Disposal of Fixed Assets

Disposal of Fixed Assets

Disposal is performed after you have calculated depreciation and established the current value that was written-off and the carrying value of the fixed asset.

In case upward or rather downward revaluation has been posted for the fixed asset it is necessary to post also the reversal of upward revaluation or reversal of downward revaluation of the fixed asset.

To this end you can select from the right mouse click menu of the fixed asset register the Disposal of fixed assets function.

Procedure:

• you calculate depreciation to the day you are entitled to perform calculation
• from the right mouse click menu you select the Disposal of fixed assets option
• you select (mark) those fixed assets that you want to dispose of, and then you enter the deactivation date (this is usually the same day as the last date of disposal) and click the Dispose button. With it you create the necessary status items as well as the journal entry for posting.

Validation of the possible missing account settings returns a message in the error panel.

1. Fixed assets panel

The program offers you a list of active, undisposed fixed assets that do not have the entered date of disposal and/or deactivation.

If the record that you want to dispose of is NOT on the list that means that deactivation date or date of disposal has already been entered, and that the fixed asset has the Nonactive status or that it has the status item with the entry type 6-Disposal of fixed asset.

Dispose	by clicking this button you may do the following to the selected fixed assets: create a new record in the status item of type 6 - Disposal (for additional information see 6-Disposal of fixed assets) create the corresponding number of items in a journal entry for disposal of the fixed asset (for additional information see 6-Disposal of fixed assets)
Deactivation date	You can enter deactivation date. Only that it is entered in:  the field Deactivation date of the fixed asset register, if the date has not been entered yet (date from which on you do not calculate depreciation) the field Disposal date of the fixed asset register, if the date has not been entered yet (it has been in use prior to the SRS 2002, and is entered for consistency sake of database) as date in the status item where the disposal of the fixed asset is posted
Status	Status that you want to assign to the disposed fixed asset. Status ON that is the appropriate status used with disposed of, deactivated fixed assets, is offered by default.  You can change it if necessary.
Inventory number	Inventory number of the fixed asset.  A list of active, undisposed fixed assets that do not have deactivation date and/or disposal date entered with them are offered by the program.
Name	The name of fixed asset from the previous field.
Date	Date of the last status item as well as other information from the last status item.
Value	Value of the fixed asset (acquisition value - value adjustment)
Sel. (ected)	You can select (mark) the field, if you want to dispose of the fixed asset.  You can select or mark it by using the spacebar or by simply double-clicking the field.

2. Posting panel

In the Posting panel you shall find typical data used in creation of the journal entry or rather in appending the post to the existing journal entry (as in the right mouse click menu win posting of status item). 

Validation of the possible missing account settings will return a message in the error panel. Yet prior to the disposal you can check by displaying the journal entry whether all the settings are entered and whether they are correct. The information can be displayed by clicking the Report button.

Account s for posting are equivalent to those that you set up in the right mouse click menu when posting status items. Only the following may be considered for disposal:

• account for posting of the possible incurred difference by disposal that is carrying value of the fixed asset (as in the right mouse click menu when posting status items).

3. Error panel

There are special program messages in the errors panel. By clicking any such message the program offers you a solution to the problem and returns you to the panel for posting of fixed assets so that you can enter the missing accounts from the chart of accounts register.

After you have removed all of the errors you once again click the Dispose  button in the fixed assets panel.

See also link Creating a sales invoice for the sale of fixed assets.