Issue/Symptom/Question

What is the Offset Account on the Disposition tab of the Fixed Asset screen.

When recording a fixed asset disposal, I attempted to enter an Offset Account, but PENTA provided the following error message:

Error

Account #### has an edit rule of EQDISP. The account on this entry must have one of the following edit rule codes: NULL. Do you wish to see the possible values?

Applies To

PENTA for Windows

Asset Information (Fixed Asset Management>Assets Information)

Asset Disposal

Resolution/Fix/Answer

The 'Offset Account' field is used as a cash/proceeds from sale clearing account. When the asset disposal is processed, it will debit the 'Offset Account' in the amount of the Disposition Price identified on the disposal. When the actual cash is received, it can be received through the cash receipt window, crediting the Offset Account selected here.

The Offset Account is not a gain/loss account, and needs to have a null edit rule code.