Fixed asset setup: presentation

This article presents the basics about the fixed asset setup in Dynamics AX 2012.

1/ Prerequisites

Before using Fixed assets module, several prerequisites must be setup : number sequences, journal names and default descriptions.

• Number sequences
  • Access: Organization administration > Common > Number sequences > Number sequences
  • Two number sequences must be created for the FA parameters:
    • Automatic number for « Fixed asset number »
    • Automatic number for « Fixed asset transfer »
  • One sequence per journal names: acquiring, depreciating, adjustment, …
  • Several number sequences per asset groups (optional).

• Journal names
  • Access: General Ledger >Setup > Journals > Journal names
  • Create journal with the type « Post fixed Assets ».

• Default descriptions
  • Access: Organization administration > Setup > Default descriptions
  • Two default descriptions to setup :
    • Fixed asset – posting, ledger
    • Fixed asset – reversal of reserve

2/ Assets setup

The standard steps for asset setup are as follows:

• Depreciation profiles
• Fiscal calendar
• Depreciation books
• Value models
• Fixed asset groups
• Posting profiles
• Parameters

2.1/ Depreciation profiles

Depreciation profiles are used to define rules for calculating depreciation. Several methods are available for depreciation calculation.

Access: FA > Setup > Depreciation > Depreciation profiles

• Create a new depreciation profile and enter a code and a name.
• Select Method.
• Field the percentage (depend of the method).
• In the Depreciation year field, select Calendar or Fiscal.
• Select the period frequency to define when the depreciation is posted.

2.2/ Fiscal calendar

Fiscal calendars are used with fixed asset depreciation, financial transactions and budget cycles. You can select a fiscal calendar for a value model or depreciation book. This fiscal calendar will be used by the fixed assets that use the selected value model or depreciation book.

Access: GL > Setup > Fiscals calendar

2.3 / Depreciation books

You can use depreciation books to track depreciation for tax or other nonfinancial purposes without affecting the General ledger.

Access: FA > Setup > Depreciation > Depreciation books

2.4/ Value model

Value models are necessary for Fixed assets.Value models have the following characteristics:

• They contain and connect all financial information about Fixed assets.
• They achieve complete setup of depreciation for an asset.
• Each value model assigns an additional life cycle to the asset.
• Each asset can have an unlimited number of value models attached.

Access:FA > Setup > Value models

2.5/ Fixed assets groups

There are many reasons for setting up Fixed asset groups, including:

• To simplify the setup of assets
• To help inquiries, reporting, and setting up posting profiles
• To create a template with default information that is copied to a new asset when the company acquires a similar asset

For the reporting, you can create a “major type” classification to link to fixed assets group

• Access: FA > Setup > Major types

Access: FA > Setup > Fixed assets groups

• Link fixed asset group with one or several value model and define the depreciation period.

2.6/ Posting profiles

Fixed assets posting profiles are used to define the integration of fixed asset to General ledger.At least one posting profile must be set up.

Access: FA > Setup > Fixed assets posting profiles

2.7/ Parameters

In this form, you can select the option for the accouting rules, acquisition from purchase order, …

Access:FA > Setup > Fixed assets parameters

Fixed assets transactions: depreciation

This article describes the fixed assets depreciation transactions in Dynamics AX 2012.

1/ Depreciation with accounting

To do a depreciation with accounting, you need to use a fixed asset journals. You can post depreciation only for fixed assets with the status “Acquired”.

1.1/ Option A: Record depreciation manually

Access: FA > Journals > Fixed Asset

This option is useful if you have few depreciation transactions to enter.

• Create a new journal and go to the line form.
• Create a line with transaction type = Depreciation
• Enter a description and the amount of the depreciation.
• The value model and the offset account are linked to the setup of the fixed asset.

• Post the journal
• Go to Common > Fixed assets > Fixed assets > Value models > Tab Depreciation
• The fixed asset is updated

1.2/ Option B: Use depreciation proposal

Access: FA > Journals > Fixed Asset

This option is useful when you want to record all the depreciation transactions in only one step, for example, all the depreciation transaction of the month or all the depreciation for a group.

• Create a new journal and go to the line form.
• Go to “proposals > “Depreciation proposal”

• In the To date field, enter the ending date of the period for which you want to create depreciation proposal line.
• Click on “Select” if you want to add criteria to the proposal.
• Select “Summarize depreciation” if you want to sum the depreciation. If “Summarize depreciation” is not selected, the proposal create one line per month.
• Click on OK.

• Check accounts and amounts and post the journal
• The option “Summuarize depreciation” was not selected, there is one line per month and per fixed asset.

• Voucher : Inquiries > Voucher

• Go to Common > Fixed assets > Fixed assets > Value models > Tab Depreciation
• The fixed asset is updated

2/ Depreciation without accounting

To do a depreciation without accounting, you need to use the depreciation book journal.

Access: FA > Journals > Depreciation books journal

• Create a new depreciation book journal

• Go to the lines
• You can enter manually the depreciation transaction by using the depreciation transaction type or use the depreciation proposal.

• Select the to date and other criteria if needed
• Check the amount and post the journal

• The fixed asset is updated in FA > Common > Fixed assets > Fixed assets > Depreciations books

Fixed assets transactions: acquisition

This article describes the fixed assets acquisition transactions in Dynamics AX 2012.

1/ Introduction

There are severals options to create acquisition transactions in Dynamcis AX 2012:

• Option 1: Manual creation and general ledger journal
• Option 2: Manual creation and Fixed assets journal proposal
• Option 3: Manual creation and vendor invoice journal
• Option 4: Purchase order and automatic creation

To allow a fixed asset acquisition from the purchase module (option 3 ad 4), you need to select fixed assets parameters:

2/ Option 1: Manual creation and general ledger journal

• Step 1: Create new fixed asset
  • Access: FA > Common > Fixed assets.
  • Create a new fixed asset.
  • Enter all informations you need : location, technical informations, insurance, …

• The fixed asset status = Not yet acquired

• Step 2: Create a new journal
  • Access : GL > Journals > General Journals.
  • Create a new journals and go to lines form.
  • In accounting type field: select “Fixed asset”
  • Enter the fixed asset number in the account field.
  • The offset account is automatically filled by the offset account from the value model.

• In tab “Fixed asset”, check the value model and select transaction type and post the journal.

• Step 3: Fixed asset acquired
  • Access: FA > Common > Fixed assets
  • Check the fixed asset : price comes from the ledger journal.
  • FA status is now “Open”.

Remark : For the step 2, you can use a fixed asset journal instead of a general ledger journal.

3/ Option 2: Manual creation and Fixed assets journal proposal

• Step 1: Create the new asset.
  • Access:  FA > Common > Fixed assets.
  • Create a new fixed asset.
  • Enter all informations you need : location, technical informations, insurance, …
  • In the value model form: enter the acquisition price.
  

• Step 2: Fixed asset journal
  • Access: FA > Journals > Fixed assets journal.
  • Create a new journal and go to Line form.
  • Use the proposal functionality : click Proposals > Acquisition proposal

• •  Select « not yet acquired » fixed assets.

• • Journals lines are created automatically.
  • The price come from the fixed asse form.
  • Check and post the journal.

• Step 3: Fixed asset acquired
  • Access: FA > Common > Fixed assets
  • FA status is now “Open”.

4/ Option 3: Manual creation and vendor invoice

• Step 1: Create new fixed asset
  • Access:  FA > Common > Fixed assets.
  • Create a new fixed asset.
  • Enter all informations you need : location, technical informations, insurance, …

• Step 2: Create vendor invoice journal
  • Access: AP > Journals > Invoices > Invoice journal
  • Create a new journal and go to the line form.
  • Select « Fixed asset » in the Account type and enter the Fixed asset number in the Account field.
  • Select the vendor account in the Offset account

• • In the tab « Fixed assets », check the transaction type and the value model.
  • Post the journal

• Step 3: Fixed asset updated
  • Access: Fixed assets > Common > Fixed assets > Fixed assets
  • In the fixed assets form the price and the status are updated

5/ Option 4: Purchase order and automatic creation

• Step 1: Create a purchase order
  • Access:  AP > Common > Purchase orders > All purchase orders
  • Create a new purchase order.
  • Enter all the informations as a regular purchas order.
  • In Line details: check the « New fixed asset » box and select fixeed asset group.
  • Confirm the purchase order.

• Step 2: Product receipt.
  • Tab Receive > Button Product receive
  • When you post the product receipt, you can check the fixed assets parameters.

• Step 3: Vendor invoice
  • Tab Invoice > Button Invoice
  • Enter invoice date and invoice number
  • In tab « Fixed assets » (line details) data are automatically updated.
  • Post the invoice.

• Step 4: Fixed asset form
  • Access: FA > Common > Fixed assets > Fixed Assets
  • The fixed assets is created, the status is open and the price is updated
  • Enter all other information you need.