How to generate journal entries to receivables/payables during asset retirement?
When retire an asset in current period, from FA User guide (page 6-37), following journal entries will be generated:
(1) Receivable System
Accounts Receivable 2,000.00
Proceeds of Sales Clearing 2,000.00
(2) Payables System
Cost of Removal Clearing 500.00
Accounts Payable 500.00
(3) Fixed Assets
Accumulated Depreciation 2,500.00
Proceeds of Sale Clearing 2,000.00
Cost of Removal Gain 500.00
Revaluation Reserve 600.00
Net Book Value Retired Gain 1,500.00
Asset Cost 4,000.00
Proceeds of Sale Gain 2,000.00
Cost of Removal Clearing 500.00
Revaluation Reserve Retired Gain 600.00
In R12.1.3 Fixed Assets, after running 'Create Accounting', only (3) is created. I would like to know how (1) and (2) being generated? Are they need to be generated in AR and AP module?