When you dispose of a fixed asset, you are removing its value from the General Ledger.
Disposal is a generic term; you may actually sell it, trade it in on a new one, give it away, salvage it for scrap value, or take it to a recycling centre.
Disposing of a fixed asset can be undone.
Fixed Assets can be partially disposed through Historic Purchase or Historic Depreciation using a negative dollar value.
What you'll find:
Disposing of a Fixed Asset
Only Fixed Assets with a status of Purchased can be disposed of. The asset should be fully depreciated before it is disposed of.
To dispose of a fixed asset
* indicates
a required field
Navigate
to General Ledger > Fixed Assets > Manage
Fixed Assets.
The Manage Fixed Assets window opens.
By
default, the grid displays, in alphabetical order, fixed assets that
meet the following criteria: Any Group, Active, Exclude Disposed,
Any Location.
Click Search to change the criteria and
refine or expand the list.
Select
the fixed asset you wish to dispose of and click Dispose.
The Disposing Fixed Asset window opens.
Required fields are indicated with *.
The
Disposing Fixed Asset is the one you
selected.
Click Exit to select a different one.
Specify a Description* for the disposal.
The
Date will be the posting date.
The default date is today but it can be backdated to any open accounting
period date.
Specify
the disposal Amount*
you received for the fixed asset.
The amount cannot be less than $0.
Select to which GL Account* the disposal funds received will be posted.
Select
to which GL account the Gain/Loss* (compared to the Book
Value minus the declared Salvage
Value) will be posted.
The default GL is the one specified
for the fixed asset but it can be changed.
Save the disposal.
Tip
The Fixed
Asset Report does not indicate the disposal
amount.
If you want to see it on the report: After you have disposed of
the fixed asset, edit
the fixed asset and change the Salvage
Value to the disposal amount (the amount you actually
received).
Wait until after the disposal
is complete to edit the Salvage Value,
or the Gain/Loss posting will not
be accurate.
Postings: Disposal of a Fixed Asset
Undo Disposal of a Fixed Asset
If an error is made, you can undo the disposal of a fixed asset.
To undo the disposal of a fixed asset
Navigate
to General Ledger > Fixed Assets > Manage
Fixed Assets.
The Manage Fixed Assets window opens.
By
default, the grid will not display disposed fixed assets..
Click Search and change the criteria
of Status to either Disposed
or <Any Status>.
Select
the disposed of fixed asset you wish to undo and click Undo
Dispose.
The Confirm Undo Disposal window opens.
Click Yes to undo the disposal.
The status of the Fixed Asset changes to what it was before the disposal.
Postings: Undo Disposal of a Fixed Asset
