# Sell or dispose of an asset

Close an asset that is sold, thrown away or written off with one closing entry that removes it from the books and records the gain or the loss, then post that entry.

An asset leaves the books when it is sold, given away, broken or stolen. One closing entry then takes its original value off the asset account, cancels the depreciation built up so far and puts the difference on a gain or loss account. The pictures follow a projector recorded for the example, *Asset demo: Old projector*, 900.00 over four quarters, closed as soon as it is confirmed; the figures in the text are those of the demo *Reception furniture*, 4,200.00 with three monthly entries posted.

## Before you start {#before-you-start}

- You need the **Administrator** access right on **Accounting**.
- The asset is **Running** or **Paused**.
- When the asset is sold through an invoice, create and post that customer invoice first ([Customer invoices](/docs/customer-invoices)): the dialog only lists posted ones.

## Fill the disposal {#dialog}

1. Open the asset from **Accounting/Accounting/Assets & Liabilities/Assets & Deferrals**, open the **Actions** menu and choose **Adjust**.
2. Set **Action Type** to **Sell / Dispose / Write-off**. **Effective Date** is the date of the closing entry: today unless you change it.
3. The group **Disposal Details** appears:
   - **Sale Invoice**: the customer invoice of the sale, if there is one.
   - **Invoice Line**: the line of that invoice that carries the price of the asset.
   - **Gain/Loss Account**: the account that takes the difference between the price and the book value. It is required for an asset.

![Disposal Details takes the sale invoice when the asset is sold, and the account of the gain or loss.](https://jaah.app/web/image/11108-0902d466/fixed-assets-dispose-dispose_dialog-en.png)

4. Choose the **Gain/Loss Account**, *450000 Other Income* in the example, where the item is thrown away without a sale.

![The account that takes the difference between the book value and the sale price.](https://jaah.app/web/image/11112-75f68097/fixed-assets-dispose-dispose_gain_loss-en.png)

## Apply and post the closing entry {#apply}

1. Click **Apply**. Every entry not yet posted is deleted and the closing entry opens, still a draft, with the reference *Disposal:* followed by the asset's name, in the asset's journal. For the reception furniture, its lines are:
   - the **Depreciation** account debited by what was depreciated so far, 150.00;
   - the **Asset** account credited by the original value, 4,200.00;
   - the **Gain/Loss Account** for the difference: a loss of 4,050.00, the book value of furniture that brings nothing back. With a sale invoice line, the sale price also appears on that account, next to the gain or the loss.

   The projector had no posted entry yet, so its closing entry has no **Depreciation** line: its whole value goes to the loss. With a long schedule, deleting the draft entries can take a minute or more: wait until the dialog closes.

![The closing entry, still a draft, removes the asset and records the loss.](https://jaah.app/web/image/11116-e4ec9940/fixed-assets-dispose-disposal_entry-en.png)

2. Check the entry, then open the **Actions** menu and choose **Post**.

![The closing entry is posted.](https://jaah.app/web/image/11120-8f43dcb3/fixed-assets-dispose-disposal_posted-en.png)

3. Go back to the asset through the path at the top of the screen. It is **Closed**, its schedule has no draft entry left and the chatter records the closing date.

![The asset is closed; nothing more is depreciated.](https://jaah.app/web/image/11124-b1802623/fixed-assets-dispose-asset_closed-en.png)

## Close a deferral early {#deferral}

For a deferred expense or a deferred revenue, the same choice shows **Write-off Remaining Balance** instead of the disposal details: the remaining balance is recognised at once in one entry with the reference *Early Recognition*. Use it when a contract paid or billed in advance ends sooner than planned.

## FAQ {#faq}

### Why does the closed asset still show a book value? {#book-value}

The **Book Value** adds up the amounts of the posted depreciation entries. The closing entry is linked to the asset and listed in its **Schedule**, but it carries no amount there, so a closed asset keeps, on its form and in the list, the book value it had on its closing day. The accounts themselves are cleared by the closing entry.

### Can I use Cancel instead? {#cancel}

**Cancel** is for a record created by mistake: it is refused as soon as one entry is posted, with a message that points to the disposal.

### Can I reopen a closed asset? {#reopen}

No action does it on the form. Record a new asset if the item comes back into use.

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- Source: https://jaah.app/docs/fixed-assets/sell-or-dispose-of-an-asset
- Updated: 2026-10-23
- Version: Fixed assets 19.0.1.5.0
- Verified: 2026-10-23