Hello,
I have taken over Fixed Assets for my company. We have several assets that are inactive. Can these assets be disposed? Some of them still have a NBV and some dont.
Hello,
I have taken over Fixed Assets for my company. We have several assets that are inactive. Can these assets be disposed? Some of them still have a NBV and some dont.
I often see assets get inactivated for a few reasons:
Inactivating the asset keeps the history in there for audit purposes, but removes the asset from any reporting, calculations, etc. It's a safer option than deleting, but has the same effect. The only reason you would now need to dispose of these inactivated assets is if someone inactivated them in error, instead of disposing. In the unlikely event that that situation occurred, the only risk I see would be if the corresponding disposal entry wasn't made on the general ledger. But, if that was the case, it would have likely been identified on a reconciliation between SFA and your GL.
TL/DR - assuming the person who was managing fixed assets before you had a decent understanding of how the system functions, the assets were likely inactivated for a reason and it's unlikely any further action is needed.
I often see assets get inactivated for a few reasons:
Inactivating the asset keeps the history in there for audit purposes, but removes the asset from any reporting, calculations, etc. It's a safer option than deleting, but has the same effect. The only reason you would now need to dispose of these inactivated assets is if someone inactivated them in error, instead of disposing. In the unlikely event that that situation occurred, the only risk I see would be if the corresponding disposal entry wasn't made on the general ledger. But, if that was the case, it would have likely been identified on a reconciliation between SFA and your GL.
TL/DR - assuming the person who was managing fixed assets before you had a decent understanding of how the system functions, the assets were likely inactivated for a reason and it's unlikely any further action is needed.
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