Introduction

  • 7 minutes

A write-down is a decrease in the value of a fixed asset. A decrease could be the result of the asset becoming out-of-date or damaged.

You can use write-down entries as a correction to decrease an asset's depreciable base when the depreciation of the asset was too low in the past. The asset's value decrease is posted as a loss in the financial statements.

The handling of write-down and appreciation transactions on posting and reporting in Business Central is controlled by the FA Posting Type Setup table settings. For example, on the FA Posting Type Setup page, you can specify if a write-down or appreciation should be part of an asset's depreciable basis.

You can post a write-down from the following journals:

  • Fixed asset G/L journal for depreciation books with G/L integration enabled

  • Fixed asset journal for depreciation books without G/L integration enabled

Before you can post a write-down to the general ledger, you need to set up the write-down G/L accounts for the posting groups to which you want to post the write-down.

Screenshot of the fixed asset posting group card page.

Write down fixed assets

Watch the following video to learn how to enter and post a write-down or appreciation for a fixed asset.