Fixed asset disposal in Microsoft Dynamics 365 Finance and Operations one version D365FO

Fixed asset disposal in Microsoft Dynamics 365 Finance and Operations one version D365FO

Posting parameters when the asset is sold or scrap

• Disposal scrap journal may show o in Dr and Cr but you should check in GL audit trial for detailed postings
  • Summary of voucher posting: all acquisitions and accumulated depreciation (in BS) are reversed, depreciation posted in P&L remains, and the net book value is posted to P&L
  • If an asset has been completed been depreciated then the value model/book status becomes zero.
  • These assets would not automatically show up in the disposal - scrap proposal.
  • However if one manually post the disposal-scrap journal for a closed FA, it would reverse all acquisitions and depreciations from the books.
    • Useful in demerges/spinoffs.
• Ensure net book value type is assigned in FA posting profile

Disposal - sale and Disposal - scrap to set up postings to the ledger, For both transaction types, the ledger account is credited for the disposal value of the fixed asset. The debit is posted to an offset account, which might be, for example, a bank account. If a fixed asset is sold to a customer, the customer account is used instead of the offset account.