The Disposal feature is used to record the sale or retirement of a registered fixed asset. To dispose of an asset, select the asset from the Registered list and click Dispose. After the disposal is completed and saved, the asset is moved to the Disposal list, where the disposal details and journal entry are recorded.
Note: Only registered fixed assets can be disposed of.
Field Description
- Disposal No – Displays the disposal reference number.
- Disposal Date – Enter the date the asset is disposed of.
- Net Sales Proceeds – Enter the amount received from the disposal of the asset.
- Memo – Enter additional notes related to the disposal.
Disposal Journal
The system automatically generates the disposal journal based on the asset's carrying amount, accumulated depreciation, and net sales proceeds. Any resulting gain or loss on disposal is calculated automatically and reflected in the journal entry.
Recommendation:
- Dispose of a fixed asset only after it has been registered.
- Verify the Disposal Date and Net Sales Proceeds before saving, as these values determine the gain or loss on disposal.
- Review the generated disposal journal to ensure it accurately reflects the asset disposal transaction.
