Recently, I came across a query related to CAPEX budgeting and its impact on asset disposal (sale or scrap), and I would appreciate guidance from the community.
Scenario:
Assume we have an annual CAPEX budget of 100,000 allocated to a specific Fixed Asset Group (for example, Computers).
During the year:
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We utilized 90,000 of the allocated budget.
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Therefore, the remaining available budget is 10,000.
Now, suppose we dispose of (sell or scrap) an asset from this group whose original acquisition cost was 5,000.
In the current configuration, the disposal transaction credits the asset cost, which effectively restores the budget by 5,000. As a result, the available budget increases to 15,000 instead of 10,000.
Requirement:
In this scenario, the intention is not to restore the CAPEX budget when an asset is disposed of. The available budget should remain at 10,000, even after the asset sale or scrap transaction.
Question:
Is there a recommended configuration or approach in Microsoft Dynamics 365 Finance and Operations to prevent the budget from being increased when a fixed asset is sold or scrapped?
Any suggestions or best practices would be greatly appreciated.
Regards,
Imran Ul Haq
