Asset Accounting- Selling

[Former Member]

Hi Gurus,

Just had a little doubt. I know asset retirement can be done by selling and scrapping. In case of selling we have 2 options

1 With customers -  F- 92 T Code

2 Without customers - ABAON T code

So my doubt is in the 2nd method how can you sell without customers , for selling you need customers right ?? And please clarify on accounting entries for the above 2 methods having some doubt about it

Thanks & Regards

Manas

[former_member198650 · Accepted solution]

Hi Manas,

1. At the time of sale with customers, the below account entry will be generated

Customer A/c Dr

Asset sale revenue A/c Cr

Asset A/c Cr

Accumulated dep.A/c Dr

Asset sale revenue A/c Dr

Gain/loss on sale of asset A/c Dr/Cr

2. Sale without customer option will use when you do billing through SD. So, in this case first we create a non-valuated material with asset name and create a sale order against the material. Later we do goods receipts against the material with movement type 521 for update stock quantity. After done this, we issue goods for delivery with movement type 601 by VL01N. After done this, we create a billing document w/ref to the delivery in VF01. At the time of billing the below accounting entry will be generated.

Customer A/c Dr

Asset sale revenue A/c Cr (Here we maintain the GL in VKOA what ever we maintain the GL in AO90 for clearing acct.revenue from asset sale)

Sales tax payable A/c Cr

After do the above transaction, we have to retire the asset by ABAON.  At the time of retirement the below accounting entry will be generated.

Asset sale revenue A/c Dr

Accumulated depreciation A/c Dr

Asset A/c Cr

Gain/loss on sale of asset A/c Dr/Cr

Here asset sale revenue a/c will be set off with this transaction.

Hope you are clear now.

Regards,

Mukthar

[Former Member · Accepted solution]

Thanks Mukhtar

Regards

Manas