Asset Disposal Workflow

Disposing of a tracked asset is more than hiding the account. Common Cents uses a guided workflow so the asset balance reaches $0 in a way that matches what actually happened.

When to use disposal #

Use Dispose Asset when a fixed asset still has a positive balance and you are:

• selling it
• donating it
• writing it off

If the balance is already $0, you do not need disposal. You can close the asset directly with Close Fixed Asset.

If the balance is negative, Common Cents blocks automatic disposal. You need to correct the balance first and then try again.

What the workflow asks for #

Every disposal asks for:

• a Disposal Type
• a Date
• an optional note

If the disposal type is Sold, Common Cents also requires:

• a Sale Amount
• a Destination Account for the sale proceeds

The destination account must be an open account other than the asset itself.

What Common Cents records #

Sold #

For a sale, Common Cents moves the sale amount out of the asset account and into the destination account.

Then it compares the sale amount to the current asset balance:

• If the sale amount is higher, Common Cents records a gain for the difference.
• If the sale amount is lower, Common Cents records a loss for the difference.
• If the sale amount exactly matches the tracked value, no extra gain or loss entry is needed.

Written Off or Donated #

For a write-off or donation, Common Cents records a loss for the remaining asset balance so the asset account reaches $0.

Review before anything is saved #

The workflow is two-step.

First you enter the disposal details. Then Common Cents opens Review Disposal and shows the exact result before anything is recorded.

For sales, the review step shows the current balance, sale amount, destination account, and calculated gain or loss. For write-offs and donations, it shows the amount being cleared from the asset.

When you choose Confirm Disposal, Common Cents records the disposal entries. If you are posting into a closed budget period, the app can stop and ask you to confirm that before it continues.

What happens next #

After disposal succeeds, the asset balance should be $0. At that point the account is ready for Close Fixed Asset.

Disposal does not close the account for you. It settles the balance first so the close step can happen cleanly.

If you need the setup side of this feature instead of the exit side, go back to Tracking Fixed Assets.