This article guides you on how you can dispose of your fixed assets in just a few steps.
Setting Up for Accounts.
You will need to create the following accounts to record the disposal of your assets. You can add the accounts under Accounting -> Chart of Accounts -> + New.
Note: You may also combine Gain on Disposal and Loss on Disposal accounts into one Income account “Gain/Loss on Disposal”.
Recording the Sales Transaction
The first step into disposing of your asset is to record the sales, you may skip this step if you are just writing off the assets or not disposing for money.
1. Navigate to Sales -> Invoices.
2. Click + Invoice.
3. Key in customer details, date, and other info.
4. Add a line item:
a) Put in a description for the item you are disposing of. (eg. MacBook Air (2021))
b) Select Sales Income (or equivalent) for Account. (Don’t worry so much about this, the amount will be contra’ed at the disposal transaction later)
c) Enter the Amount you are disposing of the asset for. (eg. 3000)
5. Add at least one line to the Payment Term.
6. Click Save.
Recording the Disposal
1. Go to Accounting -> Fixed Assets.
2. Click on the View button beside the asset you are looking to dispose of.
3. Look for the Dispose button on the top right.
4. Key in the Dispose Date, this should follow the date you put in for the sales invoice earlier (if any).
5. Enter the Sale Price, this should be the same as the invoice amount (if any). Put 0 if you are writing off the asset.
6. Select the Sale Account following the Income account you used in the invoice earlier.
7. Select Last Depreciation mode:
End of Last Financial Year: If you only want the asset to depreciate until end of your last financial year.
The Following Date: If you want to depreciate the asset until a specific date.
8. Select Capital Gain on Disposal (or equivalent) under Capital Gain Account.
9. Select Gain on Disposal (or equivalent) under Gain Account.
10. Select Loss on Disposal (or equivalent) under Loss Account.
11. Click Dispose.
And you have the asset disposed!
Undo a Disposal
If the disposal is done by mistake, you may follow the steps to undo disposal.
1. Go to Accounting -> Fixed Assets.
2. Click on the Disposed tab.
3. Click on the View button beside the asset you are looking to undispose.
4. Click on the Undispose button on the top right.
5. Confirm by clicking Undispose.
