Sell an Asset

Sell an entire asset

If you have sold an asset, select the asset in the list and then select Sell in the tools drop down menu. Enter the date on which you want the sale to be posted, the price at which the asset was sold and any notes you wish to accompany the  transaction under the asset history.

Once you have completed the sale:

- The asset status changes from Active to Sold
- A journal is created automatically using:

• • • The Asset account (the depreciable basis of the asset) -  in Credit
    • Accumulated depreciation account (OB accumulated depreciation value)  -  in Debit
    • Capital gain upon sales or Capital loss upon sales (the book value of the asset) - in Debit
      
      

Note: You must complete this journal with another journal so that the booking of the sale of your asset is complete. The journal should post the money your received, the VAT and the profit or loss for your sale, For example:

Bank (amount received) - Credit
VAT on Sales - Debit
Capital gain or loss upon sale (your sales price) - Debit

Sell part of an asset 

You also have the possibility to sell part of an asset only. To do this, select your asset in the list. Then click on the Tools drop down menu and select Sell. 

In the modal:

• Select Part of asset
• Enter the percentage (%) of the asset to be sold.
• Enter the transaction date  
• Enter your Selling price
• Save  
  
  

You see a warning asking you to confirm you want to carry out the partial sale.

Click OK to confirm & carry out the sale.

When the sale is done, the part of the Asset that was sold is both created as a new asset and sold.

You will find this new asset in your asset list with the status sold.

A journal will be created automatically for both the sale of the newly created asset and the transfer of its share of the depreciation from the old asset to the new asset. The amount of depreciation to be transferred is automatically calculated using the 10% of the partial sale: If you sold 10% of the basic asset in a partial sale, 10% of all depreciation carried out will also be transferred to the newly created asset you sold. 

The sales journal is booked as follows on the new asset:

• The Asset account (sales value of the asset) -  in Credit
• Accumulated depreciation account (new assets' share of the depreciation)  -  in Debit
• Capital gain upon sales or Capital loss upon sales ( sales price - depreciation) - in Debit

As with the sales of a complete asset you will need to complete the transaction with an extra journal.

The journal transferring the depreciation from the old asset to the new, is posted on the old asset:

• Asset Account (Rebooking depreciation of asset XX due to partial sale of the same asset) - Credit 
• depreciation account (Rebooking depreciation of asset XX due to partial sale of the same asset) - Debit
• Asset account (Rebooking depreciation to asset YY due to partial sale of asset XX) - Debit
• Depreciation account (Rebooking depreciation to asset YY due to partial sale of asset XX) - Credit