Dispose of or Retire Fixed Assets
In this article
When you sell or otherwise dispose of a fixed asset, the disposal value must be posted to calculate and record the gain or loss. A disposal entry must be the last entry posted for a fixed asset. For partially disposed fixed assets, you can post more than one disposal entry. The total of all posted disposal amounts must be a credit amount.
Note
If you trade-in a fixed asset for another one, you must record both the sale of the old asset (disposal) and the purchase of the new one (acquisition). For more information, see Acquire Fixed Assets.
The following steps assume that you have already set up the relevant posting groups in the FA Posting Groups page. For more information, see To set up fixed asset posting groups.
To post a disposal from the fixed asset G/L journal
Choose the
icon, enter Fixed Asset G/L Journals, and then choose the related link.Create an initial journal line and fill in the fields as necessary. Hover over a field to read a short description.
In the FA Posting Type field, select Disposal.
Choose the Insert FA Bal. Account action. A second journal line is created for the balancing account that is set up for disposal posting.
Note
Step 4 only works if you have set up the following: On the FA Posting Group Card page for the posting group of the fixed asset, the Disposal Account field contains the general ledger debit account and the Disposal Bal. Account field contains the general ledger account to which you want to post balancing entries for appreciation. For more information, see To set up fixed asset posting groups.
Choose the Post action.
If you sell or dispose of part of a fixed asset, you must split up the asset before you can record the disposal transaction. For more information, see Transfer, Split, or Combine Fixed Assets.
To view disposal ledger entries
When you sell or dispose of a fixed asset, the disposal value is posted to the general ledger where you can view the result.
- Choose the icon, enter Fixed Assets, and then choose the related link.
- Select the fixed asset that you want to view entries for, and then choose the Depreciation Books action.
- Select the depreciation book that you want to view entries for, and then choose the Ledger Entries action.
- Select a line with Disposal in the FA Posting Category field, and then choose the Find Entries action.
- On the Find Entries page, select the general ledger entry line, and then choose the Show Related Entries action.
The General Ledger Entries page opens where you can see the entries that the disposal posting resulted in.
See also
Fixed Assets
Setting Up Fixed Assets
To set up fixed asset posting groups.
Related Articles
Managing Fixed Assets
In this article Video Overview See also Start a free trial! The Fixed Assets functionality in Business Central provides an overview of your fixed assets and ensures correct periodic depreciation. It also enables you to keep track of your maintenance ...Maintain Fixed Assets
In this article To record maintenance work on a fixed asset To post maintenance costs from a fixed asset G/L journal To follow up on fixed assets service visits To monitor maintenance costsShow 4 more Maintenance expenses are routine periodic costs ...Acquire Fixed Assets
In this article To create a fixed asset and acquire it automatically To set up a component list for a main asset To post a fixed asset acquisition manually with the fixed asset G/L journal To cancel an acquisition cost posting for one fixed assetShow ...Revalue Fixed Assets
In this article To post an appreciation from the fixed asset G/L journal To post a write-down from the fixed asset G/L journal To perform general revaluation of fixed assets To post additional acquisition costs See also Revaluation of fixed assets ...Insure Fixed Assets
In this article To create or modify an insurance card To assign a fixed asset to an insurance policy by posting from the insurance journal To update the insurance value of a fixed asset To monitor insurance coverageShow 4 more An insurance policy for ...