Introduction
In the business world, assets are crucial. However, every asset reaches the end of its useful life at some point. This guide will introduce you to a great feature in Empress that allows you to scrap and restore assets efficiently.
Introduction to Scrapping an Asset
When an asset is no longer able to perform its intended function, it needs to be scrapped or disposed of. That’s where the Scrap Asset feature comes in. This feature, found within the Asset record interface in Empress, allows you to mark an asset as scrapped anytime.
To scrap an asset, simply locate the Scrap Asset button in the Asset record interface and click on it. A prompt will ask you to confirm your decision. Once you click Yes, the asset will be marked as scrapped.
The financial implications of scrapping an asset are automatically managed by Empress. The “Gain/Loss Account on Asset Disposal” in your Company settings is debited by the Current Value of the asset. This value is calculated after considering any depreciation.
Understanding the Journal Entry After Scrapping an Asset
A key component of the asset scrapping process is the creation of a Journal Entry. This is done automatically when an asset is scrapped in Empress. The Journal Entry serves as an official record of the transaction, documenting the removal of the asset from your company’s books.
How to Restore a Scrapped Asset
What if you’ve scrapped an asset but later decide it’s still useful? No worries. Empress provides a Restore Asset feature. Just click on the Restore Asset button available in the asset master interface, and the asset will be restored back to its previous state.
Conclusion
The processes of scrapping and restoring assets are critical elements of efficient asset management. By using the Scrap Asset and Restore Asset features in Empress, you can ensure these processes are carried out seamlessly. This not only simplifies asset management but also ensures the accuracy and integrity of your financial data.
For further assistance, please refer to the Empress user manual or contact our support team.