What are the disposal postings?
The following disposal postings are generated:
- Credit the balance sheet asset account with the gross value of the asset, including any adjustments
- Debit the profit and loss account specified with the same gross value amount
- Debit the balance sheet accumulated depreciation account with the accumulated depreciation value
- Credit the profit and loss account specified in Asset Disposal with the same accumulated depreciation amount.
Sequence codes can be applied to the system generated asset disposal transactions, if required.
Note: If asset posting preset subcodes
have been used to apportion the depreciation values across a series of analysis codes using
the preset factors, the same factors are used to apportion the accumulated depreciation
disposal postings. See 'Presetting the Asset Posting Analysis Codes'.
In addition to presetting the analysis codes for the asset postings, you can also use Business Rules to set or validate analysis codes on the transactions generated by the disposal. To do this, create an Event Profile that checks for a Function Code of Asset Depreciation, and use a Call Point of either 00015 Populate or 00016 Validate Analysis on System Generated Transactions.
Note:
- If you use both Preset Analysis Codes and Business Rules for this function, the analysis codes validated and set by Business Rules are definitive, and if different, override the codes set by Preset Analysis Codes. This is because the Business Rules operate after the disposal process finishes setting analysis codes on the generated transactions.
- If a transaction fails validation by a business rule using call points 0015 or 0016, by default the error message is not shown in the transaction report. This is because it is not included in the SunSystems sample reports; therefore, to show the details of such analysis code validation, you must add an appropriate column for this to the asset disposal transaction report.