Overview

Fr8Labs allows you to handle both scenarios, ensuring that financial records stay accurate and compliant.

Disposal and write-off functions automatically adjust the asset’s value, update the register, and create the necessary accounting entries.

Asset Disposal/Write-off Action Buttons

Selling an Asset (Disposal)

When an asset is sold, Fr8Labs records the disposal and posts the gain or loss.

Steps to Record Disposal

1. Open the Asset record.

2. Select Dispose / Sell Asset.

3. Enter the following details:

   • Disposal Date – The date of sale.

   • Sale Amount – Amount received from selling the asset.

   • Customer – The buyer of the asset.

   • Journal Reference – Automatically generated or linked to a disposal entry.

4. Save and Submit.

What Happens

• Asset status updates to Disposed.

• Remaining book value is reversed.

• Any difference between sale amount and book value is recorded as:

  • Gain on Disposal of Asset (if profit)

  • Loss on Disposal of Asset (if loss)

Confirm Dialog After Clicking the Sell Assets

New Sales Invoice (After Click the Sell Asset)

Writing Off an Asset (Scrapping)

If an asset is no longer usable and has no resale value, it should be written off.

Steps to Record a Write-off

1. Open the Asset record.

2. Select Scrap / Write-off Asset.

3. Enter the following details:

   • Scrap Date – Date the asset was scrapped.

   • Scrap Reason – e.g., broken, obsolete, stolen.

   • Journal Reference – Automatically generated or linked to a write-off entry.

4. Save and Submit.

What Happens

• Asset status updates to Scrapped.

• Book value is fully written off.

• Any remaining depreciation schedule is cancelled.

• Accounting entry posts the residual value to Loss on Asset Disposal.

Confirm Dialog: Scrapt Assets

Message Dialog: Asset Scrapped

Reports After Disposal/Write-off

• Disposal Report – Lists all assets sold, with gain/loss details.

• Write-off Report – Shows all assets scrapped and reasons provided.

• General Ledger – Reflects journal entries for disposal/write-off.

General Ledger of Asset Disposal

Key Points to Remember

• Always ensure the disposal or write-off date is correct for accurate reporting.

• Gains/losses are automatically reflected in Profit & Loss.

• Once an asset is disposed of or written off, it cannot be reactivated.

• Scrapped assets do not generate revenue, while disposed assets may create profit or loss.

Documentation owner: Fr8Labs Customer Success. Text reviewed: 21 September 2026.