Disposal Processing Overview

Use Disposal Processing in the Asset Management application to remove an asset item from your general ledger books when you sell or scrap it.

Processing Disposals

You must dispose of an asset item in the most current period in which depreciation has been run for it.

You can dispose of an asset item, even if no depreciation has been processed for it. In this scenario, you must dispose of the asset item in the current period if the asset item was created from an accounts payable voucher or purchase order.

If you have multiple companies in Vision, when you run disposal processing, you can select only asset items to dispose that are from the active company (the company that you selected when you logged in to Vision).

General Ledger Entries

When you run disposal processing for an asset item, Vision automatically makes the following postings to your general ledger:

• If you sold the asset item, a cash receipt is recorded.
• The asset item's general ledger balances for accumulated depreciation and the asset account are reversed.
• If the asset item is not fully depreciated when it is disposed, any gain or loss is recorded.

The postings occur in the accounting period that you have open when you run disposal processing.

The disposal of an asset item that is sold produces a cash receipt transaction type. Asset items that are scrapped (because they have no market value) produce a journal entry transaction type. No transaction file or list is created for disposal processing.

Gain/(Loss) Account

You enter a general ledger account for posting gains or losses that result from scrapping or selling asset items in the Fixed Asset Disposal Gain/(Loss) Setup section of the General tab in Configuration > Asset Management. The account is used when you process a disposal.

Posting Logs

You view or print the journal entry posting logs for the automatic posting of asset item disposals in Transaction Center > Posting Logs.

Asset Review

When you run disposal processing for an asset item, the item's disposal information is updated on the Summary and History tabs in Asset Management > Asset Review.

Undoing the Disposal of an Asset Item

You can use the Undo Posting utility in Utilities > Advanced Utilities to undo the disposal postings.

Disposal Example

For a disposal example, see KB article 83455 at the Deltek Customer Care Connect site.