Derecognition: General Area

Use this area to provide general inventory transfer details.


Used for

Method of derecognition

Chose one of two derecognition methods, offered by the system, or create a new one.

The system offers to derecognize the asset by transferring it to a warehouse or writing it off.

1) Transfer to warehouse

Procedure implies that after being derecognized, the asset will be moved to a warehouse as an item, and may be sold in the future.

2) Write-off

Procedure implies that after being derecognized, an asset will be completely excluded from the companies balances and no longer belong to the company as property.

When the asset is written off, the system will add an additional field, that requires to choose from a drop-down list or create a new Expense account where the residual value of the asset will be transferred.

Along with described fields, the general area also contains the following:


Used for


Document number (#) is assigned automatically when you save the derecognition document based on the selected numerator.

Users with the appropriate permissions can override the auto-generated number and enter it manually.

After overriding the derecognition document number, automated numbering will proceed in the same manner but using the manually set number as a start value.


Date field is automatically assigned the datetime when the new derecognition document was created.

Date field indicates the posting datetime, the document datetime as well as the datetime when the derecognition is to take place or when it took place.

You can override the auto-generated datetime and enter it manually.

  • It is a required field. If document date is not specified, you will not be able to save the document.

After you will fill in an accounting tab with chosen fixed assets, the system will automatically calculate data in following fields:


Used for

Initial value

Original cost of the fixed asset at which it was purchased, assembled, manufactured or acquired in any other way, including all additional expenses.

The initial value is defined automatically after filling in the fields Fixed asset and Warehouse. You are not able to change the initial value in the document.

In case there are several fixed assets of the same type in the chosen warehouse, the initial value of the fixed asset chosen in the document will be defined by the inventory valuation method set in My company settings.

If you choose the warehouse or inventory account which does not store the required fixed asset, the initial value will be equal to zero.

Accrued depreciation

Amount of depreciation accrued up to the moment of asset/assets derecognition.

Residual value

Total residual value of the assets listed in accounting tab.

More information

Create a New Derecognition Document
Derecognition: Fixed Assets Tab