Disposal of Fixed Asset

#1

Hi,

I know there are several posts in here about this but I’m wondering if anyone else has experienced the same problem. I have a playground database I use to try various transactions before doing them in my live accounts. Tonight I tried to dispose of one asset, details as per: -

1 - Purchase Cost £550
2 - Accumulated Depreciation £159.89
3 - NBV £394.11
3 - Sale value £250.00
4 - Loss on Disposal £144.11

The steps were as follows: -

1 - Fixed Assets
2 - Select relevant asset
3 - Click Disposed Box
4 - Added disposal date
5 - Cash Accounts
6 - Receive Money
7 - Account - Fixed Assets/Relevant Asset/Value of Receipt i.e. £250

I’m pretty sure this is a potted version of how the guide says this should be done.

On running the Fixed Asset Movement Report The closing amount is showing as the value of the receipt i.e. £250. The accumulated Depreciation account is still showing the £159.89 and there is no value recorded in the Loss on Disposal Account.

I have also tried to record this dummy sale by entering the sale value straight into the Loss on Disposal account but again, there are no entries showing in this account.

Having worked the calculation through, I think there might be a bug in how Manager is dealing with asset disposals particularly as the Loss on Disposal account does not appear to be working.

Please could anyone advise if I’m missing something.

Using Manager v16.5.55

#2

Try doing the Cash Accounts - Receive Money first, then the Fixed Asset actions. You have been telling the Fixed Asset that it has been sold before the Fixed Asset knew of its disposal value.

#3

Okay, I’ll give that a go.

Update: - did as suggested, still the same issue.

#4
  1. In your example above the NBV should be 390.11 and Loss on Sale should be 140.11
  2. Just did the above transactions and all worked OK - on the disposal did you complete both the Account and Asset fields. Does your BS Equity section show a Suspense account balance ? If yes, then you have an incomplete data entry

First I did a cash purchase of the Asset and then entered the to date Depreciation

000 Asset TU.jpg977×250 18.5 KB

Then I did the cash disposal and ticked the Asset disposal box.

000 Asset Disp.jpg996×260 18.8 KB

The Asset listing then looked like this

000 Asset List.jpg1034×119 11.3 KB

The Asset Summary report looked like this

The Asset purchase entry

000 Asset Purch.jpg902×105 6.98 KB

The Asset disposal entry

000 Asset Sale.jpg901×111 6.69 KB

1 Like
#5

I just tried your numbers. Everything works correctly. And it doesn’t matter whether you mark the asset as disposed first or enter the sale transaction first, the net result is the same.

I do note that your math is wrong. NBV before disposal should be 390.11, giving a loss on disposal of 140.11. Aside from that, when I run the Fixed Asset Summary, I get a closing balance of zero.

I wonder, when you entered the transactions, are you positive you selected the right accounts? There are many that automatically appear when you enable the Fixed Assets tab, and it’s easy to pick the wrong one, as they all contain the words fixed assets.

#6

Sorry to be redundant on some information. My response and @Brucanna’s edit crossed in cyberspace.

#7

Hi, thanks to you both for looking at this and responding. I’ve traced this through and yes, the actual transactions are working. I found this by looking at various reports and tracking the costs through. The only thing I don’t understand is why the "Loss on Disposal " account is showing no values in the summary sheet and also when I click into it from there. I think there may be a broken link somewhere as the values are showing up in the account if I go through from the P&L. Again, thanks for your help, its much appreciated.

#8

What are you saying - that the Summary tab P&L - Fixed Asset Loss on Disposal account is showing no values nor after drilling down but the P&L (report ?) is showing the correct values ?

#9

Differences between a P&L Statement and the P&L on the Summary page could well be explained by different date ranges. Check both of those to make sure what you’re looking at covers the same time span. Transactions outside the defined range won’t show, even if Manager knows about them.

1 Like
#10

Hi Tut,

Yes, you were correct, the date ranges were not the same. Thank yo so much of taking the time to look into this and for all your help. Also, thank you too Brucanna.