9.2 ctcLink Asset Management Disposal Codes

Purpose:  Disposal codes reflect the Retire As action that is selected to initiate the retirement transaction.  ctcLink Asset Management calculates gain or loss amounts depending, in part, on the disposal code that you select. This table describes the available options in the Retire As field.

Audience:  Asset Managers

Disposal Codes

Source:  https://docs.oracle.com/cd/E40049_01/psft/acrobat/fscm92famp-b0313.pdf  , page 416

Snapshot as of:  11 October 2018

Code

Usage

Gain/Loss

Abandonment

Select when the asset has no resale value and it is left behind. For example, consider leasehold improvements. At the end of the lease term, the improvements are generally left behind and no removal costs are incurred when you turn over the improvement to the lessor.

Gain/loss calculations are based on the asset net book value.

Auto-Retire Fully Depr Asset

Select when the asset is fully depreciated.

Gain/loss calculations are based on the asset net book value.

Cannibalize for Other Assets

Select when the asset has been dismantled and the parts are reused within the organization. For example, if an employee reuses a monitor that is part of an unused computer, you would retire the monitor as cannibalized. Typically, cannibalized assets are partially retired. They have no proceeds and no removal costs.

Gain/loss calculations are based on the asset net book value.

Casualty Loss

Select when an asset is unintentionally destroyed. If the asset cannot be sold, you may incur removal costs disposing of it. Retiring an asset as a casualty may have tax consequences if you have tax credits and the asset is not fully depreciated.

ctcLink Asset Management deducts the accumulated depreciation from the retirement amount and adds the removal costs to determine the amount of the casualty loss.

Disappeared Assets

Select when an asset cannot be located and you are not sure whether the asset was abandoned or stolen. Disappeared assets have no proceeds or removal costs.

Gain/loss calculations are based on the asset net book value.

Disposal Due to Theft

Select when an asset has been stolen.

Stolen assets have no proceeds or removal costs.

Donated to External Group

Select when an asset is donated. You typically use this option when assets are donated to nonprofit organizations for tax purposes.

ctcLink Asset Management deducts the accumulated depreciation from the retirement amount, and determines gain or loss based on proceeds and removal costs.

Expensed

Select when an asset has adjustments to original cost requiring reclassification from capital asset to expensed asset. If the Capitalization Threshold feature is enabled, Asset Management automatically assigns this disposal code through the Capitalization Threshold Validation process if the original cost falls below the capitalization threshold.

The accounting entry template for this disposal code reflects the loss account as the expense. Previous depreciation expense is recognized as expense as well. The Interface Type is ‘RET.’

Like Kind Exchange

Select to process like-kind exchanges under U.S. federal tax code.

Access the Like Kind Exchange page by clicking the Like Kind Exchange Info link on the Retire Assets page. For the Retire As field, select the Like Kind Exchange option to display the link.

Missing Asset

Select when an asset is missing. Missing assets have no proceeds and no removal costs.

Gain/loss calculations are based on the asset net book value.

Retirement by Sale

Select if you sell an asset. (If you sell the entity that owns the asset, you must retire all assets that are owned by the entity.) You can use the interface with ctcLink Billing to generate a bill.

The proceeds and removal cost from the sale, less the net book value of the asset, determines the gain or loss.

Returned to Inventory

Select when the asset is returned to a common internal pool where it is available for others to use.

ctcLink Asset Management deducts the accumulated depreciation from the retirement amount and adds the removal costs to determine the amount of the casualty loss.

Scrapped Assets

Select when the asset is no longer useful and has no resale value.

The gain/loss calculations include removal costs; accumulated depreciation is deducted and then the removal costs are added to derive the amount of gain or loss.

Traded In for another Asset

Use when you are trading one asset for another.

ctcLink Asset Management deducts the accumulated depreciation from the retirement amount and adds the removal costs to determine the amount of the casualty loss.


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