Disposing Assets: An Overview

When you sell, exchange, abandon, retire, or in some other way dispose of an asset, you must inform the system so it can calculate the gain or loss and halt depreciation on the asset. The application automatically calculates depreciation through the disposal date, so you do not have to update current depreciation before disposing of the asset.

The application indicates that an asset is disposed in many ways. On reports, the application displays the code for a disposal in the Key Code Column. The code for a standard disposal is "d." To signify disposed assets, the application also displays the word "Disposed" in the Status field of the asset when in Asset Detail. In the Asset List, the application displays the word "Disposed" in the Status column of the asset. If the asset is partially disposed or partially transferred, the application displays the word "Partial," instead of "Disposed."

You can perform bulk disposals or individual disposals.

In addition to performing disposals of entire assets, you can also perform partial disposals of assets. This is extremely useful when you group assets at acquisition time (quite often for inexpensive parts or for assets with various components) and enter them into the system as one record rather than entering them as individual records. To perform a partial disposal, you must use the individual disposal method. For more information, see Disposing Individual Assets.

Note: Resetting depreciation affects the two types of disposals differently, depending on whether it was a disposal of a partial asset or an entire asset. When you reset depreciation for a partially disposed asset (or for a group containing partially disposed assets), the system retains the disposal information. Resetting depreciation on partially disposed assets does not cancel the disposal. However, when you reset depreciation on an asset that was entirely disposed, the disposal is canceled. To cancel a disposal, see Deleting Asset Transactions.