Singe Asset Disposals

You can use the Single Asset Disposal form to dispose of assets individually. Dispose of assets individually to record the gains and losses that result from a disposal, and to record the new asset cost if a trade-in occurs. You can also use Single Asset Disposal to void a disposal entry for a particular asset whether it was disposed of by the Mass Disposals or Single Asset Disposal procedures.

The system creates disposal journal entries, based on the disposal type that you specify when you enter disposal information. You can use the Single Asset Disposal form to perform four types of disposals:

Disposal Type	Description
Simple disposal (with no proceeds)	Use simple disposal when the disposal does not involve proceeds. For example, use this disposal type if you dispose of an asset and do not receive cash for the asset because it was destroyed, given to charity, or so on. The system uses the business unit in the Net Book Value account that you set up in the Disposal Account Rules Table (F12141). If the business unit in that account rule is blank, the system uses the responsible business unit from the asset's master record.
Disposal with cash proceeds	Use a disposal with cash proceeds when you receive cash for an asset. When you specify this disposal type, the system debits the Cash/Clearing account and credits the Proceeds from Sale account. If you use this disposal type, you must attach the asset item number to the cash receipt entry for the Cash/Clearing account and post this entry to the general ledger and fixed assets before disposing of the asset. The system uses the business unit from the respective disposal account rules for Net Book Value, Cash/Clearing, or Proceeds from Sale accounts. If the business unit in any of these rules is blank, the system uses the responsible business unit from the asset's master record.
Disposal with trade-in	Use a disposal with trade-in when you trade an asset in for another asset and no cash proceeds exist. When you use this type of disposal, you must enter the new asset's master information before you run the Single Asset Disposal program to dispose of the asset that you trade in.
Disposal with cash proceeds and trade-in	Use a disposal with cash proceeds and trade-in when a disposal involves a combination of both cash and trade-in on an asset. Before you run the Single Asset Disposal program to dispose of the asset that you traded in: Enter the master record information for the new asset. Post the accounts payable entry to the general ledger and fixed assets if you paid additional cash for the new asset. When you receive cash for an asset, you debit the cash account and credit the Cash/Clearing account. Then, when you dispose of the asset using the Single Asset Disposal program, the system debits the Cash/Clearing account and credits the Proceeds from Sale account.