How Do I Record a Capital Asset Trade-In in Aclarian?

You are trading in an old asset for a new one. There is no trade-in value field on the Disposal Form in Aclarian. The Salvage Amount field is not editable. This is not a bug or a missing setting.

The trade-in process requires a few manual steps. This article walks you through two options depending on how much detail you need in your records, and covers what to do when the new asset value is less than the old one.

Is There a Trade-In Value Field on the Disposal Form?

No. The Disposal Form does not have a trade-in value field and the Salvage Amount field is not editable. This is expected behavior.

The trade-in process must be handled manually using a combination of the Disposal Form, the Asset Addition Form, and in some cases a Journal Entry Form.

Option 1: Simple Approach

Use this option when you want a straightforward recording without additional journal entries.

This works best when the new asset cost is higher than the trade-in value.

Step 1: Complete the Disposal Form
Complete the Disposal Form for the asset you are trading in. Record it as a standard disposal.

Step 2: Record the new asset at the net value
On the Asset Addition Form, enter the value of the new asset net of the trade-in amount. This means the full purchase price minus the trade-in value you received.

Example:

Option 2: More Detailed Approach

Use this option when you want your records to show both the full trade-in value and the full acquisition cost of the new asset separately.

Step 1: Complete the Disposal Form
Complete the Disposal Form for the asset you are trading in.

Step 2: Post a Journal Entry
Post a Journal Entry Form to record the trade-in value. The entry debits Capital Outlay and credits Gain or Loss on Sale for the trade-in value amount.

Step 3: Record the new asset at full cost
On the Asset Addition Form, enter the full purchase price of the new asset including the trade-in value.

Example:

This option provides more detailed records and gives your auditors a clearer picture of the full transaction.

Both options are valid. Work with your finance or accounting team to decide which approach is right for your organization before recording anything in Aclarian.

What If the New Asset Value Is Less Than the Net Book Value of the Old Asset?

This is a more complex situation. It requires additional steps beyond the two options above.

Please review this with your finance or accounting team before you begin.

Example scenario:

• Old asset original cost: $39,000
• Accumulated depreciation: $12,000
• Net book value: $27,000
• Two new assets acquired through trade-in totaling $15,630.86
• No cash paid out of pocket

Step 1: Complete the Disposal Form
Complete the Capital Asset Disposal Form for the old asset. The system will automatically create the following journal entries:

• Debit Accumulated Depreciation
• Credit the asset at cost
• Debit Gain or Loss on Disposal

Step 2: Post a Journal Entry
Post a Journal Entry Form to record an equity adjustment reflecting the trade-in value received.

Step 3: Create Asset Addition Forms for the new assets
Do not select a capital asset transaction to tag to the new assets. Instead, manually enter the value of each new asset on a separate Asset Addition Form.

If two assets were acquired, create two Asset Addition Forms, one for each asset at its individual value.

Example:

Which Option Should I Use?

Important Things to Know

• The Disposal Form does not have a trade-in value field. This is expected and cannot be changed.
• The Salvage Amount field on the Disposal Form is not editable.
• All accounting decisions including gain or loss calculations and journal entry amounts must be confirmed with your finance or accounting team before you record anything.
• If the new asset value is less than the net book value of the old asset, contact Client Support before proceeding. This scenario requires additional steps that your team should review first.