When you sell or otherwise dispose of a fixed asset, the disposal value must be posted to calculate and record the gain or loss. A disposal entry must be the last entry posted for a fixed asset. For partially disposed fixed assets, you can post more than one disposal entry. The total of all posted disposal amounts must be a credit amount.
If you trade-in a fixed asset for another one, you must record both the sale of the old asset (disposal) and the purchase of the new one (acquisition). For more information, see How to: Acquire Fixed Assets.
To post a disposal from the fixed asset G/L journal
- Choose the icon, enter FA G/L Journals, and then choose the related link.
- Create an initial journal line and fill in the fields as necessary. Choose a field to read a short description of the field or link to more information.
- In the FA Posting Type field, select Disposal.
Choose the Insert FA Bal. Account action. A second journal line is created for the balancing account that is set up for disposal posting.
Step 4 only works if you have set up the following: In the FA Posting Group Card window for the posting group of the fixed asset, the Disposal Account field contains the general ledger debit account and the Disposal Bal. Account field contains the general ledger account to which you want to post balancing entries for appreciation. For more information, see the "To set up fixed asset posting groups" section in How to: Set Up General Fixed Asset Information.
Choose the Post action.
If you sell or dispose of part of a fixed asset, you must split up the asset before you can record the disposal transaction. For more information, see How to: Transfer, Split, or Combine Fixed Assets.
To view disposal ledger entries
When you sell or dispose of a fixed asset, the disposal value is posted to the general ledger where you can view the result.
- Choose the icon, enter Fixed Assets, and then choose the related link.
- Select the fixed asset that you want to view entries for, and then choose the Depreciation Books action.
- Select the depreciation book that you want to view entries for, and then choose the Ledger Entries action.
- Select a line with Disposal in the FA Posting Category field, and then choose the Navigate action.
- In the Navigate window, select the general ledger entry line, and then choose the Show action.
The General Ledger Entries window opens where you can see the entries that the disposal posting resulted in.