Disposal/Write Off of Fixed Assets

To dispose of an individual asset, you have two options: selling it or writing it off. To start the disposal process, open the detailed asset register for the asset class in question, and select the "Write-off/Disposal" button from the Action menu of the specific asset.

To add an item to the form, click the "Add Item" button to display a dropdown list of assets to choose from. You only need to fill in the selling price, as all other information will be downloaded by the app. At the top of the form, select the type of transaction (either disposal or write-off), with disposal indicating a sale in the context of the app.

Once you have completed and submitted the disposal form provided, the asset will be moved from the detailed asset register to the Write-Off/Disposal table, which can be accessed from the menu.

You will need to perform accounting entries in relation to the disposal, which can be done from the "Charge Accounts" option in the Action menu. This will involve debiting the Asset Class-Accumulated Depreciation (e.g. Accumulated Depreciation of Furniture & Fittings), debiting the Loss on Disposal of Asset, debiting the Buyer of Asset and crediting the Asset Class-Cost.

Next, create a debit note using the "Create Debit Note" button in the Action menu to bill the buyer for the sale.

Finally, the Approver from the Asset Register approval matrix will need to provide formal approval for the disposal to be complete.