What does inactivate do?  Does it remove all depreciations and the cost of the asset from all reporting, then we would make the necessary adjustments in our accounting software to reconcile?

An Inactivation in like a deletion, the asset just drops off of the reports but it can be undone where a deletion cannot. See What is the effect of deleting assets and inactivating assets in Sage Fixed Assets? (17239) for details.

~Delray

Hi, Jcampanella,

You have what is called a "ghost" asset.  It's on your accounting books, but can't be found on the premises.  (Incidentally, this is the inverse of the "zombie" asset which is found on the premises, but never accounted for on the books.)

I recommend that you inactivate the asset, but before it's inactivated, put a note on the asset record explaining the situation as you described above in your post.  Then, save the note and inactivate.

thank you!

I inactivated the asset, not disposed. Thus, no loss or gain. Prior year depreciation will not be removed because it was already on the books, but current year depreciation will be removed? We cannot retroactively change last year’s numbers. It looks like my reconciliation is off by 9.5 months of depreciation now. Is that correct?

When you inactivated the asset, the blue depreciation calculation figures did not disappear.  You can still see the numbers that had been crunched by the program prior to the inactivation, but they are now displayed in grey.  To make a manual adjustment to your G/L in order to account for the ghost asset you had been depreciating this year, you need the YTD figure from the asset record, and it is still there available for you to see.  It is just no longer displayed in blue.