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How to Dispose of a Fixed Asset

xAssets Fixed Asset Management User Guide
How To

How to Dispose of a Fixed Asset

This page explains how to dispose of one or more fixed assets in xAssets, including the financial impact and how to review the results.

Before You Begin

  • Ensure you are in the Fixed Asset Management profile.
  • Run depreciation up to the current period before disposing. If depreciation is not up to date, the gain or loss calculation will be based on stale net book values.
  • Know the disposal date, any sale proceeds, and the reason for disposal.

Step-by-Step Procedure

Step 1: Navigate to an Asset List

Open an asset list by navigating to Asset Register > By Category, By Location, By Custodian, or By Supplier. You can also use the All Assets link.

Step 2: Select the Assets to Dispose

Click the asset row to select it. To select multiple assets, use Shift+Click (for a range) or Ctrl+Click (for individual items).

Step 3: Open the Disposal Dialog

Open the Actions on Selected Records menu and choose the dispose option. Alternatively, press the Delete key on your keyboard with the target assets selected.

Step 4: Enter the Disposal Details

In the disposal dialog, complete the following fields:

Field What to Enter
Disposal Date The date the asset is being disposed of. This determines which accounting period the disposal falls into.
Sale Proceeds The amount received from selling the asset. Enter zero if the asset is being scrapped or donated.
Disposal Reason Select the reason for disposal (e.g. sold, scrapped, donated, stolen).

Step 5: Confirm the Disposal

Click OK to process the disposal. The system will automatically:

  1. Write off the remaining net book value from the balance sheet.
  2. Calculate gain or loss on disposal (sale proceeds minus net book value).
  3. Create disposal transactions in each book.
  4. Change the asset status to "Disposed" so it no longer appears in the active register.

Step 6: Verify the Disposal

Navigate to Disposal > Disposed Inventory to confirm the asset appears in the disposed assets list with the correct financial details.

Important Notes

  • Disposal transactions are posted to the current accounting period. If you dispose after producing journals, the disposal appears in the next period's journals.
  • Disposed assets are retained in the system permanently for audit trail purposes. They are not deleted.
  • If you dispose of an asset in error, you cannot simply "un-dispose" it. You will need to post adjusting transactions to reverse the disposal entries, change the asset status back to "In Service", and review the depreciation setup. Contact your system administrator for assistance.