When an asset has reached the end of its estimated useful life, such as when it has been scrapped, lost, or decommissioned with no sale value, you need to write it off. 

If you are not sure whether you can write off an asset, please consult your accountant. 

To write off an asset

1 Go to the Transactions command centre and click Asset Transactions. The Asset Transaction
window appears.

2 Click the search icon 
in the Asset ID to select the asset you want.

3 Enter the write-off date in the Date field.

4 Select Write-Off Asset from the Type drop-down list. The book and tax details of the asset for this transaction type are displayed. 


 
Written Down Value - The depreciated value of the asset for book purposes. It represents the difference between the acquisition cost of the asset and the depreciation calculated up to the date of write off.

Undeducted Cost [adjustable value] at the time of Write Off. - This is the depreciated value of the asset for tax purposes –the difference between the acquisition cost of the asset and the depreciation calculated on the notional value up to the write off date. 

Adjustable Value - The Adjustable Value is equal to the acquisition cost of the asset, reduced by the car limit, if applicable, and the depreciation deducted to date.

Actual WDV at the time of Write Off - The depreciated value of the asset for tax purposes after deducting the private use, if any, on the asset. It represents the difference between the acquisition car limit of the asset and the depreciation calculated on the actual value up to the date of write off. 

Reduced Value - The Reduced Value is equal to the acquisition cost of the asset, reduced by the car limit, and reduced by the private use proportion of the asset. 

5 Enter any additional information to help you identify the specific purpose of the transaction in the Note field.

6 Decide whether you want to retain the asset after rollover:

• If you want to retain the asset after rollover, mark the Retain after rollover checkbox. The asset is retained in the books after rolling the data file over to the next financial year. However, depreciation no longer calculates on it.

The checkbox is marked in the Asset Information window so that you can clear it in the future, if you want.

• If you do not want to retain the asset after rollover, do not mark the Retain after rollover checkbox. The asset is removed from the books after rolling the data file over to the next financial year.

7 Click Journals if you want to preview the journal entries posted to this asset. The Transaction Journal window appears.

8 Click OK to write-off the asset.