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. You can dispose of an asset if its status is "New", "Approved", or "Active".

What Happens when I Dispose of an Asset in 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. If you are generating or exporting a depreciation schedule associated with this asset, wait for the process to complete before disposing of the asset.

When you dispose of an asset, its depreciation is calculated based on the accumulated depreciation until the disposal date.

When an asset is disposed of part way through a month, quarter, or year:

• The depreciation schedule for that month, quarter, or year is terminated.
• 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 might 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.

If an asset has been disposed of successfully, Fixed Asset Management automatically creates a new disposal journal. The journal's description uses the existing asset's description preceded by Asset Disposal:.

Disposing of a Single Fixed Asset

To dispose of a single asset:

1. Click the Fixed Assets tab.
2. Search for the fixed asset that you want to dispose of.
3. Click the name of the fixed asset that you want to dispose of.
4. If you have not already done so, specify the additional asset disposal information:
   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 of 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.

Disposing of Multiple Fixed Assets

To dispose of multiple fixed assets:

1. Click the Fixed Assets tab.
2. Choose a view from the drop-down list to select the records to display.
3. Select the checkboxes of the assets that you want to dispose of.
4. Click Dispose. The Fixed Asset Mass Disposal page lists the assets that can be disposed of and identifies any assets that are not eligible for disposal. If this button is not available, contact your administrator, or see the Salesforce Help for more information about adding buttons to list views.
5. Click Dispose.