Asset Disposal – An overview

Asset Disposal component facilitates entries for disposal or sale of fixed assets. Disposal of assets normally happens in two ways, viz.,

• Asset Retirement

• Asset Transfer

Asset retirement means that the assets are put out of use.  This includes the assets that have either outlived their life or assets that are in good condition.  The asset retirement could be through Asset Sale or Asset write-off.

Asset transfer happens when a particular department requires an asset that is available in some other department.

 Feature Highlights

Transfer of Assets

Transfer of Assets automatically passes the transfer entries into finance books, on confirmation of receipt.

Sale of Assets

Asset that is not usable or saleable becomes a scrap. Some times the assets that are scrapped can also be sold in scrap sale.

During the asset retirement process if the assets are specified as retirement type as Sale, then these assets will be marked for sale i.e., the asset status will be “Marked for Sale”. The Invoice will be automatically generated for the sale of the assets. Once the invoice is generated and payment is received from the customer the asset is changed to the status “Retired”. Assets can be retired as asset tags also.

Write Off

Assets can also be written off. This will happen when an asset is lost in transit or damaged due to various reasons. The assets are to be marked as retirement type “write off” if they are to be written of from the books of the company.

Getting familiar with the activities