How to Correct Fixed Asset Ledger Entries in Business Central

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

• Cancel Entries
• Reverse Transactions

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 Fixed Asset Error Ledger.

We, therefore, recommended using Cancel Entries to correct Fixed Asset 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 of the Fixed asset you would like to cancel entries.
2. Select all lines that need to be reversed.
   
   

   Note: You need to select and cancel the depreciation, appreciation, or write-down entries first before the Acquisition Cost. This is to prevent the error below when trying to cancel and post them altogether in the Fixed Asset G/L Journal.

Note: If you are canceling a Disposal entry, you need to select the Fixed Asset Ledger entry with FA Posting Type = Proceeds on Disposal

3. Select Cancel Entries.

4. If you would like to post the correcting entries using a different posting date, enable the Use New Posting Date and enter the New Posting Date to be used. Otherwise, skip this step to use the original posting date.

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.

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

6. You can now go to the Fixed Assets G/L Journal to review and post the reversal entries. Ensure the balancing account is specified

Note: When posting, ensure the entries will not result into a negative book value, otherwise it will not post.

7. After posting, the canceled entry will no longer appear in the FA Ledger Entries. You can review the reversal entries in the G/L Registers or the Fixed Asset Error Ledger Entries, accessible from the Fixed Asset card > Related > History > Error Ledger Entries.