Asset Disposal

Owned by Gaurav
Jul 07, 2023
2 min read

Overview 

In a normal Business scenarios Assets are depreciated over its useful life, or Impaired owing abnormal Market conditions or inability to generate Future Cash Flows, but there are extraordinary situations where the asset needs to be disposed off due to the occurrence of some mishappening. In such a situation the Asset becomes useless and cannot continue in the business. Hence there arises a situation of Disposal/Discarding it. 

At present such situation could not be accounted for in the Vienna Advantage, but after the Current Enhancement, the same is duly handled with disposing off the asset and creating the corresponding Accounting Effects. 

Enhancement 

A new Window has been introduced with name : Asset Disposal. 

This shall be used to discard the wasted assets and remove its accounting effects as well. 

Window: Asset Disposal

Tab: Asset Disposal 

  1. A field with Name Disposal Type is introduced displaying General Disposal indicating the discarding of the asset a General measure owing to its un-usability in the future. 

  2. A new Base Document has been created for this conversion "Asset Disposal" which shall be used for recording the transaction so taking Place. 

  3. After selection of the Asset its corresponding warehouse and locator gets updated automatically. 

  4. The Default values as lying on the corresponding asset such as its Gross Value, Depreciation charged till date, available quantity, Expected Scrap  Value shall be populated in the fields as illustrated below. 

 

  1. The disposal date and account date are the available for user to enter the date on which the asset is being discarded. 

  2. Once the values gets populated user can enter the Quantity to be Disposed off, and also New Scrap Value for the remaining Qty of that Asset 

  3. The Asset Cost and Charged Depreciation fields depict the distribution of Gross value and Accumulated Depreciation among each unit of the selected Asset. 

  4. The New Scrap Value is updated same as the old value just in case the user wants to keep the value same. 

  5. After entering the Disposal Qty, on completion of the record the Disposal Amount and Depreciation Written Off shall be calculated. 

 

The values so calculated shall be reduced from the Gross Value, Accumulated Depreciation , Qty and Expected Scrap Value as available on the Selected Asset. 

 

After updating of the Values, Generate Asset Schedule Process is run for regenerating the Depreciation Schedules.