1. Accounting
  2. Fixed Assets Management
  3. Managing Assets
  4. Asset Disposal by Sale or Write-Off
  5. Disposing or Writing-Off an Asset

Disposing or Writing-Off an Asset

Writing off an asset posts its net book value and cumulative depreciation to the general ledger and set the book value and cumulative depreciation to zero.

To dispose (write off) an asset:

  1. Go to Fixed Assets > Transactions > Asset Disposal.

  2. In the Primary Information section, provide values for the following fields:

    • Disposal Type – Select Write-off.

    • Disposal Date – Enter a posting date for the disposal.

  3. On the Disposal Details section, enter values for the following fields:

    • Asset ID/Name – Select the asset by name or ID. You can enter a simple, compound, or component asset.

      Note:

      If you select a compound asset, all of its components are added for disposal. The disposal process is the same for simple and component assets.

    • Quantity To Dispose – Enter the number of assets to dispose of.

    • Location – If available, the location is sourced from the FAM asset record by default and can't be edited to prevent untracked location transfers. If not available from the asset record, you must select the value in the Location list on the Sale/Disposal page.

  4. Click Add.

    To dispose of multiple assets in one transaction, add more assets in the Disposal Details section. Repeat step 3 as needed.

    Important:

    Make sure the asset you're processing is the one you want to dispose. You can no longer retrieve disposed assets.

  5. Click Dispose. Writing off an asset sets its book value to zero.

    The system creates a disposal depreciation history record. If Multi-Book Accounting is enabled, the system also generates a journal entry to write off tax methods linked to accounting books.

    If Custom Transactions and Use Custom Journals are enabled, the system creates a specific journal entry for asset disposal. You can view these journal entries in Fixed Assets > Transactions > Journal Types. You'll need to set the journal entry status to Approved before it posts. For more information, see Viewing and Approving Custom Journal Entries.

    If Require Approvals on Journal Entries is enabled, and you don't have permission to approve journal entries, an administrator must approve the journal entry before posting.

You'll be redirected to the Process Status page, where you can track the disposal's status. For more information, see Asset Disposal Process Stages.

Related Topics

General Notices