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Administrator Guide
Last Updated: 2023-06-23
Impair Assets

Impair Assets

  • Set up asset impairment reasons.
  • Configure the
    Asset Impairment Event
     business process and security policy in the Business Asset Accounting functional area.
When the fair market value of an asset falls permanently below its net book value, you can impair the asset to:
  • Reflect the current market value of the asset.
  • Reduce the value of the asset on the balance sheet.
  • Account for the asset impairment expense while the asset is still in use. The impairment expense is the nonrecoverable difference between the carrying amount and the fair market value of the asset.
You can't impair leased assets that you register from a supplier contract.
You can't make changes to assets when other events are in progress.
  1. From the related actions menu of the asset, select
    Business Asset
    Impair
    .
  2. As you complete the
    Asset Details
     grid, consider:
    Option Description
    Impairment Amount in Primary Book Currency
    When you enter an impairment amount, Workday:
    • Converts the impairment amount to a percentage of the asset cost in the primary book.
    • Uses the impairment percentage to populate the
      Impairment Amount
       in each asset book on the
      Asset Books
       grid.
    When the asset has different costs in different asset books, the impairment amount varies by asset book.
    Impairment Percentage
    When you enter an impairment percentage, Workday:
    • Populates the
      Impairment Amount in Primary Book Currency
       with the corresponding impairment amount in the primary book.
    • Uses the impairment percentage to populate the
      Impairment Amount
       in each asset book on the
      Asset Books
       grid.
  3. (Optional) On the
    Asset Books
     grid, clear the asset books where you don't want to record an impairment.
  4. (Optional) On the
    Asset Books
     grid, override the
    New Market Value
     in each asset book.
You can access the
View Business Asset
 report to verify the new asset cost. The transaction displays the impairment amount as negative on the
Cost Detail
 tab.
Workday creates depreciation adjustment transactions for impairments when:
  • Ledger periods have processed depreciation.
  • The impairment changes the depreciation expense amount.