| Disposal JournalsLN identifies data for journal creation each time you dispose of an asset in its
default posting book. LN creates multiple journals, depending on the type of disposal: - For all types of
disposals, LN credits the
asset account and debits the accumulated depreciation account.
- In sale, trade-in,
casualty loss, or theft, LN records the difference between the net book
value and the proceeds as gain or loss to the appropriate account.
- In a charitable
contribution, LN records
the difference between the net book value and the proceeds recorded by debiting
the charitable contribution account with the amount of the proceeds and
crediting the gain or debiting the loss to the appropriate account.
- In an abandonment, LN debits the scrap
account for the net book value.
- In a sale, LN credits the asset
account, debits accumulated depreciation, debits the proceeds account for the
amount of sale, and either debits the loss account or credits the gain account.
The accounts used to
create the disposal journal are stored in the integration scheme. When journals
are created, LN performs
validation on the accounts and periods affected to ensure the entry is correct.
A journal is not created if the Suppress Journal Entries check box is selected. | |