Asset Realisation

Assets can be realised in a couple of different ways.

Entering assets using the Group Deposits Payments option will result in a one line transaction in the Cash at bank account being the net deposit received for the sale with the narration Group Receipt or Transfer, depending on the method used.

The receipt and payments will be recorded on separate lines in the F5602/5603 and the Payee/Payer names will be reported, as opposed the Payee name in the cashbook (Group Receipts or Transfer).

You can also use this method for asset realisation where the secured creditor has been paid the balance of sale directly resulting in no funds being banked to Cash at Bank. This is also detailed the linked article on Realising Assets through Group Deposits Payments.

This article will explain Realising Assets using the Group Deposits Payments method

Realising Assets through Group Deposits Payments

Alternately you can prepare a transaction directly to the Cash at bank account or via a Batch to post directly to the bank account.

The transaction will appear again as one line in the Cash at Bank account with the Payee line being the Customer name entered in the Cash Sale.

In the event the secured creditor is paid the balance of the sale proceeds and the receipt is nil you can either post a 0.00 receipt to the Cash at Bank account (which will need to be reconciled) OR you can process a journal, which explained in the attached article.

The customer name/Payee Name will appear in each receipt and payment line of the transaction on the Form 5602 and 5603. This may not be an accurate record of the transaction as the Payee and Payers are rarely one in the same. This is why we recommend using the Group Deposits Payment method.

In the event you wish to use this method please refer to the KB linked to this article.