- Disposal-Sale
An asset at or near the end of its useful life can be disposed via sale to another party. The Asset Manager can perform an Asset Sale Disposal. The following activity will take place:
- The appropriate Customer (sell-to party), Asset Item, and Item Amount (sale price) is entered.
- The Asset Sale will result in two NetSuite transactions that impact the general ledger: Journal Entry and Invoice
For example, an asset capitalized at $100 was sold for $50 and was 90% depreciated at the time of Sale:
Journal Entry
Invoice
The invoice is outstanding until a Customer Payment record clears the invoice balance. A Customer Deposit or Customer Prepayment Journal entry can also be used to clear the invoice.
2.Disposal – Write Off
An asset at or near the end of its useful life can be disposed via write off. The Asset Manager can perform an Asset Write-off Disposal.
When a fixed asset is written off, the asset account balance is credited, the accumulated depreciation account balance is debited, and the difference is posted to the Depreciation Expense account. The FAM SuiteApp will post a Journal Entry automatically based on the disposal data available.
For example, an asset capitalized at $100 and 90% depreciated at the time of Write-Off will generate the following Write Off Journal Entry.
Journal Entry
