Write-offs
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Elements written off from fixed assets due to transfer of ownership, settlement or write-off for perishing, extinction, wastage, obsolescence or exhaustion must have their book values written off from the respective accounts of fixed assets, in the exact proportion of the write-off made.
Accounting record of write-off involves a credit in the account of the corrected cost and a debit in the respective accrued depreciation (or other) account.
For write-off, you must enter write-off value or amount, date, reason, and invoice number (in case of a sales transaction).
Partial write-off of items with aggregates, types 02-Revaluation or 04-Law 8200 must be made by value. These aggregates must be written-off together with the main item by entering Yes for the question Write off sub-item?- (Reval/Law 8200) Y/N.
Through standardized entries, you can define the sequence for write-off accounting.
Write-off can be by amount, value, or percentage. Write-offs by amount or percentage imply reduction of amount of the asset. Write-offs by value only result in reduction of the values accrued.
Write-off by Amount
It implies reduction in the amount of an asset (Example: one lot of 100 tables).
Write-off by Value
Assets with types 01 (acquisition), 02 (Revaluation), 04 (Law 8200), or all of them must be written off by value.
Assets of types 02 and 04, if any, must be written off together with type 01 in the same proportion.
88612c8f-04a0-4da6-a42a-0580491d94f9Tip: The Automatic option enables a lot to be automatically written off. Generic data regarding write-off must be entered and items must be selected. In case of assets acquired till 12/31/95, they must be indexed. |
88612c8f-04a0-4da6-a42a-0580491d94f9Important: Parameter admin-IN-316fd0ae-5f3c-4db9-ac26-cbdf4ff8a7d1-1507579308097-8a373667-4068-482d-ab9b-fcd4f7554105 allows writing-off assets that were not transacted in the month previous to the last calculation of depreciation, e.g., advance type assets. Either parameter configuration with 0 or 1 requires no transactions in dates subsequent to the write-off date. |
Procedures
Write offing an asset:
| 1. | In Asset Write-off, select the asset, and then Write Off. |
Write-off window is displayed.
| 2. | Fill out data according to field help instructions. |
| 3. | Check data and confirm write-off. |
See also