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We supposed to dispose of a fixed asset to get another vehicle. It means there are no cash proceeds involved, and we are getting a new vehicle instead of old one. However, when we use the sale of object option, we are getting different entries. We couldn't identify the loss of disposal transaction accurately. Actually, we expect below things from IFS.

  1. Recognize new vehicle.
  2. Remove old vehicles from the books
  3. recognize the loss.

However, the expected results do not match the current setup of posting controls. Please refer to below for existing posting control set up details and outcomes as a result of motor vehicle disposal.

 

Can anyone advise how to record fixed asset disposal in this scenario with the correct setup of posting controls?

Thanks in advance.

Hi @Thej 

The Sale of Object event is performed when a fixed asset is sold and compensation is received. The function performs the de-listing of the object in IFS/Fixed Assets and the posting of the event. You cannot perform the Sell Object operation for an object with compensation of zero (0). Instead, the Scrap Object operation must be performed. When the sale takes place, a vouchers are created and placed in the hold table in IFS/Accounting Rules and the connected internal ledgers.

Voucher postings for Object Scraps/Disposals are created according to ‘Disposal  Posting Method’ defined in Fixed Asset Books window.
 

Kindly change the disposal posting method to see if it meets your requirements.

 

Thanks

Chanuka
https://www.linkedin.com/in/chanuka-doluweera-7b7619159/

Hi @Thej,

As Chanu explained if there is no cash proceeds involved you may go with Scrap function since we need to enter sales proceed amount in sell function.

However, you still can use sell function by adding nominal value (Eg; $1) as sales amount. And you need to enable disposal profit/loss postings in Fixed Assets Books window. Then it will create disposal profit or loss via FAP35 andpostings.

 

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