Dispose of and lend fixed assets

Completed

When you no longer need a fixed asset, you can scrap it or sell it. If the asset still has value, you would likely sell it. You can use a free text invoice to sell the asset.

You can use different transaction types for disposal:

  • Disposal sale

  • Disposal scrap

  • Provision for reserve

  • Transfer from reserve

You can use Disposal sale and Disposal scrap when the assets are no longer in use. The net book value is set to zero and the asset is closed for future transactions. Disposal sale is an external disposal, whereas Disposal scrap is an internal transaction.

You can determine the posting details of fixed asset disposal scrap/sale based on your business needs. When you turn on this option, the disposal scrap/sale posting validates the defined posting profile for disposal sale/scrap for the asset in the transaction. The validation checks posting types, such as Acquisition this year and Acquisition prior year. Therefore, you're required to define accounts for posting types in the fixed assets posting profile.

Post disposal transactions in detail

The Post disposal transactions in detail feature determines which disposal scrap/sale to consider when you're posting a detailed disposal of an acquisition to the Acquisition this year and Acquisition prior year posting types. When you set the Post disposal transactions in detail feature to Yes, the disposal sale/scrap posting process validates that the posting profile has all posting types. When you set the feature to No, the disposal sale/scrap posting process evaluates the posting profiles to ensure that the Acquisition value is specified.

Provision for reserve and Transfer from reserve transaction types

The Provision for reserve and Transfer from reserve transaction types aren't actual disposal transactions. Instead, they're transactions that you create together with the external sale of an asset. The functionality of reserves is an alternative way of accounting for profit on sales of assets. Usually, when you sell a fixed asset with profit, the system needs to recognize the profit in the year of the sale. Then, the system posts the profit to the profit and loss part of the chart of accounts.

However, in some countries and regions, certain legislation allows for the postponement of profit recognition (and taxation) to later years. The Provision for reserve and Transfer from reserve transaction types meet those requirements.

Lend assets

Companies that loan fixed assets to employees or other companies, or that move assets temporarily to a different location in the company, can track the loaned asset in Dynamics 365 Finance.