Write-Off Assets {AMNT-1}

Assets are written-off for a number of reasons i.e. the asset may be stolen, lost or damaged. Writing off an asset marks the asset with a disposal date in the asset register, calculates depreciation up to the assets disposal date, generate asset write-off transactions and excludes the asset from any depreciation in the future. Querying the asset in the asset register, {AOPS-1}, displays the date written-off and authorization. Removing the write off date of an asset reverses the write–off.

To write off an asset the user must enter the write-off date, the write-off reason code and the profit/loss on the disposal of assets account, the authorization number field is optional and then <COMMIT> the records.
If the System Operational Definition code GA for sub-system AT (Asset) is 'Y', the program will generate the GL journals to reverse the capital and accumulated depreciation to the disposal GLA..
The write off date cannot be changed once the asset has been written off.
To reverse written off assets the user must query the written off asset, clear the write off date and then <COMMIT> the records.

To change the write off date, reverse the write off by setting the write off date to null and enter the correct disposal date.

If linked to a main asset as a part, an asset can only be written off if the asset is delinked from the main asset.
If the System Operational Definition code GA for sub-system AT is 'Y', the system will generate GL journals to reverse the asset write off.

Insert and delete of assets in this option is not allowed.To create a asset {AOPS-1} must be used and to delete an asset from the asset register the user must use {AMNT-5}.

Fields in the option:

Block 1: Write-Off of Assets

Field	Type & Length	Description
Number / Description	N7	<Enter> a query and type in the asset number to write-off. The number and description, from the asset register, will be displayed on an <execute> query. The building/floor/room will also be displayed from the asset register, {AOPS-1} .
Write - Off Date	DD-MON-YYYY	Enter the date on which the asset is written-off. The field will default to system date, but can be updated. Write-Off Date May Not Be Earlier Than The Date Acquired Write-Off Date May Not be Earlier Than The Last Depreciation Date
Authorization number	A20	The user can enter an authorisation number, if used at the institution. To change the authorisation number the write-off needs to be reversed and the asset written off again.
Write-Off Code	A4	The user can enter an appropriate code to indicate the manner of the asset's disposal. This code must be defined in the write off reason code structure {ACS-7}. To change the wtrite -off code the write-off needs to be reversed and the asset written off again. The list of values of write-off codes will list write-off codes, description, disposal profit and loss account and account description.
Profit / Loss Account Number	A8	This field will display the profit / loss account as defined for the write-off reason code..
Proceeds of Disposal	N17.2	The user can enter the proceeds received on disposal of the asset i.e. the money received on the sale or monies received from the insurance claim relating to a theft or accident of an asset.

Example:

Processing Rules
On commit the program will validate that event 'B' - GL Asset Write-Off Journals has been set up of a write-off the depreciation program is called and the asset is depreciated from the last up to depreciation date up to the disposal date. If the disposal date is less than the latest up to depreciation date depreciation already written of is not reversed against the depreciation expense and accumulated depreciation. The action also update the fields Write-Off Date, Authorization Number and Disposal profit / Loss account. The following transactions are inserted into the asset transaction table on write-off: "DD - Asset Depreciation" - The depreciation calculated form the last depreciation date to the write-off date. "WP - Write-off Purchase Price" Credits the asset capital GLA and debits the disposal on fixed asset GLA with the asset purchase prices. "WD -Write-off Depreciation" Debits the assets Accumulated Depreciation and credits the disposal on fixed asset GLA with the asset accumulated depreciation The following transactions are inserted into the asset transaction table on write-off reversal: "RP - Reversal Write-off Purchase Price" Debits the asset capital GLA and credits the disposal on fixed asset GLA with the asset purchase prices. "RD - Reversal Write-off Depreciation" Credits the assets Accumulated Depreciation and debits the disposal on fixed asset GLA with the asset accumulated depreciation The report "Result of Asset Write of GL Journals" may printed on write-off of an asset. The users must set printer function ASSWRO in option {GPRT-3}.

Processing
Rules

On commit the program will validate that event 'B' - GL Asset Write-Off Journals has been set up of a write-off the depreciation program is called and the asset is depreciated from the last up to depreciation date up to the disposal date. If the disposal date is less than the latest up to depreciation date depreciation already written of is not reversed against the depreciation expense and accumulated depreciation. The action also update the fields Write-Off Date, Authorization Number and Disposal profit / Loss account.

The following transactions are inserted into the asset transaction table on write-off:
"DD - Asset Depreciation" - The depreciation calculated form the last depreciation date to the write-off date.
"WP - Write-off Purchase Price" Credits the asset capital GLA and debits the disposal on fixed asset GLA with the asset purchase prices.
"WD -Write-off Depreciation" Debits the assets Accumulated Depreciation and credits the disposal on fixed asset GLA with the asset accumulated depreciation

The following transactions are inserted into the asset transaction table on write-off reversal:
"RP - Reversal Write-off Purchase Price" Debits the asset capital GLA and credits the disposal on fixed asset GLA with the asset purchase prices.
"RD - Reversal Write-off Depreciation" Credits the assets Accumulated Depreciation and debits the disposal on fixed asset GLA with the asset accumulated depreciation

The report "Result of Asset Write of GL Journals" may printed on write-off of an asset. The users must set printer function ASSWRO in option {GPRT-3}.

Date	System Version	By Whom	Job	Description
30-Nov-2006	v01.0.0.0	Amanda Nell	t134015	New manual format.
19-Jan-2009	v01.0.0.1	Marchand Hildebrand	t152121	Marchand Hildebrand
29-Jan-2016	v03.0.0.0	Thabang Nyatlo	t210916	Add new field proceeds of disposal
04-May-2016	v04.0.0.0	Marchand Hildebrand	t212676	Copy latest manual form INT3 - 210916