Cancel a fixed asset sale
If you accidentally disposed of a fixed asset by selling it through a sales invoice and you must cancel the sale, use the Cancel Entries function in the FA Ledger Entries window.
You can't use the Reverse Transaction function for entries that have sold fixed assets or for transactions that were not created in a general journal, such as a sold fixed asset that was created through a sales invoice.
When you sell a fixed asset, the program creates multiple ledger entries that might include Disposal entries, Gain/Loss entries, Depreciation, and other entries such as Customer Ledger and VAT entries.
To cancel a fixed asset sale, run the Cancel Entries function only for the FA ledger entry that has the FA Posting Type field set to Proceeds on Disposal. The program will create an FA G/L journal line that you should post with a balancing account.
The balancing account can be a G/L account or a customer account. When VAT is registered on posting the sale of the fixed asset, make sure that VAT is also considered when you cancel the sale.
Therefore, you should add the VAT amount to the suggested amount and then fill in the General Posting Type and the Posting Group fields.
After you post the FA G/L journal line, the program automatically cancels all entries that are related to the fixed asset disposal, removes them from the FA ledger entries, and then creates corresponding FA error ledger entries.