How to Remove, Sell, or Scrap an Asset in Axanta ERP

An asset should be removed when it is sold, scrapped, damaged, lost, or no longer owned by the company. Axanta ERP calculates the asset’s book value and prepares the required disposal journal entry.

This guide explains how to:

• Remove an asset with a remaining book value
• Record the sale of an asset
• Record a gain or loss on disposal
• Scrap an asset without sale proceeds
• Use a sale settlement or clearing account
• Review disposal reporting

1. Open the Asset

Go to Accounting → Assets → Assets and open the asset to be removed.

Before proceeding, verify:

• The correct asset has been selected.
• All required depreciation entries up to the removal date have been prepared.
• The removal date is later than the last completed depreciation date.
• The asset cost, accumulated depreciation, and salvage value are correct.

2. Start the Removal

Click Remove on the asset form.

The removal window displays the asset’s current book value and the expected gain or loss.

3. Selling an Asset

Select Gain/Loss on Sale as the removal policy.

Enter the sale amount and settlement account. Axanta ERP compares the sale amount with the book value:

• Sale amount above book value: A gain is recorded.
• Sale amount below book value: A loss is recorded.
• Sale amount equal to book value: No gain or loss is recorded.

Example: Asset Sold at a Gain

An asset originally cost 1,000, has accumulated depreciation of 900, and therefore has a book value of 100. It is sold for 200.

4. Using a Sale Settlement Account

The recommended settlement account is an Asset Disposal Clearing or Asset Sale Settlement account.

The removal entry records the amount due from the asset sale:

• The disposal entry debits the settlement account.
• The bank receipt credits the settlement account.
• After reconciliation, the settlement account should return to zero.

Bank or cash can be selected directly, but a clearing account usually provides a clearer audit trail and cleaner bank reconciliation.

5. Scrapping an Asset

To scrap an asset without receiving any amount, select Gain/Loss on Sale and leave the Sale Amount as zero.

If the asset still has a book value, that amount is recorded as a loss on disposal. A fully depreciated asset with no remaining book value will not create a gain or loss.

6. Residual Value Removal

Where required by the company’s accounting policy, select Residual Value. The remaining book value is posted to the selected residual value account instead of gain or loss accounts.

7. Generate and Review the Entry

Click Generate Removal Entries.

Axanta ERP will:

• Mark the asset as Removed.
• Record the asset removal date.
• Reverse the original fixed asset cost.
• Reverse accumulated depreciation.
• Record sale proceeds, gain, loss, or residual value as applicable.
• Create the removal journal entry in Draft.

8. Review Removed Assets

Generate the Financial Assets Report and open the Removed Assets worksheet.

The worksheet includes:

• Asset and acquisition information
• Removal and accounting dates
• Original asset cost
• Accumulated depreciation
• Book value at removal
• Sale proceeds
• Gain or loss
• Settlement and disposal accounts
• Journal entry reference and posting status