What is Asset Part Disposal?

This can be part, or all, of the current asset quantity of the selected asset. The relevant disposal postings are generated, and the transactions are listed in a report.

For example, if a company purchases 100 identical chairs, one asset might be created with asset code CH01, with a quantity of 100 and an initial value of 10,000 euros. After a year, 20 of the chairs are sold or physically disposed of, and must be taken off the books. In the asset register, this constitutes a part disposal of 20 of the original asset quantity of 100. Asset Part Disposal (FAF) is used to automatically generate the relevant postings for the part disposal, to set the asset quantity to 80 for asset CH01, and to reduce the value and accumulated depreciation amounts by 20% (as 20/100 chairs are being disposed of).