How does SAP FI handle asset disposals?

In SAP FI, asset disposals are managed through asset retirement transactions, which accurately reflect the financial impact of selling or transferring an asset. This method ensures that all relevant accounting entries are created automatically within the system, effectively updating the asset's status and transferring the asset's value to the relevant accounts.

When an asset is disposed of, the appropriate retirement process involves removing the asset from the books while capturing any gain or loss from the disposal. This is done through the execution of the asset retirement transaction, which encompasses various types of disposals, including sales and internal transfers. By employing this structured approach, SAP FI maintains a clear and complete audit trail, allowing users to track asset movements and their financial implications seamlessly.

Other options, such as handling disposals solely through manual journals or simply closing out asset accounts without recording transactions, do not reflect the integrated nature of asset management within SAP. This could lead to inaccuracies in financial reporting and a lack of visibility into asset transactions. Financial forecasts related to future disposals also do not play a direct role in the process of recording current asset disposals, emphasizing the importance of the asset retirement transactions as the correct method of handling disposals in SAP FI.