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Fixed Assets

Overview

Fixed assets are items of value that are owned by an individual or organisation. The Fixed Asset module controls the creation, acquisition, depreciation, adjustment, transfer and disposal of fixed assets.

You can set up and enter acquisition information for fixed assets, and then manage the assets by setting depreciation schedules, capitalisation thresholds, creating asset adjustments and disposing of them.

Configuration

When an asset is created, certain settings are defaulted along with additional information. These defaults are configured using fixed asset groups, depreciation profiles, and asset books.

  • Fixed Asset Groups
    • Groups are used for reporting and to default the set up on common assets.
    • Groups hold certain default information which can be changed at the time of asset creation, if necessary.
    • This default setup can contain:
      • Posting layer
      • Asset type
      • Major type
      • Number sequencing of assets
      • Barcode sequencing
      • Location
      • Capitalisation threshold
  • Asset numbering
    • Number sequences are used to provide assets with a unique identifier. The asset number is mandatory at creation and can either be set to automatic or manual.

Please follow the link below for further information on number sequencing:

  • Asset conditions
    • A default set of conditions can be configured in the system. Once configured, users can select from these conditions.
  • Asset locations
    • A default set of locations can be configured in the system. Once configured, users can select from locations when an asset is created.
    • Alternatively, the location can be defaulted on the fixed asset group. When an asset is created and the group is applied, it will inherit the location. The default location can be updated on the asset record if necessary.
Acquisition

There are multiple ways of acquiring an asset in the Dynamics 365:

  • Purchase order
    • The user can select an already created asset on the purchase order.
    • Initiate the system to create a new asset. This requires the fixed asset numbering sequence to be set to automatic.
  • Acquired through the fixed asset journal.
  • Capitalised and transferred from a project.
  • Transfer from inventory.

Please follow the link below for further information on acquisitions.

Depreciation

Depreciation is a periodic transaction that reduces the value of the fixed asset.

  • Straight line service life
  • Reducing balance
  • Manual
  • Factor
  • Consumption
  • Straight line life remaining
  • 200% reducing balance
  • 175% reducing balance
  • 150% reducing balance
  • 125% reducing balance

Please follow the link below for further information on depreciation methods.

Asset Books

A book tracks an independent financial lifecycle of an asset. Books can be configured to post associated transactions to the General Ledger. This configuration is the default setting because it is typically used for corporate financial reporting. Books that do not post to the General Ledger post only to the Fixed Asset subledger and are typically used for tax reporting purposes. If an asset needs to post to a different layer, this can be setup using the asset book.

Once a book has been created, the book is applied to a fixed asset group. There can be multiple books associated with an asset group or an asset.

Derived Books

The purpose of derived books is to simplify the posting of fixed asset book transactions that are planned for regular intervals. You choose one book as the primary book. This usually is the book that is used for accounting depreciation. You then attach to it other books that are set up to post transactions in the same intervals as the primary book. Tax depreciation books are often set up as derived books.

Disposal

You can dispose of assets either by sale or scrap. The sale utilises the free-text invoice functionality in the sales ledger and scrap uses the fixed asset journal.

Please follow the link below for further information on disposals.

Reporting

Major types

Major types are top-level asset classification for reporting purposes only.

  • A default set of major types can be configured in the system. Once configured, users can select from major types when an asset is created.
  • Alternatively, the major type can be defaulted on the fixed asset group. When an asset is created and the group is applied, the asset will inherit the major type. This default major type can be updated on the asset record if necessary.

Reason codes

You can require reason codes when specific asset transaction types are entered in journals, or you can require reason codes when the sales value, service life, depreciation periods, or expected scrap value fields are modified in the value models or depreciation books forms.

The Fixed Asset module, along with all modules in Dynamics 365, provides out of the box reporting. Please select the link below to see all Fixed Asset module reports.