How to Derecognize a Fixed Asset and Calculate Remaining Depreciation

Step-by-step instructions for scrapping a fixed asset in Qoyod software.

1. Accessing the Fixed Assets section:

   • From the menu, select Fixed Assets.
   • Then select Disposals.

2. Selecting “Dispose Asset”:

   • On the main page, click on Dispose Asset.

3. Selecting “Scrap”:

   • Select Scrap from the available options.

4. Entering Scrap Data:

   • Scrap Reference: automatically populated with “SC1” and can be modified.
   • Asset Classification: select the classification of the asset to be scrapped.
   • Asset Name: select the asset you want to scrap.
   • Registered Asset Reference: select the registered asset reference.
   • Scrap Date: the date is automatically populated and can be modified.
   • Loss Account: select the loss account to be charged (must be added to the chart of accounts under Other Income and its type should be selected as Gains/Losses on Sale of Assets)
   • Description (Optional): add a description or the asset’s condition.

5. Reviewing Asset Data:

   • Serial Number: will be populated through editing in Additional Information.
   • Accumulated Depreciation to Date: shows the accumulated depreciation value.
   • Unrecorded Depreciation to the Disposal Date: if there is any unrecorded depreciation value.
   • Book Value: calculated as asset cost minus accumulated depreciation.

6. Calculating Unrecorded Depreciation:

   • If unrecorded depreciation is greater than 0, select the depreciation method as Recorded or Manual.
   • Click “Calculate” to compute depreciation until the disposal date.

7. Saving the Scrap Transaction:

   • Click Save and Scrap to confirm the disposal and depreciation transaction.
   • It will be scrapped and added to archived assets with the status “Scrapped”.

Save Options:

• Save and Scrap: to confirm the disposal and depreciation transaction.
• Save as Draft: to save the transaction as a draft for later modification.
• Cancel: to cancel the scrap transaction.

Disposal Options:

• View: to display the disposal transaction details.
• Edit: to modify the transaction if it is saved as a draft or awaiting approval.
• Download PDF or Print: to print or download the disposal details.
• Delete: to delete the disposal transaction and reverse the depreciation.