Fixed asset disposal-sale posting profile setup

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Posted on by Naif Rasheed

Hey All,

I am configuring fixed asset posting profile setup for disposal sale. Can anyone please review if I am configuring it properly.

I am selecting Asset gain and loss account on main account field and on offset account field.

on Disposal-Sale window I am adding below records:

1. Depreciation (prior years) : Main account = Accumulated depreciation account, offset account = gain and loss account

2. Depreciation (this year) : Main account = Accumulated depreciation account, offset account = gain and loss account

3. Acquisition Value : Main account = Asset cost account, offset account = gain and loss account

4. Net Book Value : Main account = gain and loss account, offset account = gain and loss account

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Naif Rasheed 37 on at

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RE: Fixed asset disposal-sale posting profile setup

no its not directly connected. Let me create a new thread.

Thanks,

Naif

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Ludwig Reinhard Microsoft Employee on at

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RE: Fixed asset disposal-sale posting profile setup

Hello Naif,

Is this question related to the same posting profile setup issue or is it something different?

I cannot really see the connection.

Can you elaborate on that?

If it is not directly connected, let's please create a new thread.

Many thanks and best regards,

Ludwig

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Naif Rasheed 37 on at

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RE: Fixed asset disposal-sale posting profile setup

Hi Ludwig,

Can you help me with one scenario. How can we handle like-kind exchange situation in FA AX 2012.

For example I have an asset which was purchased for $2000 few months ago. Depreciation started but after some time I exchanged the asset with another new asset and paid $500 more.

Regards,

Naif

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Naif Rasheed 37 on at

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RE: Fixed asset disposal-sale posting profile setup

Hello Ludwig,

Yes I was referring about postings made on the ledger accounts 1601 and 8080.

I will check with developer about hotfixes but we are using CU13 so not sure if it will work or not.

Appreciate your help.

Kind Regards,

Naif

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Ludwig Reinhard Microsoft Employee on at

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RE: Fixed asset disposal-sale posting profile setup

Hello Naif,

You refer to the postings made on the ledger accounts 1601 and 8080 and that are basically made with opposite signs for the $7.93 and $9.35 amounts, right?

You might be right here because the postings looks kind of strange.

I had a look at LCS and found two hotfixes that seem to address this issue.

KB 3000721Depreciation adjustment of a fixed asset disposal sale is incorrectly posted

KB 3105024System calculates incorrect depreciation adjustment when a fixed asset is disposed after installing hotfix KB3000721

The first one was released for CU8 and the last one for CU10.

Can you check with the help of a developer whether they apply and help you fixing the problem?

Many thanks and best regards,

Ludwig

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Naif Rasheed 37 on at

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RE: Fixed asset disposal-sale posting profile setup

Hi,

Yes that is correct. Depreciation was posted till September 29 and the next two periods are ending on 10/27/18 and on 12/1/18.

Asset's net book value was $341.28 and I sold it on 6th December 2018. Convention method is none.

I am fine with the $17.28 as system posted depreciation adjustment.

My question is system Debit the Accumulated depreciation amount for one transaction ($7.93) but for other transaction of ($9.35) it posted accumulated depreciation account as credit although both transactions are same of a kind, I assume that it should also go as Debit amount as system reverse the entry when we sell asset. Is that a system bug?

Best Regards,

Naif

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Ludwig Reinhard Microsoft Employee on at

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RE: Fixed asset disposal-sale posting profile setup

Hi,

The two adjustment lines seem to be related to the amounts of $341.28 and $324.

The difference between those numbers is $17.28, which is the sum of $9.35 and $7.93

Can you let us know what Net book value the fixed asset had when it was sold?

I assume that those adjustment lines are related to the fact that you posted the depreciations until September 2018 but that the fixed asset was sold at a different date (June or December? 2018).

Can you try verify those data?

Best regards,

Ludwig

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Naif Rasheed 37 on at

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RE: Fixed asset disposal-sale posting profile setup

Hi Ludwig & Magic thanks for your reply. Yes I do have a Contoso demo environment and I have configured my setup according to it. Please see below snap shots for setup and voucher transaction.

Account 9080 = Gain/Loss sale of asset

Account 1601 = Accumulated depreciation

Account 1500 = Asset cost account

Account 8080 = Depreciation Expense

I dispose one asset whose depreciation had run till 9/29/2018 so system generated 2 lines for depreciation adjustments. calculations are correct but please note one entry highlighted which I am assuming is wrong and it should go to credit side like $9.35 is going.

Please see on below voucher if transactions are hitting on right GL accounts like it should.

Advance thanks for your help.

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Ludwig Reinhard Microsoft Employee on at

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RE: Fixed asset disposal-sale posting profile setup

Hi Naif, If you have access to an AX2012 MS demo contoso environment then take a look at how the profile is setup there. This should give you an good idea how things can be setup. Best regards, Lui

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guk1964 10,886 on at

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RE: Fixed asset disposal-sale posting profile setup

The basic accounting treatment is that after sale the fixed asset cost and accumulated depreciation should be zero in the trial balance at the time of sales f the fixed asset. The fixed asset gain and loss account and receivable account is also posted. Fixed asset disposal sales transactions are either through a free text invoice in Accounts Receivable or a fixed asset's journal. You need to end up with these postings:

Debit Receivable Account
Credit Disposal Asset Account

Debit Disposal Asset Account" with net book value
Credit Fixed Asset Cost with net book value:

Debit Accumulated Depreciation of this year
Credit "Fixed Asset Cost

Debit Accumulated Depreciation of this year
Credit Fixed Asset Cost

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