About asset disposals
You configure the disposal methods, and then you select the required disposal method when you dispose of an asset.
You can dispose of fixed assets one by one or in bulk. For more information, see:Dispose of an asset and Dispose of multiple assets
Updated general ledger accounts as a result of fixed asset disposal
When a fixed asset is disposed of, the system records the proceeds from the disposal, as well as any gain or loss in its disposal. The system generates Sales/disposal+, Depreciation adjusting-, and Purchasing disposal transactions. Generally, the accounting transactions can be illustrated as follows.
| Account | Debit | Credit |
|---|---|---|
| Gain account / Loss account | 0.0 or loss amount (book value – proceeds amount, if the book value is greater than the proceeds amount) | Gain amount (proceeds amount – book value, if the book value is smaller then the proceeds amount) or 0.0 |
| Fixed Assets account | 0.0 | Acquisition cost |
| Accumulated depreciation account | Accumulated depreciation amount | 0.0 |
| Proceeds account | Proceeds amount | 0.0 |
The gain or loss is calculated and recorded in the gain account or loss account. To calculate the gain or loss amount, the system deducts the accumulated depreciation amount plus the salvage amount from the acquisition cost and compares the calculated amount with the proceeds from disposal.
- If there is a gain on disposal, the gain account is updated.
- If there is a loss on disposal, the loss account is updated.
Reverse fixed asset disposal
If you have specified disposal parameters incorrectly or erroneously disposed of an asset, you can reverse the disposal. For more information, see:Reverse an asset disposal
When you reverse a disposal, you reverse the transactions of the disposal.
After the reversal of the disposal, the status of the asset changes from Disposed to Active.