Scrapping an Asset

When an asset is no longer usable, it is scrapped.

Using the "Scrap Asset" button in the Asset record, you can always get rid of an asset. When prompted for confirmation, select Yes to have the asset destroyed.

asset scrapped

The Current Value (After Depreciation) of the asset is debited from the "Gain/Loss Account on Asset Disposal" account indicated in the Company.

When an asset is scrapped, a journal entry is made:

scrap journal entry

Using the "Restore Asset" button on the item master, you can also restore the asset after scrapping.