This function is used to record the disposal of the displayed financial asset. It is also used to cancel an asset disposal.
The disposal of an asset can be actual in the case of a transfer or destruction, or provisional in the case of a simulation.

  • Actual disposal of a financial asset

    The disposal date must be in the current or next fiscal year for each of the managed depreciation contexts (besides, if the company is submitted to the Russian legislation, this date cannot be inferior to the start date of the current period of each context).
    When the disposal involves a Main asset, it is possible to dispose at the same time of the component assets that are linked to it. If these assets are not disposed, they are detached from the main asset.
    If the actual disposal deals with a component asset, this asset is detached, previously to the disposal, from its main asset and becomes autonomous.
    If physical elements are attached to the asset, they are also disposed automatically.
    When the required conditions are met, a customer BP invoice is automatically generated on exiting the processing (see details below in the process description).
     
  • Provisional disposal of an asset

    The disposal date must be superior or equal to the current fiscal year start date (and cannot be inferior to the current period start date if the company is submitted to the Russian legislation).
    When the disposal deals with a Main asset having components, the user can choose to dispose them at the same time. If the component assets are not disposed, they are not detached but remain linked to the main asset.
    If the provisional disposal deals with a component asset, this asset remains linked to its main asset.
    The provisional disposal does not affect the physical elements attached to the asset.
     
    Note:

    The disposal is not permitted if the asset complies with at least one of the following conditions:
    - It is Inactive.
    - Its holding type is In template.
    - It is in the process of an intra-group transfer.
    - It is an asset in concession, recorded in a renewal preparation operation. 
     
    A retroactive disposal is forbidden when the asset has been depreciated or revalued between the requested disposal date and the end of the current period.
     
  • Asset disposal cancellation

    A disposal cancellation is possible insofar as the disposal:
    - has been done in the current or next FYR for each of the managed depreciation contexts.
    - it is not due to the termination or on the recording of the end of the financial leasing contract to which the asset is attached.
     
    When the disposal, provisional or actual, of a component asset has been done at the same time as its main asset, canceling only the component asset disposal is prohibited. Only the cancellation of the main asset disposal can cancel the disposal of the component asset.

This window is called from the Movements menu in the Assets management function.

Prerequisites

SEEREFERTTO Refer to documentation Implementation

Screen management

This window consists of:

  • a header recalling the financial asset identification information,
  • a tab allowing the entry of the disposal parameters. It is also used to cancel the disposal.

Screen management method

The management is the same for this window as for all the actions that can be applied to assets.

It is recommended:

1/ To first enter the disposal parameters.

2/ Then, it is possible:

- Either directly validate the entry of these parameters or request the cancellation of the disposal by clicking on [OK]. A consistency check on the modifications carried out on the asset and any component is then carried out; in the case of an error, a message is displayed preventing the update of the asset; it is then necessary to rectify the parameters containing errors.

- Or go through an intermediate control and adjustment stage of the entered parameters by clicking on the button [Control]. A window is displayed allowing:

- to view the results of the disposal parameter application on the asset and its potential component assets,
- to adjust, under given conditions, the disposal amount calculated for each asset. 
- to identify, by the color display, any assets with errors along with their corresponding error messages. These assets are not updated with the entered parameters; they are displayed with the original parameters. The user can the correct the parameters containing errors.

Click on the [Save] button to validate the parameters, or [Cancel] to cancel the updates.

3/ When the setups are correct, the [OK] button is used to validate their application and to return in modification mode to the Financial assets screen. The disposal is only effective after the saving of the asset; in this case, any component assets are updated at the same time.

Header

Presentation

The header displays the reference and the description of the asset whose disposal has been requested. This information cannot be modified.

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Fields

The following fields are present on this tab :

Business object

  • Reference (field OBJREF)

Reference for the financial asset. 

  • Description (field OBJDES)

Description of the financial asset.

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Tab Setup definition

Presentation

This tab is used to request the disposal or the cancellation of the disposal of the asset

Asset disposal

To carry out the asset disposal, it is necessary to specify:

  • Whether it is a provisional disposal or an actualdisposal.
  • If the component assets also must be disposed. This check box is only accessible if the disposal is for a main asset possessing component assets.
  • The disposal date.
  • The disposal reason.
  • The disposal rule enabling the user especially to define the disposal day according to the entered disposal date. However, this rule is only taken into account if it can be applied to the plan depreciation method (the list of methods on which each rule can be applied is displayed below).
  • The amount type and the sales amount.
  • The information related to the management of the VAT on sales, especially:
    - the tax code when the asset is disposed with the Sale reason,
    -the disposal VAT ruleto be applied (for details on the VAT regulation process related to transfers, refer to the Description of the disposal process below).
  • The information linked to the sales invoice.

    After having entered the disposal parameters, click on [OK] to apply these parameters and return to modification on the management screen of Assets, or on [Control] to display a window used to check the result of the application of the disposal parameters on the asset and any component assets and/or additional components.
    Each window is also used to adjust, under certain conditions, the calculated disposal amount for each of the assets.

Disposal cancellation

When the asset is subjected to a disposal (actual or provisional), this tab is only available in viewing mode: the fields are loaded with the disposal parameters and cannot be modified.

The disposal Cancellation flag is automatically active and cannot be deactivated.

Click on [OK] to activate disposal cancellation and return in modification mode to the management screen of Assets, or on [Control] to display a window used to check the modifications carried out on the asset and any component assets.

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Fields

The following fields are present on this tab :

Reason

  • Disposal cancellation (field CCLISSFLG)

Help common to the single and mass issue processes.

  • In individual process mode, this indicator enables requesting the issue cancellation for a financial asset. It is automatically activated and cannot be entered once the asset has been issued.
    If the asset has not been issued, the indicator is deactivated and cannot be entered.
  • In mass process mode, the indicator can always be entered. Once activated, it enables the mass issue cancellation of the assets matching the selection criteria previously defined.
    Note: only the assets which issues have been carried out in the current or next FYR for each of the managed depreciation contexts will be selected.
  • Provisional disposal (field EXTISSFLG)

When it is activated, this indicator enables the user to precise that the issue is provisional.

  • Component asset disposal (field ISSCMPFLG)

Help common to the single and mass issue processes.
When it is activated, this indicator enables to specify if the component assets must also be issued.
If the issue of the component assets is not requested:

  • In the case of an actual issue, these assets are automatically detached from the principal asset and become autonomous.
  • In the case of a provisional issue, these assets remain attached to the principal asset.

In a unitary process, this indicator can only be accessed if the asset currently being processed is a Principal asset with at least one component asset.
In a mass process, the indicator can always be accessed.

  • Impairment cancellation (field IMLFLG)

Help common to the single and mass issue processes.
In a unitary process, this non-editable indicator is automatically activated to specify if the asset has been subject to a depreciation during the period. The potential depreciation will be automatically cancelled by the issue process. In this case, a warning message informs the user before the input setup window opens.
In a mass process, this indicator can always be accessed:
- When it is activated, the assets depreciated in the period can be selected to be issued, but the issue process will automatically cancel the depreciation.
- If it is inactive, the assets depreciated in the period cannot be selected to be issued.

  • Overwrite pending movements (field ECRPHYATT)

Help common to the single and mass issue processes.
In a single process this flag cannot be entered and is automatically activated to indicate that when there are transfer movements pending on the physical elements attached to the asset, these movement will be automatically cancelled by the disposal, which also applies all physical elements attached to the asset disposed.

In a mass process, this indicator can always be accessed:
- When it is activated, the movements pending on the physical elements attached to the selected assets will be deleted and the physical elements will be disposed.
When it is not activeted, the assets initially selected to which physical elements with pending movements are attached will not be processed.

  • Date (field ISSDAT)

Help common to the unit and mass issue processes.
This field is used to enter the asset issue date or, in the case of a mass process, the issue date for all the selected assets. This date must be greater than or equal to the depreciation start date for each plan managed by the company.
In the case of an actual issue, this date must be in the current or next fiscal year (FYR) for each of the managed depreciation contexts. This date must also be greater than or equal to the asset purchase date.
In the case of a mass process, only the assets that satisfy this last rule are selected. 
Update 8.0.0 and higher: if an asset classified for sale is disposed, the date is pre-populated with the date of the sale classifying (operation performed by the action Accounting allocation change). It remains modifiable.
Company submitted to the Russian legislation: this date cannot be less than the date of the current period for each context. 

  • Disposal reason (field ISSTYP)

Help common to the single and mass issue processes.
This field is used to enter the reason for the financial asset issue or, in the case of a mass process, for all the selected assets.

  • In a unitary process, the reason is selected according to the asset holding type.
    - For assets In the property, In the provision or In the concession, the issue reason can be: Sales, Scrap, Stolen or disappeared.
    - For Rented assets or assets In the lease, the issue reason is necessarily Imported asset if the asset is attached to a lease contract. If it is not attached to any contract, the reason can be Imported asset, Renting contract end, or Lease contract end.
  • In a mass process, only the assets whose holding type is appropriate for the issue reason chosen will be selected to be the object of the issue.
  • Issue rule (field ISSDATRUL)

Help common to the single and mass issue processes.
This field is used to enter the depreciation calculation rule to apply to the financial asset – to all the financial assets in the case of a mass process – for the financial year of the issue. More particularly, this rule enables to define the issue day according to the issue date entered.
The default issue is On the specified day:the depreciation is calculated according to the issue rules specified in the depreciation mode for each of the assets.
- the rule specified is not taken into account with plans amortized according to a free depreciation mode.
- in the case of a Standard depreciation mode, the rule is only taken into account if it is applicable to the depreciation mode (see the documentation related to the Unitary issue or Mass issue functions).
Issue rules available:

  • Issue at the end of the previous month: the charge is calculated until the end of the month preceding the month of the issue date.
  • Issue at the end of the current month: the complete charge is calculated for the month of the issue date.
  • Issue at the end of the previous FIY:  the charge is calculated until the end of the financial year preceding the financial year of the issue date.
  • Issue at the end of the current FIY: the complete charge is calculated for the issue year. The depreciation calculation is, in this case, carried out as if the asset has not been issued.
  • Issue at the end of the previous half-year: the charge is calculated until the end of the semester preceding the semester of the issue date.
  • Issue at the end of the current half-year:the charge is calculated until the end of the semester of the issue date.
  • No depreciation charge on the issue day: the asset issue day is not included in the charge calculation for the disinvestment financial year.
  • 1st asset from the concession sold:this rule only applies to assets In the concession.
  • Exceptional depreciation = Net value: when the issue reason is Scrap, this rule enables to define an exceptional depreciation equal to the net value, avoiding a loss in value.
    The calculation allowing to define the net value on the issue date is performed according to a specific timeline detailed in the documentation related to the Unitary issue and Mass issue functions in the Process description.
    Note: this rule does not impact the Subsidy depreciation plan.

Sales amount

  • Sales amount type (field ISSAMTTYP)

Help common to the single and mass issue processes.
This field is used to specify the type of sales amount. If the reason of the asset issue is Sales, this type can be a Net value for the plan entered in the next field, or an Amount to enter.
This field also enables to specify if No amount is expected on issue. This is the value that this field takes when the asset(s) is(are) Rented or Leased.

  • Depreciation plan (field VALPLN)

This field is used to enter the amortisation plan when the Type of sale amount is equal to the Net Value of the Plan. The context of the selected amortisation plan must be managed in the management currency of the company.

  • Sales amount (field ISSAMT)

Help common to the unit and mass issue processes.
This field can be entered if the Sales amount type is Amount to enter. It is used to enter the sales amount, in the company currency, of the financial asset or, in the case of a mass process, of all the selected assets.
In a unitary process, and if the issue of the principal asset goes along with the issue of its component assets, the amount entered corresponds to a global sales envelop for the main asset and its components.
In this case, as well as in a mass process, a Distribution key must be entered for this amount. It can be the Net value for the plan in which case it is necessary to indicate the CoA balance sheet valuein the next field Depreciation plan or if the IAS/IFRS plan is managed by the company the IAS/IFRS balance sheet value. The Control window is used to view and if necessary modify, the issue amount calculated for each of the assets.
Update 8.0.0 and higher: if an asset classified for sale is disposed, the sale amount is pre-populated with the expected sale amount entered during the sale classifying process (operation performed by the action Accounting allocation change). It can still be modified.

This field displays the company management currency, as a reminder.

  • Fully distributed to main asset (field TTPRINC)

Help common to the unit and mass issue processes. 
This flag is significant only when the issue applies to principal assets and their components.
It is activated in order to specify that the entered sales amount must be assigned exclusively to the principal asset; its components are therefore issued with a null value.
When it is activated in mass processing, if principal assets and their components are selected, the sales amount is distributed exclusively to principal assets. The distribution is performed according to the value specified by the chosen distribution key. The FXMCUMCPST - total distribution with components (AAS chapter, MIS group) is used to specify whether the value of components must be taken into account in the value used as distribution key.
The right click option "Dependent parameter" available on this field is used to display the value taken by this parameter.

SEEREFERTTO An example of distribution of the sales amount to principal assets, with respect to the value taken by this parameter, is provided in the documentation of the FXMCUMCPST - total distribution with components parameter.

  • Distribution key (field BRDTYP)

Help common to the single and mass issue processes.
This field enables to enter the distribution key of the sales amount for the principal asset and its components (individual process), or for all the selected assets in the case of a mass process.
It can be the Net value of the asset for a plan to enter in the next field, its PCG balance sheet value or the IAS/IFRS balance sheet value if the IAS/IFRS plan is managed by the company.
1/ In individual process mode, this field is available only if the following conditions are met:

  • The asset has at least one component.
  • The issue of the component assets is requested.
  • The Sales amount type equals Amount to enter.

2/ In mass process mode, this field is mandatory if the Sales amount type equals Amount to enter.

  • Depreciation plan (field BRDPLN)

This field is used to enter the depreciation plan when the sales amount distribution key is the Net Value of the Plan.

Tax management

This field is used to specify a tax code.
This code, which can be accessed by right click or by tunnel, defines the rate, the rules and the terms for the tax deduction applicable to the operation.

  • VAT rate on sale (field ISSVATRAT)

This field cannot be accessed. It is only filled in if Sales is the Disposal reason.
It displays the VAT rate on sale, filled in automatically according to the tax code.

  • VAT rule on disposal (field PYBVATTYP)

This field is used to enter the rule for the calculation of the VAT amount on the issue
Choosing this rule is a function of the Issue reason:

  • If the issue reason is Leasing contract end, Lease contract end or Returned asset, the calculation rule is mandatorily Without regulation.
  • If the issue reason is Rejected or Theft/disapperance, this rule can have the following values: Without regulation, 1/5th rule, 1/10th rule, 1/20th rule.
  • If the issue reason is Sale, the values possible for this rule are a function of the entered VAT rate on the sale
    - If the rate is equal to 0, the available values are: Without regulation and Transferred VAT calculation.
    -
    If the rate is greater than 0, only the Without adjustment value is available when the asset has been entirely de-taxed during its acquisition. If not, the Additional deduction calculation values is also available.
  • VAT due on disposal (field ISSVATAMT)

This field, which cannot be entered, is only filled in when the reason of the asset issue is Sales and if the sales amount is entered.
It is automatically calculated by the application of the VAT rate on sale on the sales amount entered.

Sales invoice

This information is used to determine the invoice type used to generate the sales invoice.
The invoice type identifies an invoice category (invoice, credit memo etc.) along with an entry structure for the validation of the invoices.
This field is initialized with parameter TYPINVFAS - Fixed Assets invoice type (chapter TRS, group INV) and can be modified. Only an invoice type with a legislation and company group consistent with those of the asset company can be entered.

  • Invoice (field IVCSALISS)

When parameter SALINV - Sale invoice to generate (chapter AAS, group FAS) is set to: "Yes", this field cannot be entered, the invoice being automatically generated upon validation of the asset disposal processing.

When the parameter SALINV - Sale invoice to generate is set to: "No", this field is used to enter the sale invoice reference of the asset(s) to issue.

Help common to the single and mass issue processes. This field is used to enter the buyer reference of the financial asset(s) in the case of a sale. This buyer must have been previously referenced using the BP function.

  • Control (field BPRSAC)

Control account code of the main general ledger of the invoicing company. It is initialized by default with line 11 "Fixed asset sale" of the customer accounting code, or if not, with line 1 "Sales" of the customer accounting code.
It can still be modified.

  • Comments (field COMMENT1)

Field used to freely enter any useful comment.

Revaluation & Impairment loss

  • Reval. coeff. 76 (field R76COE)

Help common to the single and mass issue processes.
This field can only be entered for the french companies. It is used to enter the 1976 re-evaluation factor.

  • In a unitary process, this field can only be accessed if the purchase date of the asset is less than 01/01/1977.
  • In a mass process, the factor entered is only applied to the assets which purchase date is less than 01/01/1977.

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Disposal rules applicable to the standard methods

Rules taken into account

Method

- disposal end of previous month
- disposal end of current month
- disposal end of previous semester
- disposal end of current semester
- disposal end of previous fiscal year
- disposal end of current fiscal year

Can be applied to all methods except:

CA- Caducity/gross value
RE - Residual

 - No charge on the disposal date

Can be applied to the following method:

DB - Belgian declining
SCD - Spanish continuous declining rate
SD - Spanish declining rate
IT - Ordinario / Anticipato
LP - French straight-line
LV - Linear beyond the null VN
LB - Belgian straight-line
RE - Residual (days)

 - 1st asset transferred to the concession

Can be applied to the mode:
CA- Caducity/gross value

 - Exceptional depreciation = Net value

 Can be applied to all methods except:
IT - Ordinario / Anticipato

Processing description

Disposal process

  • An actual disposal gives rise to the following operations:

    Disposal of a Main asset:
    - If the disposal of its component assets is not requested, they are detached from the main asset and become Autonomous. The main asset retains its status Main.
    - If the disposal of its component assets is requested, they are disposed including those already disposed provisionally.

    Disposal of a Component asset:
    This asset is detached from the main asset at the time of its disposal and becomes Autonomous.
      
    Disposal of an assetimpaired in the period:
    When entering in the setup screen of the disposal, a message indicates that an impairment loss has been done on the period and that the disposal process will automatically cancel the impairment.

    Disposal of an asset to which physical elements are attached:
    All physical elements attached to the asset are automatically disposed. If there are movements pending on the physical elements, these movements will automatically be canceled.
    If the user does not wish to dispose all physical elements, he/she can either detach elements or else submit the asset to a split beforehand.
    The disposed physical elements take on the disposal date and reason of the asset.

    Disposal of an asset attached to a granted expense:
    The active disposal process automatically activates the forcing flag of the subsidy amount allocated to each subsidized expense linked to the disposed asset. This amount and the depreciation basis of the disposed asset on the subsidy plan will not be revised using the subsidy calculation process anymore.
    The net value of the subsidy plan (i.e. the subsidy re-integration balance) at the disposal day is taken in exceptional charge on the disposal period or the record period of the disposal in the case of a retroactive disposal.

    Disposal of an asset linked to a financial leasing contract:
    This asset is detached from the contract.

    Determination of the asset net value at the disposal:
    The net value is calculated as follows:
    - Charge (according to the disposal rule and/or the depreciation method)
    - Impairment increase to transfer as exceptional depreciation (on a standard plan CRC2002-10)
    - Impairment loss reversal, if the IMLRVEISS parameter - Disposal:Impairment loss reversal, of the AAS chapter is set to Yes
    - Exceptional depreciation, if the Disposal rule has the value: Exceptional depreciation = Net value
    - VAT regulation, if the PCOTVAPMV parameter - Inclusion of VAT in the capital gains or losses, of the AAS chapter is set to Yes: the net value is either reduced from the Complementary deduction, or increased from the VAT transfer.

    Disposal of an asset having a provision balance of exceptional depreciation at the disposal date:
    The exceptional balance is taken as a whole. On the disposal fiscal year, the asset can thus be subjected to a provision or a derogatory depreciation increase and to a derogatory depreciation increase due to the disposal.

    Disposal of an asset containing an impairment balance on disposal date:
    If the company parameter IMLRVEISS (Disposal:Impairment loss reversal has the value Yes, the impairment balance on disposal date is automatically taken. This impairment loss reversal is added to the net value determined after the depreciation calculation.
    Notes:
    - it is the impairment balance after the impairment loss reversal transferred as exceptional depreciation.
    - When the following Disposal rule is applied: Exceptional depreciation = NV, the new net value is kept as Exceptional depreciation.

    VAT regulation:
    The actual disposal of an asset can lead to a VAT adjustment process in the CoA plan and if the parameter REGVATIAS - VAT adjustment to be applied to IAS/IFRS valuations, is set to Yes,in the IAS/IFRS plan.
    It corresponds to a global adjustment that applies only to the companies subjected to the French tax system. It consists in carrying out globally and at one time all the annual adjustments which the company would be required to carry out until the end of the adjustment period should its situation, as resulting from the concerned event, stay as it is until then.

    The process is carried out if the following conditions are met:
    - its holding type is set to In property or In transfer,
    - its Legal or IAS/IFRS accounting nature is set to Fixed Asset in service; it can also be an asset which nature is Fixed asset in process if the REGENCOURS - Fixed Asset in process: VATadjustment? is set to: Yes.

    Notes:
    1/ The period over which a VAT adjustment can be recorded, is automatically determined according to the Tax type and the VAT adjustment reference date (usually, the date of the asset purchase):
    - For the assets which Tax type is Real estate and were purchased as of 01/01/1996, the regulation period is 20 years (1/20th rule).
    - In other cases, the adjustment period is 5 years (1/5 rule).
    2/ The period and the adjustment residual life are displayed in the VAT tab of the Assets management function. These periods apply to whole years: the purchase year and the disposal year thus count as a whole year each.

    Adjustment calculation
    When an asset is sold, the adjustment calculation rules are different whether the transfer can be taxed or not.

    1/ Non taxable transfer (the VAT rate (ISSVATRAT) for the sale is equal to 0). It mainly deals with the sale of buildings.
    For each of the remaining years of the adjustment period, the asset will be considered as used in an exempted industry that does not entitle to deduction. Its taxation coefficient will automatically take the value: 0 The deduction coefficient due to the event will thus also have the value: 0 
    The adjustment therefore consists in an additional VAT repayment.
    It is calculated in the following way:
    (0 - Effective deduction coefficient) x Invoiced VAT x (Adjustment residual life / Adjustment period life)

    Notes
    :
    - The transfer year is not counted in the residual life.
    - In the event of a non-taxable transfer, the company can transfer some of the initial invoiced VAT to the buyer, in proportion to the remaining adjustment life. The transferable amount is automatically calculated as follows:
    Transferable invoiced VAT = Initial VAT x Adjustment residual life / Adjustment period life
     
    Example:
     Year N: acquisition of a building: 1,000,000 € ex-tax - Invoiced VAT = 196,000 €
    - Liability coefficient = 0.8
    - Taxation coefficient = 0.5
    - Admission coefficient = 1
    --> Deduction coefficient = (0.8 x 0.5 x 1) = 0.4
    - VAT deduction = 196,000 x 0.4 = 78,400 €
    These coefficients do not change in the first 7 years
    Year N+7: transfer of the building to the company E
    --> Global adjustment carried out by the transferor for the 12 remaining years:
    (0 - 0.4) x (196,000 € / 20) x 12 = - 47,040 € to repay

    Possible transfer of VAT to the buyer:
    (196,000 € / 20) x 12 = 117,600 €

    2/Taxable transfer (the VAT rate (ISSVATRAT) on the sale is superior to 0).
    For each of the remaining years in the adjustment period, the asset will be considered as used in taxed operations, and its deduction coefficient will thus automatically set to 1.
    The adjustment therefore consists in an additional deduction.
    It is calculated in the following way:
    (1 - Effective deduction coefficient) x Invoiced VAT x (Adjustment residual life / Adjustment period life)
     
    Notes:
    - The transfer year is not counted in the residual life.
    - In the event of a transfer carried out before 19/10/2005, the amount of the additional deduction cannot exceed the amount of the VAT on transfer invoiced to the buyer.
     
    Example:
     
     Year N: acquisition of a building: 1,000,000 € ex-tax - Invoiced VAT = 196,000 €
    - Liability coefficient = 01
    - Taxation coefficient = 0.5
    - Admission coefficient = 1
    --> Deduction coefficient = (1 x 0.5 x 1) = 0.5
    - VAT deduction = 196,000 x 0.5 = 98,000 €
    These coefficients do not change in the first 3 years
    Year N+3: transfer of the building to the company E
    --> Global adjustment carried out by the transferor for the 16 remaining years:
    (1 - 0.5) x (196,000 € / 20) x 16 = 78,400 € of additional deduction

    The VAT adjustment amounts after a transfer (Additional repayment and Transferable amount to the buyer / Additional deduction) are displayed in the Receipt/Disposal tab of the Assets function.
     
    Determination of P&L amounts on transfer:
    The definition of the capital gain or loss is done as follows:
    Sales price-Net value on disposal completion
    --> if the result is negative, it is a Capital loss
    --> if the result is positive, it is a Capital gain

    The net value taken into account on disposal completion, to define the capital gain or loss is calculated according to the chronology indicated above at the paragraph level: Determination of the asset net value at disposal.

    Note: No capital gain or loss is calculated:
    - on the Subsidies depreciation plan because this plan does not contain an asset value but rather a part of the subsidy used to finance the whole asset (or part of it),
    - on a plan with a depreciation basis equal to 0 because of the accounting allocation of the asset on an Expenses account.

    French tax system:
    Special feature of the 1976 revaluation: for an asset revalued in 1976, the +/- amount on sales is equal to: Price of sale-Fiscal net value not revalued.
    • When the company is subject to income tax (parameter CPYTAXRUL - Taxation rule in chapter AAS, group FAS), this +/- value, determined in the fiscal depreciation plan, is distributed in the short term and/or long term.
      The distribution is performed in the following fashion, according to:
      * the Asset nature (depreciable or not)
      * the holding duration of the asset in the company, calculated in days starting from the Reference date. When the disposal concerns a main asset and its components, it is the Reference date displayed on the main asset which is taken into account to define whether the P&L amount calculated for each component is Short term or Long term. When the disposal deals with a component asset (detached at the disposal of its main asset), it is its own reference date which is taken into account.

      Example


Profit amounts


Loss amounts

Element nature

Life < 2 years

Duration = 2 years

Life < 2 years

Duration = 2 years

Depreciable

Short-term

ST within the limit of the fiscal depreciation used, LT beyond

Short-term

Short-term

Non depreciable

Short-term

Long-term

Short-term

Long-term

In the particular case of a transfer completed during an intra-group operation (except an intra-group sale which a ST/LT distribution is made for on the fiscal plan for a French company), the capital gain or loss collected on the fiscal plan for a French company is not ST/LT distributed.

    • When the company is subject to corporate income tax (parameter CPYTAXRUL - Taxation rule in chapter AAS, group FAS), these +/- values are considered to be short term, irrespective of the asset nature and holding duration.
       
      BP supplier invoice generation:
       
      If parameter SALINV - Sale invoice to generate (chapter AAS, group FAS) is set to Yes, a BP customer invoice is generated automatically when the reason of the asset disposal is Sales. In this invoice, the information coming from the asset cannot be modified.  The status of this invoice is Not validated. Its accounting allocation is automatically performed. It is the fixed asset account defined in the accounting codes table, for line 11 - Active Element Sale Product, except for companies under the Portuguese or Angolan legislation. For these companies, the code that is used is either the code defined on line 19 - Profit amount on FA sale, or the code defined on line 20 - Loss amount on FA sale.
      If the disposal applies to a main asset and its components, only one customer invoice is generated with as many lines as there are sold assets.
      The reference of the sold asset is automatically entered in the Comment field of the invoice line. 
       
      Fixed asset update:
       
      The following information is updated financial asset record for the asset and for its components if they have been disposed:
      - disposal date
      - Disposal reason
      - Sale amount
      - Disposal rule
      - Invoice reference
      - VAT rule for the disposal
      - VAT rate on sales
      - Invoice reference
      - Buyer
      - Additional CoA and IAS IFRS deduction / payment
      - CoA and IAS IFRS transferable VAT
      - Capital gain or loss reference date for the components updated using the main asset reference date
      The references and descriptions of the disposed assets are displayed in red characters.

      Notes:

      1/ Once disposed, the asset can no longer be modified. The information concerning the disposal are displayed in the Receipt/Disposal tab of the Assets management function.
      2/ The assets disposed of during the fiscal year of at least one of the contexts or during the following fiscal year can be picked out in the Assetsmanagement function using their references and descriptions, displayed in red. They remain present in the Assets left list.
      The assets disposed in an earlier fiscal year for all the contexts no longer appear in the Assets left list but are displayed in the Disposed assets left list.

      Events

      - Generation of an Asset disposal event (FASISS), and with an asset in concession managed with the Renewal mode, of a FASCCNISS event - Asset disposal / Provisions.
      * The operational effective date is recorded in the EVTDAT field; it corresponds to the disposal date.
      * The accounting effective date is recorded in the CPTDATINT field; it corresponds to the latest date among the following: Current period end date, Disposal date.
       
      - Update 8.0.0 and higher: generation of a classification for sale canceling event when the asset is classified for sale.
       
      - Production of the accounting journal enabling the user to post this event, if the Entry type linked to the event is set up for the immediate posting of the event.
       
      - Generation of a Disposal event (PHYISS) for each of the disposed physical elements attached to the disposed assets.
      (The user can view the events in the Event Journal window that can be accessed from the Other info tab of the Asset management function (Assets, Physical elements).
       
  • A provisional disposal carries out the following operations:

    Disposal of a Main asset:
    If the disposal of its component assets is not requested, they are not detached and remain linked to the main asset.

    Disposal of a Component asset:
    This asset remains attached to its main asset.

    Disposal of an asset linked to a financial leasing contract
    This asset remains attached to the contract.

    Disposal of an asset attached to one or several physical elements:
    The physical elements are not disposed and remained attached to the asset.

    Notes:
    A asset that has been the object of a provisional disposal:
    - remains modifiable,
    - its current period depreciation and FYR calculations are carried out without taking into account its provisional disposal (no end to the depreciation plan on the day of the disposal).
    A provisional disposal is automatically canceled at the time of a Closing process.

Disposal cancellation process

Upon saving an asset:

  • The information updated during the disposal are reset using their original values.
     
  •  Update 8.0.0 and higher: canceling the disposal of an asset classified for sale does not lead to the automatic re-classification of the asset for sale.
     
  • When physical elements are attached to the asset, their disposal dates and reasons are cleared.
     
  • The cancellation of the disposal of a main asset automatically generates the cancellation of the disposal of its component assets.
     
    Note: the disposal of a component asset independently from its main asset sets the status of this component to Autonomous. The cancellation of this disposal does not lead to a reattachment to the Main asset, the component retains the status Autonomous.
     
  • Generation of a disposal cancellation event (FASISS) for the asset and for each of the physical elements attached to the asset (PHYISS).
     
  • When a customer BP invoice has been automatically generated during the sale of the asset, the invoice must be canceled manually.

    Note:

    1/ The cancellation of the disposal of a component asset is not authorized when this asset was disposed at the same time as the main asset which it is linked to. The cancellation must be carried out through the main asset.

    2/ The cancellation of an disposal linked to a financial lease contract is not authorized when the disposal is linked to the contract termination or to the recording of the end of the financial leasing contract (disposal reason: End of contract or Contract canceled).

Preset queries

The following preset queries are available as standard in the reference folder:

 Code

Title

Contents

FXOUTEX

Asset disposals in the fiscal year

List of the assets disposed in the current fiscal year.

Specific Buttons

This button is used to:

  • To apply the asset disposal or disposal cancellation parameters.
     
  • To display a control window used to view the result of applying these parameters on the asset and any component assets, and to adjust, under given conditions, the disposal amount calculated for each of the assets.

A first table displays the asset whose disposal is requested as well as the list of its component assets, if it is a main asset. When activated, the flag Detach is a reminder that the disposal of the components has not been requested and that they will be detached upon disposal processing.

The following information is displayed for each of the assets that are the object of an disposal:
 
- The disposal amount. Its value depends on the setup carried out. It can be equal to zero if no sales amount has been entered or if the component asset has been disposed with its main asset and the sales amount has been completely distributed to the main asset. It can also correspond to the net value of the asset in the set up depreciation plan or be the result of the distribution of a global sales amount entered in the setup (depending on the chosen distribution key).
When for rounding reasons, the calculation displays a difference between the global sales amount and the total of the sales amounts for the main asset and its component assets, the difference is transferred to the sales amount of the last component asset.
When the disposal amount is calculated using the distribution of a global sales amount, the user keeps the possibility to modify the amounts thus calculated.
- The VAT owed on disposal amount. This amount is calculated using the information entered in the parameters. This amount is automatically recalculated if the sales amount is modified and if the VAT rule has the value VAT owed on the sales. It can still be modified.
- The IAS/IFRS and CoA additional deductible VATamounts.
- The IAS/IFRS and CoA balance sheet values.
- The sales invoice reference.

The assets with errors can be repaired thanks to a color display showing their reference and description. The Message column is used to view the error reason. These assets are not updated with the entered parameters; they are displayed with the original values. The user can the correct the parameters containing errors.

A second table displays the depreciation schedules of the asset highlighted by the cursor in the first table. For each plan is displayed: the Currency of the context management, the Net value at disposal date, the Capital gains or losses, as well as Short and long term capital gains or losses for French companies.

Click on [Cancel] to cancel the modifications done in this window or on [Save] to take the modification into account.
Then click on [End]. The setups screen appears again, click [OK] to get back to the Financial assets screen, then [Save] to validate the disposal (or the disposal cancellation) of the asset in the database and, if need be, its potential components.

Error messages

The only error messages are the generic ones.

Tables used

SEEREFERTTO Refer to documentation Implementation