Selling a portion of a capital asset

A capital asset is defined as any long-lived tangible or intangible asset that contributes to the operation of the business throughout its service life. You can split a capital asset out of a parent asset, if you want to sell a portion of your capital asset.

In this example, a combine/header combination is owned and valued at $500,000. The header is then sold for $100,000.

1. Go to Setup and click Capital Assets. In the Capital Assets dialogue box, select the appropriate asset  and click Split to open the Capital Asset Split dialogue box 

2. In the Capital Asset Split dialogue box, the information for the original asset is displayed on the right side. Click Save.

 3. The new asset has automatically been inserted into the asset list in the Capital Asset dialogue box.

4. As well, the capital cost of the original asset has been reduced to reflect the capital asset split.

5. In the transaction entry screen, you can now sell the split asset.

Last updated on February 6, 2013 by FCC Management Software