How to Convert a Fixed Asset to Inventory Conversion?

Step 1:   Goto Depreciation books enable the G/l – write down integration.  

Step 2:   Go to FA posting groups define the Write down Account and Write down expenses account (if write down account is defined with control Account then the written down value will transfer to Control account else if write down account is defined with G/l Account then JVs must be passed to bring down the balance to Control A/c. 

Step 3:  Once the Setup is done then post the Write down entry in FA G/L journal. 

Step 4: Goto GEN POSTING SETUP – Define GEN BUS POSTING GROUP as FA TO INVENTORY. Now provide the sales and purchase account as Control Account for the business posting group “FA to Inventory” Gen Prod Post group “ALL Groups” In Gen posting Setup. 

Step 5: Create an Item where the detail of the item is same as the FA. 

Step 6: Post the Positive adjustment for the newly created FA item in the Item master (Make sure that the gen business posting is as same as FA to Inventory).