If you need to reassign an Asset record to a different functional location, follow these directions.
Open D365 and navigate to
Asset management >> Assets >> All assets
This will open the All assets screen.
Find and open the asset you wish to update.
On the Asset tab in the Ribbon, click "Install asset at location"
This will open the Install asset at location flyover pane.
Choose the new Functional location and click the "OK" button.