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There are two ways to dispose or sell a Fixed Asset in NAV and the route to take largely depends on how the disposal actually happened in real life and how you wish to record that in your financial system.

The two main options are:

  1. Create and post a sales invoice with the Fixed Asset selected as a line on the sales invoice thereby selling the Fixed Asset to a Customer/Debtor.

  2. Create and post a Fixed Asset G/L Journal and this will affect the Fixed Asset sub ledger and one or multiple G/L Accounts.

Disposing a Fixed Asset by Posting a Sales Invoice

When you sell the asset to the Customer, you follow these steps:

  1. Create a new Sales Invoice and select the Customer.

  2. Select the “Type” on the line as “Fixed Asset” and select the Fixed Asset in the “No.” column on the line.

  3. Enter the Quantity as 1 on the line and enter the value in the Unit Price field, this is the VAT Excl. Amount, that you sold the asset at.

  4. Ensure that you have selected a Depreciation Book Code in the field on the Sales Invoice Line.

    Upon Posting the Sales Invoice Dynamics NAV will calculate the profit or loss on the sale based on the proceeds on disposal, i.e. the value on the sales invoice, and compare this against the Book Value of the asset and it will automatically post the difference to the Gains/Losses on Sale of Fixed Asset Account. This account is defined in the Fixed Asset Posting Group linked to the Fixed Asset being sold. Posting the Sales Invoice will also affect the Acquisition Cost Account and the Accumulated Depreciation Account (this happens automatically because of selecting Fixed Asset on the Sales Invoice line).

Disposing a Fixed Asset by Posting a Fixed Asset G/L Journal

This option can be followed if you don’t want to involve a Debtor/Customer in the disposal transaction. In other words, you wish to post the transaction by affecting the Fixed Asset sub ledger but the proceeds on disposal (if any) should be posted to a G/L Account that you select.

  1. Open a Fixed Asset G/L Journal batch and enter the following values in the journal:
    • In the Posting Date, enter the date of the disposal.

    • In the Account Type select Fixed Asset.

    • In the Depreciation Book Code, select the COMPANY Depreciation Book.

    • In the FA Posting Type, select Disposal.

    • Ensure that the Gen. Posting Type, Gen. Bus. Posting Group, Gen. Prod. Posting Group, VAT Bus. Posting Group and VAT Prod. Posting Groups fields are all blank both on the Account Type side as well as on the Balancing Account Type side of the journal – this is to avoid VAT having an impact on the transaction.

    • Enter the proceeds on disposal in the Amount field as a negative value. If there is a difference between the current Book Value and the value you entered there will be a posting to the Profit/Loss on Disposal account to the value of the difference between the current Book Value and the Disposal Value. If you didn’t get any money at the point of Disposal, leave the Amount as a zero and the Current Book Value will be posted as a loss to this account.

    • Select the Balancing Account Type as G/L Account and in the Balancing Account No. select the G/L Account you wish to reflect the proceeds on disposal amount.

    • If you wish to have VAT deducted from the Proceeds amount prior to calculating the profit/loss on proceeds of disposal and affect the Output VAT during the posting you need to select a Bal. VAT Journal Code that corresponds to Output Capital VAT / Sale of Capital Goods. Also ensure that the journal reflects/shows a value in the Bal. VAT Amount column as the amount that will be posted to the Output VAT account.

    • Select Dimension Values for the dimensions that are mandatory.

2. Post your journal.

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