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Fixed Assets - Reversing a Disposal Using Canceling FA function

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Posted on by KSullivan35

An internal review of our Fixed Assets has shown that and and item on our Fixed Asset Register has been disposed when it shouldn't have.

I am attempting to reverse this FA transaction and through reading some of the commentaries on these forums is to use the Cancel Entries Function on the Fixed Asset Ledger.

I am able to run this to get the item into a FA G/L Journal, however when previewing the G/L Posting of the reversal there appears to be two debit entries appearing in the balancing account.

Exporting the GL Extract shows that the Journal Preview is not balancing. Testing this process in the UAT environment I don appear to have any issues running this function it is only in the live environment.

Is there possible something in the FA setup that has been missed that is causing this?

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Dynamics 365 Business Central

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CarmenNunes on at

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Hello Sullivan,

Based in what you has explained it look like it's missing the credit balance account.

When running the process "Cancel Entries Functions" and if Integration Book depreciation is set to post in GL side, data is transferred to FA G/L Journal like you mentioned in your case.

At FA GL Journals you are able to additional add the balance GL account to proceed with the posting.

This action is available at FA GL Journal - "Actions"/ "Insert FA Balance Account".

In case you have the right setup at FA Posting Group, you will automatically get a Journal line update with the missing balance account and you can proceed with the posting.

If system do not find the FA Balance Account at FA Posting Group it will be displayed a message informing G/L Account setup is missing, in this case you have to review the FA Posting Group related with the FA you are trying to post and setup the missing GL Account. Once you end the process setup go back to FA GL Journals and repeat the step mentioned before.

Hope it helps you.

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Dirk on at

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Hi,
In general I agree on what Carmen wrote about the balancing account.

Just .. if the disposal has been registered through a sales invoice then you should consider two more aspects (which are not covered by the Cancel Entries function):

a.) do you want to use the customer account as balancing account ?
in this case please manually add the customer accoutn no. as blaancing account for the FA G/L Journal which is created on "Cancel Entries"

b.) has VAT been registered when the Fixed Asset has been disposed?
in this case please manually add the VAT Amount to the suggest amount and also add the following 5 fileds manually
Gen. Posting Type
VAT Business Posting Group
VAT Product Posting Group
Gen. Business Posting Group
Gen Product Posting Group

Hope this helps

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KSullivan35 5 on at

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It is missing the Credit Entry in the balancing account.

I have been using the balancing account function to generate the balancing line in the FA journal. It is here after using the Insert Balance Account Function that I now have two debit entries in the Balancing account GL line when i preview the GL posting. The Asset and Acc Depreciation are posting correctly so i am struggling to understand how this allow me to post as technically the journal is not balanced.

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KSullivan35 5 on at

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No Balancing account in in the GL as a P&L line item and not a customer account

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KSullivan35 5 on at

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Just to add looking further into this and once more comparing it to the testing environment it doesn't appear to be the balancing function that is causing this but the Cancel Entries function that is not reversing correctly.

In the testing environment when the Cancel entries are moved to the FA G/L Journal the Fixed asset line item is a positive entry.

However the Cancel Entries Function in the live environment seems to be generating a negative entry on the FA G/L Journal the Fixed asset line item.

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Dirk on at

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Can you add an example please, with some informaiton about the scenario and settings and also share which product / country version you use?

I made an example in BC16.3 OnPrem W1 ... and think it works just fine ...

Disposal of FA000010 as per 05^th JAN 2022, sold to customer 10000, Sales Amount incl. VAT = 35.000
FA in line 1, - 35.000
Customer in line 2, +35.000
5 days to be calculated for the remaining depreciation (“Depr. until FA Posting Date” = true in FA G/L Journal.
“VAT on Net Disposal Entries” is enabled in Depreciation Book COMPANY
Disposal calculation method in Net

This is what you should get, remaining depreciation = -2.017, VAT is calculated

After posting the lines you want to cancel

Open FA Entries and navigate to the Entry of type “Proceeds on Disposal”

Use function “Cancel Entries” and open FA G/L Journal

This is what you should get:

This correct to just get the FA Entries corrected.

But this is not complete if you also need to get VAT Entry and Customer Ledger Entry corrected.

There fore you have to change / add information.

Add the VAT Amount (7.000) to the suggested line amount (28.000)

Add the Posting Type and Groups to get VAT calculated

Add the Balancing Line for the customer (you can’t have a customer as Bal. Account in the suggested line)

This is what you get:

This is the expected result.
You do not get the depreciation for 5 days reversed that have been registered together with the disposal

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KSullivan35 5 on at

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Hi Dirk we are currently using Version: AU Business Central 16.3 (Platform 16.0.14073.14508 + Application 16.3.14085.14287)

I would like to put up an example but it appears that i am unable to copy images into this text box

Using your 3rd image as an example - Navigating to the FA G/L Journal after requesting Cancel Entries on the Proceed of Disposal on the FA Ledger. My FA G/L Journal is showing the Fixed Asset Line item as a Negative $28,000. As your screen shot show this should be a positive $28,000 and the balancing line item should be negative.

If i manually change the signs so that the Fixed Asset Line item was correctly showing a positive $28,000 and the balancing item as a Negative $28,000. I get an error message advising that the "FA Error Entry No Does not Match".

This looks to be occurring because the proceeds on disposal for the initial disposal of the asset is a negative value.

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Dirk on at

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Hmmm ... I don't see (yet) how this happens.

Please reach out to Microsoft support.
If you are a partner you can do this yourself.
If you are a cusotmer please reach out to your partner .... who can then log the request for you.

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