Oracle Assets FAQ For Retirements

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1.  Is it possible to perform mass retirements?
 
Yes.  You can use the Mass Retirements window to retire a grouping of assets.  Please refer to the Oracle Asset User Guide for details.


2.  What is the earliest retirement date I can enter for a prior period retirement?

    For retroactive retirements, the earliest retirement date you can enter
    is the later of  (1) the beginning date of the current fiscal year, or (2) the date
    of the last transaction for the asset in this book.


3.  If I perform several partial retirements on an asset, which retirements
    can I reinstate?


    If you perform several partial retirements on an asset, Oracle Assets
    only lets you reinstate the most recent retirement you entered.


4.  What journal entries does Oracle Assets create for a retirement?

    When you retire Capitalized or CIP assets, Oracle Assets creates journal
    entries to back out the appropriate Cost and Depreciation Reserve (CIP
    assets have zero Reserve) in your General Ledger.  Oracle Assets also
    creates journal entries to multiple gain/loss accounts, or to a single gain/
    loss account, depending on how you set up your retirement accounts in the
    Book Controls form.  Gain/loss account components include Proceeds of Sale,
    Cost of Removal, Net Book Value Retired, and Revaluation Reserve Retired
    accounts.  Oracle Assets does not create any journal entries when your
    retire Expensed assets.  For prior period retirements, Oracle Assets also
    creates journal entries the catch up or back out depreciation from the
    depreciation reserve.  This is effective in the current accounting period.


5.  What journal entries does Oracle Assets create for a reinstatement?

    When you reinstate an asset with PROCESSED in the STATUS field, Oracle
    Assets creates journal entries both to reverse those created when you
    retired the asset and to recover depreciation not charged to the asset.
    When you reinstate an asset with PENDING in the STATUS field, Oracle Assets
    deletes the retirement transaction and does not create any journal entries.


6.  What is a retirement convention?

    Oracle Assets uses the prorate convention to determine how much depreciation
    to take in the first and last year of an asset's life based on when you
    place the asset in service.  However, if you retire an asset before it is
    fully reserved, Oracle Asset uses the retirement convention to determine
    how much depreciation to take in the year retired based on the retirement
    date.


7.  Can I retire expensed items?

    Yes.  However, Oracle Assets does not create any journal entries when you
    retire an expensed item.


8.  When I retire an asset in the CORP book, does Oracle Assets retire
    the asset in all the associated TAX books?


    You can retire an asset from any depreciation book without affecting
    other books.  However, you have the option to have Oracle Assets copy the
    retirement transaction into your TAX Books automatically.  If you check
    the Mass Copy Retirements box when you define your TAX book, the
    Periodic Mass Copy process copies all retirement transactions in the
    associated Corporate Book into your TAX Book.  If the retirement
    transaction is in the same tax period as the addition transaction, you must
    manually enter a retroactive retirement in a later period.


9.  What reports can be run for retirement information?
  
    Asset Retirements by Cost Center Report
    Asset Retirements Report
    Reinstated Assets Report
    Retirements Report


10. How can I retire an asset that was added in the current period?

    You must enter it as a prior period retirement after you run depreciation.
    Or, you may delete the asset anytime in the period you added it without
    affecting any subcomponents and no journal entries will be created.
    Please note you cannot backdate a retirement to a previous fiscal year.


11. Can I retire CIP assets?

    Yes, CIP assets can be retired in full.  CIP assets cannot be partially
    retired.