Selling an Asset
To sell an asset, open the asset record and clicking on the Sell Asset button. This will take you to a Sales Invoice. In the Sales Invoice, enter details like Customer and Payment Due Date.
On submission of the Sales Invoice, following accounting entries will take place:
- “Receivable Account” (Debtors) will be debited by the sales amount.
- “Fixed Asset Account” will be credited by the purchase amount of asset.
- “Accumulated Depreciation Account” will be debited by the total depreciated amount till now.
- “Gain/Loss Account on Asset Disposal” will be credited/debited based on gain/loss amount. The Gain/Loss account can be set in Company record.
Scrapping an Asset
When an asset is no longer usable, it is scrapped.
You can scrap an asset anytime using the “Scrap Asset” button in the Asset record. You will be asked for confirmation, click on Yes and the asset will be scrapped.
The “Gain/Loss Account on Asset Disposal” account mentioned in the Company is debited by the Current Value (After Depreciation) of the asset.
A Journal Entry will be created if you scrap an asset:
After scrapping, you can also restore the asset using “Restore Asset” button from the asset master.
Asset Maintenance Log
Asset Maintenance Log logs the tasks carried out in an Asset Maintenance.
For each task in Asset Maintenance, Asset Maintenance Log is auto created to keep track of the upcoming maintenance’s. It will have a status, completion date and actions performed. Based on completion date here, next due date is calculated automatically and new Asset Maintenance Log is created.
Options in Asset Maintenance Log
A Draft of the Asset Maintenance Log is created as scheduled in the Asset Maintenance form. In order to submit an Asset Maintenance Log, the Asset Maintenance status has to either ‘Completed’ or ‘Canceled’.
- The status of the Asset Maintenance Log can be ‘Planned’, ‘Completed’, ‘Canceled’, or ‘Overdue’.
- Additional notes can be added in the Actions performed section to describe the activity in detail.
Asset Depreciation Ledger
This report shows the Purchase Amount, Depreciated Amount and accumulated total depreciation for all the assets under the selected date range. It also shows the current value and current depreciation status of the Asset.
Asset Depreciations and Balances
This report shows the cost of purchase, selling, and scrapping all assets based on Asset Category. The report also shows the depreciation details based on the selected period and the net value of the asset category.
Fixed Asset Register
Fixed asset register provides a unified view of all the details regarding current status of an asset. A Fixed asset register tracks all the fixed assets that the you have created. This not only includes assets that are currently in your possession, but also tracks those assets that are disposed.
Types of records based on depreciation:
** In Location: All the assets that are currently in your possession are under this category.
** Disposed: All the assets that are currently sold or scrapped come under this category.