Terms for Depreciation, Value Changes and Disposal
These are the terms that decide what the ledger sees while an asset is in service, and what it sees on the day the asset leaves. They divide neatly: the depreciation side is almost entirely automatic and needs very little from you, while the disposal side needs real decisions about where a gain and a loss should land.
Read how terms work first if you have not — the account slots on the asset, described there, are the accounts most of these documents post to.
The Depreciation Term
The depreciation term is the shortest term screen in the module, and the reason is worth stating plainly: you cannot configure the depreciation accounts, because they are not the term's to give.
Every period, the depreciation run debits each asset's depreciation account (حساب الإهلاك, the Account 01 slot of its accounts bag) and credits its accumulated depreciation account (حساب الإهلاك التراكمي, the Account 02 slot). Both come from the asset, which normally inherited them from its asset type. Change the type's accounts and every asset of that type follows; there is no term in between.
When MCH-0007 is depreciated for January 2026, the instalment is 3,600 and the entry is simply:
| Debit | Credit | |
|---|---|---|
Depreciation expense — MCH-0007's Account 01 | 3,600 | |
Accumulated depreciation — MCH-0007's Account 02 | 3,600 |
What the term does contribute to that entry is its wording — the narration templates and queries that compose the description on each ledger line — and the source of the analysis set. Those are worth setting: a depreciation run touches hundreds of lines a month and a good narration template is the difference between a readable ledger and a wall of identical rows.
Beyond that, the term carries three behaviour switches:
| Option | What it does |
|---|---|
| Allow a depreciation document dated before existing addition, deduction, transfer and partial-disposal documents | Relaxes the ordering rule so you can catch up on a missed month even though later documents already touched the asset |
Use As Cost Source Document In Contracting (إستخدام المستند كمصدر تكلفة في المقاولات) | Makes each period's depreciation feed the contracting cost of the project the asset is allocated to |
Calculate Contracting Cost Debit And Credit From Asset If Found (حساب مدين ودائن تكلفة المقاولات من الاصل الثابت إن وجد) | Takes the contracting cost accounts from the asset instead of the term, when the asset carries them |
The last two work with the Contracting Cost Debit and Contracting Cost Credit fields on the same page, which name the accounts the contracting entry uses when the asset does not supply them.
The aggregated depreciation term
The aggregated document does not book anything itself — it produces one ordinary depreciation document per batch, and those do the booking. So its term has exactly one job: naming the book and term the generated depreciation documents should use. Point it at the depreciation term you configured above.
The Revaluation Term
Revaluation is where the asset's carrying amount is restated to an appraised value, and unlike depreciation, that produces a difference somebody has to own. The term is where you say who:
| Group | What it is for |
|---|---|
Profit Config (حساب المكسب) | The account that takes an upward revaluation |
Loss Config (حساب الخسارة) | The account that takes a downward one |
Both are full account sides, so either can be a fixed account or one resolved per asset.
The page also carries Dimension From Document (المحددات من المستند), deciding whether the ledger lines are stamped with the dimensions of the revaluation document or those of the asset, and a switch allowing straight-line assets to be revalued and converted to the revaluation method (السماح بالأصول ذات الإهلاك الثابت و تغيير طريقة الإهلاك).
Converting a straight-line asset is not a small change
Once that switch has let a revaluation convert an asset from straight-line to the revaluation method, the asset stops being collected by the ordinary depreciation run. Deleting the revaluation document reverts the conversion; nothing else does. See revaluation.
The Addition and Deduction Term
The addition and deduction document changes an asset's cost — Al-Waha's +30,000 control-unit upgrade on MCH-0007 in January 2027 is one. The asset's side of the entry is its own cost account; the term supplies everything facing it.
Everything sits on one page, in this order:
- The account facing the asset — the first group on the page. This is where the value comes from on an addition, and where it goes on a deduction.
- Four tax pairs. Two of them are the addition taxes, two the discount taxes, and each is a debit account and a credit account. What the term groups call a discount tax is what the document screen calls Discount Tax, so the names line up once you know that.
- Two more sides for the discount value itself, immediately after the tax groups.
Each tax group carries its own switch deciding whether that tax is folded into the asset's value or kept out of it — set it inside the group it belongs to, and the arithmetic on the document will follow.
The page also has Shorten Ledger Effect (اختصار القيد), which collapses the entry into fewer lines.
The aggregated version of this document generates one ordinary addition-and-deduction document per grid line, so its term names the book and term of the generated documents, plus an option to produce an accounting effect even when a line has no value to book.
The Disposal Term
This is the term that needs thought, because a disposal is the one Fixed Assets document where the outcome genuinely depends on the accounts you chose.
The disposal term's first page also carries the term's own identity — document type, code, name, inactive flag and template — so this is one of the screens where you can name the term from the term itself.
What is on the screen
| Group | What it is for |
|---|---|
Debit (مدين) | The proceeds side: the receivable, the bank, the cash account — whoever pays for the asset |
Profit Config (حساب المكسب) | The gain account |
Loss Config (حساب الخسارة) | The loss account |
| Tax 1 debit and credit, Tax 2 debit and credit | Two tax pairs |
Dimension From Document (المحددات من المستند) | Whether the ledger lines take the document's dimensions or the asset's |
| Taxable, Is Editable Tax, Tax Plan | The usual tax behaviour |
The second page names the Fixed Asset Purchase Document Book and Term used for assets recovered from the disposal — when you strip a machine and keep its motor as a new asset, that is the book and term the generated acquisition document uses.
Separate gain and loss accounts are the disposal's distinguishing feature. The partial disposal, below, has only one.
Worked example — selling MCH-0007 at a gain
By 31 December 2027 the machine stands at cost 270,000 and accumulated depreciation 93,900, a book value of 176,100. Al-Waha sells it for 200,000.
| Debit | Credit | |
|---|---|---|
| Receivable — the term's debit side | 200,000 | |
| Accumulated depreciation — the asset's Account 02 | 93,900 | |
MCH-0007 cost account — the asset's main account | 270,000 | |
| Gain on disposal — the term's profit account | 23,900 |
Worked example — scrapping MCH-0012 at a loss
The forklift stands at cost 60,000 and accumulated depreciation 38,000, a book value of 22,000. It is scrapped, so the disposal value is entered as 0 and the term's debit side has nothing to carry:
| Debit | Credit | |
|---|---|---|
| Accumulated depreciation | 38,000 | |
| Loss on disposal — the term's loss account | 22,000 | |
MCH-0012 cost account | 60,000 |
Both entries used the same term. Which of the two accounts was reached was decided by the arithmetic, not by anything the user chose on the document.
Taxes and what the buyer owes
The term's debit side is charged with the net disposal value only — the tax pairs are booked separately. If the buyer is to owe you the gross amount, point the term's debit side and its tax 1 debit at the same receivable account, so the two lines add up on the customer's balance. And configure both halves of a tax pair or neither: a half-configured tax pair drops out of the entry silently.
The Partial Disposal Term
The partial disposal takes some units off a countable asset — three of Al-Waha's ten desks in FRN-0021 — and its term follows the same shape as the full disposal with one important difference.
Gain and loss share a single account here. The screen calls it the Profit & Loss Account (حساب المكسب - الخسارة), and it takes the difference in either direction. If your chart of accounts requires gains and losses to be kept apart, a partial disposal cannot do it; the full disposal can.
The rest of the screen:
| Group | What it is for |
|---|---|
Profit & Loss Account (حساب المكسب - الخسارة) | The gain or the loss, whichever the arithmetic produces |
Debit (مدين) | The proceeds side |
| Tax 1 debit and credit | The partial disposal's tax handling is a single pair |
| Taxable, Is Editable Tax, Tax Plan | The usual tax behaviour |
| An option allowing a partial disposal even when earlier months have not been depreciated | Relaxes the rule that depreciation must be caught up first |
| Fixed Asset Purchase Book and Term | For assets recovered from the disposal, as on the full disposal |
The cost and accumulated depreciation that come off the asset are not the term's business — they are computed from the asset's own accounts, pro-rata to the units disposed. For FRN-0021, disposing of three desks out of ten removes 12,000 of cost and 3,600 of accumulated depreciation, leaving a book value of 19,600 and a count of seven.
The Aggregated Disposal Term
The aggregated disposal generates one ordinary disposal document per line, so its term names the disposal book and disposal term those generated documents use. Both are mandatory: leave either blank and the commit is refused with a message telling you to fill the fixed asset disposal book and term in the term.
This is the pattern across every aggregated document in the module, and it has one consequence worth remembering — the accounting is on the generated term, not the aggregate's. If your aggregated disposals are posting to the wrong gain account, the term to fix is the disposal term the aggregate points at.