I would like to know how to record the sale of all assets when the business is sold but we want to keep all the history. The assets were sold at a fair market value so is there a way to keep the history but revalue the assets?
I would like to know how to record the sale of all assets when the business is sold but we want to keep all the history. The assets were sold at a fair market value so is there a way to keep the history but revalue the assets?
So we will have to set up a new company in the Fixed Assets? The sale took place in 2022 and the fixed assets were not adjusted at all in the Sage Fixed Assets module so I am trying to clean up and correct everything.
Hi Ann,
Here's another option. It's hard to give a precise answer because the nature of the sale and revaluation, and thus your needs, can vary. Some customers prefer to keep the assets in the original company. In this case, they copy the original book(s), with it's historical cost, PIS date, etc., to an unused book. Then, adjust the value of the assets in the original book to FMV, change to the new PIS date, etc.
The advantage: you can continue to run depreciation on the revalued assets (the original book) and the historical assets (the copy-to-book) for comparison purposes. This method works well if the sale affects the internal (GAAP) accounting only, and the tax book needs to continue at the historical amounts. The downside is you can't dispose of the original value of the assets in Sage Fixed Assets, as an individual book can't be disposed of. But it sounds like that may not be necessary, in your scenario.
Hi Ann,
Here's another option. It's hard to give a precise answer because the nature of the sale and revaluation, and thus your needs, can vary. Some customers prefer to keep the assets in the original company. In this case, they copy the original book(s), with it's historical cost, PIS date, etc., to an unused book. Then, adjust the value of the assets in the original book to FMV, change to the new PIS date, etc.
The advantage: you can continue to run depreciation on the revalued assets (the original book) and the historical assets (the copy-to-book) for comparison purposes. This method works well if the sale affects the internal (GAAP) accounting only, and the tax book needs to continue at the historical amounts. The downside is you can't dispose of the original value of the assets in Sage Fixed Assets, as an individual book can't be disposed of. But it sounds like that may not be necessary, in your scenario.
*Community Hub is the new name for Sage City