Disposing of a Fixed Asset

Assets should be disposed of when it is determined that they are of no further use, have been sold, or are otherwise disposed of. Disposing of an asset removes all traces from the balance sheet so that the fixed asset account and accumulated depreciation account are reduced accordingly. This is achieved using an asset disposal document input form.

This topic assumes that you are familiar with the completion of document input forms. If you need more detailed instructions (such as the selection of dates, periods, and accounts, etc.) please see Completing Document Input Forms.

  1. Select Documents, then select Document Input from the menu.

  2. The Document Input dialog is displayed. Select Drill (...) in Document type, then double-select to select LLAD - Asset Disposal (where LL represents the location code of the document type) from the Select a document type dialog.

  3. The default input form for the selected document type is displayed in Input form, in the following example, Asset Disposals.

  4. The Number field defaults to the next available number of this document type and you are unable to amend the document number.

  5. The Date and Period default to today's date and the current period. These should reflect the date/period that the asset was disposed of. Select OK to confirm your selections. The Asset Disposals input form is displayed.

  6. Complete the form as follows:

    ITEM

    DESCRIPTION

    Location

    Automatically populated based on the location of the input form selected, e.g. LLL.

    Bank

    Populated with the default bank account for the chosen location. If the asset has been sold, any proceeds are credited to the account specified here.

    Disposal Date

    Populated with the Date entered in the Document Input dialog, which should be the date the asset either was, or is being disposed of.

    Asset Type

    Double-select in this field then double-select to select the required asset type from the Select ASSET TYPE key dialog.

    Asset Code

    Double-select in this field then double-select to select the required asset from the Select _FIXEDAST account dialog.

    Cost

    This field is automatically populated with the asset cost, based on the asset type and code selected.

    Accumulated Depreciation

    This field is automatically populated with the accumulated depreciation, based on the asset type and code selected.

    Net Book Value

    This field is automatically populated with the net book value (the original cost of the asset minus any depreciation) based on the asset type and code selected.

    Proceeds

    Enter an amount if the asset was sold. This amount is credited to the bank account specified on the form.

    Disposal Ledger Account

    Select the cost centre you would like the proceeds to be added to.

    Profit/Loss

    Automatically calculated by subtracting the Proceeds value from the Net Book Value.

  7. Once you have completed and checked the form, press F5 to dispose of the asset.