How To Reverse Fixed Asset Depreciation in Microsoft Dynamics 365?

To reverse Fixed Asset Depreciation

 1- Before you reverse a transaction for the first time you must assign a number sequence for the Transaction reversal and Trace number references in the Number sequences area of the General ledger parameters form.

Trace number / Unique key for trace number during reversal of transactions in general ledger, fixed assets accounts receivable, and accounts payable.


go to general ledger/ledger setup/General ledger parameters


go to number sequence tab



2- Go to Fixed assets / Fixed assets / Fixed assets / Fixed assets


select your Fixed asset and click books 


click Transaction 


select your transaction and click Reverse transaction 


to reverse the transaction, the status must be open 


so just change status in BOOK  to Open 


and click transaction again then click Reverse Transaction 



select The reversal date and click OK, 


the transaction has been Reversed.

 Note::
Fixed asset transaction reversals reset fixed asset field values to their previous values. For example, an asset status might be reset from Open to Not yet acquired, or the Depreciation periods field might be reset from 119 to 120.

you can check more details 

https://technet.microsoft.com/en-us/library/aa496782.aspx?f=255&MSPPError=-2147217396

To reverse a large number of depreciation transactions 

you can create fixed asset journal and use Retrieve fixed asset transactions Function as the below 

Go to Fixed assets/journal entries / Fixed assets journal 



create new Journal 


click lines and click function 


click Retrieve Fixed asset transaction 


In the voucher field, select ‘New voucher number per voucher’ and also click to select the Invert sign

click Filter to select your transactions 

Set criteria like transaction from date to date and transaction type Depreciation, then click OK


Click OK  


now all transaction with type Depreciation loaded and sign inverted, Just Click Post

just wait until operation complete



Thanks.