Nominal Ledger Transactions from Disposal records
This page describes the Nominal Ledger Transactions that can be created from Disposal records in the Assets module.
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When you mark a Disposal record as OK and save, a Nominal Ledger Transaction will be generated automatically if you have so determined in the Sub Systems setting in the Nominal Ledger and in the Number Series - Disposals setting. The postings in this Transaction will depend on the Post from Write-off option that you have selected in the Account Usage Assets setting: several options are offered to cater for differing accounting rules in various countries. If the Type of the Disposal is "Sale", two further postings will be added to the Transaction. Details of the postings can be found below.
As described below, the Transaction will include postings to an Asset Account and an Acc. Depr Account. The choice of Asset and Acc. Depr Accounts (and associated Tags/Objects) will depend on the Model for Disposals option that you have selected in the Account Usage Assets setting. The Asset and Acc. Depr Accounts and the Asset and Acc. Depr Tags/Objects in the Asset Class to which the Asset belongs will be used if you have selected "Model 1" as the Model for Disposals, and the Asset 2 and Acc. Depr 2 Accounts and the Asset 2 and Acc. Depr 2 Tags/Objects will be used if you have selected "Model 2".
The Transaction will also include postings to an Account specified in the Disposal record. This Account will be taken from the A/C field in the row specifying the Asset being disposed of or, if the A/C field in the row is empty, from the A/C field in the header of the Disposal record.
Once the Transaction has been generated, you can open it from the Disposal by selecting 'Open NL Transaction' from the Operations menu (Windows/macOS) or Tools menu (iOS/Android) (subject to access rights).
Write-off, and Asset Value and Remaining Depreciation
If the Type of the Disposal is "Write-off" and you are using the Asset Value and Remaining Depreciation option in the Account Usage Assets setting, the Transaction will include the following postings:
- The Starting Value from the latest Revaluation record or, if there aren't any Revaluations, the original Purchase Value of the Asset will be debited to the Account specified in the Disposal record and credited to the Asset or Asset 2 Account specified in the Asset Class to which the Asset belongs. The Asset or Asset 2 Tags/Objects specified in the Asset Class will be assigned to the credit posting.
- The Starting Value from the latest Revaluation record or, if there aren?t any Revaluations, the original Purchase Value of the Asset will be debited to the Acc. Depr or Acc. Depr 2 Account specified in the Asset Class, and the value of the Asset when disposed of will be credited to the same Account. The Acc. Depr or Acc. Depr 2 Tags/Objects specified in the Asset Class will be assigned to both postings. The net effect of these two postings is that the depreciation to date will be debited to the Acc. Depr or Acc. Depr 2 Account.
- The depreciation of the Asset over its lifetime to date will be credited to the Account specified in the Disposal record.
- The Tags/Objects specified in the Disposal row (which by default will have been copied from the Asset record) and in the Tags/Objects field in the Asset Class will be assigned to all postings.
Write-off, and Accumulated and Remaining Depreciation
If the Type of the Disposal is "Write-off" and you are using the
Accumulated and Remaining Depreciation option in the
Account Usage Assets setting, the Transaction will include the following postings:
- The depreciation of the Asset to date will be debited to the Acc. Depr or Acc. Depr 2 Account specified in the Asset Class to which the Asset belongs. The Acc. Depr or Acc. Depr 2 Tags/Objects specified in the Asset Class will be assigned to this posting.
- The depreciation to date will be credited to the Asset or Asset 2 Account specified in the Asset Class. The Asset or Asset 2 Tags/Objects specified in the Asset Class will be assigned to this posting.
- The value of the Asset when disposed of will be debited to the Account specified in the Disposal record.
- The value of the Asset when disposed of will be credited to the Asset or Asset 2 Account specified in the Asset Class. The Asset or Asset 2 Tags/Objects specified in the Asset Class will be assigned to this posting.
- The Tags/Objects specified in the Disposal row (which by default will have been copied from the Asset record) and in the Tags/Objects field in the Asset Class will be assigned to all postings.
Write-off, and Asset Value and Accumulated Depreciation
If the Type of the Disposal is "Write-off" and you are using the
Asset Value and Accumulated Depreciation option in the
Account Usage Assets setting, the Transaction will include the following postings:
- The Starting Value from the latest Revaluation record or, if there aren't any Revaluations, the original Purchase Value of the Asset will be debited to the Account specified in the Disposal record.
- The Starting Value from the latest Revaluation record or, if there aren't any Revaluations, the original Purchase Value of the Asset will be credited to the Asset or Asset 2 Account specified in the Asset Class to which the Asset belongs. The Asset or Asset 2 Tags/Objects specified in the Asset Class will be assigned to this posting.
- The depreciation of the Asset to date will be debited to the Acc. Depr or Acc. Depr 2 Account specified in the Asset Class. The Acc. Depr or Acc. Depr 2 Tags/Objects specified in the Asset Class will be assigned to this posting.
- The depreciation to date will be credited to the Account specified in the Disposal record.
- The Tags/Objects specified in the (which by default will have been copied from the Asset record) and in the Tags/Objects field in the Asset Class will be assigned to all postings.
Sale
If the Type of the Disposal is "Sale", the Transaction will be as described in the three sections above, but will have two extra postings:
- The Sales Price will be debited to the Sales Transit Account specified in the Account Usage Assets setting and credited to the Account specified in the Disposal record. The Tags/Objects specified in the (which by default will have been copied from the Asset record) and in the Tags/Objects field in the Asset Class will be assigned to the credit posting only.
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The Disposal register in Standard ERP:
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