Disposal

Equipment leaves: scrapped, sold, stolen, or simply dead. Disposal is how it leaves the books as cleanly as it entered them.

What disposal does#

Marking an active asset disposed:

1. Cancels every remaining scheduled depreciation entry — a dead oven charges no more expense.
2. Posts the disposal entry: the asset's cost comes off the fixed asset account, its accumulated depreciation clears, and the remaining book value is written off to the expense account.
3. The posting and the status change succeed or fail together — a disposal that can't post its entry doesn't happen, so the balance sheet never carries a ghost.

The asset's record survives — history, maintenance log, vouchers — it just stops being part of your current numbers.

Selling an asset#

Disposal writes the remaining value off. If you sell the asset for real money, record the sale proceeds as a receipt voucher against the buyer; the difference between proceeds and the written-off book value is your gain or loss on sale, and your accountant will want it stated in the narration. (A dedicated sell-with-proceeds flow that computes the gain/loss automatically is on our roadmap.)

Before you dispose#

• Post any straggler depreciation first — dispose after the asset is depreciated up to date, so the write-off amount is honest.
• Note the reason in the record — "sold to X", "scrapped, motor burnt", "stolen, police report #" — auditors ask exactly this, years later.
• Disposal is deliberately hard to undo. If a disposed asset turns out to still be in the kitchen, talk to support rather than re-registering it — its history should stay attached.