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Am posting this piece of information to clear the confusion regarding financial updates upon disposal of fixed assets in Microsoft Dynamics AX 2012 R3. This appears too clumsy on an apparent look on this journal entry, but trust its worth it. Hope this discussion would demystify the confusion on this topic.
The example which I have taken is
CURRENT YEAR DEPRECIATION
SUBSEQUENT YEARS DEPRECIATION
NET BOOK VALUE
SALE VALUE OF ASSET
PROFIT/LOSS ON SALE OF ASSET
OUR ULTIMATE AIM IS TO CLOSE THE BALANCES IN ACCOUNTS : FA ACQUISITION AND ACCUMULATED DEPRECIATION. THESE ACCOUNTS ARE CLOSED BY SENDING THEIR BALANCES TO CLEARING ACCOUNT (CALLED NET BOOK VALUE ACCOUNT). THIS NET VALUE IN "NET BOOK VALUE ACCOUNT" CONTAINS "ACQUISITION-DEPRECIATION". NOW THE BALANCE IN "NET BOOK VALUE" ACCOUNT IS TRANSFERRED TO "PROFIT/LOSS ON SALE OF ASSET" ACCOUNT.THE BALANCE IN SALE VALUE OF FIXED ASSET IS SENT TO THE "PROFIT/LOSS ON SALE OF ASSET". NOW THE NET VALUE IN "PROFIT/LOSS ON SALE OF ASSET" ACCOUNT CONTAINS "NET BOOK VALUE MINUS SALE OF FIXED ASSET"->>WHICH ITSELF IS THE PROFIT OR LOSS.
NOW LETS UNDERSTAND AX BEHAVIOR IN THE CASE OF SALE….WHICH IS EXACTLY THE SAME AS IN ABOVE EXPLANATION.
AX TRANSFERS THE BALANCE IN "ACQUISITION" TO "NET BOOK VALUE" - >> USED FOR DETERMINING THE NET BOOK VALUE OF THE ASSET
AX TRANSFERS THE BALANCE IN "ACCUMULATED DEPRECIATION" TO "NET BOOK VALUE" - >> USED FOR DETERMINING THE NET BOOK VALUE OF THE ASSET
NOW AX TRANSFERS THE VALUE IN "NET BOOK VALUE" (WHICH IS ACQUISITION" MINUS "TOTAL DEPRECIATION") TO "PROFIT/LOSS ON SALE OF ASSET"
AX TRANSFERS THE BALANCE IN "SALE OF FIXED ASSET" TO "PROFIT/LOSS ON SALE OF ASSET" - >> USED FOR DETERMINING THE PROFIT/LOSS ON SALE OF ASSET
BY DOING THIS, THE ACQUISITION AND ACCUMULATED DEPRECIATION ACCOUNTS WILL ALSO BE CLOSED. BELOW IS THE JOURNAL ENTRY FOR DISPOSAL.
STEP NUMBERS MENTIONED ABOVE ARE CORRELATED HERE
NOMENCLATURE AS PER FIXED ASSET POSTING PROFILE
ACCOUNT NAMES AS PER COMMON PARLANCE
SALES VALUE (DISPOSAL PARAMETERS)
SALE OF FIXED ASSET
ACQUSITION OFFSET (DISPOSAL PARAMETERS)
DEPRECIATION (CY) (DISPOSAL PARAMETERS)
DEPRECIATION (PY) (DISPOSAL PARAMETERS)
NET BOOK VALUE OFFSET (DISPOSAL)
NET BOOK VALUE (DISPOSAL)
DEPRECIATION (PY) OFFSET (DISPOSAL PARAMETERS)
DEPRECIATION (CY) OFFSET (DISPOSAL PARAMETERS)
ACQUSITION (DISPOSAL PARAMETERS)
SALES VALUE OFFSET (DISPOSAL PARAMETERS)
Reply back on this post in case of any queries.
Pranav Teja Kasinadhuni
AX Functional Consultant
B2B Software Technologies Ltd
1. What is your question? What you wrote looks more like a blog post. Please do not use the community forum for sharing blog posts.
2. In case you have a question, please make it clear what is your question
3. Do not use capital letters for the subject. This is considered shouting, which is not allowed on this forum.
Please make the respective corrections to this thread.
Kindly go through this link.
I have started a discussion, not a question. I have seen a lot of posts from your end. And am wondering how come you could overlook an option for starting a discussion.
Using capital letters has nothing to do with shouting. I haven't crossed any limits which this form has fixed. I have started writing this, only after reading the above link. And am not going to correct anything in this discussion.
The below statement, very clearly states that your opinion has nothing to do with microsoft's opinion.
"This post is my own opinion and does not necessarily reflect the opinion or view of my company or Microsoft."
Please fix the capitals. For sure you are not intending to scream, but it is considered as screaming. Usually, I will fix a title when it is all capitals, but this would be too much work for a volunteer. When it will not be corrected, there will be a chance that the post will be removed from the forum.
To be honest, I'm not able to follow your discussion. Due to the capitals, I'm not able to concentrate on the contents. Finally, I read through your post, but I don't know what you want to discuss. Based on the needs you can setup the disposal parameters with different type of settings.
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