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Hi Nitin
let us understand the concept of Asset Transfer happening between two
company codes.
The sending company code retires the asset by way of a sale and in the
process it may incur a loss or profit depending on the revenue it realizes.
The loss or profit incurred booked in the* profit and loss account* of the
sending company code. At the same time, the sending company code retires the
asset after making pro-rata adjustments of asset value and Accumulated
depreciation so that during the year end depreciation run can ensure that
the asset value is rendered to zero. If you observe more carefully, you
would also see a clearing account being debited which is a balance sheet
account. This represents the amount recoverable from the company code to
which the asset has been sold.
However, the company code which acquires the asset debits the asset the
accounting of opening balance of accumulated depreciation may or may not
happen depending on the method of transfer ( In gross transfer, accumulated
depreciation gets an opening balance from the selling company code whereas
in net / new value method of transfer this does not happen ). The receiving
company code may book a liability to the company from which the asset
purchase was made and this happens through a clearing account.
Since the revenue arising from sale of fixed asset should have nothing to do
with the operating profits, the sale revenue and a suspense account which
are created stand reported as notes to the financial statements ( viz. below
the bottom line ).
Check your entries again, please and you will get to know better.
Regards
VidhyaDhar
On Fri, Jul 23, 2010 at 10:50 PM, CA_Nitin via sap-acct <
sap-acct@groups.ittoolbox.com> wrote:
> Posted by CA_Nitin(FICO)
> on Jul 23 at 1:18 PM Dear Guru's,
>
> There is a business requirement wherein they want to transfer all the
> assets from one company code to another company code. Both these company
> codes are existing in SAP ECC6.0. Am using T code ABT1N for the same . The
> system is generating following entries for both sending and receiving
> company codes:
>
> Sending Company Code
> ........................................................
> Asset Account Credit
> Accumulated Depreciation Account Debit
> Profit & Loss account Debit
> .......................................................................................
>
>
> Entry in case of receiving compnay code:
> ......................................................................................
>
>
> Asset Account Debit
> Accumulated Depreciation Account Debit
> Inter company balance sheet account Debit
> .........................................................................................
>
>
> My issue is why system is booking P&L in case of sending company and
> balance sheet account in case of receiving Company.
>
> How i can get Balance sheet account in sending company instead of P6L
> account.
>
>
> Your replies to this question will be highly appreciated.
>
> Regards,
>
> Nitin
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