Disposing of individual assets

You can dispose of an entire asset or perform a partial disposal.

For each asset book, these amounts are calculated when you dispose of an asset:

  • Disposal depreciation expense

  • Calculated gain or loss

Procedure flow: Disposal of individual assets

Dispose of assets

  1. Access Disposals (AM40.1).
  2. Define the disposal information using these guidelines:
    Type

    Select one of the predefined disposal types.

    Note: When you report on assets, you have the option to include, exclude, or include only disposed assets; you also have the option to specifically include, exclude or include only disposed assets with a type of Purge.
    Property

    To further define the disposal code, add a property code. Property codes are user-defined.

    Proceeds and Expense

    If you specify a value in the Proceeds or Expense fields, you must also specify the currency values. Use these fields to specify gains or expenses generated by the disposal of an asset. For example, the sale of an asset could generate advertising costs but also result in a net gain if the asset is sold for more than its book value at the time of depreciation.

    Disposal

    Select whether to dispose of the entire asset (option F = Full) or part of the asset (option P = Partial). The default is F (Full).

    If you select P (Partial) and add this form, the program will transfer you to Items (AM40.2) where you will select the items and quantities to be disposed of.

    Note: If you are disposing of a partial quantity of a one-item asset, you do not need to select items, so AM40.2 is not used. The application navigates directly to Gain or Loss (AM40.3).
  3. If you are disposing of fewer than the total number of items for the asset, the application navigates to Items (AM40.2).

    Select individual items for a partial disposal.

    The application navigates to Gain or Loss (AM40.3).

    Note: When the disposal process is complete, the items selected for disposal become a separate disposed asset and are assigned a new asset number.
  4. Accept, change, or delete gain or loss information on AM40.3.
    1. Accept or override proceeds, selling expense, and disposal depreciation expense.
    2. To record deferred gain or loss from a like-kind exchange, use the Deferred Gain or Loss field.

      If the disposed asset is associated with a posting book, the program automatically navigates to Journal Entries (AM40.4) where it prompts you to accept, modify, or delete the journal entries automatically created by the disposal.

      If the Display Journal Entries system option is set to N (No) on System Options (AM16.1), journal entries are added without being displayed. You can still open Journal Entries (AM40.4) to see what journal entries were added and to modify them at any time before you release the asset.

  5. Accept, change, or delete the journal entry on AM40.4.
    1. Change any data in the journal entry, if necessary.
    2. To accept a journal entry, select Add. The asset is disposed of.

      or

      To delete the journal entry, close the form without choosing Add. The asset is disposed of, but the journal entry is not recorded.

  6. Verify the accuracy of disposals by running the Disposal Report (AM240) with an N (No) in the Release field to produce a report of disposals to be verified.
    Note: To print assets by a specific disposal code or disposal property, use the Disposal Options tab.
  7. If any information is incorrect, delete the disposal record and then add it again on AM40.1.

    After you create a disposal record, you cannot change it. You must delete it and then add a new disposal record.

  8. Release the disposal record.
    Release Method Options
    Batch Run Processing Release (AM170)
    Online Use the Release form action on AM40.1
    Note: This procedure can transfer journal entries to the General Ledger and to the Strategic Ledger applications. The journal entries will be posted as part of the General Ledger and Strategic Ledger processing cycles.

Related reports and inquiries

To Use
List assets disposed of during a specified disposal date range or all recent disposals not yet updated by book. Disposal Report (AM240)
List items disposed of during a specified disposal date range or all recent disposals not yet updated by book. Item Disposal Report (AM245)
List disposals for analyzing them by book. You can view asset, tag, date, basis, and book value. Disposal Analysis (AM95.1)
List transactions by transaction type and date range. You can view posting date, asset, tag, account, and transaction amount by process type. Transaction Analysis (AM80.1)
List new assets created by partial disposals along with all other existing assets for a company. Asset Analysis (AM70.1)
Related topics