FAS
Asset Accounting enables you to partially dispose or transfer an asset
within a company. We will take a look at partial transfers at a later
time. For this article, let’s take a look at partial disposals.
A partial disposal is the act of disposing
of a percentage or portion of an asset. With the wide range and
complexity of assets one can have, it’s not at all uncommon to get rid
of a portion or part of an asset. Whether you determine that a portion
of an asset has become useless, or you simply decide that selling part
of an asset would be profitable, FAS allows you to track your partial
disposals.
Below you will see a print screen of the “Detailed View” of an asset in “Westfields Bakery”:
Detailed View of System Number 170
Looking
at the “Main” tab we can see that this is a non-disposed, active asset.
If the asset were already disposed of, the program’s title bar would
display the word “Disposed” to the right of the system number on the
blue bar. If we click on the “Disposal” tab, we can do a full or
partial disposal of this asset.
When
doing a partial disposal or any disposal, you must first give the asset
a disposal date. Once a date has been entered in the “Disposal Date”
field, we can move on to the other fields on the “Disposal” tab. The
“Disposal Method” field is used to tell the program how you got rid of
the asset. For this example I chose “Sale” and then moved on to the
next field.
The “Partial Disposal” field is used to tell the program if you are disposing part of the asset.
After choosing “Yes” in the “Partial Disposal” box and pressing the
“Enter” button of your keyboard, the “Partial Disposal” dialog box pops
up on your screen. This dialog box allows you to enter the dollar value
that represents the disposed of portion of the asset.
In
the “Book” field you can choose which book’s acquired value you are
basing the partial disposal on, as the dollar amount can be different
for each accounting book. The program will subtract a percentage of the
acquired value of the other open books that is based on the disposal
amount you choose for the initial book. In this example I disposed of
$5000.00, based on the Tax book’s acquired value.
The “Description” field can be used as a way of documenting the process.
When a description is entered or when you click in the “Description”
field box, a preview of the assets, new and old, can be seen in the
bottom portion of the “Partial Disposal” dialog box.
This process creates two new assets and
places the original asset in an inactive state for tracking purposes.
The “Disposal Portion” gets the extension of “001,” the “Remaining
Active Asset” gets the extension of “002,” and the “Original Asset”
maintains the original extension of “000.” Click “OK” to close the
“Partial Disposal” dialog box.
If there are any proceeds, cash or
non-cash, enter the dollar amount in the respective box, and then move
on to the “Expense of Sale” box. If you incurred any expense with the
sale of this item, such as running a newspaper ad, enter that amount
here. Once that is done, click the Save button to complete the partial
disposal.
Use the “<>” buttons to navigate between the “Disposed of” and “Remaining Active” assets.
For more information on partial disposals, please refer to the
Performing Asset Functions section of the FAS Asset Accounting user’s
guide for more details.
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