Part of maintaining an inventory of assets is to record the disposition of assets, and, if applicable, the selling price of the disposed asset. Assets may be disposed of due to several reasons: your organization may replace certain types of assets on a regular basis, the asset may be worn and completed its useful life, or the asset may have been lost, stolen, etc. Advantage Fixed Assets enables you to record the disposition of an asset and all of its components, to record the disposition of individual components, or to dispose a portion of the available units for components with multiple units.
Using the Fixed Asset Disposition (FD) document, you record information about an asset’s disposition. This document records the retirement of the asset, the depreciation of the asset, offsets the revenue from the sale of the asset, and recognizes any gain or loss.
If the selling price for the disposed asset was entered incorrectly, you may use a Fixed Asset (FA) document with the FP (Price change) document code to correct Selling Price and adjust the associated gain or loss.
Periodically, your organization will need to archive the records of the disposed assets and then clear out these records from the Fixed Asset Registry (FAR). Advantage Fixed Assets provides a report and an offline process to help you accomplish these maintenance tasks.
For example, if your organization has a vehicle that has been replaced, you would use the Fixed Asset Disposition (FD) document to record the disposal of that vehicle. However, if you find that the vehicle was auctioned for a lower price than you recorded, you would then use the (FA) document with the FP (Price change) document code to record the updated price.
This section of the user guide includes the following: