FA Write-off

When selling a fixed asset or writing it off for other reasons, it is necessary to post the disposal amount to calculate and record profit or loss.

To post the write-off of fixed assets, Business Central uses the Fixed Asset Writeoffs. The reasons for the write-off may be the liquidation or sale of a fixed asset.

Note
The write-off entry must be the last entry posted to the fixed asset. Incorrect write-off entries can be cancelled using the Cancel Entries function on the FA Ledger Entries page.

Settings

Before writing off fixed assets, it is necessary to set up posting of the reasons for writing off fixed assets:

• on the Fixed Asset Setup page, select a value in the Reason for Disposal and Write-off for Disposal Reason fields;
• on the Fixed Asset Setup page, on the Numbering tab select a value in the Writeoff Nos. and Posted Writeoff Nos. fields.

Note
If you do not need to create a write-off act in the system when selling a fixed asset, set the Disp. without Writeoff Act option on the Fixed Asset Setup page.

Create FA write-off

1. Click to open Search, enter Fixed Asset Writeoffs, follow the link.
2. Click New.
3. On the FA Writeoff Act, on the General tab, fill in the fields listed in the table below:

Field	Description
No.	The number is automatically set according to the specified number series on the Fixed Asset Setup page in the Write-off Nos. field.
Posting Description	The text entered when posting, such as information for auditors. Is filled in automatically.
Reason Document No.	Indicate the number of the source document which is the reason for FA write-off.
Reason Document Date	Indicate the date of the source document that is the reason for FA write-off. This information is used in FA reports and entries.
Reason	Determines the reason for FA entry. Is used for the document printed form.
FA Location Code	Select the code of the warehouse where the fixed asset is stored.
FA Employee No.	Select the number of the employee owning the FA.
VAT Bus. Posting Group	Select the VAT business group that will be used when creating the VAT invoice if the liquidation of fixed assets occurs at the taxpayer's own discretion.
Posting Date	Indicate the entry posting date. The write-off posting date must be later than the date of the last entry with the selected FA.
FA Posting Date	Indicate the FA entry posting date. The write-off posting date must be later than the date of the last entry with the selected FA.
External Document No.	Indicate the number of the document related to the numbering system of the customer or vendor.
Posting No.	The posting number used for the fixed asset act entry. Is filled in automatically with the document number.

4. On the Lines tab, select the required fixed asset to be written off.
5. In the Reason Code field, select the write-off reason. Selection of the reason code will affect the selection of account from the posting group when posting the document.
6. Click Employee Signatures to sign document.
7. Click Post. The posted document will be removed from the FA Write-off list, and corresponding G/L and FA Ledger entries will be generated.

See Also

Fixed Asset Card
Creating a Fixed Asset card
FA acquisition and distribution of additional expenses
FA Release Act
Transfer Item to FA
FA Sale