NetAsset - Alternate Depreciation Schedule Disposals
Use Case: Circumstances may require the disposal of an asset before or after it’s been fully depreciated. In these instances, a disposal entry is required to remove the asset (and accumulated depreciation), settling any cash paid or received with an offset to the gain/loss account. Please refer to the following article on how to Dispose of an Asset for that standard use case.
Once you have disposed of the asset, you can go ahead and get started on the disposals for the alternate depreciation schedules.
Automated Process
Behavior of alternate schedule disposals depends on your System Setup Settings and the type of alternate schedule:
- Posting Alternate Schedules - aka a multibook schedule - the disposal for the secondary book always happens automatically. No additional work or actions needed. The schedule is updated and the journal removing the asset, accumulated depreciation, and processing any gain and loss is posted for the secondary schedule.
- Non-Posting Alternate Schedule- aka a tax or disclosure schedule - the disposal can be processed automatically with the following settings:
- System Setup > NetAsset Setup > Tax Settings Section >
- Automatically Update Tax Schedules = checked
- Ignore Disposals on Alternate Schedules = unchecked
- The disposal method used will be the method in the Override Disposal Convention field on the Depreciation Method record.
- System Setup > NetAsset Setup > Tax Settings Section >
If these configurations are done properly, when the main asset is disposed, the secondary schedule will update automatically. No journal is posted since it is a non-GL impacting schedule.
Disposal Proposals
Proposal records can be uploaded to mass dispose assets. The secondary schedules will still process correctly regardless of how the disposal is triggered (one off, mass disposal suitelet, or proposal processing). No additional information needs to be uploaded with the proposal record for the secondary schedule since the default is coming from the depreciation method associated with the alternate schedule.
Manual Process
If the above settings are not or cannot be configured as suggested, you are able to manually kick off the processing for the alternate schedule using the steps below. This can be done at any point in time.
- Once you have disposed of your specified asset, navigate to NetAsset > Update or Modify Assets > Generate Depreciation Schedules:
- You will be prompted to a screen that looks like a normal Generate Depreciation Schedules window. In the Alternate Depreciation Schedule field, filter for the name you designated as your Alternate Schedule title (ie: FED, State, AMT, etc.)
- A new sub tab will show on the bottom of the screen titled "Alternate Schedule Options." This is where you can populate the following fields if applicable: "Disposal Convention Field", "Write Off Date", and then check the box that says "Unlock Schedules (and regenerate schedules)."
- You will then want to locate the specified asset which you had previous disposed of, and mark it in the list of assets:
- Press the Generate Schedules button, this will rerun the schedules for a disposed asset. From here you will need to navigate back to the asset record for the disposed asset and the Alternate Schedule subtab (renamed as Federal Taxes and State Taxes in the example). Ensure that the alternate schedules have been disposed.
- Your alternate schedules should now be disposed just like the original asset.
