Introduction

An asset may be disposed of in a variety of ways - for example, sale, transfer, trade-in, abandonment, or donation. The purpose of recording the disposition is to:

• Record any receipt of cash, property, or a reduction of a liability.
• Reduce the STARS General Ledger account by the original amount of the asset.
• Remove the accumulated depreciation associated with the asset being disposed.
• Record any resulting gain or loss.

Examples of disposition transactions include:

• Single asset dispositions (generated from STARS transaction code TC027)
• Single asset dispositions (using the FAS Direct Data Entry Screen S035)
• Multiple asset dispositions
• Deleting a disposition record
• Transactions automatically generated by FAS

For a disposition, FAS automatically credits the STARS General Ledger asset account, removes the accumulated depreciation, and records any resulting gain or loss.
Disposed assets will be viewable in the FAS Property Maintenance/Inquiry screen for three years (prior to the current fiscal year). Assets cannot be deleted from FAS; however, three years after disposition, they will be purged from FAS during Fiscal Year End processing.

Single Asset Dispositions Generated From STARS Transaction Code TC027

To complete this type of disposition, select the record in the FAS Hold File, enter the transaction data in the STARS Generated to FAS Data Entry Screen S033, and then release the disposition transaction.
 

1. At the STARS Main Menu, type F in the FUNCTION field and press ENTER.
2. Type 32 in the FUNCTION field and press ENTER to access the Hold File.
3. Type R in theFUNCTION field.
4. If necessary, type your agency number in the AGENCY field first. Most agencies will not have to do this.
5. If you do not know the Property and Component Numbers, press ENTER.
6. If you know the Property and Component Numbers:

a. Type the Property Number of the asset in the PROPERTY NO field.
b. Type the Component Number of the asset in the COMPONENT NO field.
c. Press ENTER. The asset will be the first in a list of records.

7. If necessary, type N in the FUNCTION field, then press ENTER until you locate the asset you need.
8. Type an S in the FUNCTION field then press TAB until you reach the '_'space in the S/X column, next to the record. (The SRC column will show an S if the record came from STARS or an 'F' if the record originated in FAS.)                                                                                            

• Records that originated in STARS will open in the STARS to FAS Data Entry (S033) screen
• Records that were manually entered in FAS will open in the FAS Direct Data Entry (S035) screen.

Dispositions Entered in the STARS Generated to FAS Data Entry Screen S033

1. Verify that the Property Number and Component Number are correct.

• If the property and Component Numbers are correct, type a C in the FUNCTION field, to change/update the information for this asset number.
• If the property and Component Numbers are incorrect, type an A in the FUNCTION field. Then type in a Property and Component Number that matches the Property Number for the asset on the Property File S040.

2. Review the transaction code in the FAS TC field. It should be S01 – S04. (Interrupt to S030 screen to recall TABLE-ID-NUMBER 15 to review transaction codes).

• If the FAS TC is correct for the asset class, no additional action is required.
• If the Transaction Code is incorrect for the asset class, change it by entering the correct transaction code.
  

3. Type one of the following status codes in the STATUS field.

• D (disposed) - for a full disposition.
• U (in use) - for a partial disposition
• I (idle) - for a partial disposition
• S (in storage) - for a partial disposition
• L - for a partial disposition- a partial disposition is used to record the status of the remaining portion of the asset

4. Type an S (for Sold) in the DSP MTH field.

5. Type a three digit disposition percentage in the DISP % field.

• Type 100 for a full disposition.
• For a partial disposition, type a leading zero and two digits. For example, type 017 for a disposition percentage of 17%. If the asset has had a partial disposition previously, you will still calculate the disposition percentage the same way. Divide the amount being disposed by the original quantity.

6. Determine if the disposition date should be entered. ADT Date must be in the current month. It is the date the asset is being processed in FAS.

• If entering a full disposition, the disposition date must be entered in the ADT DATE field.
• If entering a partial disposition, leave the ADT DATE field blank.

7. Type the quantity in the QTY field.

• For a full disposition, the quantity should equal the quantity of the asset in the FAS Property File.
• For a partial disposition, the quantity must be greater than zero, but less than the quantity of the asset in the FAS Property File.

8. Press F1 or ENTER to post the record to the FAS Property File.

• If you do not have disposition release authority (i.e., approval level 3 or lower), the 'INVALID APPROVAL LEVEL' message will display in the message section of the screen and the status in the FAS Hold File record will be 'H' (held). You will need to exit the record.
• If you have disposition release authority (i.e., approval level 4 or greater), a 'RECORD SUCCESSFULLY CHANGED' or 'RECORD ADDED' message will display in the message section of the screen. The status of the FAS Hold File record will have changed to 'P' (posted).

NOTE: The message depends on whether you type a 'C' or an 'A' in the FUNCTION field.

Release a Disposition Transaction

A person with disposition release authority (i.e., approval level 4 or greater) can process a disposition by doing the following:

1. At the STARS Main Menu, type F in the FUNCTION field and press ENTER.

2. Type 32 in the FUNCTION field and press ENTER to access the Hold File.
3. Type R in the FUNCTION field.
4. If necessary, type your agency number in the AGENCY field first. Most agencies will not have to do this.
5. If you do not know the Property and Component Numbers, press ENTER.
6. If you know the Property and Component Numbers:

a. Type the Property Number of the asset in the PROPERTY NO field
b. Type the Component Number of the asset in the COMPONENT NO field.

7. Press ENTER. The asset will be the first in a list of records.
8. If necessary, type N in the FUNCTION field, then press ENTER until you locate the asset you need.
9. Type an S in the FUNCTION field then press TAB until you reach the space in the S/X column, next to the record. (The SRC column for the record will show an S if the record came from STARS or an 'F' if the record originated in FAS.)
10. Type an S or an X next to in the space next to the record and press F1 or ENTER to open a record.

• Records that originated in STARS will open in the STARS Generated to FAS Data Entry (S033) screen.
• Records that were directly entered in FAS will open in the FAS Direct Data Entry (S035) screen.

11. Review the record.

• If the record is correct, type a Y (Approve) in the FUNCTION field and press ENTER. The 'RECORD SUCCESSFULLY POSTED' message should display in the message screen and the status of the FAS Hold File record should display 'P', for posted.
• If the selected record is incorrect, exit the record. Notify the data entry person of the changes needed. Once the changes are made, open the record again and approve it as described above.
• If you have more than one record to release, type an N in the FUNCTION field and press ENTER to display the next group of records. Repeat the steps above until all held records have been successfully released

12. Return to the the FAS Main Menu, tand then ytpe F in the FUNCTION field and press ENTER.

13. Type 32 in the FUNCTION field and press ENTER to access the Hold File.

14. Type R in the FUNCTION field. 

• If necessary, type your agency number in the AGENCY field first. Most agencies will not have to do this.

15. If you do not know the Property and Component Numbers, press ENTER.

16. If you know the Property and Component Numbers:

• Type the Property Number of the asset in the PROPERTY NO field
• Type the Component Number of the asset in the COMPONENT NO field.

• Records that originated in STARS will open in the STARS Generated to FAS Data Entry (S033) screen.
• Records that were directly entered in FAS will open in the FAS Direct Data Entry (S035) screen.

• If the selected record is incorrect, exit the record. Notify the data entry person of the changes needed. Once the changes are made, open the record again and approve it as described above.

Single Asset Dispositions Entered Directly in FAS Screen S035

Asset dispositions that originate in FAS are entered in the FAS Direct Data Entry screen (S035) and process to the FAS Hold File.

This section applies if an asset is disposed, but not recorded properly in STARS in order to create an extract record into FAS, or if the extract record was deleted. Note the distinction between full and partial dispositions:

• Full disposition:  The entire asset is being disposed. For instance, selling an automobile would be a full disposition and the disposition percentage would be 100%.
• Partial disposition:  Only part of the asset is being disposed. For example, selling 5 of 80 acres of land would be a partial disposition. (The disposition percentage would be 7% - 5 divided by 80).

1. On the FAS Main Menu, type 35 in the FUNCTION field and press ENTER.

2. Type an A in the FUNCTION field

3. Type the Property Number and Component Numbers in the PROP NO and COMP NO fields.

4. Type the Sequence Number (usually 0001) in the SEQ NO field.

5. Type the FAS transaction code in the FAS TC field appropriate for the class code of the Property Number being disposed.

• Use Transaction Code DS1 - DS4 if the asset was sold.
• Use Transaction Code DD1 - DD4 if the asset was not sold (non-monetary disposal).
• Use Transaction Code DV4 to remove an asset from FAS that is below inventory threshold amount.

6. Type one of the following status codes in the STATUS field.

• D (disposed) - for a full disposition.
• U (in use) - for a partial disposition
• I (idle) - for a partial disposition
• S (in storage) - for a partial disposition
• L - for a partial disposition - record the status of the remaining portion of the asset.

7. Type one of the following status codes in the DSP MTH field:

• S – sold
• D - donated or scrapped
• O – Interagency Transfer Out
• T – transferred to a non-State of Idaho entity or traded in
• L – lost or stolen
• I – incorrect or adjusted
• C – cannibalized
• V – value below inventory threshold

8. Type the amount of cash actually received, if any, in the ADT AMT field.

9. Type the disposition percentage in the DISP % field.

• For a full disposition, type 100.
• For a partial disposition, type a leading zero and two digits. For example, type 017 for a disposition percentage of 17%.

10. Type the disposition date in the ADT DATE field. ADT Date must be in the current month. It is the date the asset is being processed in FAS.

11. Type the quantity in the QTY field.

• For a full disposition, the quantity should equal that of the asset in the FAS Property File.
• For a partial disposition, the quantity must be greater than zero but less than the quantity of the asset in the FAS Property File.

12. Press F1 or ENTER to post the record to the FAS Property File.

If you do not have disposition release authority (i.e., approval level 3 or lower), 'INVALID APPROVAL LEVEL' will be displayed, and the status in the FAS Hold File record will be 'H'. You will need to exit the record.

If you have disposition-release authority (i.e., approval level 4 or greater), 'RECORD ADDED' will be displayed and there will be a 'P' in the FAS Hold File record.

Multiple Asset Dispositions from STARS

The easiest way to process multiple asset dispositions is to:

1. Print a hard copy of the record that is in the Hold File.
2. Enter the disposition of each asset directly in FAS (S035)
3. Delete the record that is in the Hold File

The purpose of processing single vs. multiple asset dispositions is to keep track of the Remaining Amount that is shown on the record that is in the Hold File. For a multiple asset disposition, a generic or 'dummy' number for the Property and Component Number should have been entered into STARS. Be sure to dispose of each asset for the correct amounts so that the total of the dispositions equals the original remaining amount shown on the record from STARS in the Hold File.

To sleect a record from teh Hold File, enter the disposition in Dat Entry Screen S065, and release the dispositions, follow the same steps as for a single asset disposition.

Once the dispositions have been processed from the FAS Hold File, the FAS Property File will show a disposition amount, method and percent for each disposed asset. For full dispositions, the disposition date will also be displayed and the STATUS will be 'D'.

Deleting a Disposition Record

The following are examples of when it may be necessary to delete a disposition transaction record from the FAS Hold File:

• A disposition record is extracted into FAS and represents a single asset sale. However, the sale does not relate to an asset in the FAS Property File. (An asset of less than $300 is not tracked in FAS either for its acquisition or disposition.)
• A disposition record is extracted into FAS and represents a multiple asset sale. One or more of the assets may not be in the FAS Property File and these amounts should be deleted.
• The wrong funding sources were used to receipt cash in STARS. This record should be deleted so an adjusting transaction can be processed in STARS.
• A disposition for an asset is in the Hold File, but the asset is not in the FAS Property File, but should be. The disposition record needs to be deleted from the FAS Hold File.

To delete a disposition record from the FAS Hold File, do the following:

1. Type 32 at the FAS Main Menu and press ENTER.

2. Type R in the FUNCTION field.

3. If you do not know the Property and Component Numbers, press ENTER.

4. If you know the Property and Component Numbers:

• Type the Property Number of the asset in the PROPERTY NO field.
• Type the Component Number of the asset in the COMPONENT NO field.

5. Press ENTER. The asset will be the first in a list of records. If necessary, type N in the FUNCTION field, then press ENTER until you locate the asset.

6. Type an S in the FUNCTION field then press TAB until you reach the '_'space in the S/X column, next to the record. (The SRC column will show an S if the record came from STARS or an 'F' if the record originated in FAS.)

7. Type S or X next to the asset record and press ENTER.

8. Type D in the FUNCTION field, and then press F1 or ENTER. The status will now be displayed on the record as 'D' (deleted).

Transactions Automatically Generated by FAS

When you process a disposition in FAS, the following transactions occur (also see the How Dispositions Are Processed document):

• FAS posts the disposition to the appropriate fields in the FAS Property File.
• FAS automatically generates a transaction code, RD1-RD4, to remove accumulated depreciation in the FAS Property File.
• If the asset is fully disposed, all of the accumulated depreciation is removed.
• For partial dispositions, the accumulated depreciation is multiplied by the disposition percentage. The result is the amount that is removed from the accumulated depreciation file.
• FAS calculates whether there was a gain or loss on the disposition of the asset and automatically generates the transaction codes for gains and losses. If there was a gain, a G01-G04 transaction code is generated. If there was a loss, a L01-L04 transaction code is generated.
• In addition, some dispositions generate STARS transactions. An asset with a Capitalization Indicator of 'S' is reported in the Annual​ Comprehensive Financial Report (ACFR). For these assets, the general ledger in STARS must be updated. FAS will automatically send the appropriate information to STARS to remove accumulated depreciation, record gains or losses, and remove the asset (or the applicable portion of the asset) from the appropriate general ledger accounts.

Disposed assets will be viewable in FAS for three years prior to the current fiscal year. After that time they will be purged from FAS during Fiscal Year End processing.