Asset Disposal/Scrapping – Asset Accounting(SAP)

April 8, 2009 by mySAP
Filed under: Asset Accounting Process

Definition

Asset Disposal and scrapping in SAP refer to the removal of a full asset or part of an asset either through sale to a third party or scrappage

Objective

This SAP process is to retire a full asset or part of an asset properly.

Operation Rule

Any gain or loss from these SAP transactions will be recorded in a SAP gain or loss account after deducting the proceeds from the sale.

The following steps are required during Asset Disposal/Scrapping process in asset accounting module

Step1: Prepare asset disposal request form

Requesting Dept. and authorized personnel review and approve Requesting department prepares asset disposal request documents for review and approval of authorized personnel.

Step2: Receive & review approved asset disposal documents

Asset maintenance department receives and reviews asset disposal request approved by authorized personnel.

Step3: Contacts 3rd party buyer

Asset maintenance department contacts interested buyer.
Step4: Prepare Tax Invoice

Finance Personnel Asset maintenance department requests preparation of tax invoice from Finance personnel. This applies only to sale to third party.

Step5: Submit disposal documents to Finance

Asset maintenance department submits to Finance A/A personnel all approved disposal documents.

Step6: Verify disposal documents against tax invoice

Asset personnel verifies supporting documents to ensure that there is no discrepancy between invoice and disposal documents. This applies only to sale of assets.

Step7: Perform asset retirement

Asset personnel performs asset retirement in Asset Accounting module.