The process of selling assets can be completed in three ways:
Method 1: Go to "PEAK Asset" menu, select "Asset Register, >> choose the asset group >> select the desired asset >> proceed to "Transactions," >> select "Sell Asset" (for credit sales or creating a debtor).
Method 2: Go to "Revenue" menu >> Delivery Note/Invoice/Record AR >> and create a "Invoice for Selling Assets" (for credit sales or creating a debtor).
Method 3: Go to "Revenue" menu >> select "Receipt," >> and create a "Receipt for Selling Assets" (for cash sales).
Method 1: Go to "PEAK Asset" menu
Step 1.1: Asset Register >> Sale Asset (for credit sales or creating a debtor)
Step 1.2: The system will link to the invoice page for selling assets.
Once the system links to the invoice page for selling assets, select the asset from the registry, enter the selling price, and provide any other desired information.
If you want to generate an invoice or a tax invoice, you can check the option to issue a tax invoice.
Then, the PEAK system will calculate the depreciation until the sale date and automatically record the accounting entries in general journal (JVDP) before recording the sales.
If the book value as of the sale date is higher than the selling price, the difference will be recorded in account 420101 - Profit from Asset Disposal.
If the book value as of the sale date is lower than the selling price, the difference will be recorded in account 540102 - Loss from Asset Disposal.
Example of recording accounting entries for a sales invoice involving the sale of assets:
When approved, the PEAK Asset system will update the status of the asset to 'Sold'.
The 'Depreciation Before Asset Sale' page in PEAK Asset.
The 'Depreciation After Asset Sale' page in PEAK Asset.
Step 1.3: Payment Receipt
When receiving payments, go to the 'Revenue' menu >> select the invoice >> choose the 'payment' >> click on the 'Receive' button
Please provide the necessary information and click on "Payment" to proceed with the payment:
An example of a general journal for recording a payment:
Step 1.4: Process for issuing a receipt
Once the payment has been recorded successfully, you can proceed to issue a receipt as shown in the image below.
Once you have generated the receipt, the receipt information will be referenced from the invoice. Please double-check the receipt details and proceed to approve the receipt.
Method 2: Go to the "Revenue" menu. >> "Delivery Note/Invoice/Record AR >> Click on "See All."
After clicking on "See All," click on the Dropdown of "Create Invoice" button and select "+ Create Invoice Sell Asset." Then, follow the steps outlined in 1.2.
Method 3: Navigate to the "Revenue" menu >> "Receipts." >> "Create Receipt Sell Asset" (for cash sales of assets)
Once you have clicked on "See All" and displayed the relevant options, click on the Drop-Down icon and select "+ Create Receipt." Then choose "+ Create Receipt Sell Asset." You can fill in the required information, and once you have completed the form, click on "Approve" to finalize the sales receipt for the asset sale.
You can watch the video tutorial following the link, PEAK Account How to recording asset sale
-End of Selling Assets-