Summary

The disposals process is used to dispose of an active fixed asset upon retirement or sale of the asset. The general ledger entry from the Disposal process will be a credit to the Asset account type for the original cost, a debit to the Accumulated Depreciation account type for the total accumulated depreciation and the net difference to the Disposal account type.

If an account is specified in the Fixed Asset Investment account field, the original cost will be recorded to the FA Investment account type instead of the Asset account type. If a sale price is specified for a disposed fixed asset, that amount will debit the Gain/Loss account type.

 Run the Depreciation Adjustments process and click the Exact toggle before disposing of the asset to make sure all depreciation is applied.

Step by Step

1    Open or create a Disposals batch.

• The Disposals process is a single batch process, meaning you can process only one batch at a time.
• If there is an open batch in the Disposals process, you will not be able to create a new batch. If you would like to create a new batch, you can either delete the existing batch by clicking the Delete icon on the batch tile or you can reset the steps on the process by returning to the first step of the process. All of the information in the batch will be overwritten.
• If there are no open batches in the process and you would like to create a new batch, click the Create New Batch button. This will open the New Batch view. The batch number, batch month, and batch year of the batch will not affect the transactions cleared in the process. The batch information is for reference purposes only.

2     Open the Batch Overview page. 

• The Batch Overview page provides a general overview of the selected batch.
• The left navigation menu displays all the steps in the Disposals process.
• In the main section you'll see information about batch steps that are currently processing, next available batch steps, and the last completed batch step.
  • Batch steps that are currently processing will display a blue indicator bar to alert you that the step has not yet completed.
  • Once the preceding batch step is complete, the next available batch steps will be enabled and you can select the next step you would like to run.
    • While some batch steps are optional, any batch step that includes the Required tag must be completed before the batch is allowed to proceed through to the Commit step.
• The Batch Outputs section on the right will display any reports or exports that have already been generated in the Disposals process.

3     Select the assets for disposal.

• Open the Dispose Assets window (FA> Disposals> Disposal).
  • The Dispose Assets window will display all pending disposal transactions.
  • Click ADD ASSETS to open the Fixed Asset Selection window. Filter the displayed assets with the search options and select an asset to dispose. Click the Select button   to return the selected asset to the Dispose Assets window.
  • Click REMOVE to remove a selected fixed asset from the Disposals batch.
  • Enter the Effective Date of the disposal in the Effective Date field. This date can be unique for each asset included in the disposals batch.
    • This date does not need to correspond with the Journal Entry date specified on the GL Distribution step below.
  • Enter an optional disposal description in the Transaction Description column.
  • If you are disposing of part or all of a mass asset, the Mass Asset toggle will be checked and you will need to specify some additional disposal details.
    • Enter the number of mass assets you would like to dispose of in the Quantity to Dispose field. If you are disposing of all of the individual elements of a mass asset, enter the same number as the Quantity field.
    • The Depreciation to Dispose and Value to Dispose fields will automatically update to reflect the depreciation and value amounts that will be disposed based on the number of mass assets entered in the Quantity to Dispose field. These values can be edited if desired.
    • The formulas used to automatically determine these values are:

• The Sale Price column is used to specify a sale price for the asset and reduce the total amount disposed.
  • During the GL Distribution step, this amount will debit the Gain/Loss account type.
  • This field will not be enabled when disposing of mass assets.
• Click the Submit button when complete.

4     Print the Disposals Proof List. 

• Open the Proof List window (FA> Disposals> Proof List).
• The proof list will display in detail the amounts to be disposed for each asset.
• In the Fixed Asset Maintenance window for an individual fixed asset, the Transaction tab will display the uncommitted disposal entry. The user may find this a helpful tool to understand the effect of the disposal process before committing the batch.
• Once the required report settings have been specified, click the Print button   to print your report.
• Click the options arrow on the right side of the Print button to see other print options.
  • Select PDF to print the report in the default Springbrook format.
  • Select Excel to export the report data to an Excel spreadsheet as unformatted data.
  • Select Excel (Formatted) to export the report data to an Excel spreadsheet that includes much of the Springbrook formatting found on the printed version of the report.
• Click the Schedule icon next to the Print button in order to schedule the report to generate at a later date and time.
  • Enter a Date and Time to generate the report and click SUBMIT.

5     Print the GL Distribution.

• Open the Print GL Distribution window (FA> Disposals> GL Distribution).
• Enter the date you want the journal entry to be recorded in the general ledger in the Journal Entry Date field. Usually this date will correspond to the date of the disposal.
• Select either Summary or Detail from the Report Type drop-down menu.
• Check the Subtotal by Department toggle if desired.
• The report will show the journal entry that will be recorded into the general ledger based on the distributions on each asset.
• Once the required report settings have been specified, click the Print button   to print your report.
• Click the options arrow on the right side of the Print button to see other print options.
  • Select PDF to print the report in the default Springbrook format.
  • Select Excel to export the report data to an Excel spreadsheet as unformatted data.
  • Select Excel (Formatted) to export the report data to an Excel spreadsheet that includes much of the Springbrook formatting found on the printed version of the report.
• Click the Schedule icon next to the Print button in order to schedule the report to generate at a later date and time.
  • Enter a Date and Time to generate the report and click SUBMIT.

6     Commit the Disposals batch.

• Open the Commit Disposals window (FA> Disposals> Commit).
• Click the Continue button or press ENTER to commit the batch.  
  • If you click the Cancel button, you can still commit the batch via the Commit button.