Fixed Asset in Microsoft Dynamics 365 Business Central

Fixed Asset

Each fixed asset has a fixed asset card, which contains all the information about the asset

Create Fixed Asset Master

Search Fixed Assets in the Search Bar

Click on new button to create new Fixed Asset

Enter below details on Fixed Asset Card

No. = No. will auto update by the system, Enter Fixed Asset name in the description field, select FA Class code, Select FA Subclass code, GST Group code, HSN code and FA Location on Fixed Asset General Tab

Go to the Depreciation Book tab

Select Depreciation Book code = Company, Select Posting group, Depreciation method and No. of Depreciation years, system will auto update Depreciation ending date on the basis of No. of Depreciation Years.

Purchase Fixed Asset                

When you post acquisition cost through the purchase invoice, it is integrated with the general ledger. Before the purchase invoice can be posted, the G/L integration for acquisition cost must be selected on the depreciation book card associated with the fixed asset.

Go to the Purchase Order and create Purchase Order with Fixed Asset

Enter below details on the Purchase Order header

Select Vendor Name, enter Posting Date, Document Date, Location Code.

Go to the Purchase Order Line and enter below details

Select Type = Fixed Assets, Select Fixed Asset No. in the No. field, enter qty. = 1, enter Direct Unit Cost

Click on Statistic and check all amount with GST

Click on Release button to Release the Purchase order.

Post Purchase Invoice with Fixed Asset

Edit the Purchase Order à Enter Vendor Invoice No.

Click on Posting à Click on Receive and Invoice

System will post the Purchase Invoice

Click on YES button to open and check posted purchase invoice

Check Fixed Asset Ledger

Go to the Fixed Assets List à Click on Related à History à Ledger Entries

System created FA Ledger entries with FA Posting Type Acquisition Cost

Calculate Depreciation on Fixed Asset

Go to Fixed Asset List à Click on Process à Calculate Depreciation

System will open the Calculate Depreciation page

Select Depreciation Book = Company, Enter Posting Date, Enter Document No., Enter Posting Description and Select FA No. then click on OK, system will generate depreciation entries in the FA G/L Journal

Click on YES to open the Fixed Asset G/L Journal

Click on Actions à Posting à Preview Posting

Check Accounting entries, if all are ok then post the transaction

Click on Actions à Posting à Post

Go to the FA Ledger and check entry.

System posted depreciation entry in the FA Ledger

Open Fixed Asset Card and check Book Value

Sale of Fixed Asset

Go to the Sales Order and create new Sales Order with Fixed Asset

Enter below details on the Sales Order Header

Select Customer Name, Enter Posting Date, Order Date and Location Code

Go to the Sales Order Line and select Type = Item, Select Fixed Asset No. in the No. field, Enter Quantity and Unit Price

Click on Statistic and check all values

Then click on Release button and Release the Sales Order

Post Sales Invoice with Fixed Asset

Open the Sale Order à Click on Posting  à Preview Posting button  and check all accounting entries before posting the Sales Invoice

If all entries are correct then post the sales invoice.

Click on Posting à Ship and Invoice

System will post the Sales Invoice

Click on YES button to check Posted Sales Invoice

Go to the Fixed Asset Ledger and check entries

Copy Fixed Asset

We can use this feature to copy Fixed Asset Card

Go to the Fixed Asset list à Click on Actions à Copy Fixed Assets

Select FA No. in the Copy from FA No. field, enter No. of Copies, enable the button “Use FA No. series” then click on OK

System created copy of Fixed Asset as shown below, user can edit and change the Description if require.

Fixed Asset G/L Journal

All entries in the FA G/L journal will be posted to both the fixed asset ledger and the general ledger. To post to the general ledger, select the relevant fields on the Integration FastTab of the depreciation book card to which a fixed asset is linked

We can use this feature to pass entries for fixed assets, we can post Acquisition, Depreciation and Disposal entries by using this features, there are more option available if require we can use them and post the FA entries.

Post, Acquisition entry from Fixed Asset Journal

Enter below details on the Fixed Asset G/L Journal

Enter Posting Date, Select Fixed Asset in the Account Type field, Select Fixed Asset No. in the Account No. field, Select Acquisition in the FA Posting Type field, Enter Amount, Bal. Account Type & Balance Account No.

Click on Actions à Posting à Preview Posting

Check accounting entries

If all entries are correct then post FA G/L Journal

Go to the FA Ledger and check Ledger entries

Fixed Asset Reclassification Journal

The FA reclassification journal is used to transfer, split, or combine fixed assets. It is also used to transfer posted entries from one asset to another. The entries are calculated in this journal and then inserted in either the FA G/L journal or the FA journal.

Enter FA Posting Date, Document No., FA No., New FA No., Reclassify Acq. Cost % , place check mark on Reclass Acquisition Cost, Reclassify Depreciation.

Click on Reclassify à YES

System will generate Reclass entries in the FA G/L Journal

Check preview posting – Click on Actions à Posting à Preview Posting

If all accounting entries are correct the post the transaction.

Click on Actions à Posting à Post

Go to the new FA Ledger and check entries. System created acquisition and depreciation entries in the new asset

Fixed Asset Journal

Entries posted in the FA journal are posted only to the fixed asset ledger. We can use FA Journal to post and check Income Tax Depreciation.

Enter below details in the FA Journal

Enter FA Posting Date, Document No., Select FA No., Select INCOME TAX book in the Depreciation book code, Select FA Posting Type = Acquisition and enter amount, same way we can post Depreciation entry for Income Tax Dep. Book.

Check Preview Posting à Click on Actions à Posting à Preview Posting

System created only entry in FA Ledger.

Post Entry à Click on Actions à Posting à Post

Go to FA Ledger and check entry.