How To Use Fixed Assets Disposal in N3 AI Accounting

Overview:

The Fixed Asset Disposal function in N3 AI Accounting allows users to record the disposal of fixed assets that are no longer in use, such as assets that have been sold, scrapped, written off, or otherwise disposed of.

By recording the disposal through the Fixed Asset module, users can properly remove the asset from the fixed asset records and account for the asset's carrying amount and any resulting gain or loss from the disposal.

Scenario:

Your company has an existing fixed asset that is no longer required and has been disposed of.

To keep the accounting records accurate, the user needs to record the disposal of the fixed asset in N3 AI Accounting.

Solution:

1. Navigate to General Ledger > Fixed Assets > Asset Management. Then tick the Asset Code, click the option button and click Dispose

2. Once click the Dispose, system will redirect to Asset Disposal interface. Enter the required disposal information, such as:

• Disposal Date – The date the fixed asset was disposed of.
• Selling Price – The amount received from the disposal, if applicable
• Selling Fee – Any fee charged when dispose the asset
• Last Depreciation Date –  The last depreciation date in the system

3. For the Posting Accounts options, select the relevant Account to be post into General Ledger account.

• Gain on Disposal Account – Will be post to your Gain on disposal account
• Loss on Disposal Account – Will be post to your Loss on disposal account
• Sales Proceeds Account – Debit for cash/bank/receivable received

This will be based on the Chart of Account that you created

4.Next after finish setup, click Dispose.

5. System will auto generate the Journal and will be shown as Reference Journal

6. The journal that already generate by the system will be shown the status as Posted from Asset Disposal

7. Verify the Fixed Asset Record. Reopen the Asset Management notice the status are change to Disposed.

8. The fixed asset has been successfully disposed of in N3 AI Accounting, and the related asset and accounting records have been updated accordingly.

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