Fixed Asset Acquisition

There are various methods to acquire an asset, within Dynamics 365.

• Purchase Requisition> Purchase Order > Purchase Order Invoice > Fixed Asset
• Purchase Order > Purchase Order Invoice > Fixed Asset
• Purchase Order Invoice > Fixed Asset
• Non-PO Invoice Journal > Fixed Asset
• Inventory to Fixed Asset
• Fixed Asset Acquisition Proposal > Fixed Asset Journal > Fixed Asset
• Fixed Asset Journal > Fixed Asset
• Project > Fixed Asset

This process requires the implementation of the Procurement and Sourcing module, for Purchase Requisitions.

Purchase requisitions are internal documents that identify a request for the procurement department to purchase specific items (like consumables and office supplies). They are typically entered manually by the person who needs the material or service. A purchase requisition runs through an approval process workflow before it is released as a purchase order manually or automatically.

For more information view the help page below.

Purchase Requisitions – GYDE365

A purchase requisition is raised internally, for the purchase of the asset. This would go through the relevant approval process, and once approved converted to a purchase order, matched to a purchase invoice, and assigned to a fixed asset.

To configure this process;

In the fixed Asset Parameters, under Purchase order, enable Allow Asset Acquisition from Purchasing.

Additional parameters control if specific user groups are restricted from asset acquisition from a purchase order, ability to create an asset when posted the product receipt or purchase invoice and a check for fixed assets validity based on specific asset rules.

Step 1: Create a new Purchase Requisition.

Step 2: Click add line and add the details such as Units, and Fixed Asset Category.

Step 3: Submit and approve the requisition.

Step 4: After approval click on release approved Purchase Requisition.

Path: Procurement and Sourcing > Purchase Requisition > Approved Purchase Requisition processing > Release Approved Purchase Requisition.

Step 5: Select the approved requisition and then click on Purchase Order.

Step 6: Select the Supplier/Vendor.

Step 7: Now open the Purchase order and enter the amount.

Step 8: Confirm the Purchase order and post the Product Receipt.

After posting the product receipt we can see that the Fixed Asset number has been populated on the line level and the status of the purchase order has been changed to received and confirmed.

Now if we click on that Fixed Asset and then click on Books, we can see that the Fixed Asset has the status “Not yet Acquired”.

Step 9: Post the Invoice to acquire the Fixed Asset.

Now if we check the Status of the Fixed Asset, it is changed to Open which means that the Fixed Asset has been acquired.

This process requires the implementation of the Procurement and Sourcing module, for Purchase Orders.

A purchase order (PO) is a document that represents an agreement with a supplier to buy goods or services. Users can create purchase orders either automatically (from planned orders, purchase requisitions, or requests for quotation) or manually. The document also helps keep track of product receipts that are made toward the order and, later, the accounting of supplier invoices that the supplier bills toward the order.

To configure this process;

In the fixed Asset Parameters, under Purchase order, enable Allow asset acquisition from purchasing.

Additional parameters control if specific user groups are restricted from asset acquisition from a purchase order, ability to create an asset when posting the product receipt or purchase invoice and a check for fixed assets validity based on specific asset rules.

The fixed asset posting profile for acquisition needs to be created, to post to the correct account.

Step 1 : Create a Purchase Order

When creating the purchase order, if this is a new asset, flag it in the setup inline details. This will allow the core fundamental information to be created such as asset group, asset number and Book.

If the asset is already created in the Fixed Asset register, the drop-down is available to link to the relevant asset.

Step 2 : Confirm the PO and then post the product receipt. Once the receipt is posted, the fixed asset ID will be created. The parameter setting defines the auto-creation of the asset ID.

Step 3 : Post the Invoice. The fixed asset book record will have an acquisition price, but will have a status of “not yet acquired”

Step 4 : When the purchase order is fully invoiced (there could be multiple purchase orders to a single asset) a fixed asset journal is required, to active the asset.

Fixed assets > Journal entries > Fixed assets journal

Proposal > Acquisition proposal

• A line for each invoice will be pulled into the acquisition journal
• Update the “date” to today’s date, or the date the fixed asset should be placed in service
• Post the acquisition
• Once the acquisition is posted, the fixed asset will be placed in service, and begin depreciating per depreciation rules setup on the book

This process requires the implementation of the Purchase Ledger/Accounts Payable module.

Both Purchase Invoice to Asset and non-PO Invoice to asset work in a similar way, adding the asset to the details of the invoice entry form. Then creat a fixed asset journal, as guided in the Purchase Order > Purchase Order Invoice > Fixed Asset followed by creation of a fixed asset journal to activate the acquisition.

This process requires the implementation of the Inventory/Stock management module.

To transfer an inventory item to an asset, create the asset in the Fixed Asset module, then a journal to transfer from Inventory.

The Fixed Asset Acquisition Proposal in Dynamics 365 is a feature that allows you to create proposals for new fixed assets based on purchase orders or vendor invoices. This feature enables you to keep track of fixed assets that you have acquired through purchases and quickly turn them into actual fixed assets in your system, following the steps in the sections above.

To create a Fixed Asset Acquisition Proposal, you need to have a purchase order or vendor invoice that contains the details of the asset that you want to acquire. You can create a proposal from the purchase order or vendor invoice by selecting the “Create Fixed Asset Proposal” option. This will create a proposal that includes information such as the asset description, purchase price, and vendor information.

You can then review and adjust the proposal as necessary, such as adding additional details or changing the depreciation method. Once you have finalized the proposal, you can create a Fixed Asset Journal.

The Fixed Asset Acquisition Proposal feature in Dynamics 365 can help you streamline your fixed asset acquisition process by providing a structured way to create proposals based on purchase orders or vendor invoices. It also enables you to quickly and easily turn those proposals into actual fixed assets in your system.

The Fixed Asset Journal in Dynamics 365 Finance is a feature that allows you to post transactions related to fixed assets, such as acquisitions, disposals, revaluations, and depreciations. It provides a centralised location for managing all fixed asset transactions and ensures that your fixed asset records are up-to-date and accurate.

To create a Fixed Asset Journal in Dynamics 365, you need to select the “New Journal” option in the Fixed Assets module and then specify the type of transaction that you want to post. You can also specify the accounts and dimensions that are associated with the transaction and add any additional details or notes.

Once you have completed the journal, you can preview it to ensure that all information is accurate and then post it to update the relevant fixed asset records. The Fixed Asset Journal feature also allows you to review and correct any errors that may have occurred during the posting process.

Using the Fixed Asset Journal in Dynamics 365 can help you streamline your fixed asset management processes and ensure that your fixed asset records are accurate and up-to-date. It can also help you track the financial impact of fixed asset transactions and make more informed decisions about your fixed asset investments.

The Fixed Asset Journal is commonly used for financial asset adjustments.

This process requires the implementation of the Project Management and Accounting module.

Completed projects can be capitalised to the fixed asset register, using the project elimination process.

This requires the asset to always be of type “Investment” and will only allow update to asset when the project is set to “Finished”.

All costs and expenses will be capitalised to the asset. The asset must be created in the Fixed Asset module, to capitalise the project to.

Configuring posting profiles is required for all fixed asset transactions, to post to the correct General Ledger Main Accounts.

You must set up at least one posting profile, and many organisations will need only one. You can use additional posting profiles when the same asset transactions for the same asset must be posted differently in certain situations.

Posting profiles specify the ledger accounts that are affected when fixed asset transactions are posted. You can select different ledger accounts for each type of asset transaction.

For each transaction type, set up a ledger account and an offset account. If the ledger account is the part of the fixed asset transaction that changes the value of fixed the asset, enter a balance sheet account. If the offset account is for the fixed asset income or expenditure, enter a profit and loss account.

Accounts used for posting fixed asset acquisitions may vary depending upon the method used to acquire the asset.

An offset account is also a balance sheet account. In the general journal and in the fixed assets journal, this account often will be the bank account that is used to pay for the acquisition of the asset. The offset account is a default account, which is suggested in the journals. It can be changed in the journal to any other account from the chart of accounts or to a vendor account if the fixed asset was purchased from a vendor.

When invoice journal or purchase orders in Accounts Payable are used for fixed asset acquisitions, the offset account for the fixed asset transaction is replaced by the vendor account that is selected for the transaction.

For acquisitions posted using the Inventory to fixed assets journal in General ledger, the fixed asset is not bought from external sources, but transferred from the company’s own inventory. Therefore, the offset account is an inventory issue account for the item in Inventory Management.