You can dispose of fixed assets for any of the following reasons:

• An asset is sold to other legal entities or private individuals.

• An asset is transferred and used as a deposit in joint activities or as a charter capital.

• An asset is donated or used as another type of non-compensated transfer.

• An asset is liquidated because of an accident or natural disaster.

• An asset is exchanged through an exchange agreement.

According to Russian accounting and tax accounting laws, depreciation must be calculated as of the month of disposal.

There are three ways to create a disposal transaction:

Leaving (sale)– This transaction represents a fixed asset sale and can be entered in Accounts receivable or in the fixed assets journal. Several transactions are created in the ledger, based on the posting profile configuration. The status of the asset changes to Written off (sale).

Leaving (dismantlement)– This transaction is entered in the fixed assets journal. Transactions are created in the ledger, and the remaining value of the asset after it has been dismantled is transferred to the warehouse. The status of the asset changes to Written off (dismantlement).

Fixed Assets write-off– This transaction is entered in the fixed assets journal, and the write-off transactions for the booked value and booked depreciation for the asset are created. The status of the asset changes to Written off.