1. Equipment Rental
  2. Rental Management
  3. Flows

Dispose a fixed asset
Activity Flow

You can dispose of a fixed asset by using one of two journal types: Disposal - sales and Disposal - scrap.

Use Disposal - sales to post a disposal amount for the asset. Use Disposal - scrap to remove the asset from the legal entity's books without a value.

This process explains how to perform both types and outlines the differences between them.

Finance manager Finance manager Start Start Has the fixe asset been depreciated? Has the fixe asset been depreciated? Depreciation of a fixed asset

Depreciate proposal of a fixed asset

To depreciate a fixed asset, you can use a proposal or depreciation by line. This process uses the proposal method.

Depending on the scenario, run either a straight-line service depreciation or an accelerated depreciation if the asset is consumed quickly and then scrapped.

 Is the disposal a scrap or a sale? Is the disposal a scrap or a sale? Create and post disposal - scrap journal Create and post disposal - scrap journal Create and post a disposal-scrap journal to remove a fixed asset that has no remaining value. Unlike a disposal-sale, the asset is written off without generating income. Both transaction types use the same financial booking logic but require different posting profiles. Set up a disposal-scrap posting profile before using this journal. Procedure 1. Go to Fixed assets > Journal entries > Fixed assets journal. 2. Click New. 3. In the list, mark the selected row. 4. In the Name field, enter or select a value. Note: This journal name should be created beforehand 5. Click Lines. 6. Click Proposals. 7. Click Disposal - scrap. 8. In the Disposal date field, enter a date. 9. Click Filter. 10. In the list, mark the selected row. 11. In the Criteria field, type a value. Note: Specify the fixed asset number 12. Click OK. 13. Click OK. 14. Click Validate. Note: This is a non-mandatory step but useful for verification. An amount is not needed for scrapping the fixed asset 15. Click Post. 16. Close the page. Create an post disposal - sale journal Create an post disposal - sale journal Create and post a disposal-sale journal to remove a fixed asset from the books when it is no longer useful. The company receives a value from the sale, unlike a disposal-scrap. Both transactions are booked the same way financially but use different posting profiles. Set up a disposal-sale posting profile before using this journal. Procedure 1. Go to Fixed assets > Journal entries > Fixed assets journal. 2. Click New. 3. In the list, mark the selected row. 4. In the Name field, enter or select a value. Note: This journal name should be created beforehand 5. Click Lines. 6. In the list, mark the selected row. 7. In the Transaction type field, select an option. Note: Choose the Disposal-sale transaction type. 8. In the Account field, specify the desired values. Note: This is the fixed asset number 9. In the Book field, enter or select a value. 10. In the Credit field, enter a number. 11. Click Validate. 12. Click Validate. Note: This is a non-mandatory step but useful for verification. An amount is not needed for selling the fixed asset as scrap 13. Click Post. 14. Close the page. End End No Yes

Activities

Name Responsible Description

Depreciate proposal of a fixed asset

Finance manager

To depreciate a fixed asset, you can use a proposal or depreciation by line. This process uses the proposal method.

Depending on the scenario, run either a straight-line service depreciation or an accelerated depreciation if the asset is consumed quickly and then scrapped.

Create and post disposal - scrap journal

Finance manager

Create and post a disposal-scrap journal to remove a fixed asset that has no remaining value.

Unlike a disposal-sale, the asset is written off without generating income.

Both transaction types use the same financial booking logic but require different posting profiles.

Set up a disposal-scrap posting profile before using this journal.

Create and post disposal - sale journal

Finance manager

Create and post a disposal-sale journal to remove a fixed asset from the books when it is no longer useful.

The company receives a value from the sale, unlike a disposal-scrap.

Both transactions are booked the same way financially but use different posting profiles.

Set up a disposal-sale posting profile before using this journal.

Activities

Name Responsible Description

Depreciate proposal of a fixed asset

Finance manager

To depreciate a fixed asset, you can use a proposal or depreciation by line. This process uses the proposal method.

Depending on the scenario, run either a straight-line service depreciation or an accelerated depreciation if the asset is consumed quickly and then scrapped.

Create and post disposal - scrap journal

Finance manager

Create and post a disposal-scrap journal to remove a fixed asset that has no remaining value.

Unlike a disposal-sale, the asset is written off without generating income.

Both transaction types use the same financial booking logic but require different posting profiles.

Set up a disposal-scrap posting profile before using this journal.

Create and post disposal - sale journal

Finance manager

Create and post a disposal-sale journal to remove a fixed asset from the books when it is no longer useful.

The company receives a value from the sale, unlike a disposal-scrap.

Both transactions are booked the same way financially but use different posting profiles.

Set up a disposal-sale posting profile before using this journal.

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