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Disposing of an Asset

Whether an asset is lost, destroyed, sold or entered by mistake, we recommend that you dispose of the asset instead of deleting it or canceling it.

ClosedWhat Happens when I Dispose of an Asset in FinancialForce Fixed Asset Management?

When you dispose of an asset that has an accounting book with depreciation schedules, future depreciation schedule messages are no longer sent to the accounting system. In addition, the asset value and depreciation of that asset is cleared from the accounting system and an audit trail is retained.

When an asset is disposed part way through a month, quarter or year, the depreciation schedule for that month, quarter or year is terminated and a depreciation schedule is created for the part of the month, quarter or year up to the disposal date. An exception to this is a MACRS tax book which abides by the MACRS convention to calculate the final period's depreciation schedule. For more information about MACRS tax books, see About MACRS Depreciation.

Schedules that fall on or after the disposal date are terminated, however past schedules or any part period schedules are not terminated.

Schedules that fall before the disposal date may be recalculated if they are for a part period, for instance, not for a full month, quarter or year.

For an accounting book, the part period depreciation schedule is sent to the accounting system.

Depreciation schedules for tax, MACRS tax, and custom depreciation books are not sent to the accounting system.

To dispose of an asset:

  1. Click the Fixed Assets tab.
  2. Search for the fixed asset that you want to dispose.
  3. Click the name of the fixed asset that you want to dispose.
  4. If you have not already done so:
    1. Click Edit.
    2. [Optional] Select the reason the asset was disposed of from the Method of Disposal drop-down list.
    3. Enter the date on which the asset was disposed in the Disposal Date field.
    4. Enter the amount the asset was sold, salvaged or transferred for in the Disposal Value field.
    5. [Optional] Complete the remaining Asset Disposal fields. See Asset Disposal.
    6. Click Save.
  5. Click Dispose.
  6. Click Yes.
Note: Note Note icon
Depreciation schedules that fall after the disposal date are terminated.
If the asset has any depreciation schedules with the status "Pending" that fall before the disposal date, you must export them manually. They are not exported automatically by the disposal process.
If an asset is disposed of part way through a year, this may result in part of that year remaining in a depreciation schedule.

Related Concepts

Fixed Assets

Depreciation Methods

What Can I do at Each Asset Status?

Related Tasks

Recording Fixed Assets

Canceling an Asset

Deleting an Asset

Generating Depreciation Schedules for a Fixed Asset

Submitting Assets for Approval

Reference

Fixed Asset Fields

Asset Group Fields

Depreciation Method Fields

Depreciation Schedule Fields

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