Decommissioning Assets

Sooner or later, a company may stop owning an asset. While the grounds for this may vary, the asset must be removed from the company's records.

The system provides several ways to decommission assets from the company's balance sheet.

Writing Off Assets

To write off an asset, open the context menu in the top right corner of its card and select the Fixed Asset Write-Off option.

Next, fill in the details of the write-off operation — specify the Write-off date and the organization's Account.

The operation will be assigned the Financial Category "Write-off of fixed assets".

If the written-off asset has not been fully depreciated, the Residual Value of the asset will be recorded as a loss in the P&L report under the "Other Expenses" category.

Selling Assets

An asset may also be transferred to the ownership of another company or counterparty as a result of a deal. In this case, it is also removed from the records.

To sell an asset, open the context menu in the top right corner of its card and select the Fixed Asset Sale option.

Next, fill in the details of the sale operation — specify the Cost, the organization's Account, the Customer, and other data.

If the money for the deal has already been partially or fully received, mark the corresponding checkbox and specify the amount received and the payment date.

The operation will be assigned the Financial Category "Sale of fixed assets".

Residual Value

Residual Value is the value of the asset excluding tax,which is set when the asset is added to the system.

The final sale price of an asset may differ from its residual value due to the degree of wear and tear, the condition of the asset, or other factors.

Depending on how the asset's sale amount differs from its residual value, the sale will be reflected differently in the P&L report.