In Business Central, you can correct or reverse a Fixed Asset Ledger Entry using two methods:

  • Cancel Entries
  • Reverse Transactions
How to correct a fixed asset ledger entry

The important difference between the two is that the Reverse Transaction option posts an opposite sign in the Fixed Asset Ledger entry table whilst Cancel Entries moves the incorrect ledger entries in the FA Error Ledger.

 

We, therefore, recommended using Cancel Entries to correct FA ledger entries because Calculate Depreciation Batch job cannot calculate Depreciation correctly if the Reverse Transaction is used to reverse an acquisition entry.

 

Using the Cancel Entries Function

The steps below should be followed in using the Cancel Entries function to correct or reverse your Fixed Asset ledger entries:

  1. Go to the FA Ledger entries page
  2. Filter the document no. of the depreciation or Acquisition entry you would like to reverse
    Note: You need to select and Cancel the Depreciation Entries first before the Acquisition Cost.
  3. Select all lines that need to be reversed
  4. Click Actions
  5. Functions
  6. Cancel Entries
How to correct a fixed asset ledger entry

7. If you would like to post the correcting entries using a different posting date, enable the Use New Posting Date and enter the posting date on the field provided. Skip this step if you want to use the same posting date on the correcting entries.

8. Once you click OK a message will prompt saying the entries are now transferred to the FA G/L Journal

How to correct a fixed asset ledger entry
  1. Now go to the Fixed Assets G/L Journal to review and post the reversal entries. Ensure balancing account is specified if required.
How to correct a fixed asset ledger entry
  1. After posting, the cancelled entry will no longer be shown in the FA ledger entries for each Asset but you may review the reversal entries from the G/L Registers or on the Error Ledger Entries which can be viewed through the Fixed Asset card, shown below.
How to correct a fixed asset ledger entry

Note: When using the Use New Posting Date function, ensure that the Use Same FA+G/L Posting Date is disabled in the Depreciation Book Card used in the Assets, otherwise, you will not be able to post the journal.

How to correct a fixed asset ledger entry

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