Which document triggers the reduction of an asset master data's Net Book Value to zero?

Question

Options

• AGoods issue
• BA/R invoice
• CInventory Revaluation
• DA/P invoice

• A
  13% (6)
• B
  76% (35)
• C
  4% (2)
• D
  7% (3)

Explanation

An A/R Invoice (Accounts Receivable Invoice) is used to record the sale/disposal of a fixed asset to a customer. In ERP systems like SAP Business One, posting an A/R Invoice for an asset triggers the system to retire that asset - clearing the asset account and accumulated depreciation, which drives the Net Book Value to zero. A Goods Issue only applies to inventory/stock items, not fixed assets, so it has no effect on asset master data. Inventory Revaluation adjusts the carrying value of stock/inventory, not fixed assets tracked under asset master records. An A/P Invoice is used when acquiring an asset from a vendor (which creates or increases NBV), not when disposing of one.

Memory tip: Think "A/R = Asset Retirement" - when you raise an invoice to a customer for an asset you're selling, you're retiring it, which zeroes out its book value. If money is coming in for an asset, it's leaving the books.

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