fixed asset disposal

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Posted on by noor1

hi,

i have an equipment with fully depreciated. the machine caught fire and cancelled the registration. now we got insurance claim and need to dispose the same in Ax. So, what will be the treatment for the disposal.

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SouravDam 11,730 on at

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Hi noor1 ,

You can do the following.

--- First check if you have done the setups for scrap disposal in fixed assets posting profile form as shown in below screen shot. You can set disposal sale setup in the same form.

--- Once done; you can create a fixed asset journal for scrap disposal. Go to Proposal > Disposal - scrap. There you have to select the disposal date, reason code (if you already set this requirement as 'Yes' in FA parameter form), select the fixed asset number (you can select in ranges too for example FA001..FA0010), click on OK.

--- Based on your FA posting profile setup, system will pick the accounts. Validate the data and post it.

If you are doing scrap sale; then you can use free text invoice as available in AR module where you can select the fixed asset to be disposed of for sale and proceed with the transaction.

Best regards,
Sourav Dam

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Ludwig Reinhard Microsoft Employee on at

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Hi noor1,

It sounds as if you want to dispose the fixed asset and ensure that it's status is closed and it's net book value set to zero.

If the net book value is already zero then you could simply change the status on the value model to closed or scrapped if you like.

If you still have a value sitting there then create a fixed asset journal, select the fixed asset and select the transaction type disposal scrap. After this has been done, select the fixed asset and post the journal without an amount. If your fixed asset posting profiles are correctly setup, the net book value will be set to $0 by corresponding scrap postings. That's it.

If you are not sure how to do that or if you have not done this before give it a try in a demo/test environment before doing this in your live system.

Best regards,

Ludwig

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Justyna 10 on at

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Hi Ludwig,

What would the treatment be for disposal of an asset with a negative net book value. Will the system allow to dispose of it?

Thank you,

Justyna

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Ludwig Reinhard Microsoft Employee on at

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Hi Justyna,

Can you possibly create a new thread in the community forum?

Your question does not seem to be related to the original one raised above.

When doing that can you explain a bit more about the nature of the asset?

What kind of asset is that?

Why does it have a negative book value?

Etc.

Many thanks and best regards,

Ludwig

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