Steps to partially retire an asset

Issue

How do you partially retire an asset?

Resolution

1. Use the Retirement Maintenance window. You may find this window by going to Transactions | Fixed Assets | Retire.

2. Once in this window, pull up the asset you wish to partially retire.

3. Enter the date you wish for this asset to be partially retired. The system will use this date in determining the prorated amount of depreciation allowed for each book for this asset based on the averaging convention.

4. Use the drop down list for the retirement type you wish to assign to this particular retirement. This is a required field.

5. The retirement code field is optional.

6. The system will assign an individual retirement event number.

7. You may choose to base your partial retirement on quantity, cost, or percent.

a. If the retirement is based on quantity, enter the retirement quantity. A retirement percentage will be calculated by dividing the retirement quantity by the quantity on the Asset General Information record (and then rounding.) This percentage will be applied to all dollar fields in every asset record related to this asset.

b. If the retirement is based on cost, enter the retirement cost. The cost entered will be used to reduce the cost on the corporate book record. The retirement cost cannot be greater than the cost on any book for the asset being retired. For each book record (other than the corporate book), a retirement percentage will be calculated by dividing the retirement cost by the cost basis on the corporate book. This percentage will be applied to all dollar fields in every asset record.

c. If the retirement is to be based on percentage, enter the retirement percentage to be applied to all dollar fields related to this asset.

8. When a partial retirement is performed, a new asset ID will be created, using the same Asset ID and the next unused suffix and then retired; unretired amounts will remain in the original asset.

This article was TechKnowledge Document ID: 27836