Lesson 5 of 6
Transfers and retirements
5 min
Assets move and eventually leave. A transfer moves value from one asset to another, for example to correct a wrong asset class or to split an asset. A retirement removes an asset, fully or partly, from the books: by sale, with revenue, or by scrapping, without revenue. Retirements are where asset accounting meets the income statement, because the difference between net book value and proceeds is a gain or loss.
Transfers
An intracompany transfer moves APC and accumulated depreciation from a sender asset to a receiver asset in the same company code. It is used to correct a wrong class, move part of an asset, or reorganize assets. In Private Edition the classic transaction is ABUMN; transfers use their own transaction types. If the receiver is in another company code, such as a future Contoso subsidiary, the intercompany transfer is a different process with its own rules for transferring values, and should be designed with the group accounting team.
- Sender assetLaptop wrongly in the machinery class: APC 2,400, accumulated depreciation 200
- Create receiverNew asset in the IT hardware class
- Post transferTransfer of APC and proportional depreciation; prior-year and current-year values moved
- ResultSender value zero; receiver carries the values and continues with its own class defaults
Retirement with and without revenue
SAP's learning content lists the main retirement types: retirement with revenue, where the asset is sold and the revenue is recorded with the retirement; sale against a clearing account; and scrapping, without revenue. In SAP S/4HANA the app Post Asset Retirement handles them. In Private Edition the classic routes are F-92 (sale with customer), ABAON (sale with revenue against a clearing account) and ABAVN (scrapping). Transaction type 200 is proposed for retirement without revenue of prior-year acquisitions, and type 250 for assets acquired in the current year.
| Retirement type | Proceeds | Gain or loss | Typical case at Contoso |
|---|---|---|---|
| Sale with customer | Revenue posted with the customer invoice in the same posting | Revenue minus net book value | Old forklift sold to a dealer |
| Sale against clearing account | Revenue posted separately, for example by AR, and cleared | Revenue minus net book value | Sale invoiced through the normal AR process first |
| Scrapping | None | Loss equal to net book value | Damaged test bench written off |
| Partial retirement | Proportional to the retired share | On the retired share only | One of two robot arms sold |
Calculating the gain or loss
Net book value is APC minus accumulated depreciation, including depreciation for the retirement year up to the retirement period as decided by the period control. SAP notes that depreciation for the retirement year only needs to be planned, not yet posted, for the gain or loss to be calculated correctly. Revenue above net book value is a gain; below it is a loss.
| Step | Book area (10 years) | Tax area (7 years, illustrative) |
|---|---|---|
| APC | 120,000 | 120,000 |
| Depreciation 2024 and 2025 | 24,000 | Per tax method, for example 51,000 |
| Depreciation Jan–Jun 2026 | 6,000 | Per tax method and convention |
| Net book value at retirement | 90,000 | Lower than book, for example 60,000 |
| Sale proceeds | 95,000 | 95,000 |
| Gain | 5,000 | Larger gain, for example 35,000 |
A machine bought January 2024 and sold June 30, 2026 (book figures computed; tax figures illustrative).
The table shows why testers must check every depreciation area. The same sale produces different gains per area, posted to different ledgers. Each must match a hand calculation made with that area's rules, and the retirement-year depreciation must follow the period control.
What would you do?
An asset with net book value 400 USD is sold for 500 USD. The test shows a loss of 100 in the book ledger. What should the tester do?
- Transfers move APC and depreciation between assets, for example to fix a wrong class (classic ABUMN).
- Post Asset Retirement handles sales and scrapping; classic F-92, ABAON, ABAVN.
- Gain or loss = proceeds minus net book value, including planned depreciation for the retirement year.
- Check gain or loss in every depreciation area; values differ by area.
Check your understanding · not graded
Lesson check
1. An asset with net book value 400 is sold for 500. What should the test expect?
2. What does scrapping post?
3. Which transaction type is proposed for retirement without revenue of prior-year acquisitions?
4. Why can the gain differ between book and tax areas?