How do I dispose of a Fixed Asset / sell a Fixed Asset?

This article explains how to account for a Fixed Asset disposal or Fixed Asset sale within ExpensePlus.

Dispose of a Fixed Asset

Simply depreciate the asset in full. Please see What is depreciation and how do I record it? for more information on doing this.

Once the asset balance is reduced to zero, you can record it as disposed of in your year-end accounts.

Sell a Fixed Asset

When you sell a Fixed Asset, any remaining value of the asset will need to be removed from your balance sheet, and any difference in the value the asset is sold for will need to be accounted for correctly.

For example, if your organisation sells a freehold property that currently has a Fixed Asset value of £50,000 for a sale price of £70,000:

• The cash line on the balance sheet will increase by £70,000 (less any fees deducted)
• The Fixed Asset line on the balance sheet will reduce by £50,000
• An income of £20,000 will be recorded

How to account for this

1. Fully depreciate the value of the Fixed Asset (this will temporarily show as expenditure within the expenditure category you select.)

2. Reconcile the incoming bank transaction for the Fixed Asset sale using the 'Mixed Income' option.

In this example:

• -£50,000 will need to be recorded within the 'Less Fees' section (to the same fund/category as the depreciation was recorded against in step 1).
• £20,000 will need to be recorded within the 'Other Income' section (to the appropriate income category).

By following this method:

• The expenditure shown within the fund/category where the depreciation was recorded will be zero
• The cash line on the balance sheet will increase by £70,000 (less any fees deducted)
• The Fixed Asset line on the balance sheet will reduce by £50,000
• An income of £20,000 will have been recorded

To help you better understand the Fixed Assets module as a whole, please visit the module overview page here.