How to write off a fixed asset in iplicit?

This article covers how to write off a fixed asset in iplicit's Fixed Assets module using the 'Write-off' movement. A write-off is used when an asset is removed from the register without any sale proceeds - for example, when an asset is scrapped, lost, destroyed, or fully depreciated with no residual value. iplicit creates a journal that posts the remaining net book value to the P&L and clears the asset value from the Balance Sheet.

If the asset is being sold and a debtor needs to be raised for the proceeds, use 'Dispose (Debtor)' instead. See How to dispose of a fixed asset in iplicit.

Before you start

The following must be in place before a write-off can be processed. If any of these steps have not been completed, set them up first before returning to this article.

Account defaults

The asset group must have both write-off account defaults configured:

• 'Write-off (P&L)' - P&L account; records the write-off loss
• 'Write-off' - Balance Sheet account; clears the remaining asset value

Without both in place, iplicit cannot post the write-off journal to the correct GL accounts. See How to configure account defaults for fixed assets in iplicit.

Document types and series

The 'Asset Write-off' (ASSWO) document type must be unlocked and a document series must be active, unlocked and dated before the write-off date. Without both in place, iplicit cannot number or post the write-off journal. See How to set up document types and series for fixed assets in iplicit.

Asset status

The asset must be capitalised before it can be written off. The 'Write-off' option only appears on capitalised assets. See How to capitalise a fixed asset in iplicit if the asset has not yet been capitalised.

Writing off an asset

1. Open the asset record - select 'Assets' from the Main Menu, or enter 'Assets' in the quick search
2. Open the relevant asset
3. Select the dropdown arrow next to the movement options
4. Select 'Write-off'
5. Confirm or update the 'Movement date'
6. Enter a 'Reason' for the write-off - this field is mandatory
7. Review the asset listed in the assets panel, which shows the purchase cost, depreciated amount, net book value and net amount to be written off
8. Select 'Create as draft' to save the write-off for review before posting, or 'Submit' to post immediately
9. Select 'Discard' if you need to cancel without saving

iplicit creates a journal posting the remaining net book value to the P&L via the 'Write-off (P&L)' account and clearing the asset value from the Balance Sheet via the 'Write-off' account. The asset status updates to reflect it has been written off.

Viewing the write-off in the asset record

Once processed, the write-off movement and its associated journal are visible on the asset record under the 'Movements' tab and the 'Journals' tab respectively.