Disposing of a Fixed Asset

Overview

This article details the steps needed to dispose of a Fixed Asset in the Property Control Module.

Step 1: Flagging the Fixed Asset as Disposed

  1. From within a Fixed Asset Record, navigate to the General Tab
  2. Fill in the following information:
    • Disposition Date
    • Disposal Type
    • Selling Price (if applicable)
    • Sold/Contributed To (if applicable)
      • If the system requires a value in this field, simply type in "N/A"
  3. Click Update.   

Once the record is updated, the “Disposed?” flag will toggle to YES. The Fixed Asset will no longer appear in the Comprehensive Asset Listing, and instead appear in the Disposed Asset Listing. No Journal Entry is created for the disposal of an Asset. 

Step 2: Remove any Unposted Depreciation Transactions

If the Fixed Asset is disposed prior to completing it's depreciation schedule, then the remaining unposted depreciation transactions will be deleted so they do not get posted in the future. Unposted Depreciation Transactions can be removed manually or in batch.

Removing Unposted Depreciation Transactions Manually:

  1. From within a Fixed Asset Record, navigate to the Asset Depreciation Tab
  2. In the half of the Asset Depreciation Tab with the grid results, simply scroll to the unposted depreciation transactions and click on the red to remove the depreciation transaction from the schedule. Once all the unposted depreciation transactions are highlighted in red, click Update.

Removing Unposted Depreciation Transactions in Batch:

  1. From within a Fixed Asset Record, navigate to the Asset Depreciation Tab
  2. In the half of the Asset Depreciation Tab with the grid results, click on the Open Query button (window with an arrow) next to the search bar to open the depreciation schedule into a query. 
  3. Open the Query Design. Select the "Posted?" field (second to last from the bottom) and set the criteria to "No". Then, run the query. The results will now only display the unposted depreciation transactions for the Fixed Asset.
  4. Click on the Action Menu⚡️. Then, select "Batch Delete" and click the green Delete Records button.  Once the action is complete, all the unposted depreciation transactions have been removed. 

Step 3: Record the Disposal in the GL

Since there is no journal entry generated to record the Disposal of the Fixed Asset within the Property Control Module, a Manual Journal Entry will need to be created to record the disposal. Please see the General Ledger Fundamentals - Skills Check for guidance on creating Manual Journal Entries. 

Once a journal entry is created to record the disposal, it may be helpful to put the link to the Journal Entry Header in the "Notes" field of the Fixed Asset that was disposed, and the link to the Fixed Asset Record in the "Memo 1" field of the JE Header for reference.