Hello,
Fixed assets split for an old asset and then scraping the newly created split asset doesn't create correct GL entries for the scrap. Here is the scenario.
A fixed was created for 10 laptops. Depreciation was calculated for the assets for periods crossing the year. Later company decided to scrap 5 of the laptops. Since there was no way to partially scrap an asset, asset split functionality was used to create a new asset which moved all the cost and accumulated depreciation for the 5 laptops to the new asset. After that, when user tried to scrap the newly created split asset, system reversed everything and didn't consider the net book value. On the contrary, if an asset is scraped the system does consider net book value.
One of the following two ideas can be implemented in the system.
- Allow partial scrapping of the asset.
- Consider net book value when scraping an asset with accumulated depreciation.
Thanks