The Fixed Asset Disposal form removes an asset from the company's books when it has been scrapped, lost or written off. It takes the asset's value off the balance sheet and records the resulting loss, so the register reflects what you actually still own.
Where to find it
Go to Fixed Assets > New > Disposal. If the asset is being sold to a customer, use Sale instead.
Disposal Header & Item Selection
| Field | Description |
|---|
| Location | The site the asset is leaving. The system checks the quantity on hand there before allowing the disposal. |
| Date | When the disposal is recorded. This date is used for the ledger journal. |
| Reference | The disposal note's document number, auto-generated for audit consistency. |
| Fixed Asset Item | The asset being disposed of. |
| Quantity | Units removed. For a unique fixed asset this is normally 1. |
Financial & GL Integration
Processing a disposal generates these ledger entries automatically:
| Account | Effect |
|---|
| Asset Account | Credited with the asset's full standard cost, reducing total asset value on the balance sheet. |
| Disposal / Loss Account | Debited — the value being written off. Taken from the Default Loss on Asset Disposal Account in Company Preferences. |
| Inventory Adjustment Account | Balances the stock movement so the physical inventory and the ledger stay in step. |
The loss account must be configured in Company Preferences before you dispose of anything. Without it the write-off has nowhere to post, and the entry either fails or lands somewhere you did not intend.
Operational Controls
| Control | Description |
|---|
| Standard Cost | Read-only for most users — the current book value per unit. |
| Memo / Comments | The reason for disposal — "sold to third party", "damaged beyond repair". This is what an auditor reads first. |
| Product Image / Attachment | Supporting documents — a sale receipt, a police report for a stolen asset, a photograph of the scrapped item. |
| Custom Fields | Additional data your finance team requires, such as buyer name or disposal method. |
Action Buttons
| Button | What it does |
|---|
| Add Item | Adds the asset to the disposal. Several assets can go on one transaction. |
| Process Disposal | Finalises it — creates the GL journals and removes the asset from inventory. |
| Update / Cancel | Amend the list before processing, or clear it. |
Related pages