What it is
The Sales Invoice (Fixed assets sales) screen sells a fixed asset (a vehicle, a machine, furniture) to a buyer. It behaves like the standard Raise a sales invoice: the buyer owes the total, VAT is booked, and receipts, returns and IRD work as usual. What differs is what happens to the asset and to the profit.
How it works
On each line you choose the asset product and enter its Book value: what the asset is worth in the books today (cost less depreciation). The screen compares it with the line's net amount:
- Sold for less than the book value: the difference is a loss on disposal.
- Sold for at least the book value: the difference is a gain on disposal.
| Area | Change |
|---|---|
| Buyer's account | The buyer owes the invoice total |
| Fixed assets | The asset's book value leaves the fixed assets account |
| Gain or loss | A gain is booked as income; a loss as an expense |
| VAT and adjustments | As on any invoice |
| Stock | No warehouse stock is taken out: the sale is recorded against the asset instead |
Before you use it
The accountant must have named the ledgers in Configuration, on the Fixed assets tab: the Fixed assets ledger, Loss on Disposal and Gain on disposal. A product that is a fixed asset can carry its own ledgers; the company's apply when it has none. Fixed assets themselves, their depreciation and their disposal are in Set up fixed assets and read the register, Depreciate fixed assets and Dispose of a fixed asset.
Common questions
Where does the book value on the line come from?
You type it. The screen works out the gain or loss from the figure you type, not from the fixed assets register, so agree the book value with your accountant before you save.
Why is there no sales income on this invoice?
The invoice does not book sales income for the asset. It takes the book value out of the fixed assets ledger and books the difference between the price and the book value as a gain or a loss.