Processing Asset Disposal

From the Fixed Asset Inventory screen, select the Options menu and then Process Asset Disposal.
If a batch already exists, the Process Asset Disposal Batch Search screen will appear. To continue disposing assets in an existing batch, select the desired batch by double-clicking on the batch description; otherwise, to enter a new batch, click the New Record button and then complete the batch options. If a batch does not exist, the batch options screen will appear immediately in order to create a new batch.

Steps to Complete Batch Options for Process Asset Disposal

Click the New Record button.

Note: For any field equipped with the repeat function, click the Repeat button or press the Ctrl+R keys to repeat the previous entry for the specified field. The repeat function is only available after your initial entry.

Enter the asset tag number for the asset to dispose in the Asset Tag field. If the tag number is not known, click the down-arrow button to select the correct asset, or press the Ctrl+F keys to access the search feature.

Note: Select the Options menu and then View Disposed Scanner Assets or View Disposed Web Link Assets to dispose a missing asset from a scanner file (used with the Process Scanner Data option) or from an inventory completed in Web Link (used with the Process Room Inventory option). After selecting the appropriate option, the applicable assets will appear in a list in the lower right-hand corner of the screen; double-click an asset to dispose and continue disposing the asset as normal.

Tip: Only assets that have been posted to the Asset File Maintenance option and are not included in an unposted batch within the Adjust Accumulated Depreciation option or the Adjust Replacement Cost option can be disposed.

The date the asset was purchased appears in the Purchase Date field and cannot be changed on this screen.
Enter the date to mark the asset as disposed in the Disposal Date field. Use the mm/dd/yyyy format or click the down-arrow button to select the desired date. Leave the field blank to default to the current date.

Note: The disposal date should be within the specified processing month for the batch as the depreciation amount calculated as part of the disposal (if applicable) is based on the processing month of the batch and not the disposal date.

Enter the ID of the disposal type for how the asset was disposed in the Disposal Type ID field. If the ID is not known, click the down-arrow button to select the correct one, or press the Ctrl+F keys to access the search feature.
If applicable, enter the amount for which the asset was sold in the Sale Amount field. The amount can be up to 14 digits long (including the decimal point and comma(s) if applicable) and will typically be rounded to 2 decimal places by the system if capable.
If desired, enter a comment for the disposal in the Comments field. The comment can be up to 1,000 characters long.
If the asset is set up to depreciate (has Straight Line selected for the Depreciation Type) and/or has an amount in the Depreciation Accumulated field in the Asset File Maintenance, the depreciation totals for the asset appear in the Depreciation section and the appropriate depreciation entries (if applicable) appear in the Depreciation Entries List.

If the asset is depreciable and the depreciation for the current year has already been processed, the most recent amount of depreciation calculated (in a month) for the asset displays in the first Depreciation field. The month and year in which the depreciation was last calculated for the asset appears to the right of the label. If the current year depreciation has not yet been processed for the asset, the Depreciation Calculated field will appear as the first Depreciation field and will reflect the amount of depreciation calculated (for the current year) with the disposal. The amount of the current year depreciation calculated with the disposal takes into account that this is the last year for depreciation for the asset and thus does the corresponding action (shown below) from the First Year Depreciation Type in order to average out depreciation for the life of the asset, unless the asset is being disposed in the first year and then the depreciation would be calculated according to the First Year Depreciation Type specified for the asset.

First Year Depreciation Type	Last Year Calculated Depreciation
None	Full Year
Full Year	None
Actual Months	Actual Months
Half Year	Half Year

The Depreciation Accumulated field will reflect the total amount that has been depreciated over the life of the asset, including the amount of depreciation currently being calculated with the disposal, if applicable. To see the detail entries from calculating the accumulated depreciation of the asset, click the Show Details button located to the right of the field.
If applicable, the depreciation entries that will be recorded as part of the disposal of the asset appear in the Depreciation Entries List.

Note: If the asset is not set up with Debit or Credit Depreciation Accounts in the Asset File Maintenance option, the current calculated depreciation will appear in the list with the amount shown under the NA (No Account) Amount column.

If applicable, complete the Debits and Credits Lists with the debit and credit entries to post to General Ledger when recording the disposal of the asset. To have the system determine the necessary disposal entries using the information available for the asset, click the Calculate GL Entries button (located below the Sale Amount field), and then verify and edit the entries as needed. To add a debit or credit entry, complete the following:

In the blank line (indicated with an asterisk) at the bottom of the Debits or Credits List, enter the appropriate account number for which to post the entry in the Chart of Account Number field. If the account number is not known, click the down-arrow button to select the correct one, or press the Ctrl+F keys to access the search feature. If the Calculate GL Entries button was utilized, an account number will appear for each entry only if able to be determined by the system; verify the default account number(s) and change if needed.
If desired, enter a description for the entry in the Transaction Description field. The description can be up to 40 characters long. If the Calculate GL Entries button was utilized, a default description will appear for each entry, but can be changed if needed.
Enter the amount to debit or credit for the account number in the Transaction Amount field. The amount can be up to 14 digits long (including the decimal point) and will be rounded to 2 decimal places by the system. If the Calculate GL Entries button was utilized, an amount will appear for each entry, but can be changed if needed.
If applicable, repeat these steps until all the entries have been added.

Note: The disposal entries are only applicable for fixed (or capital) assets, and so if disposing an asset that is not a fixed (or capital) asset, leave the Debits and Credits Lists blank. The total debits and credits must equal by fund for the asset. The Total Cost and Book Value for the specified asset display on the right-hand side of the screen for assistance in completing the disposal entries. The Debits and Credits Lists are not applicable to Kansas and Nebraska school districts as fixed assets are not tracked in General Ledger in those states.

Tip: The following entries (if applicable) are normally made to record the disposal of the fixed (or capital) asset for the applicable state:

For Idaho, Iowa, Illinois, North Dakota, South Dakota, and Wyoming school districts, complete the following three sets of entries:

1) Reverse the Total Cost of the Fixed (or Capital) Asset

Debit - Account number entered in the Reserved for Inventories Account field in Asset File Maintenance for the asset

Credit - Account number entered in the Inventories Account field in Asset File Maintenance for the asset

2) Reverse the Total Accumulated Depreciation for the Fixed (or Capital) Asset

Note: The total amount of accumulated depreciation for the asset is the amount displayed as the Depreciation Accumulated on the Process Asset Disposal screen (includes what the current year depreciation is or will be if the current year depreciation has not yet been processed).

Debit - Account number(s) entered in the Credits List for Depreciation Accounts in Asset File Maintenance for the asset

Credit - Yearly Post Account for account number(s) entered in the Debits List for Depreciation Accounts in Asset File Maintenance for the asset

(Note: If the Calculate GL Entries button was utilized, the account number(s) from the past depreciation transactions will appear as the default for this Debit entry; thus, if different account numbers were used in the transactions from what is set up for the asset in Asset File Maintenance (or no account numbers were specified for a particular transaction), the total accumulated depreciation will be split into multiple lines (entries).)

3) Enter Gain or Loss on Disposal of Fixed (or Capital) Asset

Note: Only enter one (the gain or the loss), whichever is applicable. The gain or loss amount is the difference between the sale amount and the book value of the asset.

If Gain on Disposal of Asset:

Credit - Revenue account number for gain on disposal of fixed (or capital) asset

Debit - Yearly Post Account for revenue account number for gain on disposal of fixed (or capital) asset

(Note: If the Calculate GL Entries button was utilized, the Yearly Post Account for the account number(s) entered in the Debits List for Depreciation Accounts for the asset in Asset File Maintenance will appear as the default for this Debit entry; verify and change if needed.)

If Loss on Disposal of Asset:

Debit - Expense account number for loss on disposal of fixed (or capital) asset

Credit - Yearly Post Account for expense account number for loss on disposal of fixed (or capital) asset

For Missouri school districts, complete the following one set of entries:

1) Reverse the Total Cost of the Asset

Debit - Account number entered in the Reserved for Inventories Account field in Asset File Maintenance for the asset

Credit - Account number entered in the Inventories Account field in Asset File Maintenance for the asset

The total debits and credits for the asset, applicable fund, and batch total display at the bottom of the screen.
Click the Save button.

Note: The debits and credits must equal by fund for the asset before the entry can be saved.

Once all the assets to dispose have been entered, print a listing.

Steps to Print a Report

As a precaution, make a current backup.

Steps to Backup

Post the asset disposal batch.

Steps to Post a Batch