for the Actual Amounts (AA) ledger unless you specify additional ledgers in the processing options. You must post the disposal journal entries to the general ledger and fixed assets.

When you dispose of an asset, the system must access these accounts to create the appropriate journal entries:

• Accumulated Depreciation and Cost.

  You set up these accounts when you create the asset master record.

• Net Book Value, Cash Clearing, Cash Proceeds.

  You set up these accounts when you set up the Disposal Account Rule Table.

If you define a secondary accumulated depreciation account (from the SDA AAI) for an asset, the disposal program handles the balance for that account.

If you set up an alternative date pattern, the disposal program uses the date pattern that you specify.