Dispose Fixed Asset Fields
These detailed parameters provide a comprehensive understanding of how to accurately record the disposal of fixed assets in XoroERP, ensuring precise financial tracking and reporting.
Fixed Asset*
This allows you to choose the specific fixed asset that you intend to sell or dispose of from the available options.
Disposal Date*
This allows you to input the date on which the asset was sold or disposed of to accurately record the transaction.
Sale Proceeds Account*
This allows you to specify the account that will be used to reconcile the bank transaction related to the sale proceeds of the asset.
Sale Proceeds*
This allows you to enter the amount for which the asset was sold, excluding taxes. If the asset was donated and no sale proceeds were received, enter 0 in this field.
Exchange Rate*
If the transaction involves a currency exchange, input the applicable exchange rate to ensure accurate financial reporting.
Depreciation for this Financial Year*
This allows you to choose the appropriate option that reflects the depreciation status of the asset for the current financial year.
Disposal Depreciation Upto Date*
This allows you to specify the date up to which depreciation should be calculated for this financial year, particularly useful if selecting "All depreciation up to and including" in the depreciation field.
Disposal Loss Account*
If the asset is sold at a price lower than its carrying amount, a loss is recognized. This allows you to specify the account where this loss will be recorded.
Disposal Gain Account*
Conversely, if the asset is sold for an amount higher than its carrying amount, a gain is recognized. Designate the account for recording this gain.
Capital Gain Account*
Capital gain refers to the profit earned from selling an asset that has increased in value over time. Specify the account where this capital gain will be recorded, if applicable.
How to Dispose Fixed Asset in XoroERP:
Navigate to the Dispose Fixed Asset module within XoroERP.
Enter Disposal Details:
Select the fixed asset to dispose of.
Specify the disposal date, sale proceeds account, sale proceeds amount, depreciation adjustment, and exchange rate (if applicable).
Choose the appropriate accounts for disposal loss, disposal gain, and capital gain as necessary.
Click on the Dispose button in the top right corner of the Dispose Fixed Asset module page.
General Record Disposal Process:
Record partial-year depreciation expense through the disposal date.
Debit the accumulated depreciation account for the claimed depreciation.
Credit the fixed asset account for the original cost of the asset.
Debit the cash account for sale proceeds.
Recognize any resulting gain or loss from the disposal to ensure the journal entry balances.
By following these steps, businesses can effectively manage asset disposals, maintain accurate financial records, and make informed decisions regarding asset management strategies.
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