The Disposals form is where you enter the details of the disposal of an asset. If an asset's quantity is more than 1, you can dispose part of an asset. The effect of disposing assets is immediate and is reflected in the asset’s status. You can only dispose of assets if their status is either live or fully depreciated. If you are selling an asset and use the Sales Ledger , you can select a sales account from the ledger for the transaction.
Before you can dispose an asset, you need to create one or more Disposal Types. For example, you could create disposal types for 'Sold' or 'Scrapped'.
The profit on the disposal of an asset is calculated according to the value you enter in the Proceeds box and the current net book value for the asset. For part disposals, the calculation of net profit or loss takes into account the quantity disposed and the quantity held prior to the disposal. If only part of an asset is disposed and the quantity is allocated to more than one cost centre or location, you can select the allocation from which the asset will be disposed.
After the asset has been disposed, the disposal figures are updated on the asset along with the 'this year' and the 'to-date' depreciation, and the asset’s capital cost is changed to reflect the new quantity of the asset.
Box |
Description |
|---|---|
Date |
If the asset category linked to the asset has the Depreciate for Full Periods Only box ticked, the disposal date defaults to the last day of the period. Otherwise the date is today's date. This must be in the current period. |
Disposal Type |
One of the predefined disposal types picked up from the Disposal Types command on the Utilities menu in Fixed Assets. |
The quantity being disposed. This cannot be more than the current quantity for the asset. |
|
The value that the asset is being sold for, if relevant. Enter a negative value to record the cost of a disposal. |
|
Depreciation TP |
If the asset category linked to the asset has the Depreciate in Disposal Period box ticked, the depreciation is calculated for the quantity being disposed. You cannot change this calculated value. |
Authority |
The person who has given the authority to dispose the asset. This login ID must be set up in the User Profiles command in the System module. |
Profit |
The profit on the disposal of an asset is calculated according to the value you enter in the Proceeds box and the current net book value for the asset. For part disposals, the calculation of net profit or loss takes into account the quantity disposed and the quantity held prior to the disposal. If only part of an asset is disposed and the quantity is allocated to more than one cost centre or location, you can select the allocation from which the asset will be disposed. |
Comments |
Mandatory. The information entered here is displayed on reports in Fixed Assets, for example the Audit Trail and the Disposals Report. |
Sales Account |
If you are selling an asset and use the Sales Ledger, you can select a sales account from the ledger for the transaction. |
Sold To |
Updated with the name of the customer from the Sales Ledger account. You can change it if required. |
Reference & Date |
Mandatory. This is likely to be the invoice or delivery note number, and date. |
Inter Group |
Indicates that the asset is be disposed of to a company in the same corporate group. |
The optional information entered here is displayed on reports in Fixed Assets, for example the Audit Trail and the Disposals Report.