Dispose of a fixed asset

A capitalised asset leaves the register when it is sold, scrapped or destroyed: this is the disposal. The operation stops depreciation and records the result of the disposal.

What a disposal does

At the time of disposal, SynkriaOps:

1. stops the asset’s depreciation at its disposal date;
2. computes its net book value (NBV) = original value − accumulated depreciation;
3. compares the NBV to the disposal price to derive a gain (price > NBV) or a loss (price < NBV).

An example

A vehicle acquired for 6,000,000 XAF, depreciated by 4,500,000 XAF: its NBV is 1,500,000 XAF. Sold for 2,000,000 XAF, it yields a gain of 500,000 XAF. Sold for 1,000,000 XAF, it yields a loss of 500,000 XAF.

Record a disposal

1. Open the asset

   Menu → Fixed assets → open the page of the asset to dispose → Disposal action.

2. Fill in the disposal

   Enter the disposal date, the reason (sale, scrapping, destruction) and, in case of a sale, the disposal price.

3. Check the result

   SynkriaOps shows the NBV and the computed gain or loss.

4. Validate

   The disposal entry is generated: removal of the original value, reversal of the depreciation, recognition of the disposal result. The asset leaves the active register.

Generate the year's charge first

Before disposing, make sure the current year’s charge up to the disposal date has been accounted for: that’s what gives the exact NBV. See Depreciation schedules & charges.

Attached documents

You can attach the disposal’s supporting documents (sale invoice, destruction report) to keep the full trace of the operation in the file.

Further reading

• Depreciation schedules & charges — the charge before disposal
• Fixed assets & depreciation — the register and reconciliation
• Income statement — where the disposal result appears