for example:
cost 12,000
accumulated depreciation 7,000
book value 5,000
then you sold that fixed asset at 6,000 resulting to a gain of 1,000.
how will you record this in manager? you can not do the journal entry…
The guide section on “Asset Registers” may help particularly Dispose of fixed assets
the fixed asset report looks weird if we use that … when you dispose an asset, the cost of the asset should show the original cost (not the book value) … its not a correct lapsing
The Fixed Asset Summary reports actions during a defined reporting period. Thus, it’s opening balance for an asset’s cost or accumulated depreciation lines may not match current book value. That will depend, for cost, on whether other additions were made after initial purchase (such as depreciable installation cost or revaluation). And for accumulated depreciation, it will depend on the date range and depreciation schedule.
but if you dont sell them (you dont receive money) … you just dispose them… it still shows the cost… not the book value… … confused with the lapsing… you will have greater depreciation expense than the book value
I do not understand what you are saying. If you dispose a fixed asset, both its current total purchase cost and accumulated depreciation are removed from the Fixed Assets Summary. In other words, book value is removed. The process does not involve any depreciation expense account, only balance sheet accounts.
when we sell a fixed asset we usually record them as this:
debit cash 6,000
debit accumulated depreciation 7,000
credit fixed asset (at cost) 12,000
credit gain on disposal 1,000
our lapsing will show:
cost
begining 12,000
disposal -12,000
ending 0
accumulated depreciation
beginning 7,000
provision 0
retirement/disposal -7000
ending 0
carrying value
beginning 5,000
ending 0
I do not see your issue, @tyfarmaaccounting. Manager effectively does exactly what you have described, unless I am misunderstanding you. The only difference is that the Fixed Asset Summary report labels what you call “carrying value” as “Total” for each asset.
the lapsing (fixed asset summary ) will show the carrying value at 6000, thats correct… but can we have a report that will show the historical cost and the carrying value? how do you put a screen shoot? im using mobile… i got a hard time putting the screen shoot here
I moved your screen shot.
So what are you trying to illustrate with it? It already displays everything you say you want.
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under sold.asset… cost should be 12k… because we acquired it at 12k…
and also under sold asset… there is a accumulated depreciation expense of 7k… but the cost was only 6k… cost should have been 12k… however book value of 6k was the one posted here
According to the report, you entered a purchase cost of 6,000. Go to the Fixed Assets tab and drill down on the purchase cost figure. Post a screen shot of what comes up. I think this boils down to you not using the fixed asset features correctly. I recommend reading all the Guides in that category again.
the receipt there is when we sold the fixed asset…
@tyfarmaaccounting, please stop posting your screen shots as private messages. To post them on the forum, you must sign in directly and use the upload arrow, not respond by email from your phone.
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Posting the receipt for sale of the asset before disposing of it lowers the purchase price. Read the Guide about disposing of assets again. This situation is addressed in the final Note. Dispose of the asset and post the receipt to Fixed assets - loss on disposal.
thank you… maybe lubos can tweak it a little bit someday.
There is no reason to do so. The program correctly reflects the transactions you enter.