TROUBLE, THERE'S PROCEEDS ON DISPOSAL WHEN DISPOSE FA

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Posted on by Wahyudi Purnama

Hello all,

I've got trouble here, my finance do the disposal for FA.
Why there is a fa ledger entries with fa posting type "proceed on disposal" when dispose an assets ? , how to correct it ? and why there is difference between g/l entries (total fa (bookvalue) account) and fa ledger entries ?

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Indikauk 1,759 on at

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Hi, Wahyudi

Your 1st Question Why there is FA ledger entry posting type "proceed on disposal"?

The answer is This is Automatically created by the NAV in the case of if you dispose of an Asset before it fully Depreciated then "Proceed on Disposal" Line is Created Automatically and since there is a no financial value you don't have to worry about it.

Take an example you have car value of 50,000.00 and your accumulated depreciation is 30,0000.00 and you are selling for 25,000.00

if you do disposal for this Car the system will be created below entries in FA ledger entry

Proceed on Disposal -25,000.00

Gain/Loss -5,000.00

Acquisition Cost -50,000.00

Depreciation 30.000.00

Total -50,000.00 Since you have Positive 50,000.00 as Acquisition Entry FA ledger balance will be 0.

as you can see above example there is Gain on your disposal 5,000.00, in your case you haven't sold it so there is no proceed on disposal.

I don't find any difference as per your screen shot system has passed the correct entry. please explain your problem with g/l entry screenshot.

Thanks,

Indika.

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Wahyudi Purnama 40 on at

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Hi Indika,

why there is difference between g/l entries (total fa (bookvalue) account) and fa ledger entries (fa analysis report) ?

Thank you

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Indikauk 1,759 on at

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Hi Purnama

Since your fixed assets ledger is correct G/L Cannot go wrong can you attach the screenshot of G/L entry which you are talking about?

Thanks

Indika.

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Wahyudi Purnama 40 on at

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Dear Indika,

Here they are, you may see the ledger entries above.

Regards,

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Wahyudi Purnama 40 on at

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can you suggest to me for check and makesure that fixed asset ledger entries value and fixed asset g/l account has correct amount ? (for the example should be use an any report to check and compare ?)

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Indikauk 1,759 on at

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Hi Purnama

in you 1st post you have mentioned that G/L Entry & Fixed asset ledger is not matching can you highlit what g/l entry is not matching with your FA Leger.

you can compare your fixed asset accounts in your Trial Balance & the Fixed Asset Book Value 01/02 report with for particular period and if both are matching no problem if not you need to check for details.

for example, Fixed Report Book Value for motor vehicles as of 31/12/2016 is 1,500,000.00 and this represents 10 vehicles.

now if you some your trial balance motor vehicle account & accumulated depreciation account for the motor vehicles that should match with the fixed asset sub ledger figure. if there are a difference you need do manual reconciliation to identify where the problem is.

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Wahyudi Purnama 40 on at

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Dear Indika,

Everything went oke after I dispose the FA.

Please ignore the first sample because it was dummy.

Take a look at the real one, the proceed on disposal were showed again in next month and make the FA analysis report were different with GL

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