FA created by mistake

Dear Marina

Here are a few recommended steps and considerations. 

Post the Supplier Credit Note

Register the supplier credit note against the same acquisition account/coding structure that was used for the original supplier invoice. This creates the accounting reversal of the acquisition value.

Deactivate the Asset Object

In Fixed Assets, use Deactivate Object to move the object from an active fixed asset back to an investment/non-capitalized state. IFS guidance indicates that when an acquisition originated from supplier invoice or GL postings, the object should first be deactivated. 

Refer to this post with a similar query ( How to rollback an asset acquisition | IFS Community ) 

 Create the Opposite Acquisition Transaction ( in case the book value remains as original value ) ( See additional notes below ) 

The correct action is to post an opposite acquisition transaction (typically via the credit note or corresponding voucher). This results in: Original acquisition (+)  and Reversal acquisition (-), thus Net acquisition value should become zero. 

Note: If depreciation has already been run on the asset, reverse/rollback the depreciation transactions first before removing the acquisition value and deactivating the asset. Then proceed with the acquisition reversal process

Deactivate Accounting on the Object

Once the object has both the positive and negative acquisition transactions resulting in a zero acquisition value, you can perform Deactivate Accounting on the object to remove it from the fixed asset accounting lifecycle.

What is not recommended:  Do not Scrap the Asset simply because the purchase was reversed.

Scrap/Disposal is intended for assets that were genuinely acquired and then removed from service (broken, obsolete, sold, etc.). Scrapping creates disposal accounting and sets the object status to Scrapped. In other words, that you had owned the asset, and not that it was an erroneous entry. 

For a complete supplier credit reversing the original purchase, the business event is generally a reversal of acquisition, not a disposal.

Expected End State after processing:

• Supplier invoice = fully offset by supplier credit note.
• Fixed Asset acquisition value = 0.
• No depreciation remains (any posted depreciation may need to be reversed if applicable).
• Asset object is deactivated and no longer treated as an active capitalized asset.

Hope this helps

Regards

Vivek