Termination of fixed asset coverage from an insurance policy
A fixed asset's insurance coverage automatically terminates when you post a disposal entry to the depreciation book that is selected in the Insurance Depr. Book field in the Fixed Asset Setup window.
For example, if the Insurance Depr. Book field is set to COMPANY, posting to the disposal in the TAX depreciation book does not affect the insurance coverage ledger.
The termination will occur regardless of whether you selected the Automatic Insurance Posting check box on the Fixed Asset Setup page or not.
Watch the following video to see what happens to insurance for an asset when you dispose of an asset by posting a disposal entry.