Fixed asset disposal

Sharelle Buyer

Our accountant was disposing multiple assets and got to one asset that is fully depreciated and it gave her an error message that a reclassification account set up. I've opened a case with Blackbaud and not getting a good answer. They gave me a link to a KB, which didn't tell me much, then I clicked further into the article and all it referred to was credit memos in AP needing a reclassification account. I don't understand why a fixed asset disposal needs a reclassification account. It is a simple entry of Accumulated depreciation and asset. I'm very confused why we need an account and not getting answers from Blackbaud. Has anybody else had this problem arise? Trying to get assets completed for year-end so kind of need this sooner than later. Thanks for your feedback.

Jann McKenzie

@Sharelle Buyer We transferred ownership of a property early this year and I had a large quantity of assets, many of which were fully depreciated, to dispose of. I did not run into this error message and wouldn't know what to do with it if I had, so I feel your pain. Sometimes finding the right person at Blackbaud to talk to can be helpful, someone who has good hands on experience with this topic. Good luck.

Sharelle Buyer

@Jann McKenzie Thanks. I'm not sure why it popped up on this one asset when it didn't do it on any of the other ones.

Sarah Curry

@Sharelle Buyer I checked with our team, and here is what they thought/suggested.

We are guessing the error and subsequent KB given was https://kb.blackbaud.com/knowledgebase/articles/Article/65102 "Reclassification account is required when disposing an asset". If you click into the details about what a reclassification account is, it uses Credits as an example. But the steps in that KB advise going to the Fixed Assets Configuration page and ensuring there is a reclassification account listed under Default accounts (not associated with the credit memos). There must be some account on your asset record that is within another class restriction (or fund) from the disposal account and that's why it needs one defined in the Default Account section.

In FENXT webview > Fixed Assets > Settings > Default Accounts > Reclassification. You'll need to select a default account to use in distributions including the Account Code and usually the third component of your account string (in our demo environment, this is Department). The accounts on the asset records will determine the appropriate fund.

Sharelle Buyer

@Sarah Curry Unfortunately, all the depreciation and the asset have been charged to the same fund. My disposal is also being charged to the same fund. Both accounts (accumulated depreciation and the asset) have the same restrictions (or no restrictions), so that isn't the case either. That's what I don't understand. It is just like all the other assets she disposed of and this message didn't pop up on any other asset disposal.