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.