Introduction to selling a fixed asset
When you sell or otherwise dispose of a fixed asset, you must post the disposal value together with any related gain or loss.
A disposal entry needs to be the last entry that is posted for an asset so that you can record related disposal costs for an asset. You must record related disposal costs in the FA G/L journal before the actual disposal entry. Additionally, you should post all disposal entries through the FA G/L journal, the FA journal, or a sales invoice.
You can set up the disposal method for assets in each depreciation using the Disposal Calculation Method field. Microsoft Dynamics 365 Business Central can handle disposals by using one of the following methods:
Net - Post to either a disposal loss or gain account. This disposal method is the most common.
Gross - Post to a book value gain or loss account and to a sales gain or loss account. When you enter the sales price in a journal, the program calculates the gain or loss on the disposal and then calculates all other relevant entries. The gain or loss amount is calculated automatically from the difference between the sales price and the book value.
Watch the following video to learn more about how to sell or dispose of fixed assets in Business Central.