Negative Physical Inventory does retire a tracked Asset

In a R12.1.3 test environment I have performed a Physical Inventory of a serialized tracked asset.  I did not count it, and then approved the count and ran the inventory adjustment program.  Ran Create Accounting - Cost, tehn ran Create Asset; interface Inventory transaction to Oracle Assets in the Asset tracking application.  The install base record gets created with the proper transaction type, but no record gets created in Assets MAss Retirements [if I do an issue of the same item, it will create a Mass Retiremetn].  IS this expected behavior?  Seems like a hole in the Asset tracking logic??