Steps to Sell a Fixed Asset: Calculate Remaining Depreciation, Record Gains and Losses, and Issue an Invoice

Procedures for selling fixed assets in the system, with details related to recording gains or losses resulting from the sale.

Basic Steps for Selling the Asset:

1. Accessing the Fixed Assets Section:

   • Go to the Fixed Assets section and then select Disposals.

2. Selecting the Sales Option:

   • Select Dispose Asset, then select Sale.

3. Entering Sales Data:

   • Asset Sale or Disposal Reference: Auto-filled with “SE1” and can be modified.
   • Asset Classification: Select the classification of the asset to be sold (mandatory).
   • Asset Name: Select the asset or assets to be sold.
   • Registered Asset Reference: Select the registered asset reference.
   • Sale Date: Can be modified according to the sale date.
   • Profit/Loss Account: Select the profit or loss account. If the transaction is profitable, the account will be credited; if it is a loss, the account will be debited.
   • Description (Optional): A description of the sale and condition of the asset can be added.

4. Asset Data Related to the Sale:

   • Serial Number: Appears for the registered asset in the edit.
   • Accumulated Depreciation to Date: Auto-filled.
   • Receipt Date: Date of start of depreciation.
   • Unrecorded Depreciation Until Sale Date: Appears if the depreciation value is less than the estimate.
   • Book Value: Calculated automatically (Asset Cost – Accumulated Depreciation).

5. Calculate Depreciation (If Any):

   • If the unrecorded depreciation value is greater than zero, depreciation is calculated until the sale date by selecting Recorded Depreciation or Manual Depreciation.

6. Creating a Sales Invoice:

   • After calculating depreciation, a window will open to add invoice details:
     • Invoice Reference: Auto-filled.
     • Customer: Select a customer or create a new customer.
     • Invoice Details: Include sold assets, unit price, tax, and discount.
     • Save the invoice.

7. Save Options:

   • Save and Sell: The sale and depreciation process will be finalized, and the invoice will be created.
   • Save: Data is saved in “Pending Approval” status, and depreciation is not saved until approval.
   • Save as Draft: Data is saved as a draft, without saving depreciation.
   • Cancel: To cancel the operation.

8. Disposal Options:

   • View: View details.
   • Edit: In case of save as draft or pending approval.
   • Download PDF/Print.
   • Delete: Delete the sale transaction including depreciation and sales invoice (this option will not be available if e-invoicing is enabled, as a credit note is used instead).

Notes:

• If the entity is enabled for e-invoicing, a credit note must be used to cancel the sale and restore the asset to its active state.

  Frequently Asked Questions:

  1. Reference Number Not Showing?

     • Make sure there are sufficient quantities of the asset.

  2. No Options in Profit/Loss Account?

     • It must be added to the chart of accounts under the other income section and its type should be selected as Gains/Losses from Asset Sales

• 1. How is Depreciation Calculated?

     • If the asset has not been fully depreciated, depreciation must be calculated either automatically or manually according to the remaining amount. If depreciation has been calculated previously, it will show as “Previously Calculated”.