Understanding Disposal Account Rules

Disposal account rules specify the accounts that the disposal program uses for disposal journal entries. You set up the disposal account rules to direct the disposal journal entries to the appropriate offsetting account.

The disposal account rules use the balance character code to determine the nature of the journal entry. You can create separate rules for net book value disposal accounts, disposal cash clearing accounts, and disposal proceeds accounts. In addition, you can specify override accounts for the cost and accumulated depreciation accounts. This action enables you to retain the amounts in the F1202 table and place these amounts in a reserve account.

If you specify account overrides for cost, the accounts must be within the FCxx AAI range. If you specify account overrides for primary accumulated depreciation or secondary accumulated depreciation, the accounts must be within the FDxx AAI range.

You can set up company-specific rules or use the default company 00000 to set up the rules for all companies at one time. You can also specify different accounts by disposal method and ledger type.

If you do not specify a business unit as part of the account number, the system retrieves the responsible business unit for the asset from the F1201 table.

Important: You must set up at least a set of rules for company 00000 and ledger type AA. In general, you set up separate accounts for net book value, cash clearing, and proceeds.