Table of Contents
1. Objective and Scope
2. Reference Documents
3. Definitions
3.1 Responsibilities
3.2 Abbreviation
4. Retirement Processes
4.1 Asset retirement by Sale
4.1.1 Asset Retirement by sale with Customer
4.1.2 Asset Retirement by sale without Customer
4.3 Asset Retirement by Scrapping
4.4 Internal Asset Transfer
4.5 Partial Asset Retirement
5. Retirement process reliability check Define a name for this check???
1. Introduction
This guide provides clear steps for processing the retirement of fixed assets at Syensqo for WP2 system. Following these procedures helps ensure accurate records and compliance. Please use this guide as a reference during any of the retirement processes described here.
2. Reference Documents
IAS 16 Property, Plant and Equipment - Syensqo Financial Reporting Guide
Asset Removal Template (Needs to be updated for Syensqo / Is there a way to attach here?)
3. Definitions
3.1 Responsibility
| Position | Description |
|---|---|
Cost-center Person Responsible (not limited to) | Are responsible to communicate with Plant controller and provide necessary information to initiate the asset retirement |
| Plant Controller (FRA) | Finance Responsible Assigned will provide the necessary approval and documentation through the appropriate Portal (Currently Service One, to be changed to SyRa in 2025 August) |
| CAM | Must be consulted if any local or accounting guidance is required |
Management Accounting Team (SU MAC) | Responsible to make the posting inside SAP and check the reliability of the postings performed in SAP |
|
3.2 Abbreviation
| Acronym | Description |
|---|---|
| FRA | Finance Responsible Assigned |
| CAM | Company Accounting Manager |
| SU MAC | Service Unit - Management Accounting |
| AA | Asset Accounting |
| DA | Depreciation Area |
| BU | Business Unit |
| CC | Cost-Center |
4. Retirement Process
Retirement of fixed assets is the process of removing assets that are no longer in use from company records. This ensures our asset register remains accurate, improving the financial reporting, facilitating asset management and compliance with accounting standards and Fixed Asset Internal Controls. The impacts include improved financial reporting, better asset management, and compliance with accounting standards.
4.1 Asset retirement by Sale
Asset sales can be made with or without customer posting, it is responsibility of SU MAC to oversee the process and understand which option and transaction will be used. Generally Intercompany Team will process the customer invoice, if not, we have other means to post the complete process. CAM can be consulted for this decision.
4.1.1 Asset Retirement by sale with Customer
When retiring an asset by sale with customer in WP2, it is important to check the asset values in depreciation areas 02 (IFRS Impairment) and 31 (Local Impairment). If these areas show no amounts or do not exist, it means the asset was not impaired.
This check determines which transaction type should be used for the retirement.
| Single Asset Check - AW01N - Asset Explorer | Mass Asset Check - AR01 or AR02 - Asset Balances / History Sheet |
|---|---|
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|
Once impairment check is done, the sale process can be registered using transaction F-92 and inserting the following fields:
- Date
- Posting date
- Doc. Type - DR for Customer Invoice
- Company Code
- Currency/Rate
- Document Header Text
For the first line item, we debit the Customer using Posting Key 01 and the Customer Account.
The Customer Account can be found using transaction FBL5N and looking using the option below:
Insert the Amount the asset is being sold for and the text to identify the line item.
The next line will be the revenue account posting using a Credit, Posting Key 50 and the account 98673010 - Disposal Fixed Assets - Income:
In this line item it is necessary to input the following fields:
- Amount - Same as the previous line item
- Tax Code - CAM may be consulted as it depends on the Country Accounting treatment
- Asset - Leave it blank, this particular field will be populated automatically in the next step.
- Asset Retirement - Make sure to flag this option, it will prompt you to fill the asset number correctly.
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