Fixed Asset Sale

When a fixed asset is planned to be sold, it is not budgeted but it still affects the balance sheet. The values entered will decrease an asset account (such as Fixed Assets) and increase a different asset account (such as Accounts Receivable) and is amortized away from that account according to the Amortization Schedule (in this example, 100% in the month budgeted). The Fixed Asset template is used; be sure to check the checkbox to indicate that this is a sale. For multi-entity configurations, an entity must be provided since fixed asset purchases and sales are not budgeted.

Fixed Asset template

This example illustrates a planned sale where the payment is received in full in the month following the sale. The payment received is entered on the Values tab. The Purchase Price and Accumulated Depreciation Balance are entered on the Cash Flow tab. The fixed asset and accumulated depreciation account balances are decreased and increased by these numbers respectively. 

If the asset is sold at a gain or loss, a second line must hit the gain/loss P&L account on the budget. This line may be entered on either an SPW or a budget worksheet. Use the Month 0 amortization for this line.