Excellent video. Thank you! I came across a problem which was that I couldn't process the disposal because my depreciation had not been run into the current financial year. So another quick RUclips tutorial, I ran the depreciation up to the current date and was able to dispose of the asset just as you showed in your video :)
Honestly speaking, this is the irony of doing the accounting in a sophisticated way. In one hand, it makes the accounting process fast and yet it complicates simple things. In this particular example, Xero should just debit the cash/bank as proceed of the sale, credit the fixed asset to close it, debit the acc dep to zero it out, and debit or credit the loss/gain on sale. I am only talking about the automation of the accounting process. To the creator, one of the best tutor in the You tube university. Salute to you mam.
Hi, this is a really helpful video. I'm a bit confused about which account we should code the purchaser's invoice to. Is it Plant & Machinery (where the original asset purchase was coded) or the Loss/Gain on disposal? When we reconcile the payment, we code to Loss/Gain right? Sorry if I'm being stupid!
Hi Marion. What is the reason for coding the sale proceeds account to the loss/gain account and then reversing it out with the extra step of recording a money received transaction and not recording it directly to the bank? Is it so it can be recorded who the asset was sold to? Thank you for a really helpful video.
Hi Spencer, xero is giving you the flexibility to deal with coding the receipt to any account. Let’s say that you sell your first asset ever and you receive the funds - you might code that receipt to Suspense if you don’t know how to deal with it or don’t have a Gain/Loss code set up. Then when doing the Disposal Journal Xero removes what you’ve entered in Suspense. In my example you do get an ‘in and out’ which may seem pointless but it would be different if another code had been used.
Hi. How do I code it when the reveived funds from selling an asset are directly deposited into a bank account in xero. Do i need to dispose of the asset first?
so if I am disposing a fixed asset for a motor Vehicle I have to create a loss gain account (there is none in xero) and have it as a expense?? I wouldn't just put it in motor vehicle expense account?
Hi Marion, our assets are registered in batches, let's say a batch of 100 items are registered as one asset. I need to dispose of only a few of the 100 - how would you go about it? Thank you for a very helpful video otherwise :)
@XU Academy would it work to copy the asset to a new one with the same creation date, etc and split out the quantities, e.g. edit the first one to 20 and the new one to 80, then dispose of the whole first asset of 20?
The moment i have a question to do with xero,, i search your videos,,your genius of this software ❤
Excellent video. Thank you! I came across a problem which was that I couldn't process the disposal because my depreciation had not been run into the current financial year. So another quick RUclips tutorial, I ran the depreciation up to the current date and was able to dispose of the asset just as you showed in your video :)
😊
Honestly speaking, this is the irony of doing the accounting in a sophisticated way. In one hand, it makes the accounting process fast and yet it complicates simple things. In this particular example, Xero should just debit the cash/bank as proceed of the sale, credit the fixed asset to close it, debit the acc dep to zero it out, and debit or credit the loss/gain on sale. I am only talking about the automation of the accounting process. To the creator, one of the best tutor in the You tube university. Salute to you mam.
Thanks
Thank you for your video, very helpful. I would like to know how to process a disposal of the item that is partially or fully depreciated.
Love your tutorial videos. Do you have a tutorial for part-exchanged vehicles where the finance has been settled by the new dealer?
Thanks was scratching my head until I came across your video. Very clear.
Always happy to help
Hi, this is a really helpful video. I'm a bit confused about which account we should code the purchaser's invoice to. Is it Plant & Machinery (where the original asset purchase was coded) or the Loss/Gain on disposal? When we reconcile the payment, we code to Loss/Gain right? Sorry if I'm being stupid!
hi, may i know can we partially disposed the asset?
Hi Marion. What is the reason for coding the sale proceeds account to the loss/gain account and then reversing it out with the extra step of recording a money received transaction and not recording it directly to the bank? Is it so it can be recorded who the asset was sold to? Thank you for a really helpful video.
Hi Spencer, xero is giving you the flexibility to deal with coding the receipt to any account. Let’s say that you sell your first asset ever and you receive the funds - you might code that receipt to Suspense if you don’t know how to deal with it or don’t have a Gain/Loss code set up. Then when doing the Disposal Journal Xero removes what you’ve entered in Suspense. In my example you do get an ‘in and out’ which may seem pointless but it would be different if another code had been used.
@@XUSolutions Thanks. That makes perfect sense and it's really nice that Xero creates the journals for you :-)
Just what I needed, thank you
You're welcome
Hi. Thanks for the video. How do I write off a fixed asset that wasn't sold but was just replaced due to its age or broken?
Dispose of it as normal but for zero value.
You're the best!
Thank you
😊
Hi. How do I code it when the reveived funds from selling an asset are directly deposited into a bank account in xero. Do i need to dispose of the asset first?
I actually code under suspense account but how would I create the journal and choose the suspense account in disposing the asset?
No, when you do the disposal you enter the code in Xero where the funds were posted to.
so if I am disposing a fixed asset for a motor Vehicle I have to create a loss gain account (there is none in xero) and have it as a expense?? I wouldn't just put it in motor vehicle expense account?
It makes life easier when doing year end accounts if it’s in a loss/gain account.
Hello Marion, If the asset is on the Finance/Loan. How would this be done ? Thank you
You would do the disposal as shown here, but there will be further adjustments needed to clear any loan balance due.
@@XUSolutions Thank you for your prompt reply. is there any way , you can show how it can be done? any dummy data would be fine too. Thank you
Hi Marion, our assets are registered in batches, let's say a batch of 100 items are registered as one asset. I need to dispose of only a few of the 100 - how would you go about it? Thank you for a very helpful video otherwise :)
There is no option to do partial disposal in Xero unfortunately.
@XU Academy would it work to copy the asset to a new one with the same creation date, etc and split out the quantities, e.g. edit the first one to 20 and the new one to 80, then dispose of the whole first asset of 20?
@@ivela5062 yes you will have to do some sort of work around, sorry I've never had to do it
Hi, could you show how to register a Motor vehicle Fixed asset in Xero please ? Thank you
There are several fixed asset videos on the channel including registering.