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How to make the provision of a fixed assets

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Posted on by CU15020930-0

Hello :

I am from china company and we have a requirement :make the provision ( some country call this impairment) for the fixed assets.

For example , we have a machine which net value 20000, ( original value 100000, life time 10 years , depreciated 8 years , savage value 0) . It is not used now and we make the provision 20000 and make its net value zero. So it is not depreciated anymore . I want to known how to make the provision and record it on the fixed asset . It can be reverse to the asset gain and lose account automatically when we sold it out in future .

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Dynamics 365 Finance

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Adis 6,069 Super User 2025 Season 2 on at

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Hello,

What do you mean by "provision"? A provision that is only familiar to me is when you sell something and you receive a provision (bonus) for selling something. So I am a bit confused what provision means in this context.

Kind regards, Adis

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Bharath jain 1,443 Super User 2025 Season 2 on at

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Hi,

For provision, you can post write-off entry in D365 F&O. You can use fixed assets journal and post write-off entry. There is no separate process for posting fixed assets provision.

But when you post sales, system will not re-add the write off amount. There is no OOB options for this functionality.

Regards,

Bharath Jain

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CU15020930-0 20 on at

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Adis :

The provision for impairment of fixed assets means that if the recoverable amount is lower than the book value due to the continuous decline in the market price of fixed assets, or outdated technology, damage or long-term idle reasons, the difference between the recoverable amount and the book value shall be taken as the provision for impairment of fixed assets.

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CU15020930-0 20 on at

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Hello :

I checked the Japan 's company function . There is this function in it . But I don't known how to install this function into our company .

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Bharath jain 1,443 Super User 2025 Season 2 on at

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Hi,

It looks like localized functionality for Japan. You have to customize that.

You can ask your technical consultant to copy the code from Japan localization.

Regards,

Bharath Jain

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