Understanding Mass Asset Disposals

Use Mass Asset Disposals to:

Dispose of multiple assets instead of a single asset.
Use data selections to indicate the assets that you want to dispose of.
Post the disposal entries to the general ledger automatically.
The Mass Asset Disposals program performs this post automatically unless you specify Batch Approval in the system setup.

The system creates disposal journal entries that are based on the disposal type that you specify when you enter disposal information. Set the processing options to specify which of these types of disposals you want the Mass Asset Disposals to perform:

Disposal Type	Description
Simple disposal (with no proceeds)	Use simple disposal when the disposals do not involve proceeds. For example, use this disposal type if you want to dispose of assets and do not receive cash for them because they were destroyed, given to charity, or so on. The system uses the business unit in the Net Book Value account that you set up in the Disposal Account Rule Table (F12141). If the business unit in that account is blank, the system uses the responsible business unit from the asset master records.
Disposal with cash proceeds	Use a disposal with cash proceeds when you receive cash for disposed assets. When you specify this disposal type, the system debits the Cash/Clearing account and credits the Proceeds from Sale account. If you use this disposal type, you must attach asset numbers to the cash receipt entries for the Cash/Clearing account and post this entry to Fixed Assets before disposing of the asset. The system uses the business unit from the disposal account rule for Net Book Value, Clearing, or Proceeds from Sale accounts. If the business unit in any of these rules is blank, the system uses the responsible business unit from the asset master records.
Disposal with and without cash proceeds	Use a disposal with and without cash proceeds to dispose of all of the assets that are specified in the data selection. If the business unit is blank, the system uses the responsible business unit from the asset master records

Disposal Type

Description

Simple disposal (with no proceeds)

Use simple disposal when the disposals do not involve proceeds. For example, use this disposal type if you want to dispose of assets and do not receive cash for them because they were destroyed, given to charity, or so on.

The system uses the business unit in the Net Book Value account that you set up in the Disposal Account Rule Table (F12141). If the business unit in that account is blank, the system uses the responsible business unit from the asset master records.

Disposal with cash proceeds

Use a disposal with cash proceeds when you receive cash for disposed assets. When you specify this disposal type, the system debits the Cash/Clearing account and credits the Proceeds from Sale account. If you use this disposal type, you must attach asset numbers to the cash receipt entries for the Cash/Clearing account and post this entry to Fixed Assets before disposing of the asset.

The system uses the business unit from the disposal account rule for Net Book Value, Clearing, or Proceeds from Sale accounts. If the business unit in any of these rules is blank, the system uses the responsible business unit from the asset master records.

Disposal with and without cash proceeds

Use a disposal with and without cash proceeds to dispose of all of the assets that are specified in the data selection. If the business unit is blank, the system uses the responsible business unit from the asset master records

You can use processing options to run a preliminary or final mass disposal. The preliminary disposal does not create disposal journal entries. Run a preliminary disposal for proofing purposes before you run the final disposal.

The preliminary disposal performs these tasks:

Edits the disposal information that you selected.
Prints a report that shows the journal entries which the system creates when you run a final disposal.

The final disposal performs these tasks:

Edits the disposal information that you selected.
Creates journal entries for the accounts that are affected by the disposals.
Prints a report that shows the journal entries.
Updates the Date Disposed and Equipment Status fields in asset master records for the disposed assets if you are disposing of records in the AA ledger.
Shows a zero cost basis for the disposed assets.
Submits the journal entries for posting to the general ledger if a processing option is set and batch approval is not required.
Note: If the system finds any errors during the final disposal process, it does not create journal entries in the Account Ledger table (F0911). Instead, the system prints an error message on the final report. Correct these errors and rerun the final disposal.