Summary

The disposals process is used to dispose of an active fixed asset upon retirement or sale of the asset. The general ledger entry from the Disposal process will be a credit to the Asset account type for the original cost, a debit to the Accumulated Depreciation account type for the total accumulated depreciation and the net difference to the Disposal account type.

If an account is specified in the Fixed Asset Investment account field, the original cost will be recorded to the FA Investment account type instead of the Asset account type. If a sale price is specified for a disposed fixed asset, that amount will debit the Gain/Loss account type.

Run the Depreciation Adjustments process and click the Exact toggle before disposing of the asset to make sure all depreciation is applied.

Step by Step

1     Open or create a Disposals batch.

• Select the Disposals palette in FA> Disposals. This will expand the Disposals palette and display the steps of the Disposals process.
• Modify an existing batch or create a new Disposals batch.
  • Select a batch number from the drop-down menu at the top of the Disposals palette to select an existing batch.
  • Select New from the Disposals batch number drop-down menu to create a new batch. This will open the New Batch window.
    • The Batch Month and Batch Year of the Disposals batch is used for reference only and is not necessarily the fiscal month and year the transactions in the batch will be posted to.
• Click the Generate icon to save the batch.

2     Select the assets for disposal.

• Open the Dispose Assets window (FA> Disposals> Disposal).
  • The Dispose Assets window will display all pending disposal transactions.
  • Click the Add icon to open the Fixed Asset Selection window. Filter the displayed assets with the search options and select an asset to dispose. Click the Confirm icon   to return the selected asset to the Dispose Assets window.
  • Enter the Effective Date of the disposal in the Effective Date field. This date can be unique for each asset included in the disposals batch.
    • This date does not need to correspond with the Journal Entry date specified on the GL Distribution step below.
  • Enter an optional disposal description in the Transaction Description column.
  • If you are disposing of part or all of a mass asset, the Mass Asset toggle will be checked and you will need to specify some additional disposal details.
    • Enter the number of mass assets you would like to dispose of in the Quantity to Dispose field. If you are disposing of all of the individual elements of a mass asset, enter the same number as the Quantity field.
    • The Depreciation to Dispose and Value to Dispose fields will automatically update to reflect the depreciation and value amounts that will be disposed based on the number of mass assets entered in the Quantity to Dispose field. These values can be edited if desired.
    • The formulas used to automatically determine these values are:
  • The Sale Price column is used to specify a sale price for the asset and reduce the total amount disposed.
    • During the GL Distribution step, this amount will debit the Gain/Loss account type.
    • This field will not be enabled when disposing of mass assets.
  • Click the Confirm icon when complete.

3     Print the Disposals Proof List.

• Open the Proof List window (FA> Disposals> Proof List).
• The proof list will display in detail the amounts to be disposed for each asset.
• In the Fixed Asset Maintenance window for an individual fixed asset, the Transaction tab will display the uncommitted disposal entry. The user may find this a helpful tool to understand the effect of the disposal process before committing the batch.
• Click the Print icon to process the report immediately or enter a date and time in the field next to the Print icon to schedule the report to generate at a later time. You can view the progress of the report on the Job Viewer window (SS> Utilities> Show Scheduled Jobs).
  • Click the Print icon drop-down menu and select Print Preview to preview the report before printing.
  • Click the Print icon drop-down menu and select Excel to export the report data to an Excel spreadsheet as unformatted data.
  • Click the Print icon drop-down menu and select Excel (Formatted) to export the report data to an Excel spreadsheet that includes much of the Springbrook formatting found on the printed version of the report.
  • Once the report is generated, you can also display the report using the View Reports window (SS> Utilities> View Report).

4     Print the GL Distribution.

• Open the Print GL Distribution window (FA> Disposals> Proof List).
• Enter the date you want the journal entry to be recorded in the general ledger in the Journal Entry Date field. Usually this date will correspond to the date of the disposal.
• Select either Summary or Detail from the Report Type drop-down menu.
• Check the Subtotal by Department toggle if desired.
• The report will show the journal entry that will be recorded into the general ledger based on the distributions on each asset.
• Click the Print icon to process the report immediately or enter a date and time in the field next to the Print icon to schedule the report to generate at a later time. You can view the progress of the report on the Job Viewer window (SS> Utilities> Show Scheduled Jobs).
  • Click the Print icon drop-down menu and select Print Preview to preview the report before printing.
  • Click the Print icon drop-down menu and select Excel to export the report data to an Excel spreadsheet as unformatted data.
  • Click the Print icon drop-down menu and select Excel (Formatted) to export the report data to an Excel spreadsheet that includes much of the Springbrook formatting found on the printed version of the report.
  • Once the report is generated, you can also display the report using the View Reports window (SS> Utilities> View Report). 

5     Commit the Disposals batch.

• Open the Commit Adjustments window (FA> Disposals> Commit Adjustments).
• Click the OK button to commit the batch.