A fixed asset is written off when the asset:
- is fully depreciated, or
- is no longer in use (e.g. sold, destroyed, or no longer usable).
A write-off means removing the asset from the company’s fixed asset records.
In the case of a fixed asset sale, the write-off entry is generated automatically and does not need to be recorded separately. For more information on correctly recording a sale, see the guide Sale of fixed assets.
1 Accounting -> Assets- Select the appropriate fixed asset from the list
- Open the asset card
- Click “Edit asset“
- In the right-hand column, the bottom field is for entering the write-off date
- Enter a date that corresponds to the actual date the asset was taken out of use
- Save the changes
Recommendation:
Use the calendar to select the date
When entering manually, use a period to separate numbers and a four-digit year
The system generates the write-off entries automatically – no separate entries need to be made.
If the asset is fully depreciated, the entry contains two lines:
- fixed asset account
- depreciation account
If a fixed asset is written off before it is fully depreciated (e.g. due to destruction or theft), it may have a residual value. In this case, the write-off entry also includes an expense account (the residual value is recorded as an expense).
For additional questions, please contact us at support@simplbooks.ee.
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