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.