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

Asset Disposal by Sale or Write-Off

The Fixed Assets Management SuiteApp lets you write-off or sell a simple or compound asset. When you dispose an asset during or at the end of its useful life, adjust the depreciation provision account so the balance shows the accumulated depreciation to date on assets you still hold.

When you sell an asset, you enter the proceeds and post the difference between its net book value and the proceeds from the sale to the general ledger. The system creates a sales invoice using the Disposal Item and sets the asset status to Disposed.

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.

During asset disposal, the system creates depreciation histories for the asset's accounting and tax methods (Depreciation History and Alternate Depreciation History Sublist). Disposal is applied to both accounting and tax methods and the sale amount is calculated separately for each method. For accounting methods, the amount is sourced from the Asset Current Cost in the FAM Asset record. For alternate or tax methods, the amount is sourced from the Current Cost in the FAM Alternate Depreciation record.

To access the Asset Sale/Disposal page, go to Fixed Assets > Transactions > Asset Disposal.

To sell an asset:

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

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

    • Disposal Type – Select Sale.

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

    • Consolidate Line Items on Invoice – Check this box to combine the sales amount of all assets for disposal into a single line item on the invoice. Clear this box to itemize each asset for disposal on the invoice.

    • Customer – Select the buyer of the asset.

    • Sales Tax Code – Select the tax code that applies to this sale.

      Note:

      If SuiteTax is enabled on your account, the SuiteTax engine automatically sets the tax code on the invoice. This field is not available if you're using SuiteTax. For more information, see General SuiteTax Topics.

    • Sale Item – Select the sale item that appears on the invoice.

      Note:

      The Sale Item list is unfiltered and may include items not valid for sale. If you select an invalid item, an error prompts you to select a valid sale item.

    Note:

    For OneWorld accounts, the customer, asset, sales tax code, and sale item must have the same subsidiary.

  3. On the Disposal Details field group, 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 quantity of assets being sold.

    • Sales Amount – Enter the sales amount.

    • Location – If Multi-Location Inventory (MLI) is enabled, asset disposal by sale requires a location value. 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.

    The system creates a sale depreciation history record and a book generic sales invoice, and sets the asset status to Disposed.

    If you enabled Custom Transactions and Use Custom Journals, a specific journal entry is created for asset disposal. You can view these journal entries in Fixed Assets > Transactions > Journal Types. You'll need to manually set the status of the journal entry 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 journals, an administrator must approve them before posting.

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. The Process Status page queues the following processes for asset disposal. Click Details on any process to view the process stage details.

Process

Process Stage

Process Stage Description

Asset Disposal

Dispose Asset

Processes the asset for disposal.

Update Related Records

Links the invoice to the asset record if the disposal is successful. If it fails, the system reverts changes made in the previous stage.

Delete Old Forecast Values

The system deletes existing depreciation schedule since it's no longer accurate after disposal.

Update Compound Assets

Updates compound asset records.

Update Related Records

Updates other records related to this asset.

Generate Depreciation Schedule

Generate Depreciation Schedule Values

Creates new depreciation history records for generated assets and tax methods.

To process multiple asset disposals using CSV import

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

    Note:

    You can't add columns or custom fields to this import.

  2. On the Asset Sale/Disposal page, click Import CSV.

  3. On the Bulk Asset Disposal page, click Choose File, then select the CSV file that contains the records you want to process.

    Click the link below the Choose file button to view a sample file.

  4. Check the Consolidate Line Items on Invoice box to combine the sales amount of all assets for disposal into a single line item on the invoice.

  5. Click Submit.

    The following table shows sample disposal values for a CSV import:

    Disposal Type

    Disposal Date

    Customer

    Tax Code

    Sale Item

    Asset

    Quantity to Dispose

    Sale Amount

    Location

    Sale

    1/31/2015

    Customer ABC

    -Not Taxable-

    Item for Disposal

    79

    3

    7,000.00

    California

    Use the following mapping to enter values in your CSV file:

    Header

    Value

    Disposal Type

    Must match the disposal type.

    Disposal Date

    Must match the disposal date and can't be earlier than the last depreciation date.

    Important:

    To avoid errors during disposal, make sure the CSV file's date format matches the one set in the General Preference page. To check the date format, contact your account administrator.

    Customer

    Must match the customer name and must be under the same subsidiary as the asset. Leave blank if the disposal type is Write Off.

    Tax Code

    Must match the applicable tax code for the customer’s subsidiary.

    Important:

    Remove this field or leave it blank if you're using SuiteTax, or if the disposal type is Write Off.

    Sale Item

    Must match the name of the non inventory item used for disposal and must be under the same subsidiary as the asset. Leave blank if the disposal type is Write Off.

    Asset

    Must match the asset internal ID.

    Quantity to Dispose

    Must match the number of assets to dispose of.

    Sale Amount

    Enter the sale value. It can't be zero (0) or a negative value. Leave blank if the disposal type is Write Off.

    Location

    Must be under the same subsidiary as the asset’s current location.

If Multi-Book Accounting is enabled, the system also creates a journal entry to write off tax methods linked to accounting books. For information about multi-book asset disposal, see Disposing an Asset in Multiple Books.

Related Topics

General Notices