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FormerMember

Disposal of Asset after Depreciation was run - Actions Needed to fix

SUGGESTED
Posted By FormerMember

I have to dispose of an asset, for the month of Dec, however depreciation was already run through the month of Jan.  Can someone confirm the steps needed to fix this? Below is what I am thinking:

1.  Reset Depreciation (there were no prior period closes so this will reset it the placed-in-service date).

2.  Run Depreciation through Nov.

3.  Dispose asset in Dec.

4.  Run Depreciation for Dec to get year end reports accurate.

5.  Run Depreciation for Jan to get reports for month end correct.

Any other steps that need to be taken?

  • 0
    SUGGESTED

    Hello JHill,

    You just re-run depreciation for the appropriate dates, there is no need to reset, since that tends to remove the disposals. Usually the biggest issue is if the Depreciation is ran through some date after the disposal date - the Gain/Loss calculation can "go goofy" but going into the View Transaction and clicking the Calculate button again that will fix the Gain/Loss calculation

    If the Gain/Loss calculation is fine - you just need to re-run the depreciation as you described.

    If the Gain/Loss is incorrect and the calculate button does not fix the Gain/Loss calculation, then you will want to undo the disposal either through the reset depreciation or the Delete Last Transaction, and then re-run the depreciation as you described.

    ~Delray

*Community Hub is the new name for Sage City