Often, a customer comes up with a lot of questions for a fixed assets sales entry. So, let’s see how we can set up posting a profile and see the accounting impact in the books, based on the setup.

Let’s set up fixed assets posting profile.

Step 1: Create fixed assets posting a profile

Fixed assets > Setup > Fixed assets posting profile

Step 2: Add ledger accounts for Acquisition

• Main accounts - will be the main account of assets for that group.
• Offset account - sales proceeding account (cash or any asset account)

Step 3: Add ledger accounts for Depreciation

Step 4: Add ledger accounts for Disposal - sale

Step 5: Add disposal accounts for sale

Additional to ledger accounts, we need to assign disposal accounts for sales

1. Depreciation (prior year)

Main account – Accumulated dep (This entry will adjust accumulated depreciation for previous year)

Offset account – Gain/loss account

1. Depreciation (This year)

Main account – Accumulated dep (This entry will adjust accumulated depreciation for current year)

Offset account – Gain/loss account

1. Acquisition value

Main account – Asset account (This entry will adjust the Acquisition value of an asset)

Offset account – Gain/loss account

1. Net book value

Main account – Gain/loss account (This will adjust Net book value of an asset)

Offset account – Gain/loss account.

Now, let’s see the example with accounting impact

Acquisition entry

Depreciation entry

Sales entry

Below are the ledgers, that’s impacted based on the accounting transaction

That’s it for the post. Thank you