Fully dispose of an asset—Fixed Assets Management

Fully dispose of an asset when your organization no longer has possession of it or it’s removed from service.

To fully dispose of multiple assets at once, see Fully dispose of assets in bulk.

Fully disposing of an asset does the following:

  • Changes the asset state to Disposed.

  • Calculates gain or loss amounts and creates a disposal journal entry. For depreciable assets, a separate disposal journal entry is created for each depreciation schedule.

  • Records the disposal on the asset. For depreciable assets, the disposal is also recorded on each depreciation schedule.

  • For depreciable assets, changes depreciation entries in the Not posted state to Canceled.

For assets depreciating under the Daily method, disposals can result in additional depreciation schedule updates. See How full disposals affect Daily depreciation schedules.

Before you begin

Verify the following:

  • Depreciation entries that are on or before the disposal date are posted.

  • The asset is in the In service state.

  • The asset is active.

Dispose of an asset

Subscription Fixed Assets Management
Regional availability

All regions

User type Business
Permissions

Fixed Assets Management

  • Asset: List, View, Edit
Configuration

A Fixed Assets Management journal must be assigned in Fixed Assets Management Configuration to record non-depreciable asset disposals.
  1. Go to Fixed Assets Management > All > Assets.

  2. Find the asset that you want to dispose of.

  3. Select the asset's name to view it.

  4. At the top-right of the page, select Dispose.

    The GL accounts in the Dispose dialog are for informational purposes only. Administrators can change the Gain or loss GL account in Fixed Assets Management configuration.

  5. Select a Disposal date.

    The disposal date must meet the following requirements:

    • Be after the in-service date.

    • Be on or after the most recent partial disposal date, if any.

    • Be after the most recent transfer date, if any.

    If no depreciation has been posted, the disposal date must also meet the following requirements:

    • Be before the scheduled posting date of the first not posted depreciation entry across all schedules.

    If depreciation has been posted, the disposal date must also meet the following requirements:

    • Be after the actual posting date of the most recently posted depreciation entry across all schedules.

    • Be before the scheduled posting date of the next not posted depreciation entry across all schedules.

    In the following scenario, the valid disposal dates are from August 2nd to August 30th.

    In-service date: August 1st

    Example 1: Depreciation schedule
    Period Scheduled posting date Actual posting date State
    1 August 31st -- Not posted
    2 September 30th -- Not posted
    3 October 31st -- Not posted
    4 November 30th -- Not posted
    5 December 31st -- Not posted

    In the following scenario, the valid disposal dates are from December 1st to December 30th.

    In-service date: August 1st

    Example 2: Depreciation schedule
    Period Scheduled posting date Actual posting date State
    1 August 31st -- Historically posted
    2 September 30th -- Historically posted
    3 October 31st October 31st Posted
    4 November 30th November 30th Posted
    5 December 31st -- Not posted

  6. Select a Disposal type for the reason of disposal.

    • Sale: You receive a payment in exchange for the asset or portion of the asset.

    • Casualty loss: The asset or a portion of the asset is destroyed or damaged due to an unforeseen event or accident. No payment is received.

    • Theft: The asset or portion of the asset is stolen. No payment is received.

    • Other: The asset is disposed of for any other reason. For example, it might still be in your possession, but it has reached the end of its useful life or has no resale value. No payment is received.

  7. If the disposal type is a Sale, enter a Sales price.

    If the Sales price is greater than zero, a Disposal GL account is required. The Disposal GL account is defined on the asset.

    The General Ledger account where the Sales price is recorded as a debit during asset disposal. Typically, it is a depreciation expense account, a gain and loss account, or some other special disposal account.

  8. Optionally, enter any comments about the disposal.

    For example, you can note who you sold the asset to, provide context, or include reference numbers.

  9. Select Save.

Next step: View disposal journal entries.