When we select “disposed fixed asset” Manager asks about disposal date, and then it automatically makes the disposal entry assuming asset has been disposed off at zero sale value. At this point, Manager should at least give another option asking about “disposal proceeds”. In this way the disposal entry would be more convenient and understandable.
At later stages, Manager can be updated to make more complex disposal entries. Almost every business has fixed assets that are disposed off at one stage or are exchanged by another.
@Ilyas_Zafar, your post was moved to a new topic. It had nothing to do with journal entries, which was the subject of the thread where you posted it. Please do not divert topics with unrelated issues. See FAQ - Manager Forum.
Request is already handled by the software. Read the Guide: Dispose of fixed assets | Manager, especially the last note. The reason the procedure works like this is that if a sale is involved, rather than a straight disposal, a receipt must be entered at some point to reflect money received by the business. It is not only about how few screens must be visited to complete what, in some cases, may be a complex transaction.
In some disposal cases an old asset is exchanged with a new one. The old asset along with remaining cash is given to obtain a new asset. In this case no cash is received by the business, only an exchange value for the old asset is determined by the purchaser. This transaction involves the purchase of a new asset and disposal of an old one without receipt of disposal proceeds.
If Journal Entry tab allowed to select Cash, Bank, Accumulated Depreciation, Profit/Loss on Disposal Accounts as well, then this transaction could be made in a single step, and in J.E reports it would be more clearly understandable. It is just one example of complex journal entry, there may be others for which the above mentioned accounts need to be selected when making J.E
As @Tut explained in a previous post, this guide: Dispose of fixed assets | Manager explains how to record consideration received (sale price) on disposal of a fixed asset (notes at the end of the guide), although it does not specifically describe a trade in allowance situation…
In the scenario that you have described the consideration received is the trade in allowance and you can record this to the fixed asset cost account by using a negative line in either a payment transaction or purchase invoice.
Like this:
