You can perform Fixed Asset Disposal in Business Central in Fixed Asset G/L Journals. The reason for performing fixed asset disposal may be result of several events:
i. An asset is fully depreciated and must be
disposed of
ii. An asset needs to be removed due to unforeseen
events (EG., theft)
iii. An asset was captured with wrong information and
need to be reversed
In
the following example here, the user has registered the asset in the fixed
asset book, and there is depreciation being perform too, but later identified
that the asset was registered with wrong date. It will be easier to dispose
this asset and capture again using new Fixed Asset ID. Refer to steps below on
how to dispose this asset via Fixed Asset G/L Journals.
Asset
Sub-Class : Motor Vehicle
Asset Useful Life : 5 Years
Asset Acquisition Cost : $60,000
Depreciated Value : $1,000
(1month)
Page:
Fixed Asset G/L Journals
1. Enter the fixed asset information that needs to be disposed of. Be sure to select “Disposal” as FA Posting Type. Since there will be no additional cost being incurred during the disposal, the Amount field should be zero in value.
2. The account entries for the disposal should be as follows: -
DR Disposal of
Fixed Assets
DR Accumulated Depreciation
CR Fixed Asset Cost
3.
Once the disposal entry is posted in Fixed Asset
G/L Journal, you can verify the posted detail in Fixed Asset Ledger Entries.
Note
that although the asset has been disposed of, but the detail of the asset information
will remain in Fixed Asset Card, but with “0” zero in Book Value. You may
consider setting the asset status to “Inactive”.
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