Record the sale or disposal of an asset

You register the sale or the disposal of an asset. With a sale, the asset has a particular value while, with a disposal, it does not.

Note:

If an asset is placed out of use (thus not sold or disposed of), you should not follow the procedure below but you should only complete the Date out of use field on the General tab.

To sell or dispose of an asset:

1. Go to: Financial / Fixed assets / Asset.
2. Open the asset properties.
3. Go to the tab: Sales.
4. Click on: New.

   You can add one new sales line. You can still change this line as long as it has not been journalised.

5. Enter the description.
6. Enter a value in Sales/removal date and Date out of use.

   Profit uses the sales date to determine the last depreciation. This date must not be in an already journalised period. If you still want to use this date, you must first undo the journalising up to and including the period in which this date falls.

7. Enter a value in Sales amount.

   Profit determines the book profit or loss automatically.

8. Specify the destination for the book profit.

   If you select Reinvestment reserve replacement asset, Commercial book profit on replacement asset or Fiscal and commercial reserve, you must select a replacement asset.

9. Click on: Finish.
10. Go to the tab: Fiscal periods or Depreciate commercially.

    Profit only displays depreciation periods up to and including the date of the sale. Profit determines the depreciation amount for the last period at day level, which means the depreciation amount in this period can be different from that for previous periods.

11. Click on: OK.

    In the Assets view, the asset has the status Out of use and Profit displays the sale date.

    Note:

    Do not forget to terminate any insurances that cover the sold or asset disposed of.

Replacement asset checks

If you select a replacement asset, Profit checks the matters below:

1. Depreciation for the replacement asset must be Fiscal or Commercial (depends on handling code)
2. The replacement asset must not yet have any finalised periods with the exception of the initial period
3. The replacement asset may not have any reinvestment reserve previous asset amount (fiscal)
4. The replacement asset may not have any book profit previous asset amount (commercial)
5. The sale amount must not be more than the calculation basis amount for the replacement asset (this would result in negative depreciation period amounts)

For checks 3 and 4, this means that the same asset cannot be referred to more than once. After this sale change, the replacement asset will also be updated.

If the replacement asset does not satisfy conditions 1 or 2, Profit displays the following blocking message: 'This asset cannot be selected as the replacement asset. The replacement asset needs to be depreciable but should not yet have any journalised periods. Choose another asset as the replacement asset or change the asset'.

If the replacement asset does not satisfy conditions 3 or 4, Profit displays the following blocking message: 'This asset cannot be selected as the replacement asset. This asset is already set up as a replacement asset for another sale. Choose another asset as the replacement asset'.

If the replacement asset does not satisfy condition 5, Profit displays the following blocking message: 'The specified sale amount is more than the calculation basis of the replacement asset. This will lead to negative depreciation period amounts. Choose another destination for the book profit/loss or choose another replacement asset'.