A company uses Dynamics 365 Business Central. The finance team must dispose a fixed asset. You need to recommend the process to post the fixed asset disposal. Which two actions should you recommend…

Question

Options

• ACreate and post a fixed asset G/L journal.
• BSelect a Tax Category when posting the sales invoice
• CCreate and post a sales invoice.
• DManually adjust the depreciation amount in the fixed asset card.
• EUse the Reverse Transactions function to cancel the fixed asset record.

• A
  78% (21)
• C
  11% (3)
• D
  4% (1)
• E
  7% (2)

Explanation

To post a fixed asset disposal in Business Central, create an entry in the Fixed Asset G/L Journal [A]. On the journal line, set the FA Posting Type to "Disposal," select the relevant fixed asset, and choose the Insert FA Bal. Account action to automatically create the balancing account line. Then, post the journal to record the disposal and automatically calculate any gain or loss. When disposing of a fixed asset through a sales invoice, you should select the correct tax category in Business Central's Line details to ensure proper tax calculation for the disposal. Since a fixed asset does not have a default VAT Prod. Posting Group, this setup is necessary on the sales invoice line. The system automatically handles the removal of the asset and its associated accumulated depreciation by posting a journal entry that reverses these amounts. You should create a fixed asset disposal journal, select "Disposal - scrap," and then create the entry, which automatically handles the depreciation reversal based on the asset's posting profile. https://learn.microsoft.com/en-us/dynamics365/business-central/fa-how-dispose-retire https://community.dynamics.com/forums/thread/details/?threadid=0e03e05f-91f9-4049-ac92-

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