Transfer of Fixed Assets to the shareholder

Problem:

This instruction explains how to correctly reflect the transfer of a Fixed Asset  to the shareholder in the accounting system, ensuring that the transaction does not create taxable income for the company.

Direct transfer to the shareholder is not supported in the software, but it can be handled in two steps.

Step 1: Write Off the Fixed Asset

1. Open the Fixed Asset Write Off document.
2. Select the fixed asset to be transferred.
3. Post the write-off to Expenses, ensuring that the asset and accumulated depreciation are removed from all accounting registers.
4. Verify that the asset balance is zero and depreciation is fully accounted for.

Purpose: This step removes the asset from the company’s books and accounts for accumulated depreciation correctly.

Step 2: Transfer Expenses to Shareholder Account.

1. Open the Other Expenses document.
2. Select Transaction Type: Reversal.
3. Transfer the amount from the Expenses account to the Shareholder Account (Account for settlements with the owner).
4. Post the document.

Notes:

• This operation does not affect company income.
• It reflects that the asset was returned to the shareholder, not sold.
• The accounting registers will show the movement correctly, avoiding the creation of taxable income.