Asset is retired when it is no longer in service. For example, retire an asset that was
stolen, lost, or damaged, or that you sold or returned. You can retire an entire asset or you can partially retire an asset.
• When you retire an asset by units, Oracle Assets automatically calculates the fraction of the cost retired
• When you retire an asset by cost, the units remain unchanged and the cost retired is spread evenly among all assignment lines.
You cannot retire assets by units in your tax books; you can only perform partial and full cost retirements in a tax book. Also, you can only perform full retirements on CIP assets; you cannot retire them by units, or retire them partially by cost.
If you perform multiple partial retirements on an asset within a period, you must run the calculate gains and losses program between transactions.
Gain/Loss = Proceeds of Sale - Cost of Removal - Net Book Value Retired +
Revaluation Reserve Retired
If you partially retire a units of production asset, you must manually adjust the capacity to reflect the portion retired.
Independence Across Depreciation Books
You can retire an asset or a group of assets from any depreciation book without affecting other books. To retire an asset from all books, retire it from each book separately, or set up Mass Copy to copy retirements to the other books in the Book Controls window.
Retirement and Reinstatement Statuses
Each retirement transaction has a status. A new retirement receives the status PENDING. After you run depreciation or calculate gains and losses, the status changes to PROCESSED.
When you reinstate a PENDING retirement, Oracle Assets deletes the retirement transaction and the asset is immediately reinstated. If you reinstate a PROCESSED retirement, Oracle Assets changes the status to REINSTATE, and you must rerun the Calculate Gains and Losses program or run depreciation to process the reinstatement.
When you perform a mass retirement, Oracle Assets creates PENDING retirement transactions. If you submit a mass reinstatement before running the Calculate Gains and Losses program, Oracle Assets immediately reinstates these assets. If you submit a mass reinstatement to reinstate PROCESSED retirements, you must rerun the Calculate Gains and Losses program or run depreciation to process the reinstatements.
Correct Retirement Errors
You can undo asset retirement transactions, and Oracle Assets creates all the necessary journal entries for your general ledger to catch up any missed depreciation expense. You can reinstate an individual or mass retirement transaction. For multiple partial retirements, you can reinstate only the most recent partial retirement. You cannot reinstate an asset retired in a previous fiscal year. You can only reinstate assets retired in the current fiscal year