¶ Purpose
The Sales of Asset screen is used when a fixed asset is sold, to remove the asset from the ledgers, calculate gain/loss, and update cash or receivables.
¶ Prerequisites
The following transactions must be completed.
- The Prefix Combination Settings need to be updated.
- Access rights must be assigned to the responsible user for the transaction.
- The Asset Master is required.
- The Asset must be capitalised.
- An asset profit and loss account is required.
- GST-TCD mapping is required.
- Depreciation, CWIP and Capital Ledgers are required.
¶ Sale of Assets
The Sale of Assets screen allows the user to sell one or more assets to another company.
Navigation: Main – Menu ⇢ Transactions ⇢ Finance ⇢ Finance Entries ⇢ Finance ⇢ Select Financial Year ⇢ Show List ⇢ Assets ⇢ Sale of Assets
- The user can search for particular details based on the Transaction From (Date) and Transaction Number.
- The Sale of Assets screen allows the user to enter details into four sections as listed below.
- General
- Rev- Exp
- Additional Details
- Attachments
- The General section displays details such as the Trans No., Date, Invoice Date, Currency Type and Exchange Rate.
- The user must select the Revenue A/C (Cr) as the Sales of Fixed Assets from the dropdown list.
- The user must select the appropriate Profit Centre from the dropdown list.
- The user must select the appropriate Customer from the dropdown list.
- Once the user selects the Customer, the Invoice Number details will appear.
- Once the user selects Revenue A/C, the details of the Asset (Sale Type, Asset Code and Asset Number) will appear as shown below.
- The user can search for a particular asset using the F3 Key.
- The user must select the appropriate Asset checkbox.
- Once the user selects the Asset, details such as the Asset (Name, Original Cost, Total Depreciation, and Net Value) will appear as shown below.
- The user must select the appropriate Asset checkbox.
- Once the user selects Asset, details such as the Asset (Sale of Original Cost, Sale Value), Amount (INR) and Total Amount (Dr) will appear as shown below.
- The user must select the appropriate HSN Number from the dropdown list.
- Once the user selects the HSN number, the Duties and Tax, Tax Amount (Cr) and Total Amount (Dr) will appear.
- The Duties and Tax Details (Cr) section displays details such as Tax Category, Tax Amount, Assessable Amount, Account and Dr/Cr.
- Click Time Details, to view details of Preparation Time and Removal Time if required.
- The Audited checkbox is automatically selected once the authorised person audits the transaction.
- The Edited checkbox is automatically selected after any modifications are made to the existing transaction details.
- The Rev and Exp section allows the user to select the Revenue and Expense accounts if required.
- The Additional Details section allows the user to enter additional details, if any.
- The Attachment section allows the user to upload attachments if required.
- Click Save, the transaction reference number will appear on the left panel of the screen.
¶ Cost Distribution
The Cost Distribution link allows the user to view or edit the expenses of assets.
- The user can search for existing transactions based on Transaction From (Date) and Transaction Number.
- The user must select the appropriate transaction number from the left panel of the screen.
- Click the Cost Distribution link, the following screen will appear.
- The Cost Distribution screen displays transaction details such as SI No., Tr. No., Tr. Date, A/C Name, Description, Dr, Cr, Cost and also allows the user to view cost distribution details.
- Click the Edit link, the following screen appears.
- The Cost Distribution section displays transaction details such as the Type, Cost Distribution and Amount details.
Note: The system automatically distributes the cost, and the user can view and modify the distribution if required.
¶ Approve Transaction Details
The Approve link allows the user to approve the added or existing transaction details if required.
- The user can search for a particular transaction based on the Transaction From (Date) and Transaction Number.
- The user must select the appropriate transaction from the left panel of the screen.
- Click Approve, the following message will appear.
- Click Yes, to approve the transaction, and the transaction number will turn green.
¶ Audit Option
The Audit option allows the user to review and confirm details like amount, date, and account information.
- The user can search for existing transactions based on Transaction Number and Transaction From (Date).
- The user must select the transaction number from the left panel of the screen.
- Click the Audit link, the following message will appear.
- Click Yes.
¶ View Asset Details
The Preview option allows the user to view and print the added or existing transaction details.
- The user can search for existing transactions based on Transaction Number and Transaction From (Date).
- The user must select the appropriate transaction number from the left panel of the screen.
- Click Preview, the user must select the appropriate option from the Export To Excel and Export To Open Office options.
¶ Delete Transaction Details
The Delete option allows the user to delete the added or existing transaction details if further transactions are not executed.
- The user can search for a particular transaction based on the Transaction From (Date) and Transaction Number.
- The user must select the appropriate transaction from the left panel of the screen.
- Click Delete, the following message will appear.
- Click Yes, the following message will appear.
- The user must enter the appropriate Comments.
- Click OK, and the deleted transaction number turns red.
¶ Functional Use Cases
| SL No. | Use Case | Business Scenario | Functional Outcome in ERP |
|---|---|---|---|
| 1 | Asset Sale Processing | A company sells one or more fixed assets to an external customer. | The system processes the sale, calculates gain/loss, updates ledgers, and generates the asset sale transaction. |
| 2 | GST & Tax Calculation | The asset being sold attracts GST based on HSN code. | The ERP auto-calculates GST based on selected HSN, updates duties & taxes, and posts tax ledger entries. |
| 3 | Cost Distribution | The organisation needs to allocate transaction cost to cost centres. | ERP displays cost distribution entries and allows editing or reviewing expenses related to asset sale. |
| 4 | Transaction Approval | Asset sale must be approved before posting. | The approver verifies details and approves; the transaction turns green once approved. |
| 5 | Audit Validation | Auditor needs to verify correctness of the transaction. | The system validates and records audit confirmation for amount, date, account, and tax details. |
| 6 | Document Printing & Export | The user wants to print or export sale documents. | The ERP generates a preview and exports asset sale details in Excel or Open Office formats. |
| 7 | Transaction Deletion | Incorrect sale entry must be removed before approval. | The ERP deletes the selected transaction, records comments, and marks the transaction number in red. |
¶ Use Case Scenario
- Click here for a detailed use case scenario.
¶ Transaction Checklist
| Steps | Checklist Item | Details / Purpose |
|---|---|---|
| 1 | Verify Prefix Combination Settings | Ensure prefix settings are updated so the sale transaction number generates correctly. |
| 2 | Check User Access Rights | Confirm the user has the rights to perform the Sale of Assets transaction. |
| 3 | Validate Asset Master | Ensure the asset is already created in the Asset Master. |
| 4 | Confirm Asset Capitalisation | Verify the asset is capitalised and appears in the fixed asset register. |
| 5 | Verify Profit and Loss Account for Assets | Ensure the gain/loss account exists for posting results. |
| 6 | Confirm GST–TCD Mapping | Ensure applicable GST tax codes and TCD ledgers are correctly mapped. |
| 7 | Check Depreciation Ledgers | Verify depreciation-related ledgers exist. |
| 8 | Check CWIP / Capital Ledgers | Confirm CWIP/capital ledgers are created and mapped. |
| 9 | Select Correct Financial Year | Ensure the financial year is selected before entering transactions. |
| 10 | Validate Customer Master | Ensure the purchasing customer exists in the system. |
| 11 | Verify Revenue A/C Availability | Confirm “Sale of Fixed Assets” revenue account exists. |
| 12 | Prepare HSN Code Details | Keep HSN code details ready to apply correct tax rate. |
| 13 | Ensure Supporting Documents Availability | Keep invoice, approval notes, and asset sale documents ready for attachment. |
| 14 | Verify Asset Status | Ensure the asset is not already sold or retired. |
| 15 | Confirm Sale Value | Ensure approved sale amount is finalised before entry. |