Introduction

This document outlines the procedure for selling or scrapping an asset using the Fixed Asset module

Steps to sell/scrap an asset

1) Sell/scrap the asset using the Fixed Asset module in Evolution.

1. 1. Fixed asset module
   2. Transactions
   3. Select the asset and click the button "Sell/Scrap"

2) Fill out the required details and click: 

1. 1. Sale/scrap price

   2. Description

   3. Reference

   4. Contact person (if applicable)

3) Select the correct GL account

Note that the "Debit" account only allows for "Cash & cash equivalents" ('CCE') accounts. To process, you will need to select a CCE suspense account.

Note that there won't be any transactions posted to this account. Click on "OK. 

4) Preparing the batch

Evolution will prepare and propose the Journal batch to be posted. 

1) Click on "Save"

2) After clicking "Save" the "Post Batch" button will be enabled.

3) After click "Post Batch" the batch will be transferred to the Fixed Asset journal batch in the General Ledger module in Evolution. 

5) Updating and posting the impact

The Fixed Asset batch will be transferred to the GL Journal batch. 

1) Open the batch.

2) Update the GL debit account - previously set to the "CCE - suspense account".

3) Note that if the asset is sold in consideration for a direct (petty) cash payment, you can select the correct (petty) cash account in step 3.

4) If the asset is sold on invoice and will be settled against normal payment terms, you can post the debit transaction in the Journal batch to a debitor suspense account and subsequently post the invoice to the debtor against that same suspense account.