"Disposals" refer to the complete sale, disposal, or exit of an asset from a company's inventory. This means that the asset is no longer owned by the company and needs to be removed from the balance sheet. Disposals can occur for various reasons, such as sale, scrapping, theft, or retirement.
Typical functions of software in the "Disposals" area include:
Recording Disposals: Ability to capture information about the sale, disposal, or exit of assets in the software.
Automatic Inventory Updates: Automatic updating of inventory records to reflect the disposal of an asset and remove it from the balance sheet.
Booking Losses or Gains: Ability to book losses or gains from the disposal of an asset in the accounting records.
Compliance Checking: Verification of compliance with tax regulations and accounting standards related to disposals.