How do I sell or scrap an asset?
Run depreciation up to the period before, then make an Asset Retirement: the activity Disposal - Sale or Disposal - Retirement, the asset, the units, and what was received. Save posts it with the gain or loss.
Steps
- Run Asset Depreciation up to the end of the period before the sale.
- Open Asset Retirement, New. Transaction Journal, Posting Date, Reason, Activity, the Asset, Asset Retirement Quantity. Create.
- Retirement Date fills as the day after the asset's last depreciation.
- Acquisition Amount, Accumulated Depreciation and Book Value fill for the units retired.
- Type the Retirement Amount: the price received, or 0 for a scrapping. Profit Loss Amount follows.
- Save.
Check it worked
- The Asset Retirement list and the board tile Retirements and their gain or loss show it.
- The asset card's remaining units drop by the quantity retired.
What posts
| Document | When | Debit | Credit |
|---|---|---|---|
| Asset Retirement | Save | The accounts the Fixed Assets posting profile names for the group and the disposal activity | The accounts the same profile names |
The voucher's debit side always carries the cost of the units plus any gain. The money received is collected on its own document in receivables. Undoing it is Reverse on the toolbar, while no later depreciation or retirement exists.
If something looks wrong
- "Please check there is any transaction in between that is preventing this transaction from being saved. ..." Something was posted on the asset after you picked it. Start again.
- "There is only ... quantity is left for Retirement". Fewer units left than asked.