There are usually two cases in which you would write-off an asset from your accounting books. As I’m sure we have all experienced, hard drives crash and laptops and desktop computers become more useful as paperweights than office equipment. In this instance, the asset is donated or placed in the “circular file” for disposal with no resale market value. This is probably the most common scenario. To remove the asset from your accounting records, you would normally have to create an adjusting journal entry that removes the accumulated depreciation and the original acquisition cost. If the asset is fully depreciated, then the entry is fairly straightforward.
Tag: cloud erp
Acumatica Cloud ERP is one of the many ERP (enterprise resource planning) systems that contain a fixed asset module as part of the application. Having an integrated fixed asset module automates the management of a company’s fixed assets. The automation of this allows an organization to dump their convoluted Microsoft Excel Spreadsheet or Microsoft Access Database for managing the fixed asset process. Using a spreadsheet or database to manage your fixed still leaves you with making journal entries to record monthly depreciation expense and disposal of assets when they are sold or retired. You are also subject to errors during data entry not only of the journal entry itself, but also of the initial setup of the asset in the spreadsheet or database.
Acumatica is one of the new solutions in the game and the fastest growing Cloud ERP in the world. They were incorporated in 2008 and started by ex-Microsoft Dynamics executives. The goal being to improve on all that is wrong with MSFT systems. MSFT accounting is good for what it is, but it has a hard time doing what people need to do with computing today. The point of this is not to bash MSFT, but point out where Acumatica is: years ahead in technology; just like your Mac Book is to the IBM 650.