Selling Assets - step by step - Reckon Accounts Desktop Australia

Roland

Hi Everone,

I have a newbie question.

Could someone please provide step by step procededure for achieving sale of assets?

I have read every help file and am still confused as to the correct procedure.

I don't have fixed assests set up as items. For example Motor Vehicle:

My Chart of Accounts has Motor Vehicle as the main account, with sub accounts of Accumulated Depreciation and At Cost. I understand how to find the current value.

I understand that I can create a Sales Reciept for the asset and recieve the payment against that sales reciept using Motor Vehicle as the account in the deposit slip.

Is this all I need to do, or do I also need to make General Journal entries?

PLease correct me if I have already mistaken the procedure.

Thanks in Advance,

Roland

Kris_Williams

You can do either a sales receipt or a journal - sales receipt, create an item called Motor vehicle sale and link to the At cost account. Probably easier if you’re not familiar with journals. A sales receipt is all you need to do as that takes care of the payment at the same time.

Bruce

As a BAS (not Tax) Agent it is NOT for me to determine the depreciation journals.

So I don’t attempt to process all the entries associated with the sale of a depreciating asset. All I do is record the sale using a Sales Receipt in an Other Income account that i call Sale of Assets and then leave the journals etc to the Accountant at year end as part of their tax work

I know that this means any management reports are not 101% correct but in my experience this has not influenced any management decisions made during the year

Kris_Williams

I don’t do any depreciation entries either, but I do post the sale to the At Cost account

Bruce

@Roland Kris' approach also works. Using a separate account or the original cost account should make it blindingly obvious to the accountant that something unusual has happened that requires attention

Kris_Williams

The customer is the person to whom you sold the asset

the new item will be Asset Sale, or M/v sale, something like that, the tax code will be GST and the account the item is linked to would be Plant & Equipment or Motor Vehicle asset account.

This is how I do it, but there a number of ways, you can call me if you wish

0415940843

Kris_Williams

Service is fine or other charge

Acctd4

Just an FYI ... you need to hit 2 different areas with the process - Income AND the Asset - so it's best to use a Sales Receipt (to record the sale to the customer against a "MV Sale" Other Charge-type Item, linked to an Income account) & a GJ to record the Asset value reduction.

Your tax agent will determine at EOFY the final figures to clear the Asset, as depreciation will be claimable up to the point of sale along with any balancing adjustment for capital gain (profit) or loss made 😊

Roland

Thanks so much everyone. I have a positive direction to work with now.

Roland

Roland

Hi Everyone,

I seem to have hit the wall on the simplest part of the instructions, the sales receipt. :)

Firstly, what do I use for the Customer/Job entry?

Secondly, my item list only contains work related items. I have tried to create a new item but not sure what to put in the fields on the New Item panel.

Any thoughts would be greatly appreciated

Roland

@Kris_Williams Thanks for the info, but I'm still stuck on the Item type in the dropdown list? It's not service or inventory or non-inventory .

Roland

@Kris_Williams this is what I mean. None of the descriptions seem relevant to the task

Thanks

Roland

Awesome, thanks @Kris_Williams. I'm grateful for your patience on what must seem a ridiculously simple task.😂

Thanks again.

Roland

Kris_Williams

No problem Roland, everything is easy when you know how, but there’s always a first that’s confusing, glad to be of help