Both options remove the depreciation for the asset from most standard reports.

Inactivating assets:

• The asset disappears from nearly all reports as if it never existed. Only the File Listing Report and Asset Additions Report continue to display the asset
• The asset stops taking any further depreciation
• You can still view the asset in detail view, but not modify it
• The system assigns an activity code of I to the asset. The asset displays as Inactive in the Asset List view
• You can use the Reactivate option under the Asset menu to make the asset active again

Deleting assets:

• Deleting an asset will permanently remove the asset from the company in Sage Fixed Assets
• There isn’t an undo for a deleted asset except to Restore Company from backup. Before deleting assets, follow How to back up a company to create a backup
• The system won’t reuse the system numbers of deleted assets

How to back up a company
How to delete an asset or multiple assets
How to inactivate an asset