Business Sale Asset With Revenue In Sap In Allegheny
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FAQ
In an asset sale, the seller retains possession of the legal entity and the buyer purchases individual assets of the company, such as equipment, fixtures, leaseholds, licenses, goodwill, trade secrets, trade names, telephone numbers, and inventory.
First, add the depreciation value to the sale value to find the total value that you extracted from the asset being sold. Subtract the initial value at the time you gained the asset from the extracted value to determine the net gain or loss for the asset.
A held for sale asset is shown on the Statement of Financial Position as a current asset. When the asset is reclassified, depreciation or amortization ceases because it is no longer being held as a productive asset with future benefit beyond its recoverable amount.
Accounting will enter and maintain the fixed asset in SAP. Transaction code, AS03, is used to display an asset master record. You would perform this procedure to verify the location of an asset.
On the other hand a receipt on account of sale of fixed assets is a capital receipt, for example, amount received on sale of a motor car by a person who is not a car dealer.
In this posting transaction, you have to enter the revenue posting (debit A/R, credit revenue from asset sale) first, and then enter the asset retirement. An indicator in the posting transaction specifies that the system posts the asset retirement with the revenue posting.
It may be recorded in its total revenue for a given period when a company reports a gain such as the sale of an asset. Total revenue includes operating revenue, which is sales from primary business activities, as well as non-operating activities in this way.
In ECC system the Transaction code AS91 is used to create asset master and also post asset values in asset accounting through 'Takeover values'.
AR02 : Asset History Sheet.
