How do I deal with fixed asset disposals?
Summary
Disposals of Fixed Assets can be entered into the accounts using Journal Entries, or you can use " Sales Ledger Invoice/Credit Note" if you want to produce an invoice for the disposal.
More Information
You will need to check you have all the required Nominal Centres set up in Platinum e.g. Disposals, Depreciation and Fixed Assets. You may need to seek advice from your accountant as to which centres to use and whether they should be treated as Profit & Loss or Balance Sheet Items.
As a rule of thumb, you will need to remove the Cost and Depreciation of the Fixed Asset from your Balance Sheet, and post these to a Profit & Loss code for Profit/Loss on Disposals of Fixed Assets. The value that you get for the Disposal of the Fixed Asset should be journalled into this code as one side of the entry - the other side will depend on the method of disposal.
Follow the instructions for posting a Multiple Entry journal in this article.
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