Derecognition process is an act of disposal of the fixed asset from the system after its period of useful life is over and no future economic benefits are expected from the asset, e.g. it is effectively scrapped. When derecognizing the asset, its cost and accrued depreciation are removed from the balance sheets.
- You have at least one asset, input in the system as the fixed asset.
- Such asset was previously recognized in the system
At the end of its useful life, the salvage value of the asset may be zero, or it may be derecognized before the end of its useful life, with a use of certain legal procedures.
After being derecognized, the asset may be sold and company may gain some income.
When derecognition entry is created, it makes records in transaction journal and Assets properties journal. You may view a list of records for derecognition by clicking on a special button next to it on Derecognition listing page or in a particular entry.
To go to the Derecognition
- On the Codejig ERP Main menu, click the Fixed assets tab.
- Under the Fixed assets tab, click Derecognition.
Derecognition: General Area
Derecognition: Fixed Assets Tab