Sell, dispose, move or revalue an asset

When an asset leaves the business, changes branch or changes value, you record it on the asset's page. Kluvan books the depreciation up to the day and posts the journal to Books.

Before you start

• You need the right Manage fixed assets and run depreciation.

Steps

To sell or dispose of an asset:

1. Open the asset from the Fixed assets register.
2. Open Sell or dispose.
3. Set the date and choose How it is paid: Cash, Into the bank, On a customer invoice, or Nothing (scrapped or given away).
4. Type the Proceeds before VAT. For an invoice, choose the Customer (on an invoice).
5. Check The sale carries VAT and the VAT amount.
6. Select Sell or dispose of it.

To move an asset to another branch:

1. Open Move to another branch.
2. Choose the To branch, the date and the new Place.
3. Select Move it.

To revalue or impair:

1. Open Revalue or impair.
2. Under Up or down, choose Up: revaluation or Down: impairment (damaged, worth less).
3. Type the date and Amount, and choose the Against account (by default the category's gain or loss account).
4. Select Book the change.

Good to know

• A disposal books the depreciation up to the day, takes the cost and accumulated depreciation out of the books, and posts the gain or loss against what the asset fetched.
• VAT on a sale uses the standard rate of the day: in the UAE it is on by default; in Egypt it is on by default when your organisation charges VAT. See UAE and Egypt.
• A sale On a customer invoice creates a Books invoice to the customer, with its number, due date and VAT. A cash or bank sale posts one journal that the VAT return also reads.
• You cannot dispose of part of an asset.
• A disposed asset stays on the register with its history. Choose All, disposed too in the register's state filter to see it.
• A move needs at least two branches. The depreciation of the month of the move is not split between the branches: it goes to the new one.
• A revaluation or impairment takes effect from the end of the day's month. The depreciation after it spreads the new value over the life left. The value in the books cannot go below zero.
• These steps wait while a month's depreciation run is open. See Run monthly depreciation.