Disposal of a fixed asset

Business Central/NAV User Forum
1

Hi, I am trying to dispose of a fully depreciated fixed asset and a bit stuck on the settings to use on the Fixed Asset GL Journal. I am using version AP Dynamics NAV 5.0

As the asset is fully depreciated the cash received equates to the gain on sale - I am fairly sure I have these correct as just straight GL account entries. My query is how to address the cost and accumulated depreciation to ensure the asset is correctly diposed of and removed from the asset register. I can select fixed asset under “account type” and can select the asset concerned but do I do this for both journal lines and if so what “FA posting type” do I select.

Many thanks

Simon

2

Hi Simon,

When you post sale entry of the fixed asset, system will automatically reverse accumulated depreciation and gross value from the asset.

Thus full value is removed from the asset register and gain will be booked in the account defined in FA posting set up.

Thanks,

Jainal

3

Jainal

Just so I am clear. My FA GL journal at present looks like this.

Debit - GL for cash received

Credit - GL for Gain on sale

Debit - GL for accumumlated depreciation

Credit - Fixed Asset - original cost of asset (using FA posting type “Disposal”)

Is this okay to go??

Thanks Simon

4

Morning,

You only require 2 lines on the Jv lines.

Dr. Cash

Cr. Fixed Asset (FA Posting Type= Disposal)

The reversal of the Acq cost and acc. dep on the Fixed asset is done automatically and the gain/loss posted.

You dont need to create any entry on the Jv lines to reverse Acq.cost,Acc. dep and the Gain/loss resulting from the disposal entry of the asset.

Thanks,

5

FA posting set up is having the accounts for accumulated depreciation and for original cost of asset.

System will reverse this accounts from there and not from GL lines.

So in lines just debit the customer / cash and then select ‘Fixed Asset’ in posting type and FA which you are disposing off.

Gain/loss entry, Accumulated depreciation and reverse of FA will be posted automatically.

Jainal

6

You can sell the item either through Sales invoice or FA GL journal. when you select the fixed asset in the line as we have given the Fixed asset posting group setups system will automatically post the gain/loss, in your case it will be gain. also system will pass a reversal entry for the acquisition cost and accumulated depreciation posted in to the GL account. After posting the sales you can see the disposal date field is updated on the Fa depreciation book part of the Fixed asset master.

If you use more than one depreciation book you have to dispose the asset value from that depreciation book also. for that you can use a field " Duplicate depreciation book" in both FA GL journal or sales invoice.

7

Hi I have followed the comments provided by everyone and trimmed my journal down to just the 2 lines. No errors appeared on the test report but when I went to post the journal it came back saying it required a cost centre for the ‘gain or loss’ gl code. I must be missing this in a setup somewhere. Can’t see where this is does anyone have any thoughts.

Thanks Simon

8

Seems that you might have make cost center ( one of the dimension may be) mandatory while posting in GL - gain or loss.

You have to select appropriate dimension value on the FL G/L lines.

Jainal