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.

Warning Before disposing of the FA, depreciation must be calculated and posted up to the disposal date to ensure accurate financial records.

Case summary An old office computer has broken down and will be permanently removed from use. To reflect this in the Fixed Assets register, the person responsible will dispose of the FA in the Value tab. This is done as follows: Accessing the Value Tab Disposing of the Fixed Asset Reviewing the Disposed Fixed Asset

1. Accessing the Value Tab

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.

2. Disposing of the Fixed Asset

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.

3. Reviewing the Disposed Fixed Asset

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.