Partial Deactivation
Partial Deactivation of an asset refers to the process of retiring, disposing of, or adjusting only a portion of an asset's total value or functionality, without fully removing the asset from active service. This functionality is essential in scenarios where a specific part of an asset, such as a component or functional segment, is no longer in use, has been sold, damaged, or otherwise requires deactivation, while the remainder of the asset continues to be utilized.
The Partial Deactivation form is used to dispose of part of an asset while automatically creating a new asset entry for the remaining portion. Unlike full deactivation, which marks the asset as inactive and typically ends depreciation entirely, Partial Deactivation allows for precise adjustments to the asset's book value, depreciation base, and useful life. The remaining active portion of the asset continues to be tracked and depreciated as normal and it reflects the remaining quantity, book value, and accumulated depreciation of the original asset, ensuring accurate financial reporting and asset management.
The form can be accessed from the Fixed assets and Small Tools registers, by right-clicking in the Value tab.
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Hint
Examples of how to use the Partial Deactivation form are described on the corresponding pages of the User Manual.
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The Partial Deactivation form consists of the following functional units:
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Inventory No.
(Inventory Number) |
Displays the unique Inventory Number of the assets which will be Partially Deactivated. This field is accompanied by the asset’s name, retrieved from the Name field in the register's Header.
This field is automatically populated and cannot be edited. Double-clicking on it opens the corresponding asset register entry. |
| Quantity |
Shows the original purchase Quantity of the asset associated with the selected Inventory Number, as specified in the Quantity field in the register's Header.
This field is automatically populated, informational only, and cannot be edited. |
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New Qty
(New Quantity) |
By default, this field displays the total Quantity of the asset. The New (remaining) Quantity can be manually entered, or is automatically calculated based on the value entered in Reduce Qty By field. |
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Reduce Qty By
(Reduce Quantity By) |
Specifies the Quantity to be disposed of. This value can be entered manually or automatically calculated based on the value entered in the New Qty field. |
| Purchase Value |
Displays the proportional Purchase Value corresponding to the amount specified in the New Qty field.
This value is automatically calculated and cannot be edited. |
| Accumulated Depreciation |
Shows the Accumulated Depreciation applicable to the Quantity entered in the New Qty field.
This value is also automatically calculated and cannot be edited. |
| Deactivation Date |
Enter or select the Deactivation Date. This date will be recorded as a new Entry Type 6 – Disposal of fixed asset in the Value tab of the original asset. |
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(Partial Deactivation Button)
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Clicking the (Partial Deactivation) button initiates the Partial Deactivation process. After clicking the button, a confirmation message appears:
After confirming by clicking the  (OK) button, the program executes the Partial Deactivation and displays an information window showing which Inventory Number was disposed of and which new Inventory Number was created. Click the (OK) button to close the window.
When Partial Deactivation is initiated and confirmed, PANTHEON automatically performs the following actions:
- Adds a new Entry Type 6 – Disposal of fixed asset to the Value tab of the original asset that was partially disposed of.
- Creates a journal entry in the General Ledger for the partial disposal (partial liquidation).
- Generates a new Inventory Number for the remaining portion of the asset, along with an Entry Type 1 – Acquisition in the new asset’s Value tab.
- Creates a corresponding acquisition journal entry in the General Ledger for the new asset.
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Warning
When Partial Deactivation is posted, the total remaining value of the original asset is posted to the Difference at Disposal account. At the same time, this account is reduced by the amount that is transferred to the newly created fixed asset, ensuring that only the disposed portion remains reflected as a difference.
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