Disposing of a Fixed Asset

Assets should be written off when it is determined that they are of no further use, have been sold, or are otherwise disposed of. Writing off 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 a document input form.

  1. Select Options > Document Input from the menu bar. The Document Input dialog is displayed.
  2. Select the applicable Document Type from the drop-down list. This will be the AD document for the required location.
  3. Ensure that Asset Disposals is selected from the Input Form drop-down list then click the OK The Asset Disposals input form is displayed.

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-click in this field then double-click to select the required asset type from the list.

Asset Code

Double-click in this field then double-click to select the required asset from the list.

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.

  1. Once you have completed and checked the form, press the F5 button to write off the asset.