Disposal with Proceeds (Sale)
For an asset sale there will be an associated Accounts Receivable invoice which will be linked to the Asset Disposal Control Account 5050.
Create the Accounts Receivable invoice and cost it to the Balance Sheet department for your appropriate division and the Asset Disposal Control Account 5050, such as 00.5050. This will make the invoice available in the Asset/AR Reconciliation screen.
In the Fixed Assets Workbench, mark the asset for disposal.
Asset Disposal tab
Field | Description |
Sold to (M) | Will be populated from the Asset/AR Reconciliation |
Reference (M) | Will be populated from the Asset/AR Reconciliation |
Reason | Select the Reason from the dropdown list |
Disp Date (M) | Enter the disposal date |
Proceeds (M) | Will be populated from the Asset/AR Reconciliation |
If more than one asset is to be reconciled to this invoice, you can do this now or at a later date.
Save the record.
Asset AR Reconciliation
The Asset Disposal batch will now be created.
Disposal batch – transactions
Disposal with No Proceeds (Scrapped)
If you are disposing of an asset with no proceeds, enter zero in the disposal screen and then enter the asset into a disposal batch.
Asset Disposal
Disposal Posting Report
Prior to posting the Asset Disposal Batch, it is imperative to run the Disposal Posting Report which provides key information that must be validated.
Disposal Posting Report
Post the Disposal Batch
You can now post the Disposal Batch.
Post Disposal Batch
Reverse Asset Disposal
There is an option to Reverse the Disposal. This function will back all the transactions out of the disposals and mark the asset as a Current Asset.
Select the Reverse Disposal function and then enter the asset you wish to reverse the disposal for by clicking Next (
).
Reverse Disposal Reversal
If there is an instance where you reversed the disposal but genuinely did mean to have the asset disposed of in the first place, there is a Reverse Disposal Reversal function that essentially marks the asset as disposed.
