Disposing of Fixed Assets
PANTHEON
One or multiple fixed assets (FA) may be disposed of simultaneously when they are fully depreciated and no longer provide value, are obsolete or nonfunctional, have been damaged beyond repair, or are being sold, donated, scrapped or otherwise removed from a company's books.
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Warning
Before disposing of the FA, depreciation must be calculated and posted up to the disposal date to ensure accurate financial records.
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Person responsible opens the Fixed Assets register by navigating to Financials | Fixed Assets | Fixed Assets.
The Fixed Assets register opens.
The person responsible clicks the Value tab within the record of any inventory number.
In the next step, the person responsible disposes of the FA.
The person responsible right-clicks anywhere in the Value tab and from the menu selects Disposal of Fixed Assets.
A new window titled Posting of Fixed Assets opens on the FA - Disposal tab, displaying a list of all active fixed assets from the register.
The person responsible selects the computer for disposal from the list by checking the box in the Sel. (select) column next to it.
Once the computer is selected, the person responsible clicks the Dispose button, which automatically posts the disposal transaction to the General Ledger.
The General Ledger posting window automatically opens, displaying the transaction details related to the disposed computer.
in the next step, the person responsible reviews the disposed FA in the Value tab.
In the Fixed Assets register, the person responsible uses the Toolbar functions to navigate to the disposed FA.
The person responsible clicks the Value tab to confirm that a new line with Entry Type 6 - Disposal of fixed assets has been created for the FA.
The person responsible has completed the disposal of the computer, which can now be removed from use or sold by using the Create Invoice for Fixed Asset Sale feature.