FA scrap fail to create entry for cost account

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Posted on by Dhanshri

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Hi Team,

When I scrap one asset, only the entry for Accumulated Depreciation is capture to Gain / loss. There is no entry pass on the cost. The NRV for this asset is zero, hence should not have any gain loss but there is a gain as per 2^nd screen shot. Please help.

If an asset is scrap, the normal accounting transaction will be

1. Dr Gain / Loss on disposal (70000070)

Cr Cost of Asset

2. Dr Accumulated depreciation

Cr Gain / Loss on disposal (70000070)

In this case, transaction 1 is not passed. Please help to me to know the reason behind this.

8422.VoucherTrans.JPG

Thanks,

Shri

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André Arnaud de Cal... 291,240 Super User 2024 Season 2 on at

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RE: FA scrap fail to create entry for cost account

Hi Shri,

Yes, if you had this setup, it would also create reversing entries for the revaluation. In fact, for all possible posting types you are using in FA journals, you have to create the disposal parameters.
Dhanshri 515 on at

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RE: FA scrap fail to create entry for cost account

Hi Andre,

So you mean if I add entries in disposal parameters for FA for which Acquisition is 0 but there is revaluation then after Fa scrap they will create 2 entries ?

(Sorry if i would have asked you some basic or stupid question as I am the beginner for this area :( )

Thanks,

Shri
Dhanshri 515 on at

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RE: FA scrap fail to create entry for cost account

Hi Ludwig,

Kindly find the below screen prints.

Kindly let me know if you need more info.

Thanks,

Shri
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André Arnaud de Cal... 291,240 Super User 2024 Season 2 on at

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RE: FA scrap fail to create entry for cost account

Hi Shri,

You used the posting type for revaluation for the acquisition value. In that case, to be able to post the disposal of the fixed asset correctly, you also need to setup disposal parameters for 'Revaluations this year' and 'Revaluations prior years'.
Ludwig Reinhard Microsoft Employee on at

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RE: FA scrap fail to create entry for cost account

Hello Shri,

Can you share the complete voucher that was generated when scrapping the fixed asset?

You only show bits and pieces here but it is not clear to me what was posted and when.

Many thanks,

Ludwig
Dhanshri 515 on at

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RE: FA scrap fail to create entry for cost account

Hi Andre ,

Here are the FA posting profile & disposal parameter screen prints.There are 2 etries posted for other FA from same fixed asset group but only this FA has issue. One more point is aquisition cost for this FA is 0 we have posted it through revaluation.kindly let me know if it would have created this issue. If yes what we can do in order to prevent this issue in future.

Thanks,

Shri
André Arnaud de Cal... 291,240 Super User 2024 Season 2 on at

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RE: FA scrap fail to create entry for cost account

Hi Shri,

Have you reviewed the asset disposal parameters? Possibly, you can share the setup of these disposal parameters for this asset group?