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Disposal of Fixed Asset in Business Central

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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Drop me an email at "Hello365businesscentral" at Gmail, I will try to answer if I can. 













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Location: Kuala Lumpur, Federal Territory of Kuala Lumpur, Malaysia

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