Adjustment of the asset retirement obligation estimate

This article explains how to adjust the asset retirement obligation (ARO) estimate in Japan with Microsoft Dynamics 365 Finance.

The following procedures walk you through how to adjust and post the ARO amount. The procedure was created using the demo data company JPMF.

Before you complete the procedures, you must first select the Fixed Asset configuration key.

Adjust the ARO estimate

To adjust the ARO estimate, follow these steps.

1. In Dynamics 365 Finance, go to Fixed assets > Asset retirement obligations > Fixed assets.
2. In the list, find and select the desired record.
3. On the Action Pane, select Fixed asset.
4. Select Asset retirement obligation.
5. Select Upward to open the drop dialog. You can also select Downward for minus adjustment.
6. In the Transaction date field, enter the date on which to post the adjustment amount.
7. In the Upward field, enter the amount of adjustment.
8. Select OK.

Post the adjustment

To post the adjustment, follow these steps.

1. In Dynamics 365 Finance, go to Fixed assets > Asset retirement obligations > Fixed assets journal.
2. Select New.
3. In the Name field, enter a name.
4. Select Save.
5. Select Lines.
6. Select Proposals.
7. Select Capitalized asset retirement obligation.
8. In the To date field, enter a date.
9. Select Filter.
10. In the Criteria field, enter a value.
11. Select OK.
12. Select OK. Confirm the adjustment is proposed. The amount proposed is discounted to the present value.
13. Select Post.