The Asset Disposal process eliminates assets that are fully depreciated or of no longer use to the City.
In This Article:
- About the asset retirements and transfers
- How to initiate asset retirement and transfer
- Accounting for transfers and revenue
Agency Asset Processors and Agency Asset Managers will need to initiate the transfer, attach associated documentation that is generated outside the system, and ensure that necessary journal entries for the General Ledger have been generated.
For Assets transferred within CCSF, those actions create a new asset for the receiving department. The Asset will be transferred using the current cost and accumulated depreciation, including all asset information (physical and financial). Journal entries for the General Ledger are automatically recorded. Assets can be disposed individually or multiple assets can be disposed at once in a Disposal Worksheet, and it eliminates the need for Departments to book the associated journal entries.
The new system provides detailed property records for all fixed assets, including the disposition method and the disposition date. It has the ability to re-associate individual components to other assets or locations as needed, and allows authorized users to flag a specified number of assets for disposal, e.g. for retirement, transfer, or deletion.
At this time, there is no established business process to generate an initiating entry that would then move to an approval. Disposal actions, while being transparently tracked in the new financial system, will need to be initiated outside of the system and become a business process that the City will establish. However, if proceeds are received for an asset, the accounting entries will be automatically generated (gain/loss) for the General Ledger.
Users can send the cost of removing an asset or the proceeds from selling an asset to PeopleSoft Asset Management at the time that a user retires the asset, or afterwards. Transactions are eligible for the retirement process if they are assigned to the asset on the Assign Transactions to Assets page, and the analysis type belongs to the PC to AM Cost of Removal (AMCOR) or AM Proceeds from Sale (AMPFS) analysis groups. Transactions with analysis types in the AMCOR analysis group post to PeopleSoft Asset Management as a transaction removal cost. Transactions with analysis types in the AMPFS analysis group post to PeopleSoft Asset Management as proceeds from sale.
To send costs for removing an asset or the proceeds from selling an asset to PeopleSoft Asset Management, assign transactions to the asset and use the Asset Retirement page to retire the asset. The asset's quantity and retirement quantity determine what proportion of the asset's cost is calculated as the retirement amount. For example, assume that the asset's quantity is 2 and the user enter a value of 1 as the retirement quantity on the Asset Retirement page. The retirement quantity is 50 percent of the asset quantity, and the system uses this percentage to calculate the asset's retirement amount. If the cost is 500.00, the retirement amount is calculated as 50 percent of 500.00, which is 250.00. These calculations appear in the following table:
Users can also send the cost of removing an asset and the proceeds from selling an asset to PeopleSoft Asset Management after the asset is retired from PeopleSoft Project Costing.