Asset Retirement Global

Overview

The Asset Retirement Global document is used retire capital and non capital assets. Capital Assets are identified as such by having an Asset Status Code that matches a  value in parameter CAPITAL_ASSET_STATUS_CODES. Non-capital assets, assets with a status not in parameter CAPITAL_ASSET_STATUS_CODE, will have their Asset Status code set to O. 

Users that have access to the Asset Retirement Global document can retire movable assets, Asset Type Moving Indicator = Y, using active Retirement Reason Types excluding the following: 

• Retirement Reason Restriction Indicator = Yes
• Retirement reasons codes are in parameters MERGE_SEPARATE_RETIREMENT_REASONS or RAZE_RETIREMENT_REASONS
  • KFS-SYS Plant Fund Accountant role can use Retirement Reason codes in RAZE_RETIREMENT_REASONS
  • KFS-SYS Asset Manager, KFS-SYS Asset Processor, KFS-SYS Plant Fund Accountant, KFS-CAM Manager, and KFS-CAM Processor roles can use retirement reasons in parameter MERGE_SEPARATE_RETIREMENT_REASONS.

Non-movable assets, where the Asset Type Moving Indicator = N, can be retired by the KFS-SYS Asset Manager or KFS-SYS Plant Fund Accountant.

Asset Retirement Reason lookup

When you open the Asset Retirement Global the Asset Retirement Reason Lookup page opens.

Search for the desired retirement reason code. Asset Reason codes are maintained using the Asset Retirement Reason lookup. 

Click the return value link next to the appropriate retirement reason. 

Selecting a value opens the Asset Retirement Global document. 

Asset Retirement Global

Accounting Period

When the Asset Retirement Global (ARG) is included in parameter FISCAL_PERIOD_SELECTION_DOCUMENT_TYPES the Accounting Period tab will display. This tab is used primarily at year end to control in which year and period the retirement entries post and the Fiscal Year and Period assigned to the Asset Payment on the Asset. Permission Edit Accounting Period controls who can change the Accounting Period. 

Retirement Information

This tab displays for all retirement reasons. 

• The retirement date is updated when the document status is FINAL or PROCESSED.

Depending on the Retirement Reason selected the following tabs will display

Auction or Sold

• When Retirement Reasons 1 and A are selected, the Auction or Sold tab will display.
  • NOTE: These values are hard coded, you can change the descriptions using the Asset Retirement Reason lookup if desired. The tab title will not change. 
• Buyer Description and Sale Price are required.
• The Calculated Total will update based on the values entered in Sale Price, Handling Fee and Preventive Maintenance
• If entered, the Cash Receipt Financial Document Number must be valid. The system will check that the document number exists, but will not validate that it is a Cash Receipt. 

External Transfer or Gift

• When Retirement Reasons 6 and 9 are selected, the External Transfer or Gift tab will display.
  • NOTE: These values are hard coded, you can change the descriptions using the Asset Retirement Reason lookup if desired. The tab title will not change. 
• Institution Name is required.  

Theft

• When Retirement Reason 7 is selected, the Theft tab will display.
  • NOTE: This value is hard coded, you can change the descriptions using the Asset Retirement Reason lookup if desired. The tab title will not change. 

• The Police Case Number is required.

Merged

When Merged is selected as the retirement reason, the Target Asset Information tab is displayed.

• Merged Target Asset Number: Enter the asset number of the asset that will remain after the assets are merged or search for it from the Asset lookup icon.

Asset Detail Information

This tab is displayed for all retirement reasons and is where the asset (s) to be retired are specified.

• Multiple assets can be retired at once, either enter or lookup and return individual assets, or use the Look Up/Add Multiple Asset Lines to add several assets at the same time. Once added, individual assets can be deleted. 

General Ledger Entries

General Ledger Entries will only be created when capital assets are retired. Entries will not be created for non-capital assets. Entries are created to reverse the assets cost and depreciation and to record a gain/loss on the disposition. The following parameters are used to create the entries: 

• DEPRECIATION_DESCRIPTION
• CAPITALIZATION_DESCRIPTION
• GAIN_LOSS_OBJECT_CODE
• OFFSET_DESCRIPTION

The account number will be the plant fund account which is determined by the object code sub-type and the organization code of the payment account. Each account number is assigned to an organization, and each organization has been assigned two plant fund account numbers:

• The organization plant fund chart and account number is used for movable equipment, object code sub-types specified in parameter ORGANIZATION_SUB_TYPES.
• The campus plant fund chart and account number is used for non-movable equipment, object code sub-types specified in parameter CAMPUS_SUB_TYPES.

Entries are not created for federally or other-owned as defined by parameter FEDERAL_OWNED_SUB_TYPES.

Routing

Asset Retirement Global documents route to the fiscal officer or delegate associated with the Organization Owner Chart and Account.

• If the retirement reason is Sold or Gift, the document routes to the Purchasing Processor role. 
• If the retirement reason is External Transfer, the document routes to the account supervisor associated with the Organization Owner Chart and Account.