Selling Equipment Registered as a Fixed Asset

Outcome

The Fixed Assets module is updated and a write-off or disposal proposal is created for the equipment that is sold.

The general ledger is updated. The status of the fixed asset is changed to 9 ='Sold or disposed fixed asset'.

When the equipment is sold through a distribution order, the general ledger is updated. The status of the fixed asset in the selling division is set to 9 =’Sold or disposed fixed asset’ while the status of the fixed asset is set to 1=’Normal’ in the buying division.

Before you start

These prerequisites are required for the Fixed Assets module. For information about the general setup of customer order processing and rental agreement management, see the documentation for those areas.

• You must define the basic settings for sales of fixed assets in 'Settings – Fixed Asset Sales' (FAS925). See Selling Fixed Assets.
• You must define the basic settings for fixed assets disposal in ‘Settings – Fixed Assets Disposal’ (FAS945). See Dispose of Fixed Asset.
• You must define these accounting rules in 'Accounting Rule. Set' (CRS395): FA40-500, FA40-550 and FA40-570, FA50-100, FA50-111, FA50-120, FA50-190, FA50-280, FA50-500, FA50-540, FA50-545, FA50-560, and FA50-565.
• Both the buying and selling divisions must have the same fixed asset type in ‘Settings – Fixed Asset Acquisition’ (FAS900).

Follow these steps for Sale via Rental Agreement

1. Deliver Equipment

   Equipment included in a rental agreement line of line type 6 = 'Sale' is delivered to the customer.

2. Invoice Customer

   You can create an invoice proposal by selecting option 13 = 'Create invoice proposal' for the rental agreement in 'Rental Agreement. Open' (STS100). You can approve the invoice proposal and create an invoice in (STS810) by selecting option 8. The invoice is created by (STS810), not by the Fixed Assets module. Note that all equipment on a rental agreement line of line type 6 is included in the sale.

3. Update the Fixed Assets Module

   At invoicing, functional program FAMNGDIS is used to check the fixed asset master table, FFASMA, to see whether the item number of the equipment is registered for a fixed asset in 'Fixed Asset. Open' (FAS001/E). If it is, the status of the fixed asset is changed to 9, the value types of the fixed assets are updated and the depreciation plan is updated. For the disposal, scrapping, of the fixed asset the same account entries are created as when disposing fixed assets using 'Fixed Asset. Dispose' (FAS145): FA40-500, FA40-550 and FA40-570.

Functional Flow

Follow these steps for Sale via Customer Order Line

1. Deliver Equipment

   Equipment included in a customer order line in 'Customer Order. Open Line' (OIS101) is delivered to the customer. When and how this is done depends on the customer order type and the dispatch policy.

2. Update the Fixed Assets Module

   When already at dispatch, functional program OIS900 is used to activate functional program FAMNGDIS, which goes through the same procedure as described above for the rental agreement.

3. Invoice Customer

   You can create the customer order invoice as usual in 'CO Invoice. Print' (OIS180).

Functional Flow