Microsoft Dynamics NAV 2013 - 80434 - Fixed Assets

COURSE 80434:
FIXED ASSETS IN
MICROSOFT DYNAMICS NAV 2013
Microsoft Official Training Materials for Microsoft Dynamics

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Table of Contents
Introduction
Microsoft Dynamics Courseware Overview.....0-3
Student Objectives.0-4
Module 1: FIXED ASSETS SETUP

Lesson 1: Fixed Assets Process Flow ........................................................................................................1-3
Lesson 2: Fixed Assets Setup ......................................................................................................................1-5
Lesson 3: Fixed Assets Posting Groups ...................................................................................................1-7
Lesson 4: Depreciation Books ....................................................................................................................1-9
Lesson 5: FA Journal Templates ............................................................................................................. 1-26
Lesson 6: Fixed Asset Card ....................................................................................................................... 1-27
Lab 1.1: Create a Fixed Asset Card ........................................................................................................ 1-42
Lesson 7: Fixed Asset Allocation Keys .................................................................................................. 1-45
Lesson 8: Main Assets and Asset Components ................................................................................ 1-50
Lesson 9: Record Open Transactions ................................................................................................... 1-56
Lesson 10: Make Duplicate Entries ....................................................................................................... 1-59
Lesson 11: Copy Fixed Assets and FA Ledger Entries .................................................................... 1-64

Fixed Assets in Microsoft Dynamics NAV 2013

Module 2: FIXED ASSET TRANSACTIONS
Lesson 1: Journals for Fixed Assets ..........................................................................................................2-3
Lesson 2: Purchase Fixed Assets ...............................................................................................................2-7
Lab 2.1: Purchase a Fixed Asset Using the Purchase Invoice ...................................................... 2-12
Lab 2.2: Increase the Cost of the Fixed Asset.................................................................................... 2-16
Lesson 3: Calculate and Post Depreciation........................................................................................ 2-19
Lab 2.3: Calculate Depreciation ............................................................................................................. 2-29
Lesson 4: Write-down and Appreciation of Fixed Assets ............................................................. 2-32
Lab 2.4: Post Write-down ......................................................................................................................... 2-37
Lesson 5: Fixed Asset Disposals .............................................................................................................. 2-40
Lab 2.5: Dispose of a Fixed Asset with a Sales Invoice .................................................................. 2-48
Lesson 6: ........................................................................................................................................................ 2-51
Lesson 7: Correct an Entry ....................................................................................................................... 2-52
Lab 2.6: Cancel and Recalculate Depreciation ................................................................................. 2-67
Lab 2.7: Cancel Entries ............................................................................................................................... 2-72
Lesson 8: Document Fixed Asset Transactions ................................................................................. 2-75
Lesson 9: Fixed Asset Reports ................................................................................................................. 2-77
Lesson 10: Budget Fixed Asset Transactions ..................................................................................... 2-90
Lab 2.8: Budget a Fixed Asset ...............................................................................................................2-103
Lesson 11: Cost Accounting Depreciation .......................................................................................2-111
Lesson 12: Indexation ..............................................................................................................................2-118
Lesson 13: Minor Assets..........................................................................................................................2-123
Lab 2.9: Manage a Minor Asset............................................................................................................2-128

Table of Contents
Module 3: FIXED ASSET RECLASSIFICATIONS
Lesson 1: Asset Transfers .............................................................................................................................3-2
Lab 3.1: Splitting a Fixed Asset ..................................................................................................................3-6
Lesson 2: Partial Disposal of an Asset .................................................................................................. 3-17
Lab 3.2: Disposing of a Part of an Asset ............................................................................................. 3-19
Lesson 3: Combining Assets .................................................................................................................... 3-33
Module 4: FIXED ASSETS MAINTENANCE

Lesson 1: Setting Up Maintenance Information .................................................................................4-2
Lesson 2: Maintenance Registration and Costs ..................................................................................4-8
Lab 4.1: Posting Allocation Transactions ............................................................................................ 4-15
Lab 4.2: Posting Maintenance Transactions ...................................................................................... 4-19
Lesson 3: Maintenance Cost Reporting .............................................................................................. 4-26
Module 5: FIXED ASSET INSURANCE

Lesson 1: Setting Up Insurance Information ........................................................................................5-2
Lesson 2: Attaching Assets to Insurance Policies ............................................................................ 5-12
Lesson 3: Monitoring Insurance Coverage ........................................................................................ 5-18
Lesson 4: Updating Insurance Information ....................................................................................... 5-23
Lesson 5: Indexing Insurance .................................................................................................................. 5-27


MODULE 1: FIXED ASSETS SETUP

Module Overview
Microsoft Dynamics NAV 2013 provides a fully integrated fixed asset
management functionality which helps a company manage its assets effectively
and efficiently.
With Microsoft Dynamics NAV 2013, a company can keep track of all information
relevant to fixed assets, such as maintenance costs and schedules, acquisition
costs, and related insurance information.
Fixed Assets in Microsoft Dynamics NAV 2013 has an unlimited number of
depreciation books that track depreciation expenses reliably. You can have one
book integrated with the general ledger to reconcile your fixed asset transactions
with the general ledger, and another book, not integrated with the general ledger,
for internal fixed asset calculations that you do not want to be reflected in the
general ledger. Depreciation books define various depreciation rules. In addition
to all the ordinary methods of depreciation, Fixed Assets can create custom
depreciation methods. With the flexibility and real-time nature of the fixed assets
functionality, the periodic income and expense figures are always accurate and up
to date.
The process flow diagram shown in this module gives a visual overview of the
typical life cycle of a fixed asset, starting from creating a fixed asset card and
ending with the fixed asset disposal, which is typically the last transaction posted
for a fixed asset.
Note: All the procedures in this course, including demonstrations and labs,
should be performed in one of the RoleTailored clients of Microsoft Dynamics NAV
2013. We recommend that you use the client for Windows. You can also use the
SharePoint client or a web client that provides access to Microsoft Dynamics NAV
features from a web browser. Be aware that in the web and SharePoint clients, you
have limited access to Microsoft Dynamics NAV features and that their interfaces
differ slightly from the interface of the client for Windows.
Before you work with Fixed Assets in Microsoft Dynamics NAV 2013, the following
areas must be set up:
Fixed Assets setup
Fixed Assets posting group
Depreciation books
Depreciation tables
Fixed Assets journals

1-1

Other Fixed Assets features discussed in this module are as follows:
Main assets and asset components
Recording opening transactions
Using duplication lists with depreciation books
Copying fixed assets and Fixed Assets ledger entries
Objectives
The objectives are:
1-2
Give a visual overview of a typical fixed asset life cycle.
Describe the fields on the Fixed Assets setup page.
Describe fixed asset posting groups.
Explain depreciation books for fixed assets.
Explain depreciation tables.
Set up fixed assets journal templates.
Set up a fixed asset card.
Set up main assets with asset components.
Explain how to record opening transactions.
Explain how to duplicate entries to depreciation books.
Explain how to copy fixed assets and FA ledger entries.

Module 1: Fixed Assets Setup
Fixed Assets Process Flow

A typical life cycle of a fixed asset in Microsoft Dynamics NAV 2013 begins with
the creation of a fixed asset card to register the fixed asset in the program and
ends with the disposal of the fixed asset. During this life cycle, you can perform
various operations with the fixed asset, some of which may be omitted, depending
on your business needs.
FA Flowchart
The FA Process Flow flowchart shows a common process flow with the most
typical operations. These operations together with their variations and other fixed
asset functionality are reflected throughout this course in demonstrations and
labs.
The flowchart in this topic shows a typical life cycle of a fixed asset.

1-3
FIGURE 1.1: FIXED ASSET PROCESS FLOW
1-4

Fixed Assets Setup

Use the Fixed Assets Setup page to select the default settings for Fixed Assets.
To open the Fixed Assets Setup page, in the navigation pane, click Departments
> Financial Management > Fixed Assets > FA Setup.
FIGURE 1.2: FIXED ASSET SETUP

The page has the following two FastTabs:
General
Numbering
General FastTab
The General FastTab contains the basic and general information about fixed
assets, for example, the default depreciation book, posting period, and number
series which are used for the fixed assets and are relevant to correctly track
maintenance costs, manage insurance policies related to fixed assets, post fixed
asset transactions, and generate various reports and statistics.
The Default Depr. Book field contains the default depreciation book. You can
enter one of the depreciation book codes in this field. Be aware that having a
default depreciation book in the setup does not prevent you from creating
multiple depreciation books.

1-5

If the asset is one main asset that consists of multiple component assets, you can
select whether you want to be able to post only to the components or to the main
asset as well. Select the Allow Posting to Main Assets option to post to a main
asset.
Use the Allow FA Posting From and Allow FA Posting To fields if you want to
restrict posting to the fixed assets from a certain date, to a certain date, or in a
specific time interval, for example, to restrict posting to the fixed assets within the
current year or any previous period. If you leave these fields empty, no time
restriction is applied to posting to the fixed assets.
If your configuration includes insurance facilities, enter a code in the Insurance
Depr. Book field to enable posting of insurance coverage ledger entries.
If the Automatic Insurance Posting field is selected, the program allows for the
acquisition costs posted to fixed assets to automatically post to the insurance
coverage ledger.
For more information about insurance of fixed assets, refer to the Fixed Asset
Insurance module.
Numbering FastTab
The Numbering FastTab has two fields:
Fixed Assets Nos.
Insurance Nos.
Use both these fields to assign number series to fixed assets and the insurance
policies that cover them.
To see the number series that are set up in the field, select the field.
1-6

Fixed Assets Posting Groups

You must set up fixed assets posting groups to relate the fixed asset transactions
to the correct G/L accounts.
The fixed assets posting groups are set up on the FA Posting Group page.
To open the FA Posting Groups page, in the navigation pane, click Departments
> Financial Management > Administration > FA Posting Groups.
FIGURE 1.3: FA POSTING GROUPS

Select the accounts to which transactions are posted for fixed assets. You must
select the following G/L accounts for different types of expenses and costs:
Acquisition costs
Accumulated depreciation amounts
Acquisition costs on disposal
Accumulated depreciation on disposal
Gains on disposal
Losses on disposal
Maintenance expenses
Depreciation expenses

1-7

Demonstration: Set Up a New FA Posting Group
The accounting manager has decided to start a new posting group in order to
post the transactions involving the IT equipment. It was decided not to allocate
any FA posting types and to start with specifying the accounts to post to.
Set up a new posting group, IT-EQUIP, for IT-equipment.
Use the same G/L accounts as the MACHINERY posting group.
Do not allocate depreciation expenses or other FA posting types.
Demonstration Steps
1.
Open the FA Posting Groups window.
2.
Set up an IT-EQUIP FA posting group by filling in the fields with the

same G/L accounts as set up for the MACHINERY posting group.
To set up a new posting group, follow these steps.
a.
In the navigation pane, click Departments > Financial

Management > Administration > FA Posting Groups.
b.
In the FA Posting Groups window, create a new line, filling in the

fields as shown in the following table.
Field
1-8
Value
Code
IT-EQUIP
Acquisition Cost Account
1220
Accum. Depreciation Account
1240
Acq. Cost Acc. on Disposal
1230
Accum. Depr. Acc. on Disposal
1240
Gains Acc. on Disposal
8840
Losses Acc. on Disposal
8840
Maintenance Expense Account
8640


Field
Depreciation Expense Acc.
c.
Value
8820
Click OK.
Depreciation Books
Fixed assets must have a depreciation book to record depreciations to the
fixed assets.
Set up depreciation books on the depreciation book card.
To open the list of depreciation books in the navigation pane, click Departments
> Financial Management > Fixed Assets > Depreciation Books. In the
Depreciation Book List window, select the COMPANY depreciation book and
then click Edit.
FIGURE 1.4: DEPRECIATION BOOK CARD GENERAL FASTTAB

1-9

With Microsoft Dynamics NAV 2013, you can set up multiple depreciation books
to accommodate your business needs (such as tax and financial statements).
After you have set up depreciation books, you can attach one or more
depreciation books to an asset, and then set up additional information in the FA
Depreciation Books window. For each depreciation book, you must define the
terms and conditions, such as integration with general ledger. (If a depreciation
book is integrated with the general ledger, all transactions posted to that
depreciation book are also posted to specific general ledger accounts.)
General FastTab
The General FastTab contains the basic setup fields for the depreciation books.
Field
Description
Code
This field contains the code of the

depreciation book that identifies it in
the program.
Description
This field contains the description of the

depreciation book.
Default Final Rounding

Amount
This field contains the final rounding

amount to use if the Final Rounding
Amount field in the FA Depreciation
Books window is empty. If the
remaining book value after the last
calculated depreciation is less than the
amount in this field, the remaining value
is added to the last depreciation. This
makes sure that the fixed asset is fully
depreciated over its depreciable
lifetime.
Default Ending Book Value
This field specifies the ending book

value to use if the Ending Book Value
field in the FA Depreciation Books
window is empty. This feature prevents
the asset from being fully depreciated.
The ending book amount is subtracted
from the last depreciation to prevent a
book value of zero. If the book value is
greater than zero after the last
depreciation, for example, because of a
rounding problem or because a salvage
value exists, the ending book value is
ignored.
1 - 10


Field
Disposal Calculation Method
Description
This field defines the method of disposal
calculation. Select the field to select one
of the following two methods:
Net: The program calculates the

profit or loss and then posts this
amount to the gains on disposal
account or the losses on disposal
account.
Gross: The profit or loss is not

posted to a single amount. Profit or
loss is the difference between the
opposite entries to the sales account
on disposal (credit) or book value
on disposal (debit).
Subtract Disc. in Purch. Inv.
When this check box is selected, the line

and invoice discounts are subtracted
from the acquisition cost posted for the
fixed asset. The line and invoice
discounts are posted to the account
contained in the Purch. FA Disc.
Account field in the General Posting
Setup window.
Allow Correction of Disposal
Select this check box if you want to

correct fixed ledger entries of the type
Disposal or cancel entries connected
with disposal.
Allow Changes in Depr. Fields
When this check box is selected, the

depreciation fields in the FA
Depreciation Books window can be
changed after you have posted entries.
VAT on Net Disposal Entries
Select this check box when you sell a

fixed asset with the net disposal
method. In this case, the VAT fields in
the general ledger entries will be filled
in.
Allow Identical Document No.

allow identical document numbers in
the depreciation book.

1 - 11

Field
1 - 12
Description
Allow Indexation

allow indexation of FA ledger entries
and maintenance ledger entries that are
posted to this depreciation book.
Afterward, the Index Fixed Assets batch
job indexes the fixed assets, which are
linked to a specific depreciation book.
The batch job creates entries in a journal
based on the conditions that you
specify. You can then post the journal or
adjust the entries before posting, if it is
necessary.
Allow Depr. below Zero

program continues to calculate periodic
depreciation when the Calculate
Depreciation batch job is running even
if the book value of the fixed asset is
zero or negative.
Allow more than 360/365 Days

fiscal year can have more than 360
depreciation days. If you do not select
this check box and the fiscal year has
more than 360 days, the program
displays an error message.


Field
Use FA Ledger Check
Description
program performs the following checks
before posting a journal line:
Acquisition cost is the first entry

(when the FA posting date is used).
Acquisition cost is entered as debit

Disposal, if any, is the last entry.
Book value has a debit balance

unless the Allow Depr. Below Zero
check box is selected on the
depreciation book card.
Accumulated depreciation, salvage

value, and accumulated sales price
are all credit balances.
Write-down, Appreciation, Custom

1, and Custom 2 entries match the
setting in the Sign field in the FA
Posting Type Setup window.
If you clear this check box, the program

performs only the first two checks :
Acquisition cost is the first entry

Acquisition cost is entered as debit

Use Rounding in Periodic

Depr.

program rounds depreciations to whole
numbers.
Use Same FA+G/L Posting

Dates

posting date and FA posting must be
the same on a journal line before
posting. If you do not select this check
box, you must enter both dates
separately.
Fiscal Year 365 Days
If you select this check box, the

Calculate Depreciation batch job uses
the calendar year of 365 days instead of
the standardized year of 360 days.

1 - 13

Note: In the Depreciation Book table, there is a Periodic Depr. Date Calc.
field. You can use this field to define how the program calculates the number of
depreciation days. Select the Last Entry option to have the program calculate the
number of depreciation days as of the date of the last FA ledger entry. Select the
Last Depr. Entry option to have the program calculate the number of depreciation
days as of the date of the last depreciation FA ledger entry (the last entry with the
Depreciation posting type).
If you select the Last Depr. Entry option, you can only use Straight-line as the
depreciation method for FA Depreciation Books.
Be aware that you cannot access this field from a RoleTailored client. To change the
value in this field, you have to run the Depreciation Book table from the Object
Designer in Microsoft Dynamics NAV Development Environment.
Integration FastTab
The Integration FastTab specifies entries to integrate with the general ledger.
For each depreciation book, you can define what kind of transactions or posting
types that you want to be integrated with or posted to the general ledger. You
can also choose to integrate the different kinds of FA postings to G/L per
depreciation book, because Microsoft Dynamics NAV 2013 lets you select which
specific posting that you want to be integrated in a depreciation book. The
company makes its own decision about how to set up depreciation books and
whether using multiple depreciation books is suitable for the business.
However, we recommend that you have each FA posting integrated with G/L one
time only, either in a single depreciation book or split between multiple
depreciation books, for example, when one depreciation book is integrated with
the general ledger and uses the FA G/L journal, and other depreciation books are
not integrated with the general ledger and use the FA journal.
1 - 14


Select the fields of the relevant posting type or types of FA transactions that
should integrate with the general ledger.
FIGURE 1.5: DEPRECIATION BOOK CARD - INTEGRATION FASTTAB

If G/L integration is set, the specified transactions are posted by the FA G/L
journal. If G/L integration is not set, the fixed asset transactions are posted by the
FA journal.

1 - 15

Duplication FastTab
Use the Duplication FastTab to indicate duplicate entries in other depreciation
books.
Duplication is useful when a company uses multiple depreciation books.
When duplication is set up, Microsoft Dynamics NAV 2013 creates the same
entries for all the books. This reduces data entry time.
FIGURE 1.6: DEPRECIATION BOOK CARD - DUPLICATION FASTTAB
1 - 16


The Duplication FastTab contains the fields described in the following table.
Field
Description
Part of Duplication List

depreciation book is a part of the
duplication list.
Use FA Exch. Rate in Duplic.

exchange rate from the FA Exchange
Rate field in the FA Depreciation
Books window is used when you
duplicate entries from one journal to
another.
Default Exchange Rate
In this field, you can specify the default

exchange rate if the FA Exchange
Rate field in the FA Depreciation
Books window is empty.
Reporting FastTab
On the Reporting FastTab, you can set up whether an additional foreign currency
rate is enabled for the transactions posted to this depreciation book.
FIGURE 1.7: DEPRECIATION BOOK CARD - REPORTING FASTTAB

1 - 17

Note: You do not have to select these options if, in the general ledger, you
already use an additional reporting currency that has a fixed exchange rate, such as
EUR. All entries from the FA module calculate in the correct additional currency in
the associated general ledger entries.
FA Posting Type Setup

Set up the FA posting types to define how Microsoft Dynamics NAV
2013 manages the Write-down, Appreciation, Custom 1, and Custom 2 posting
types that are used when you post to fixed assets.
Write-down is used to write down an asset when its value has decreased. An
example is a machine that is damaged but can still be used. The book value of a
fixed asset is reduced by posting a write-down entry.
Appreciation is an increase in the value of a fixed asset, typically land and
buildings. It can also be used for a fixed asset such as an oil platform, for which
value increases because of an increase in demand for the item.
For each depreciation book, you can set up how you want to handle various FA
transactions for each FA posting type. For example, you can configure whether the
posting should be a debit or credit and whether the posting types should be
included in the depreciable basis or if it should be part of a gain or loss
calculation.
When you create a depreciation book, Microsoft Dynamics NAV 2013
automatically creates a default setup of four lines (one for each FA posting type)
in the window. You cannot add or delete lines on this page. However, the existing
lines can be changed if it is necessary.
Note: We strongly recommend that you do not change the setup for
depreciation books for which entries have already been posted. Changes do not
affect the entries that are already posted, making the depreciation book statistics
misleading.
1 - 18


To open the FA Posting Type Setup page, in the Depreciation Book Card
window, click the Navigate FastTab, and then click FA Posting Type Setup.
FIGURE 1.8: FA POSTING TYPE SETUP

1 - 19

The FA Posting Type Setup window contains the fields for each FA posting type
described in the following table.
Field
Part of a Book Value
Description
Select this field to specify that entries
posted with the type in the FA Posting
Type field will be part of the book
value.
Microsoft Dynamics NAV 2013 is set up
so that typically:
Book Value = (Acquisition-Cost Entries
plus Appreciation Entries) minus (Writedown Entries plus Depreciation Entries
plus Custom-1 Entries plus Custom-2
Entries)
The book value is calculated in the
Book Value field in the FA
Depreciation Books window.
Part of Depreciable Basis

posted with the type specified in the FA
Posting Type field will be part of the
depreciable basis.
Microsoft Dynamics NAV 2013 is set up
so that typically:
Depreciable Basis = (Acquisition Cost
plus Appreciation) minus (Write-downs
plus Salvage Value)
The depreciable basis is calculated in the
Depreciable Basis field in the FA
1 - 20
Include in Depr.
Calculation

Posting Type field must be included in
periodic depreciation calculations.
Include in Gain/Loss Calc.

Posting Type field must be included in
the calculation of gain or loss for a sold
asset. The gain or loss is calculated in
the Gain/Loss field in the FA


Field
Description
Reverse before Disposal

Posting Type field must be reversed
(that is, set to zero) before disposal.
Acquisition Type

Posting Type field must be part of the
total acquisition for the fixed asset in
the Fixed Asset - Book Value 01
report.
Depreciation Type

Posting Type field must be regarded as
part of the total depreciation for the
fixed asset. Usually Depreciation, WriteDown, and Custom 1 are regarded as
depreciation types.
The depreciation type is relevant in the
following ways:
For calculating the depreciable basis

when the Depreciation Method is
Declining-balance 1.
In this case the depreciable basis is
calculated as Book value minus total
depreciation for the current fiscal year.
The depreciation amount is calculated
as Depreciable basis * declining balance
% / 100 * depreciation days / days in
the fiscal year.
When the total depreciation

amount is calculated in the Fixed
Asset - Book Value 01 report.

1 - 21

Field
Sign
Description
Select this field to specify whether the
type in the FA Posting Type field
(Write-down, Appreciation, Custom 1, or
Custom 2) on this line should be a debit
or a credit.
Select the field and select one of the
options Blank, Debit, and Credit.
When posting elsewhere, Microsoft
Dynamics NAV 2013 checks that the
amount to be posted to the FA posting
type is entered correctly, as either a
debit or credit, according to what you
have defined in this field. Value Blank
means that no check is performed.
Note: For detailed information on how to fill in the fields in the FA Posting
Type Setup window, refer to the contextual online Help within Microsoft Dynamics
NAV 2013 by clicking F1 in the respective field.
FA Journal Setup
The FA Journal Setup page specifies the default setup of the FA general ledger
journal, the FA journal, and the insurance journal templates and batches that you
can use in Microsoft Dynamics NAV 2013 when you have to duplicate lines from
one depreciation book to another, create journal lines by running a batch job
such as the Calculate Depreciation or Index Fixed Assets batch jobs, and
duplicate acquisition-cost entries in the insurance journal.
1 - 22


To open the FA Journal Setup page, in the Depreciation Book Card window,
click the Navigate FastTab, and then click FA Journal Setup.
FIGURE 1.9: FA JOURNAL SETUP
Depreciation Book Card Batch Jobs

On the depreciation book card, you can run the following four batch jobs:
Create FA Depreciation Books automatically creates the necessary

depreciation for one or more fixed assets. You can create empty fixed
asset depreciation books, for example, for all fixed assets, when you
set up a new depreciation book. You can also use an existing fixed
asset depreciation book as the basis for a new book.
Copy Depreciation Book copies entries as a batch job from one

depreciation book to another. The entries are not posted to the new
depreciation bookthey are inserted as lines either in the FA G/L
journal or in a FA journal, depending on whether the new
depreciation book has activated G/L integration.
Cancel FA Ledger Entries cancels an incorrect depreciation entry if

you posted incorrect fixed asset transactions. Later, you can post the
correct amount of depreciation by running the Calculate Depreciation
batch job again. You can also find this batch job in the FA Ledger
Entry and the FA Register windows. Canceling incorrect FA ledger
entries makes sure that the fixed asset amounts are shown correctly in
statistics windows and reports.

1 - 23
Copy FA Entries to G/L Budget copies entries as a batch job from

the Fixed Assets to budget entries. If more information has to be
included, you can select the additional fields that you want to include
in the batch job on the Options tab or Fixed Asset tab.
To access the batch jobs, open the Actions FastTab in the Depreciation Book
Card window, and then in the ribbon, in the Functions group, select the relevant
batch job.
FIGURE 1.10: DEPRECIATION BOOK CARD BATCH JOBS
Demonstration: Create a Depreciation Book

The accounting manager has decided to use several depreciation books in order
to use different depreciation methods and post some transactions for financial
statements and some for income tax. The TAX depreciation book must be set up
without G/L integration, because the accounting manager does not want to post
all depreciation transactions to the corresponding G/L accounts. It is also decided
that entries can be made in another depreciation book and should be duplicated
to the TAX depreciation book.
1 - 24


Set up a new depreciation book, and name it TAX. This book has the following
parameters:
No general ledger integration is necessary.
The depreciation book must be a part of the duplication list.
FA Journal Setup must be complete in order to continue with this

demonstration.
Demonstration Steps
To create a new depreciation book, follow these steps:
1.
To open the list of depreciation books, in the navigation pane, click

Departments > Financial Management > Fixed Assets >
Depreciation Books.
2.
In the Depreciation Book List window, click New.
3.
In the Code field, type TAX.
4.
In the Description field, type Tax book.
5.
Fill in the other fields on the General FastTab as shown in the

following table.
Field
Value
Default Final Rounding Amount
Default Ending Book Value
Disposal Calculation Method
Gross
Subtract Disc. in Purch. Inv.
No
Allow Changes in Depr. Fields
No
Allow Depr. below Zero
No
Allow Indexation
No
Use FA Ledger Check
Yes
Use Rounding in Periodic Depr.
Yes
Use Same FA+GL Posting Dates
Yes
6.
On the Duplication FastTab, select the Part of Duplication List

check box.
7.
Click the Navigate FastTab, and then click FA Journal Setup.

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8.
Fill in the fields in the line as shown in the figure Edit FA Journal
Setup TAX Book.
FIGURE 1.11: EDIT FA JOURNAL SETUP TAX BOOK

9.
In the FA Jnl. Template Name field type ASSETS.
10. In the FA Jnl. Batch Name field type DEFAULT.

11. In the Gen. Jnl. Template Name field type ASSETS.
12. In the Gen. Jnl. Batch Name type DEFAULT.
13. In the Insurance. Jnl. Template Name field type INSURANCE.
14. In the Insurance. Jnl. Batch Name field type DEFAULT.
15. Click OK to finish FA Journal Setup for the TAX Book.
16. Click OK to close the New - Depreciation Book Card-TAX.Tax book
window.
17. Click Close to close the View - Depreciation Book List window.
FA Journal Templates
You can use FA journal templates to define layout for fixed asset journals. On
journal templates, you can assign trace codes, reports, and number series.
There are four journal templates for fixed assets:
1 - 26
FA G/L Journal
FA Journal
FA Reclass. Journal
Insurance Journal


To open the FA Journal Templates window, in the navigation pane, click
Departments > Financial Management > Fixed Assets > FA Journal
Templates.
FIGURE 1.12: FA JOURNAL TEMPLATES

The FA journal templates resemble other journal templates in Microsoft Dynamics
NAV 2013. You can also set up recurring journals for fixed assets.
You can define particular batches for a journal by clicking the Navigate FastTab in
the FA Journal Templates window, and then, in the Template group, clicking
Batches.
Fixed Asset Card

Each fixed asset has a fixed asset card, which contains all the information about
the asset.
To open a fixed asset card, in the navigation pane, click Departments > Financial
Management > Fixed Assets > Fixed Assets.
The list of all the existing fixed assets appears. Click New to set up a new fixed
asset.

1 - 27

You can open the existing Fixed Asset Card by selecting the line to click View or
Edit.
FIGURE 1.13: FIXED ASSET CARD
General FastTab
The General FastTab contains the basic setup fields for the fixed asset card.
Field
1 - 28
Description
No.
This is a code field. You can enter the

number manually or link to the
number series, and the program will
automatically update the number.
Description
Type a description of the asset.
Serial No.
Enter the serial number in this field if

the asset already has a serial number.
Main Asset/Component
Select the field to specify whether this

asset is a main asset or a component of
a main asset.


Field
Description
Component of Main Asset
This field specifies the number of the

main asset if the fixed asset is a
component of a main asset and if the
value Component is selected in the
field Main Asset/Component. The
field is filled in automatically when you
fill in the Main Asset/Component
field.
Search Description
Enter a search name for the asset.
Responsible Employee
Enter the code of the person

responsible for the asset.
Inactive
Select this check box to make the fixed

asset inactive. You cannot post to an
inactive fixed asset. Inactive assets are
not included in batch jobs or reports.
Making a fixed asset inactive may be
necessary, for example, when the fixed
asset is obsolete or no longer in
service.
Blocked
Select this check box to block posting

to this fixed asset. The blocked fixed
asset is not included in batch job
functions creating journal lines.
Last Date Modified
The program automatically enters the

system date in this field when you
make changes on the fixed asset card.
This tells the user when the last entry
was posted.
Lines FastTab
On the Lines FastTab, you can select the following information about the fixed
asset:
Depreciation book code.
FA posting group.
Depreciation methods.
Depreciation starting date.

1 - 29
Depreciation ending date.
Number of depreciation years.
Whether the fixed asset is disposed of.
Book value.
Posting FastTab
The Posting FastTab classifies the assets as financial, intangible, and tangible
assets, and then classifies them into subclasses. These classifications are mainly
used for grouping in reports.
Field
Description
FA Class Code
Select the code that categorizes the fixed asset

class. Class codes are used to group fixed
assets, for example, tangible and intangible
assets. Click the field, and then select a code.
FA Subclass Code
Select a subclass code for the fixed asset.

Subclass codes are used to make subgroups for
fixed assets, for example, cars and machinery.
Click the field, and then select a code.
FA Location Code
Set the location for each asset. Click the field,

and then select a code.
Budgeted Asset
Select this check box if you want to use the

asset as a budgeted asset (this makes it possible
to include any anticipated acquisitions and
sales in reports). This option must be selected
before you post the first entry.
Maintenance FastTab
Use the Maintenance FastTab to keep information on the maintenance of the
asset.
Field
1 - 30
Description
Vendor No.
Select the number of the vendor who

sold the asset.
Maintenance Vendor No.
Select the number of the vendor who

performs the maintenance for the
asset.
Under Maintenance
Select this check box if the asset is

currently under maintenance.


Field
Description
Next Service Date
Select the next scheduled service date.

Click the field to enter a date.
Warranty Date
Specify the warranty expiration date of

the fixed asset. Click the field to enter a
date.
Insured
This field indicates whether the asset is

linked to an insurance policy. This field
is filled in automatically.
Additional Details about the Fixed Asset

In addition to the information that you specify on the fixed asset card, you can
attach a picture to the fixed asset and enter comments about the fixed asset.
To add a picture, follow these steps:
1.
In the navigation pane, click Departments > Financial Management

> Fixed Assets.
2.
In the Fixed Assets window select a fixed asset from the list, click the
Navigate FastTab, and, in the Fixed Asset group, click Picture.
3.
Right-click the Picture field and then click Select Picture. The picture
file must be in .bmp format.
To add a comment, follow these steps:

1.

> Fixed Assets.
2.
In the Fixed Asset window, select a fixed asset from the list, click the
Navigate FastTab, and, in the Fixed Asset group, click Comments.
3.
Type your comments in the Comments Sheet window that appears.
Note: The Fixed Asset table contains, among other fields, a field named FA
Posting Group. This field is temporarily filled on running reports. It has no effect on
postings or transactions.
The FA Depreciation Book table also contains a field named FA Posting Group.
This field is used for postings and transactions.

1 - 31

FA Depreciation Books
To select information about fixed asset depreciation in the FA Depreciation Book
page that can be accessed from the Action Pane of the fixed asset card, click
Depreciation Books on the Home tab. The FA Depreciation Book page can be
also accessed from the Lines FastTab.
Before you set up the depreciation method for an asset, make sure that the
necessary depreciation books and FA posting groups are set up.
To open the FA Depreciation Books window where detailed information about
depreciation books is displayed, click Depreciation Books on the Home tab of
the fixed asset card.
FIGURE 1.14: FA DEPRECIATION BOOKS

Note: You can use different depreciation methods for fixed assets and several
depreciation methods for each asset. To have more than one depreciation method
for a specific asset, you must set up multiple FA depreciation books for that asset. If
you depreciate assets, each asset must have at least one depreciation book assigned
to it.
1 - 32


The FA Depreciation Books window includes the fields described in the following
table.
Field
Description
FA No.
This field specifies the fixed asset for

which you are setting up a
depreciation book.
Depreciation Book Code
This field specifies the code of the

depreciation book that is assigned to
the fixed asset that you entered in the
FA No. field.
FA Posting Group
This field specifies the FA posting

group that is used when you post
entries to the given depreciation book.
Depreciation Method
This field specifies the method of

calculating depreciation for the given
fixed asset.
Depreciation Starting Date
This is the date when the depreciation

must start.
Depreciation Ending Date
This is the date when the depreciation

must end.
No. of Depreciation Years
This field specifies the length of

depreciation expressed in years.
No. of Depreciation Months
This field specifies the length of

depreciation expressed in months. By
default, this field is hidden.
Straight-Line %
This field specifies the percentage to

use to depreciate the fixed asset by the
Straight-line method but with a fixed
yearly percentage. If you fill in this
field, the No. of Depreciation
Months, No. of Depreciation Years,
and Depreciation Ending Date fields
will be cleared.
Fixed Depr. Amount
Enter the amount to depreciate the

fixed asset by a fixed yearly amount.
Declining-Balance %
Enter the percentage in this field to

depreciate the fixed asset by the
Straight-line method but also with a
fixed yearly percentage.

1 - 33

Field
Description
Use Half-Year Convention
Select this check box to use six months

of depreciation in the first fiscal year of
the life of the asset, regardless of the
assets depreciation starting date. Be
aware that the half-year convention is
available only with the Straight-line,
Declining-balance 1, and DB1/SL
depreciation methods.
Use DB% First Fiscal Year
Select this check box to indicate that

the depreciation methods DB1/SL and
DB2/SL use the declining balance
depreciation amount in the first fiscal
year. Starting from the second fiscal
year, the regular DB/SL calculation
method is used.
Note: If a field is not displayed on the page, use the Choose Columns
function to select which columns are displayed on the page.
Multiple Depreciation Books for a Single Asset

A common reason to set up multiple depreciation books is to accommodate
different methods of depreciation for fixed assets. Frequently, businesses find that
the way that they depreciate assets is not always best from a tax perspective.
To allow for depreciation in different ways, Microsoft Dynamics NAV 2013 lets you
use more than one depreciation book, for example, one for internal financial
statement preparation and another for income tax calculations.
On the Lines FastTab of the fixed asset card, you can assign a depreciation book
as follows:
1 - 34
In the Depreciation Book Code field, the depreciation book

is assigned to the asset.
In the FA Posting Group field, the posting group is assigned to the

asset.

In the Depreciation Method field, click the field to select one of the
available methods of depreciation:
o
Straight-line
Declining-balance 1
Declining-balance 2
DB1/SL
DB2/SL
User-defined
Manual
Additionally, you can use a Half-Year Convention depreciation method which you
set up differently from other depreciation methods. For information about this
method, refer to the Depreciation Method Half-Year Convention topic.
Depreciation Method Straight-line

In the Straight-line depreciation method, the fixed asset depreciates by the same
amount each year. The following information must be specified:
A depreciation period (years or months) or a depreciation ending

date. The program uses this formula to calculate the depreciation
amount:
Depreciation Amount = (Book value - Salvage Value) * Number of
Depreciation Days) / Remaining Depreciation Day
The program calculates the remaining depreciation days as the number of

depreciation days minus the number of days between the depreciation starting
date and the last FA entry date. The book value may be reduced by posted Writedown, Appreciation, Custom 1, or Custom 2 amounts, depending on whether the
Part of Book Value check box is selected in the FA Posting Type Setup window.
If you use this calculation, the fixed asset is fully depreciated at the depreciation
ending date.
A fixed yearly percentage. The program uses this formula to calculate

the depreciation amount:
Depreciation Amount = (Straight line % * Depreciable Basis * Number
of Depreciation Days) / (100 * 360)
A fixed yearly amount. The program uses this formula to calculate the
depreciation amount:
Depreciation Amount = (Fixed Depreciation Amount * Number of
Depreciation Days) / 360

1 - 35

Depreciation Method Declining-balance 1
The Declining-balance 1 method of depreciation is an accelerated method that
allocates the largest part of the cost of an asset to the early years of its useful
lifetime. To use this method, specify a fixed yearly percentage.
The program uses this formula for calculating depreciation amounts:
Depreciation Amount = (Declining-Bal. % * Number of Depreciation Days * Depr.
Basis) / (100 * 360)
The depreciable basis is calculated as the book value less the posted depreciation
since the starting date of the current fiscal year.
When you use this method, the posted depreciation amount can contain entries
with various posting types (Write-down, Custom 1, and Custom 2) posted since
the starting date of the current fiscal year. These posting types are included in the
posted depreciation amount if the Depreciation Type and Part of Book Value
check boxes are selected in the FA Posting Type Setup window.
Note: To calculate declining balance depreciation, it is very important to have
the correct setup in accounting periods because the declining balance depreciation
is based on the fiscal year end. Make sure that you have accounting periods set up
already for future fiscal years.
Depreciation Method Declining-balance 2

The Declining-balance 2 method of depreciation calculates the same total
depreciation amount for each year as Declining-balance 1. However, if the
Calculate Depreciation batch job is run one or more times a year, the Decliningbalance 1 method results in equal depreciation amounts for each period. The
Declining-balance 2 method, on the other hand, results in amounts that decline
for each period.
Depreciation Method DB1/SL

The DB1/SL method is a combination of Declining-balance 1 and Straight-line
methods of depreciation. When you run the Calculate Depreciation batch job,
the program calculates both a declining balance and a straight-line amount, and
then uses the larger of the two amounts. When you select this method, enter data
into both the Number of Depreciation Years and the Declining Balance %
fields. The depreciation starts with the Declining-balance 1 method and ends with
the Straight-line method.
1 - 36


Depreciation Method DB2/SL
The DB2/SL depreciation method is a combination of Declining-balance 2 and
Straight-line methods. This method is the same as the DB1/SL method, except that
it calculates depreciation according to the rules of the Declining-balance 2
method instead of the Declining-balance 1 method.
Depreciation Method User-defined

The User-defined depreciation method gives you the option to create a
customized depreciation method by using the depreciation tables.
You can create depreciation tables in the Depreciation Table List window.
To open the Depreciation Table List window, in the navigation pane, click
Departments > Financial Management > Fixed Assets > Depreciation Tables.
In the Depreciation Table List window, click New to open the Depreciation
Table Card window where you can set up a depreciation method if it is necessary.

1 - 37
FIGURE 1.15: DEPRECIATION TABLE CARD

Note: User-defined depreciation methods may be necessary, for example,
when a machine with an established lifetime capacity has a depreciation method to
depreciate the machine based on the number of units it produces for each period.
You can set up the table for the period length and the total number of units that the
machine can produce.
Either use a percentage for allocation or specify the number of units. When
using the Period Depreciation % field, the number of units is entered
automatically.
The program uses the following formula for calculating the depreciation in userdefined methods:
Depreciation Amount = Depreciation % * Number of Depreciation Days *
Depreciation Basis
1 - 38


Depreciation Method Manual Method
The Manual method of depreciation requires you to manually enter the
depreciation expense in either the FA G/L journal or the FA journal. The Calculate
Depreciation batch job does not calculate depreciation for any assets for which
you have selected the Manual depreciation method. You can use this method for
assets that are not subject to depreciation, such as land.
Depreciation Method Half-Year Convention

When you apply the Half-Year Convention method of depreciation, a fixed asset
has six months depreciation in the fiscal year regardless of the value in the
Depreciation Starting Date field. If you want to apply this method, select the
Use Half-Year Convention check box in the FA depreciation book.
This depreciation method can be used with the following depreciation methods:
Straight-line
Declining-balance 1
DB1/SL
Demonstration: Create a Fixed Asset

An employee purchased a new car for the company on January 13, 2013. The
accounting manager has decided to start the depreciation of the asset on January
1, 2013. Create a new fixed asset that contains the information that is shown in
the following table.
Field
Value
Description
VW Speedster 1302
Serial No
VW123
FA Class code
Tangible
FA Subclass code
CAR
FA Location code
PROD
The employee bought the car from vendor number 30000. This vendor is also in
charge of maintenance.

1 - 39

Create the depreciation book as shown in the following table.
Field
Value
Depreciation book code
COMPANY
FA Posting Group
CAR
Depreciation Method
Straight-line
01/01/13
The COMPANY book integrates with the general ledger. This is why a FA posting
group is used. You enter the depreciation base by posting the acquisition costs.
Demonstration Steps
1.

> Fixed Assets > Fixed Assets.
2.
In the Fixed Assets window, click New.
3.
On the General FastTab, fill in the fields as shown in the following

table.
Field
Value
Description
VW Speedster 1302
Serial No
VW123
4.
On the Lines FastTab, fill in the fields as shown in the following table.
Field
Value
COMPANY
FA Posting Group
CAR
Depreciation Method
Straight-line
01/01/13
5.
On the Posting FastTab, fill in the fields as shown in the following

table.
Field
1 - 40
Value
FA Class code
Tangible
FA Subclass code
CAR
FA Location code
PROD


6.
On the Maintenance FastTab, in the Vendor No. field, click the field,
and then select 30000.
FIGURE 1.16: NEW FIXED ASSET CARD FA000100 VW SPEEDSTER 1302

7.
Click OK.

1 - 41
Lab 1.1: Create a Fixed Asset Card

Scenario
The company plans to purchase a new fixed asset, a new computer, for its
Reception department. Cassie, the accountant, has to create a fixed asset card for
this fixed asset to register it in the program. The fixed asset must be integrated
with the general ledger.
Objectives
Create a fixed asset card.
Create a fixed asset card for the new fixed asset.

Exercise Scenario
Cassie creates a fixed asset card and fills in the mandatory fields by using the
information described in the following table.
Field
Value
Description
Reception Department Computer
Serial No.
BTHC0260000D
FA Class Code
TANGIBLE
FA Subclass Code
EQUIPMENT
FA Location Code
RECEPTION
Cassie also has to add the EQUIPMENT subclass.

The asset will be purchased from vendor 61000, Electronics Ltd. This vendor is also
responsible for maintenance.
Use the information in the following table to link the fixed asset to a depreciation
book.
Field
1 - 42
Value
COMPANY
FA Posting Group
IT-EQUIP
Depreciation Method
Straight-line
2/1/2013


Task 1: Create a fixed asset card and link it to a depreciation book.
High Level Steps
1.
Create a new fixed asset card.
2.
Fill in the mandatory fields on the General FastTab.
3.
On the Lines FastTab, link the fixed asset to the depreciation book
integrated with the general ledger, and specify depreciation
information.
4.
Specify the posting information on the Posting FastTab.
5.
On the Maintenance FastTab, enter the vendor number.
Detailed Steps
1.
Create a new fixed asset card.

d. In the navigation pane, click Departments > Financial
e.
2.
Fill in the mandatory fields on the General FastTab.

a.

table.
Field
Value
Description
Reception Department Computer
Serial No.
BTHC0260000D
3.
On the Lines FastTab, link the fixed asset to the depreciation book
integrated with the general ledger, and specify depreciation
information.
a.
On the Lines FastTab, fill in the fields as shown in the following

table.
Field
Value
COMPANY
FA Posting Group
IT-EQUIP
Depreciation Method
Straight-line
2/1/2013
4.
Specify the posting information on the Posting FastTab.

a.

table.

1 - 43

Field
Value
FA Class Code
TANGIBLE
FA Subclass Code
EQUIPMENT
FA Location Code
RECEPTION
Note: To create the EQUIPMENT subclass, select the FA Subclass Code field,
and then click New. In the FA Subclasses window, fill in the Code and Name fields
with Equipment.
5.
On the Maintenance FastTab, enter the vendor number.

a.
On the Maintenance FastTab, in the Vendor No. field, select the

field and then select vendor 61000.
The filled-in fixed asset card should look as shown in the New Fixed Asset Card
figure.
FIGURE 1.17: NEW FIXED ASSET CARD

b.
1 - 44
Click OK.

Fixed Asset Allocation Keys

The Allocations function on the FA Posting Groups page shows an overview of
the allocated percentage on the types of expenses and costs for an asset. With
allocations, you can specify how you want to allocate an amount on a general
journal line to several different accounts. The allocation can be made by quantity,
percentage, or amount. The allocation features can be used with recurring
journals and in the Fixed Assets application area.
Allocation
To set up allocation keys, select a fixed asset posting group, click the Navigate
FastTab on the Action Pane, click Allocations, and then select the type of expense
to allocate to.
On the FA Allocations page, select the account number in the general ledger to
post to, and then allocate the percentage for each particular asset.
Note: You can allocate any account number in the general ledger.
To use global dimensions, on the FA Allocations page, click the Navigate
FastTab on the Action Pane, and then click Dimensions. Enter dimensions in the
Dimension Set Entries window, and then click OK.
Note: When you use the allocation of posting types in posting groups, the
program produces one G/L ledger entry for each allocation and for each asset.
All types of asset transactions are listed with the total allocation percentage
amount.
To view the detailed allocations for each transaction type, click each type to view
its capability on the FA Allocations page.

1 - 45

Demonstration: Set Up Fixed Asset Allocation Keys
Set up the allocation keys to allocate depreciation costs on vehicles with 35
percent to the Administration Department and 65 percent to the Sales
Department.
Demonstration Steps
1.
2.
3.
Open the FA Posting Groups window to allocate the depreciation for

the CAR FA posting group.
Set up the FA allocation keys and dimensions to allocate 35% to the
Administration Department and 65% to the Sales Department.
Open the Fixed Asset G/L Journal window, and use the Insert FA Bal.
Account function to automatically insert the account(s) you have
specified to post the depreciation amount of 500 for fixed asset
FA000010.
To set up fixed assets allocation keys, follow these steps:
a.

b.
In the Edit - FA Posting Groups window, select CAR posting

group line, then click the Navigate FastTab, select Allocations,
and then select posting type Depreciation.
c.
In the Edit - FA Allocations CAR window, create new lines,

filling in the fields as shown in the following table.
Field
1 - 46
Value
Account No.
8830
Allocation %
35
Account No.
8830
Allocation %
65

FIGURE 1.18: EDIT - FA ALLOCATIONS CAR

d. Select the first line with Allocation % field value 35%, and then,
in the Navigate FastTab, select Dimensions.
e.
In the Edit CAR Depreciation 10000 Edit Dimension Set

Entries window, create a new line, selecting the Dimension Code
field value DEPARTMENT and the Dimension Value Code field
value ADM.

1 - 47

f.
The 35% of depreciation for vehicles is now allocated to the

Administration Department.
FIGURE 1.19: EDIT - CAR DEPRECIATION 10000 EDIT DIMENSION SET

ENTRIES
g. Click OK.
h.
Select the second line with Allocation % field value 65%, and
then, in the Navigate FastTab, select Dimensions.
i.
In the Edit CAR Depreciation 10000 Edit Dimension Set

Entries window, create a new line, selecting the Dimension Code
field value DEPARTMENT and Dimension Value Code field
value SALES.
j.
The 65% of depreciation for vehicles is now allocated to the Sales

Department.
k.
Click OK.
l.
Click OK to close the Edit - FA Allocations CAR window.
m. Click OK to close the Edit - FA Posting Groups window.

n.
Click Departments > Financial Management > Fixed Assets >

FA G/L Journals.
o.
In the Edit Fixed Asset G/L Journal DEFAULT DefaultJournal Batch window, create a new line, filling in the fields as
shown in the following table.
Field
1 - 48
Value
Account Type
Fixed Asset
Account No.
FA000010


Field
Value
FA Posting Type
Depreciation
Amount
500
p.
In the Home tab, in the Process group, click Insert FA Bal.

Account.
q. Two new lines were automatically created with the corresponding

allocated depreciation amounts.
FIGURE 1.20: USING INSERT FA BAL. ACCOUNT FUNCTION

r.
Click Post.
s.
When you receive the message Do you want to post the journal
lines?, click Yes.
t.
When you receive the message The journal lines were

successfully posted., click OK.

1 - 49
Main Assets and Asset Components

A main asset consists of other assets called components. For example, a conveyor
is a main asset because it consists of other assets that include the conveyor belt,
the computer, and the lift.
Note: A component asset of a main asset cannot be used as a main asset for
other components.
Main Asset Fixed Asset Card

To view an example of a main asset on a fixed asset card, in the navigation pane,
click Departments > Financial Management > Fixed Assets > Fixed Assets.
In the Fixed Assets window, select the line with main asset FA000040, and then
click View to view the main asset on a fixed asset card.
FIGURE 1.21: MAIN ASSET - FIXED ASSET CARD
1 - 50


Main Asset Components Card
To see the components of a main asset, click the Navigate FastTab on the card of
the main asset, and then, in the Main Asset group, click Main Asset
Components.
The Main Asset Components window appears. This window lists the components
that make up the asset.
FIGURE 1.22: MAIN ASSET COMPONENTS

If an asset is a component of another asset, the program automatically enters
information about the main asset on the General FastTab of the fixed asset card
as follows:
The Main Asset/Component field is set to Component.
The Component of Main Asset field contains the number of the

main fixed asset. This number is a link that you can click to view the
list of assets and open the card of the main asset.
Note: It is good practice to use numbering to group component assets with

their main asset for better presentation.

1 - 51

For example, if the main asset is numbered FA000050, then components should be
numbered FA000051, FA000052, and so on.
Main Asset Statistics

Use the Main Asset Statistics page to obtain an overview of the number of fixed
asset components for a main asset and the total acquisition cost, depreciation,
and book value for the main asset.
To open the Main Asset Statistics page from the Fixed Asset Card for a main
asset, click the Navigate FastTab, and then, in the Main Asset group, click Main
Asset Statistics.
FIGURE 1.23: MAIN ASSET STATISTICS
1 - 52


The Main Asset Statistics page shows the combined total acquisition cost,
depreciation, and book value of all the components of the main asset. It also
shows the total number of components that are included in the asset and whether
any components were disposed of.
If any components were disposed of, the combined gain or loss and book value
on disposal are displayed. The Acquisition Date field shows the earliest date of
acquisition for a component. Similarly, the Disposal Date field shows the date of
the disposal of a component.
Demonstration: Add a Component Asset to a Main Asset

The user of the VW Speedster has decided to add a component to the existing
asset. The user purchased a new stereo system.
Demonstration Steps
To add a component to the existing fixed asset, first you have to create a fixed
asset card for the component.
To create a new fixed asset card for the stereo fixed asset, follow these steps:
1.

2.
3.

table.
Field
Value
Description
Stereo
Serial No.
S1250
4.
On the Lines FastTab, fill in the fields as shown in the following table.
Field
Value
COMPANY
FA posting group
CAR
Depreciation Method
Straight-line
01/01/13

1 - 53

5.

table.
Field
Value
FA Class Code
TANGIBLE
FA Subclass Code
EQUIPMENT
FA Location Code
BUILD 2
6.
Click OK.
Now you can change the fixed asset card of the VW Speedster and add the Stereo
as a component. To add a component to the VW Speedster fixed asset, follow
these steps:
1.

2.
In the Fixed Assets window, select the line with the VW Speedster
1302 fixed asset, and then click Edit.
3.
In the Edit Fixed Asset Card window, click the Navigate FastTab,
and then, in the Main Asset group, click Main Asset Components.
4.
In the Edit Main Asset Components window, in the FA No. field,

select the field, and then click the number of the Stereo fixed asset
from the list.
5.
Click OK.
The Main Asset/Component field on the General FastTab is automatically filled

in with Main Asset.
6.
1 - 54
Close the fixed asset card for the VW Speedster fixed asset and
double-click the line with the stereo fixed asset to open the fixed
asset card.


The Main Asset/Component field on the General FastTab is automatically filled
in with Component, and the Component of Main Asset field displays the
number of the main asset.
FIGURE 1.24: FIXED ASSET AS A COMPONENT

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Record Open Transactions

In Microsoft Dynamics NAV 2013, you can use the posting of open transactions to
enter information from an old system. This may be necessary when you start to
work with fixed assets that were acquired in the past and are partly depreciated,
and for which you now must register this data in Microsoft Dynamics NAV and
have the program calculate depreciation correctly.
Post Fixed Asset Transactions to G/L

When Microsoft Dynamics NAV 2013 is installed for the first time, it sets up the
General Ledger area. Make sure that all the basic setup procedures for the fixed
assets are completed (FA setup, FA Posting Group, Depreciation Books,
Depreciation Tables, FA Journals).
To post fixed asset transactions to the general ledger and record them as opening
entries, follow these steps:
1 - 56
1.
Create a fixed asset card for each existing asset. To do this, in the
navigation pane, click Departments > Financial Management >
Fixed Assets > Fixed Assets.
2.
3.
On the General, Posting, Lines, and Maintenance FastTabs, fill in

the corresponding fields.
4.
Set up depreciation books for the fixed assets. In the navigation pane,
click Departments > Financial Management > Fixed Assets >
Depreciation Books.
5.
In the Depreciation Book List window, click New.
6.
In the Depreciation Book Card window, click the Integration

FastTab, and then clear all the fields to deactivate G/L integration.


To open the Depreciation Book Card window, in the navigation pane, click
Departments > Financial Management > Fixed Assets > Depreciation Books.
In the Depreciation Book List window, select a line with a depreciation book,
and then click Edit.
FIGURE 1.25: DEPRECIATION BOOK CARD - INTEGRATION FASTTAB

Repeat this procedure for each depreciation book. Because these assets are
already accounted for in the general ledger, you must temporarily turn off
integration. If the fixed assets do not integrate with the general ledger, omit this
step.

1 - 57

Fixed Asset Journal
In the Fixed Asset Journal window, enter two lines for each asset:
The acquisition cost This line represents the acquisition of the fixed
asset.
The accumulated depreciation This line represents a cumulative

amount of depreciation. You have to post the cumulative amount of
depreciation to the end of the previous (business) year.
If other opening balances exist, such as write-down, appreciation, or salvage value,

enter lines for them.
To open the Fixed Asset Journal window, in the navigation pane, click
Departments > Financial Management > Fixed Assets > FA Journals.
If you use the Declining-balance depreciation method and post the opening
entries for assets acquired in a previous fiscal year, you must enter three lines for
each asset to provide the correct depreciable basis for the assets:
Line 1 Must contain the acquisition cost and a posting date of the
last date of the previous fiscal year.
Line 2 Must contain the accumulated depreciation to the end of the

previous fiscal year and a posting date of the last date of the previous
fiscal year.
Line 3 Must contain the accumulated depreciation to the last

depreciation date in the current fiscal year and a posting date of the
last depreciation date in the current fiscal year.
You must post the monthly depreciation to bring it up to date after the new
Microsoft Dynamics NAV installation.
After you enter and post all journal lines for all the assets, enable general ledger
integration for depreciation books again. If the fixed assets do not integrate with
the general ledger, omit this step.
1 - 58

Make Duplicate Entries

When journal lines must post to a depreciation book, the program can duplicate
the lines in a separate journal from which they can then post to a different
depreciation book. This can be useful if, for example, one depreciation book is
integrated with the general ledger and uses the FA G/L journal, and other
depreciation books are not integrated with the general ledger and use the FA
journal.
In the Depreciation Book Card window, you can specify that the depreciation
book is a part of a duplication list so that when you select the Use Duplication
List check box on a journal line, the program will duplicate the journal line to a
separate journal from which it will be posted for each depreciation book that is a
part of a duplication list.
Another way to duplicate an entry in a separate book is to enter a depreciation
book code in the Duplicate in Depreciation Book field on a journal line.
Set Up a Duplication List

To include a depreciation book in the duplication list, follow these steps:
1.

> Fixed Assets > Depreciation Books.
2.
In the Depreciation Books window, select a line with the

depreciation book that you want to set up as a part of the duplicate
list, and then click Edit.
3.
In the Depreciation Book Card window, click the Duplication

FastTab, and then select the Part of Duplication List check box.
4.
Click OK.
5.
Repeat steps 2 through 4 for other depreciation books that you want
to set up as a part of the duplication list.

1 - 59

The Depreciation Book Card Duplication FastTab figure shows the Duplication
FastTab on the depreciation book card.
FIGURE 1.26: DEPRECIATION BOOK CARD - DUPLICATION FASTTAB
Demonstration: Duplicate Entries

To see how duplication works, try the following example. The principle is the same
whether you use the FA G/L journal or the FA journal.
In an earlier demonstration, you set up the TAX depreciation book without G/L
integration. Specify that it is a part of the duplication list. The accounting manager
has decided to use several depreciation books in order to use different
depreciation methods to post certain depreciation transactions. The accounting
manager now wants to post an invoice for the acquisition cost for fixed asset
FA000030 and duplicate the entry made in the FA G/L journal to the FA journal.
Before you complete this demonstration, make sure that the FA Journal Setup
page is set up correctly for the TAX depreciation book. To open the FA Journal
Setup page, in the depreciation book list, on the Navigation tab, click FA
Journal Setup.
1 - 60


Demonstration Steps
To duplicate entries, follow these steps:
1.

2.
In the View Depreciation Book List window, select the line with
the TAX depreciation book, and then click Edit.
3.
In the Edit Depreciation Book Card-TAX.Tax book window, click

the Duplication FastTab, and then verify the Part of Duplication List
check box is selected.
4.
Click OK.
To create a FA depreciation book for the fixed asset FA000030, use the TAX
depreciation book. Fixed asset FA000030 should already be using the COMPANY
depreciation book.
Note: The date formatting is restricted by the DEMO license for the Cronus
International Ltd. Company.
For demonstration purposes, change the depreciation starting and ending dates
for the fixed asset FA000030 in the COMPANY depreciation book as described
below:
5.
In the Depreciation Book List window, select the line with the
COMPANY depreciation book, and then click Edit.
6.
On the General FastTab, select the field Allow Changes in Depr.

Fields.
7.
Click OK.
8.
Switch to Microsoft Dynamics NAV window. In the navigation pane,

click Departments > Financial Management > Fixed Assets. In the
right pane, click Fixed Assets.
9.
Select the line with a fixed asset FA000030 and then, on the Process
FastTab, click Depreciation Books.
10. In the line for the fixed asset using the COMPANY depreciation book
code, change the Depreciation Starting Date to 1/1/2013, and the
Depreciation Ending Date to 12/31/2017.
11. Create a new line for the fixed asset FA000030, using the TAX
depreciation book and enter the same data as for the COMPANY
depreciation book.
12. Click OK.
13. Switch to the Depreciation Book List window, select the line with
COMPANY depreciation book, and then click Edit.

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14. On the General FastTab, clear the Allow Changes in Depr. Fields
check box.
15. Click Close to close the Edit Depreciation Book CardCOMPANY.company book window.
FIGURE 1.27: USING TAX FA DEPRECIATION BOOK FOR THE FIXED ASSET FA000030
16. In the navigation pane, click Departments > Financial Management
> Fixed Assets > FA G/L Journals.
17. In the Edit Fixed Asset G/L Journal-DEFAULT.default Journal
Batch window, right-click the column header, select Choose Column,
and then add the Use Duplication List field.
18. Create a journal line filling in the fields as shown in the following
table.
Field
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Value
Posting Date
1/25/13
Document Type
Invoice
Document No.
generated automatically
Account Type
Fixed Asset
Account No.
FA000030
COMPANY
FA Posting Type
Acquisition Cost
Description
Additional equipment
Gen. Posting Type
Purchase
Gen. Bus. Posting Group
NATIONAL
Gen. Prod. Posting Group
MISC


Field
Value
Amount
800
Bal. Account Type
G/L Account
Bal. Account No.
2910
Use Duplication List
Yes
19. Click Post on the Process FastTab.

20. When you receive the message Do you want to post the journal
lines?, click Yes.
21. When you receive the message The journal lines were successfully
posted., click OK.
22. Click OK to close the Fixed Asset G/L Journal window.
23. Because G/L integration is not enabled for the TAX depreciation
book, the entry will be in the FA journal. In the navigation pane, click
Departments > Financial Management > Fixed Assets > FA
Journals to open the Fixed Asset Journal window. The journal
contains the duplicated line.
Note: When you enter the general posting groups for the journal, default VAT
posting groups are used to calculate the VAT and subtract it from the amount
(800). Therefore, the amount in the FA journal is now 640.
Because the document number copies from the FA G/L journal, you cannot use
automatic document numbering in this journal batch. If you have set up automatic
numbering in the journal, in the Batch Name field, click the field, and then delete
the contents of the No. Series field.
24. Change the automatically generated Document No. field to F00001
to start a new number series and post the journal line.
lines?, click Yes.
posted., click OK.
28. Click OK to close the Fixed Asset Journal window.
29. To see the posted entries, in the navigation pane, click Departments
> Financial Management > Fixed Assets > Fixed Assets, and then
double-click the line with the fixed asset FA000030 to open the fixed
asset card.
30. On the Lines FastTab, on the line for the TAX depreciation book, in
the Book Value field, you can see the FA ledger entry for the
acquisition.

1 - 63
Copy Fixed Assets and FA Ledger Entries

With Microsoft Dynamics NAV 2013, you can copy fixed assets and fixed assets
ledger entries.
Create Fixed Assets by Copying Existing Assets

To create several fixed assets that resemble an existing fixed asset, use the Copy
Fixed Asset batch job. For example, a company has bought 30 chairs that are the
same make and model and have the same depreciation terms. Instead of entering
the same information 30 times, create the first asset and use the batch job to
create 29 new assets, and then copy the information to them. To copy an existing
fixed asset, follow these steps:
1.

2.
Select a line with a fixed asset to copy from, and, on the Home tab of
the Action Pane, click Copy Fixed Asset.
The Copy Fixed Asset window appears.
FIGURE 1.28: COPY FIXED ASSET
1 - 64


The Option FastTab on the Copy Fixed Asset request page contains the fields
Field
Description
Copy from FA No.
Select the number of the fixed asset to

copy.
No. of Copies
Enter the number of new fixed assets that

you want to create.
First FA No.
Enter the number of the first fixed asset. If

the value in the No. of Copies field is
greater than 1, the First FA No. field must
include a number, for example, FA045.
Use FA No. Series
Select this check box if the new fixed

asset(s) must have a number from the
number series specified in the Fixed Asset
Nos. field in the Fixed Asset Setup
window. When this check box is not
selected, a value in the First FA No. field is
used for the number series.
When you run the batch job, the program creates new fixed asset cards and
copies the depreciation book information from the existing asset. The batch job
does not copy the entries that are posted on the existing asset.
Copy FA Ledger Entries from Existing Depreciation Books

to New Depreciation Books
You can copy entries from one depreciation book to another with the Copy
Depreciation Book batch job. The batch job creates journal lines in the journal
batch specified in the FA Journal Setup page for the depreciation book to copy
to. This function is useful when you start FA accounting with the standard
depreciation book first, create an additional tax depreciation book, and then copy
the acquisition costs to the new depreciation book.
Note: Do not integrate this depreciation book to the general ledger.

1 - 65

To copy FA ledger entries from existing depreciation books to new depreciation
books, follow these steps:
1.

2.
In the Depreciation Book List window, select a depreciation book

from which you want to copy FA ledger entries, and then click Edit.
3.
In the Depreciation Book Card window, click Actions, and then click
Copy Depreciation Book.
The Copy Depreciation Book batch job request page appears.
FIGURE 1.29: COPY DEPRECIATION BOOK BATCH JOB REQUEST PAGE
1 - 66


4.
On the Fixed Asset FastTab, set a filter to select the assets from
which to copy entries. If you do not set a filter, entries for all assets
are copied.
5.
On the Options FastTab, enter information into the fields according

to the guidelines in the following table.
Field
6.
Description
Copy from Book
Enter the name of the depreciation

book from which the entries have to
be copied.
Copy to Book
Enter the name of the depreciation

book to which the entries have to be
copied.
Starting Date
Enter the first day to copy FA

postings. Only entries with an FA
posting date on or after this date are
copied.
Ending Date
Enter the last day to copy FA

postings. Only entries with an FA
posting date on or before this date
are copied.
Document No.
Enter a document number or leave

this field blank. If the field is blank,
you must set up a number series for
the journal batch.
Posting Description
Enter the text to appear in the

ledger.
Insert Bal. Account
Use this field only if you copy to a

depreciation book that has G/L
integration. When this check box is
selected, the program enters
balancing accounts on the copied
lines in the FA G/L journal
automatically.
Copy
Select the posting type or types to

copy.
Click OK to run the batch job.
Microsoft Dynamics NAV 2013 creates the copied lines in either the G/L journal or
the FA journal, depending on whether you have activated G/L integration for the
depreciation book to which you are copying. You must post the journal to copy
entries.

1 - 67

Demonstration: Copy Depreciation Books
After you have set up a TAX depreciation book for FA00030 and made one
duplication entry, copy all the other posted acquisition cost entries for the asset
from the COMPANY depreciation book. Then the correct acquisition of the asset
will display in the TAX depreciation book.
Demonstration Steps
To copy the depreciation book, follow these steps:
1.

2.
In the Depreciation Book List window, select the TAX depreciation

book, and then click Edit.
3.
In the Depreciation Book Card window, click Actions, and then click
Copy Depreciation Book.
4.
In the Copy from Book field, select COMPANY.
5.
In the Copy to Book field, select TAX.
6.
In the Starting Date field, select 1/24/2013.
7.
In the Document No. field, enter the number of the document from
the acquisition entry that will be copied. For this example, leave this
field blank to copy all documents in the journal batch to which the
entries are copied.
8.
In the Copy field group, select the Acquisition Cost check box.
9.
On the Fixed Asset FastTab, In the No. filter, select FA000030.
10. Click OK to run the batch job.

11. Switch to the Microsoft Dynamics NAV window. In the navigation
pane, click Departments > Financial Management > Fixed Assets
> FA Journals to open the Fixed Asset Journal page and post the
journal line.
Note: The automatic document numbering is not used for the fixed assets
journal in this demonstration; you should manually number the lines F00002 and
F00003 correspondingly.
lines?, click Yes.
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posted., click OK.
15. Click OK to close the Fixed Asset Journal window.
> Fixed Assets > Fixed Assets to see the result.
17. Double-click the FA000030 fixed asset.
18. Look for the book value of the TAX FA depreciation book. The book
value in the TAX book is greater than the book value in the
COMPANY book because you have not copied the depreciation
entries. On the Lines FastTab, select the line with the TAX
depreciation book, and then click Depr. Book > Ledger Entries. In
the FA Ledger Entries window, the two acquisition entries appear.

1 - 69
Module Review
Microsoft Dynamics NAV 2013 Fixed Assets Setup helps a company to manage all
information relevant to fixed assets.
The Fixed Assets setup is the basis of working with Fixed Assets in Microsoft
Dynamics NAV 2013. For this area to work correctly, you must perform the
following:
Configure the general fixed assets setup.
Set up allocation groups, posting groups, depreciation books,

depreciation tables if they are necessary, and fixed assets journal
templates.
Create fixed asset cards and associate them with depreciation books.
Creating a fixed asset card is the first step in the life cycle of a fixed asset in
Microsoft Dynamics NAV 2013. On the fixed asset card, you link the fixed asset to
a depreciation book, which may be integrated with the general ledger. There are
multiple fixed asset depreciation methods in Microsoft Dynamics NAV 2013 that
suit different business needs. The basic features of the Fixed Assets area that are
covered in this module include recording open transactions, making duplicate
entries, and copying fixed assets and fixed asset ledger entries.
1 - 70

MODULE 2: FIXED ASSET TRANSACTIONS

Module Overview
This module, "Fixed Asset Transactions," describes the transaction types available
in Microsoft Dynamics NAV 2013 Fixed Assets.
All Fixed Asset (FA) transactions must be posted in a fixed assets journal. If a fixed
asset is connected to a depreciation book integrated with the general ledger, the
FA G/L journal is used. For frequent transactions, you can use recurring journals
for fixed assets.
The basic transactions for fixed assets are depreciations, acquisition costs, writedowns, and disposals. This module describes all four types of transactions and the
processes connected to these transactions.
In Microsoft Dynamics NAV 2013 Fixed Assets, you can correct entries that have
already been posted if an amount changes for some reason, or if errors exist in
posted transactions. You can also create reports, budgets, cost-accounting, and
indexation for Fixed Assets.
Microsoft Dynamics NAV 2013 Fixed Assets can also handle minor assets.
Objectives
The objectives are:
Set up journals for fixed assets.
Post a fixed asset acquisition through a purchase invoice.
Increase the cost of a fixed asset by using the FA journal.
Explain the manual and automatic depreciation posting methods.
Set up write-down and appreciation of fixed assets.
Set up disposals of fixed assets.
Cancel and recalculate an incorrectly posted depreciation entry.
Cancel an incorrect entry that is already posted.

2-1
2-2
Reverse an incorrectly posted transaction.
Explain how to document fixed asset transactions.
Explain how to view the FA registers.
Demonstrate the reports for fixed assets.
Set up budgeting for fixed asset transactions.
Set up cost accounting depreciations.
Set up indexation.
Set up and depreciate minor assets.

Module 2: Fixed Asset Transactions
Journals for Fixed Assets

All fixed asset transactions can be posted through the following four journals:
FA G/L journal
FA journal
FA reclassification journal
Insurance journal
FA G/L Journals
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.
FA Journals
Entries posted in the FA journal are posted only to the fixed asset ledger.
FA Reclassification Journals
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.
Insurance Journals
Use the Insurance journal to post insurance coverage ledger entries.
Features of Recurring Transactions

You can use the recurring journals in Microsoft Dynamics NAV 2013 for frequently
posted transactions with few or no changes.
The recurring general journals and the recurring fixed asset journals can manage
posting for both fixed amounts and variable amounts, and can also manage the
allocation keys with the recurring entries.

2-3

Demonstration: Create a Recurring General Journal
Annie, the bookkeeper for CRONUS International Ltd., wants to set up a recurring
general journal for monthly depreciation of the Toyota Supra 3.0 and the VW
Transporter fixed assets. Annie calculates the monthly depreciation amount for
each fixed asset by dividing the acquisition cost amount by the number of
depreciation months. The monthly depreciation of the Toyota Supra 3.0 is 700,
and the monthly depreciation of the VW Transporter is 250.
Demonstration Steps
To set up the recurring transaction, follow these steps:
1.

> Fixed Assets > Recurring General Journals.
2.
In the Recurring General Journal window, in the Recurring Method

field, select the field, and then click F Fixed.
3.
In the Recurring Frequency field, enter 1M.
4.
In the Posting Date field, enter 11/30/2013.
5.
In the Document No. field, enter 1001.
6.
In the Account Type field, select the field, and then click Fixed Asset.
7.
In the Account No. field, select the field, and then click FA000020.
8.
In the Amount field enter -700.00.
9.
In the FA Posting Type field, select the field and then click
Depreciation. Use the Choose Columns function to add the field if it
is missing.
10. Go to the next line.

11. Make sure that the Recurring Method field is set to F Fixed.
12. In the Recurring Frequency field, enter 1M.
13. Make sure that the Posting Date field is set to 11/30/2013.
14. Make sure that the Document No. field is set to 1001.
15. Make sure that the Account Type field is set to Fixed Asset.
16. In the Account No. field, select the field, and then click FA000030.
17. In the Amount field, enter -250.00.
18. In the FA Posting Type field, select the field, and then click
Depreciation.
2-4


19. Go to the next line.
20. Make sure that the Recurring Method field is set to F Fixed.
21. In the Recurring Frequency field, enter 1M.
22. Make sure that the Posting Date field is set to 11/30/2013.
23. Make sure that the Document No. field is set to 1001.
24. In the Account Type, select the field, and then click G/L Account.
25. In the Account No., enter 8830.
26. In the Amount field, enter 950.00.
FIGURE 2.1: EDIT RECURRING GENERAL JOURNAL

27. On the Home FastTab, click Post to post the recurring journal.
lines?, click Yes.
posted., click OK.
30. Notice that the Posting Date field value now has changed by one
monthto 12/30/2013.
FIGURE 2.2: EDIT RECURRING GENERAL JOURNAL. THE VALUES CHANGED BY ONE MONTH
31. Click OK to close the Recurring General Journal window.

2-5

Note: When you post a journal, the lines are posted one by one. For each
account in the Account No. and Bal. Account No. fields, a general ledger entry is
created in addition to a customer, vendor, or bank account ledger entry for each
account of these types.
FA Flowchart
The FA Process Flow flowchart shows a common process flow with the most
typical operations. These operations together with their variations and other fixed
asset functionality are reflected throughout this module in demonstrations and
labs.
The flowchart in this topic shows a typical life cycle of a fixed asset.
FIGURE 2.3: FIXED ASSET PROCESS FLOW
2-6


First, you register a new fixed asset in the program by creating a fixed asset card.
Then, you link the fixed asset to the COMPANY depreciation book. At this point,
you must decide whether you want your fixed asset to be integrated with the
general ledger. If you do want the fixed asset to be integrated with the general
ledger, link the fixed asset to the depreciation book that has G/L integration.
Typically, you want fixed assets to be integrated with the general ledger. However,
you do not want a fixed asset to be integrated with the G/L, for example, when
you want to perform internal fixed asset calculations or for a third-party entity
that must not be reflected in your general ledger. In addition, with Microsoft
Dynamics NAV 2013, you can select specific FA postings to be integrated with the
G/L for each depreciation book.
Then, you post the acquisition cost for the fixed asset and link the fixed asset to
one of the companys insurance policies. Depending on whether you decided to
integrate the fixed asset with the general ledger, you post the acquisition cost
either through a purchase invoice or the FA G/L journal (when integrated), or
through the FA journal (when not integrated). When a fixed asset has integration
with the general ledger, the entries posted for this fixed asset are also
automatically posted to the general ledger.
During the life cycle, you may have to revalue the fixed asset (for example, posting
appreciation or a write-off). You may also have to post additional acquisition
costs. As a periodic activity, you calculate and post depreciation for the fixed asset
according to the depreciation method that is defined on the fixed asset card.
There may be maintenance expenses for the fixed asset which you can also post
for the fixed asset.
Finally, you dispose of the whole or a part of the fixed asset. Fixed asset disposal
must always be the last transaction posted for a fixed asset.
The fixed asset process flow steps are reflected in the demonstrations and labs
throughout this module. Also, you will perform other tasks that can be performed
with fixed assets in Microsoft Dynamics NAV 2013.
Purchase Fixed Assets

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.
It is common practice to enter the salvage value together with the purchase. You
can only fill in the Salvage Value field if you have selected the Acquisition Cost
option in the FA Posting Type field. In this case, enter the salvage value for the
fixed asset in the field.

2-7

Typically, the salvage value must be entered as a negative amount.
Entering a salvage value at the same time as the acquisition cost is especially
important if you also select the Depr. Acquisition Cost check box. In this case,
the depreciation basis will be acquisition cost minus salvage value.
This field is used internally and can be accessed from the Object Designer in
Microsoft Dynamics NAV Development Environment.
Demonstration: Purchase Fixed Asset

Before purchasing a fixed asset, you must set up a fixed asset by using the fixed
asset card.
Demonstration Steps
To purchase a fixed asset and post the acquisition costs, follow these steps:
1.

> Payables > Purchase Invoices.
2.
Click New.
3.
Press ENTER to create a new purchase invoice with number 1001.
4.
In the Buy-from Vendor No. field, click the field and select vendor
44127904.
5.
In the Vendor Invoice No. field, enter 2013-E-101.
6.
On the Lines FastTab, right-click the header and use the Choose
Columns function to add the FA Posting Type field.
7.
In the Type field, select Fixed Asset.
8.
In the No. field, select FA000010.
9.
In the Quantity field, enter 1.
10. In the Direct Unit Cost Excl. VAT field, enter 11,000.00.
11. In the FA Posting Type field, select Acquisition Cost.
2-8

FIGURE 2.4: EDIT PURCHASE INVOICE 1001 WOODMART SUPPLY CO.

12. Click Post to post the purchase of the Fixed Asset.
13. When you receive the message Do you want to post the Invoice?,
click Yes.
Additional Acquisition Costs

You may have to post additional acquisition costs for an already acquired fixed
asset when, for example, you have invested additional costs into the fixed asset.
You post additional acquisition costs exactly as you post the original acquisition
cost: from a purchase invoice, the FA G/L journal, or the FA journal.
If you already calculated depreciation for the fixed asset and you want the
depreciation period to remain the same, you should select the Depr. Acquisition
Cost check box on the purchase line. This guarantees that when you post the line,
the program depreciates the acquisition cost less the salvage value in proportion
to the amount by which the previously acquired fixed asset is already depreciated.
In this case, the depreciation percentage is calculated according to the following
formula:

2-9

Depreciation percentage = (total depreciation*100) / depreciable basis
The depreciation amount is calculated according to the following formula:
Depreciation amount = (Depreciation percentage/100)*(additional acquisition cost
salvage value).
For example, a fixed asset has an acquisition cost of 1,000 and the total
depreciation is -220. Post a line where acquisition cost is 150 and salvage value is
-25. If you select the Depr. Acquisition Cost field before posting, then the
following depreciation is calculated and posted:
(150 - 25)* - 220 / 1000 = -27.50
If you enter a negative acquisition cost, for example if you receive a credit memo,
then the calculated depreciation is a positive amount.
Note: Only the new acquisition cost is depreciated when you select the Depr.
Acquisition Cost field. The previously posted acquisition cost will not be affected.
You can have both the new and the old acquisition costs depreciated up to the
current FA Posting Date, if you select the Depr. Until FA Posting Date field.
To have the program automatically calculate depreciation for the period from the
FA posting date of the previously acquired fixed asset to the posting date of the
additional acquisition cost, select the FA Posting Date check box on the invoice,
FA G/L journal, or FA journal lines. Otherwise, only the previously posted
acquisition cost will be depreciated.
Note: Companies frequently want depreciation calculated and posted
monthly.
Regardless of how the acquisitions are posted, it is important to find the
depreciation posted at month end (to consider every change since the last
depreciation calculation, for example, additional acquisitions).
In Microsoft Dynamics NAV 2013 you must calculate the depreciation for the
existing book value before you post the additional acquisition, even if the
calculation period for the depreciation is shorter than a month.
You can calculate the depreciation by using the Calculate Depreciation batch job
or you can enable the Depr. until FA Posting Date field when you post the
additional acquisition costs through a FA (G/L) journal or a purchase order or
purchase invoice.
2 - 10


To automatically calculate depreciation for the period from the FA posting date of
the last FA ledger entry of the previously acquired fixed asset to the posting date
of the current additional acquisition cost, select the Depr. until FA Posting Date
check box on the invoice, FA G/L journal, or FA journal lines. This makes sure that
the total depreciation of the previously acquired fixed asset is correct before the
program uses it to calculate the Depr. Acquisition Cost of the new acquisition.

2 - 11
Lab 2.1: Purchase a Fixed Asset Using the Purchase

Invoice
Cassie, the accountant, previously created a fixed asset card for the new fixed
asset and associated this fixed asset with the COMPANY depreciation book that is
integrated with the general ledger. Now, she wants to post the acquisition cost for
this asset. Cassie posts the acquisition cost through the purchase invoice.
Note: You must have already created the fixed asset card for the fixed asset in
question. In order to complete this task, the integration with the general ledger
should be activated for the COMPANY depreciation book.
Objectives
Post the acquisition cost.
Post the Acquisition Cost through Purchase Invoice

Exercise Scenario
To post the acquisition cost for the Reception Department Computer fixed asset,
create and post the purchase invoice by using the information in the following
table.
Field
Value
Buy-from Vendor No.
61000
Posting Date
2/01/2013
FA Posting Type
Acquisition Cost
Quantity
Vendor Invoice No.
1005
Direct Unit Cost Excl. VAT
1,500.00
Task 1: Post the Acquisition Cost through the Purchase Invoice

High Level Steps
2 - 12
1.
Create a new purchase invoice.
2.
Fill in the fields on the General FastTab of the invoice.
3.
On the Lines FastTab, add a line with the acquisition cost.
4.
Post the invoice.
5.
Verify the book value on the fixed asset card.


Detailed Steps
1.
2.
3.

a.

Management > Payables > Purchase Invoices.
b.
Click New.
Fill in the fields on the General FastTab of the invoice.

a.
Press ENTER to create a new purchase invoice number.
b.
In the Buy-from Vendor No. field, click the field and select
vendor 61000.
c.
In the Vendor Invoice No. field, enter 1005.
d.
In the Posting Date field, type 2/01/2013.
On the Lines FastTab, add a line with the acquisition cost.

a.
On the Lines FastTab, in the Type field, select the field, and then
click Fixed Asset.
b.
In the No., field, select the field and then click the Reception
Department Computer fixed asset.
c.
In the FA Posting Type field, select Acquisition Cost.
d.
In the Quantity field, enter 1.
e.
In the Direct Unit Cost Excl. VAT field, enter 1,500.00.

2 - 13
FIGURE 2.5: PURCHASE INVOICE WITH ACQUISITION COST

4.
5.
Post the invoice.

a.
Click Post to post the invoice.
b.
When you receive the message Do you want to post the

Invoice?, click Yes.

a.
2 - 14

Management > Fixed Assets > Fixed Assets, and then doubleclick the fixed asset card for the Reception Department
Computer fixed asset.


Verify that the current book value in the Book Value field on the Lines FastTab
corresponds to the posted acquisition cost.
FIGURE 2.6: FIXED ASSET BOOK VALUE

2 - 15
Lab 2.2: Increase the Cost of the Fixed Asset

Cassie previously created a fixed asset card for the Reception Department
Computer fixed asset and posted the acquisition cost through the purchase
invoice. Cassie learns that the company has invested additional costs into this
fixed asset to upgrade the acquired computer and make it more powerful. Now,
Cassie has to post the additional acquisition cost in the amount of 1000 (including
VAT).
Note: Before you complete this lab, make sure that you have already created
the fixed asset card for the fixed asset in question and that the initial acquisition
cost is posted.
Objectives
Increase the cost of an acquired fixed asset.
Post Additional Acquisition Cost

Exercise Scenario
To increase the cost of the asset, post the additional acquisition cost for the asset.
Because the given fixed asset is associated with the COMPANY depreciation book
that has integration with the general ledger, use the FA G/L journal to post
additional acquisition cost.
For the acquisition journal line, use the information in the following table.
Field
Value
Document Type
Invoice
FA Posting Date
2/24/2013
FA Posting Type
Acquisition Cost
Amount
1,000.00
Bal. Account Type
G/L Account
Bal. Account No.
2910
Because you have not yet posted any depreciation for this fixed asset, leave the
Depr. until FA Posting Date and Depr. Acquisition Cost fields empty.
2 - 16


Task 1: Post Additional Acquisition Cost
High Level Steps
1.
Create a new FA G/L journal line.
2.
Fill in additional acquisition cost information.
3.
Create a balancing line.
4.
Post the FA G/L journal.
5.
Detailed Steps
1.
2.
3.
Create a new FA G/L journal line.

a.

Management > Fixed Assets > FA G/L Journal.
b.
c.
In the Account Type field, select the field, and then select Fixed
Asset.
d.
In the Account No., field, select the field, and then select the
Reception Department Computer fixed asset.
Fill in additional acquisition cost information.

a.
In the FA Posting Type field, select the field, and then select
Acquisition Cost.
b.
In the Gen. Posting Type field, select the field, and then select
Purchase.
c.
In the Description field, type Add. Acq. Cost.
d.
In the Amount field, enter 1,000.00.

a.
Create a new line.
b.
On the new line, in the Posting Date field, type 2/24/2013.
c.
In the Account Type field, select the field, and then select G/L
Account.
d.
In the Account No., field, select the field, and then select account
2910.
e.
In the Amount field, enter -1,000.00.

2 - 17
FIGURE 2.7: FA G/L JOURNAL WITH ADDITIONAL ACQUISITION COST

4.
5.

a.
Click Post to post the journal line.
b.
lines?, click Yes.
c.


a.
2 - 18

Management > Fixed Assets > Fixed Assets, and then click the
fixed asset card for the Reception Department Computer fixed
asset.


Verify that the current book value in the Book Value field on the Lines FastTab
has increased according to the posted additional acquisition cost.
FIGURE 2.8: INCREASED FIXED ASSET BOOK VALUE

Note: The book value is increased by 800 because the value in the Amount
field on the journal line included the VAT amount, which is 25%.
You can click the link in the Book Value field to view the posted FA ledger
entries.
Calculate and Post Depreciation

Depreciation is used to allocate fixed assets over their depreciable life. Fixed asset
depreciation can be calculated and posted by using two methods:
Manual
Automatic
For the manual method, use the FA G/L journal or the FA journal. For the
automatic method, run the Calculate Depreciation batch job.
2 - 19

Manual Depreciation with the FA G/L Journal
To manually post depreciation for a fixed asset that has integration with the
general ledger, use the FA G/L journal.
1.

2.
In the FA G/L Journal window, in the Posting Date field, enter the
relevant posting date.
3.
In the Account Type field, click the field, and then select Fixed Asset.
4.
In the Account No. field, click the field, and then select the fixed
asset for which you want to post depreciation.
5.
In the Depreciation Book Code field, click the field, and then select
the depreciation book associated with the selected fixed asset and
integrated with the general ledger, for example, COMPANY.
6.
In the FA Posting Type field, click the field, and then select
Depreciation.
7.
Make sure that an allocation key is set up in the FA Posting Group,

and then click Insert FA Bal. Account. on the Home FastTab.
Balancing lines with different department codes are now created
automatically. You can use the Choose Columns function to add the
Department Code field.
8.
Click Post to post the depreciation.
9.
lines?, click Yes.
posted., click OK.
To view the posted depreciation, follow these steps:
2 - 20
1.

2.
Open the fixed asset card for the fixed asset whose posted
depreciation you want to view.
3.
On the Lines FastTab, click the Book Value field value to view the FA
ledger entries.
4.
In the FA Ledger Entries window, select the line with the relevant
depreciation entry, and then on the Actions FastTab, click Navigate.
5.
In the Navigate page, select G/L entry line, and then click Show on
the Home FastTab. The General Ledger Entries window appears.
This displays the G/L entries.
6.
Close the General Ledger Entries window.


In the Navigate page, select the FA Ledger Entry line, and then click Show on
the Home FastTab. The FA Ledger Entries window appears. This shows the FA
ledger entries.
Demonstration: Post a Manual Depreciation with the FA

G/L Journal
Annie, the bookkeeper for CRONUS International Ltd., has to post a manual
depreciation in February 2013 for the Switchboard fixed asset. The monthly
depreciation amount for the Switchboard fixed asset is 85.
Demonstration Steps
To post the depreciation for the Switchboard fixed asset, follow these steps:
1.

2.
In the Posting Date field, enter 02/28/2013.
3.
In the Account Type field, click the field, and then select Fixed Asset.
4.
In the Account No. field, click the field, and then select FA000090.
5.
In the Depreciation Book Code field, click the field, and then select
COMPANY.
6.
Depreciation.
7.
In the Amount field, enter -85.00.
8.
In the Description field, type Depreciation February 2013.
9.
On the Home FastTab, in the Process group, click Insert FA Bal.

Account.
FIGURE 2.9: THREE BALANCING LINES CREATED AUTOMATICALLY

Three balancing lines with different department codes are now created
automatically, because the allocation key was already set up.

2 - 21

10. Click Post to post the depreciation.
lines?, click Yes.
posted., click OK.
To view the posted depreciation, follow these steps:
1.

2.
In the Fixed Assets window, double-click the line with fixed asset
FA000090 to open the fixed asset card.
3.
In the Fixed Asset Card window, on the Lines FastTab, click the
Book Value field value to view the FA ledger entries.
4.
Select the line with the relevant depreciation entry (the document
number should start with G), and then on the Actions FastTab in the
General group, click Navigate.
5.
In the Navigate window, select the G/L Entry line, and then click
Show.
The General Ledger Entries window displays the depreciation posted for fixed
asset number FA000090 to the COMPANY depreciation book.
6.
In the Navigate window, select the FA Ledger Entry line, and then
click Show.
The FA Ledger Entries window displays the depreciation posted for fixed asset
number FA000090 to the COMPANY depreciation book.
Demonstration: FA Journal
You can post the same depreciation transaction in a depreciation book that does
not have general ledger integration. The following example shows how to post
the same information from the FA G/L Journal example to an FA journal.
Demonstration Steps
1.

> Fixed Assets > FA Journals.
2.
Enter the same values that you used in the FA G/L journal as shown in
the following table.
Field
2 - 22
Value
FA Posting Date
02/28/2013
FA No.
FA000030
TAX


Field
Value
FA Posting Type
Depreciation
Description
Depreciation February 2013
Amount
-85
3.
Click Post.
4.
lines?, click Yes.
5.
When you receive the message The journal lines were successfully
posted., click OK.
Calculate Depreciation Automatically

Calculate Depreciation is a batch job that automatically calculates depreciation
based on the conditions that you set up on the batch job request page. Sold,
blocked, or inactive assets, and assets that use the manual depreciation method,
are excluded from the automatic depreciation calculation. The batch job
automatically creates journal lines, and you only have to check and post the
created journal lines.
Fixed Asset Statistics

Use the Fixed Asset Statistics window to view the last postings to a fixed asset.
To access the Fixed Asset Statistics window, in the navigation pane, click
Departments > Financial Management > Fixed Assets > Fixed Assets, select a
fixed asset, and then, on the Navigate FastTab, click Statistics.

2 - 23
FIGURE 2.10: FIXED ASSET STATISTICS
Demonstration: Calculate Depreciation

The following demonstration explains how to calculate depreciation for fixed asset
FA000080 by using the Calculate Depreciation batch job.
Demonstration Steps
To calculate depreciation, follow these steps:
2 - 24
1.

2.
In the Fixed Assets window, select the line with fixed asset
FA000080, and then, on the Navigate FastTab, click Ledger Entries.
The last depreciation happened on December 31, 2013. So, the new
depreciation must be calculated for January 2014.
3.
Close the FA Ledger Entries window.


4.
Double-click FA00080, then on the Actions FastTab, in the General

group, click Calculate Depreciation. The Calculate Depreciation
batch job request page appears.
5.
On the Options FastTab, in the Depreciation Book field, select

COMPANY.
6.
In the FA Posting Date field, type 1/31/2014.
7.
Select the Insert Bal. Account check box.
8.
On the Fixed Asset FastTab, set the filter for the No. field to
FA000080.
FIGURE 2.11: CALCULATE DEPRECIATION BATCH JOB REQUEST PAGE

2 - 25

9.
Click OK to calculate the depreciation on January 31, 2014. The batch

job calculates depreciation for fixed asset number FA000080 and
creates the lines in the Fixed Asset G/L journal.
10. Close the fixed assets card.

11. Click Departments > Financial Management > Fixed Assets > FA
G/L Journals.
The Fixed Asset G/L Journal window contains the lines created by the Calculate
Depreciation batch job.
FIGURE 2.12: FIXED ASSET G/L JOURNAL

12. View the lines, and then click Post to post the depreciation.
lines?, click Yes.
posted., click OK.
15. Click OK to close the Fixed Asset G/L Journal window.
G/L Journal for Automatic Depreciations

The FA G/L journal is automatically created by the Calculate Depreciation batch
job. The No. of Depreciation Days field value in the FA G/L journal is
automatically updated after it runs the batch job.
The balancing line in the FA G/L journal is also created automatically when the
Insert Bal. Account field on the Options FastTab of the Calculate Depreciation
batch job request page is selected.
2 - 26


Document Number
The following rules apply to the Document No. field on the Options FastTab on
the Calculate Depreciation batch job request page:
If the journal batch used by the batch job has a number series in the
No. Series field, leave the Document No. field blank. All journal lines
are automatically assigned the same numberthe next available
number from the number series. When you use this method, the
journal must be empty.
If the journal batch used by the batch job does not have a number
series in the No. Series field, enter a number in the Document No.
field. This number is assigned automatically to all the journal lines.
Select the journal that the batch job uses in the FA Journal Setup window.
Number of Depreciation Days

The standards for depreciation in Microsoft Dynamics NAV 2013 are 360 days for
a year and 30 days for a month.
The depreciation starting date for each fixed asset is the last entry date (from the
FA Posting Date field). If only the acquisition cost and salvage value are posted
for a fixed asset, the date from the Depreciation Starting Date field in the FA
depreciation book is used to calculate depreciation.
If the last entry is anything other than a depreciation entry, the FA posting date is
included automatically in the calculation of the number of depreciation days. This
means that both the starting date and the ending date are included.
For example, the program calculates 01/01/13 01/10/13 as 10 days if the entry
posted on 01/01/13 is not a depreciation entry, but as 9 days if the entry on
01/01/13 is a depreciation entry.
Microsoft Dynamics NAV 2013 calculates depreciation up to and including the
date in the FA Posting Date field on the Options FastTab on the Calculate
Depreciation batch job request page.
Force Number of Days

The program can calculate a full months depreciation for an entry that is posted
at the beginning of a month. On the Calculate Depreciation batch job request
page, on the Option FastTab, enter, for example, 30 days in the Force No. of
Days field and select the Use Force No. of Days check box. If these fields are
filled in, the system always uses the number of days entered in the Force No. of
Days field.

2 - 27

The following table displays examples of how the program calculates the number
of depreciation days. In these examples, the last entry was a depreciation entry.
Therefore, only the last date of the interval is included in the calculations.
Date Interval
Number of Depreciation Days
01/31/14 02/28/14
30
03/31/14 04/30/14
30
12/31/13 12/31/14
360
02/27/14 03/01/14
02/08/14 03/01/14
03/30/14 04/01/14
03/31/14 04/01/14
03/30/14 03/31/14
03/30/14 03/31/15
360
When you select the Straight-line depreciation method and fill in the No. of
Depreciation Years field in the FA depreciation book, the program calculates the
number of remaining days based on the ending date. The depreciable basis is
divided by the remaining number of days and then multiplied by the number of
days in the depreciation period. This means that the final depreciation amount
may have to be rounded off to the final numbers of days. Also, the program does
not post depreciation amounts of zero. Therefore, nothing occurs if you run the
Calculate Depreciation batch job multiple times.
When you use the Straight-line method and enter a number in the No. of
Depreciation Years field, you can adjust the amount that is depreciated by
changing the date in the Depreciation Ending Date field.
2 - 28

Lab 2.3: Calculate Depreciation

Cassie, the accountant, previously created a fixed asset card for the Reception
Department Computer fixed asset and posted the acquisition cost. This includes
the additional acquisition cost. After one month, she has to calculate and post
depreciation for February 2013. Cassie uses the Calculate Depreciation batch job
to calculate the depreciation automatically.
Note: Before you complete this lab, make sure that the acquisition cost for the
Reception Department Computer fixed asset is already posted.
Objectives
Calculate and post depreciation for February 2013.
Calculate and Post Depreciation

Exercise Scenario
To calculate and post the depreciation for the Reception Department Computer
fixed asset, run the Calculate Depreciation batch job from the fixed asset card by
using the values that are shown in the following table.
Field
Value
Depreciation Book
COMPANY
FA Posting Date
2/28/2013
Posting Description
Depreciation February 2013
Insert Bal. Account
Yes
If you set up the number series for the fixed asset journal batch, you can leave the
Document No. field empty.
Note: The program defines February 28th or 29th (depending on whether the
year is a leap year), and the 30th and the 31st for the other months in the year, as
the last day of the month. For example, if any of these dates were used in the last
depreciation entry, and you enter the first date of the next month in the FA Posting
Date field in the batch job, the program will calculate depreciation for one day.
After the batch job creates depreciation lines in the FA G/L journal, review and
post the journal.

2 - 29

Task 1: Calculate and Post Depreciation
High Level Steps
1.
Open the fixed asset card for the fixed asset for which you want to
calculate and post depreciation.
2.
Run the Calculate Depreciation batch job.
3.
Review the created journal lines.
4.
5.
Review the changed book value and posted ledger entries.
Detailed Steps
1.
2.
Open the fixed asset card for the fixed asset for which you want to
calculate and post depreciation.
a.

b.
Open the fixed asset card for the Reception Department

Computer fixed asset.

a.
On the Home FastTab, click Calculate Depreciation.
b.
In the Calculate Depreciation batch job request window, on the

Options FastTab, make sure that the Depreciation Book field is
set to COMPANY.
c.
In the FA Posting Date field, type 2/28/2013. This date is used

as the ending date in the depreciation calculation.
d.
In the Posting Description field, type Depreciation Asset

February 2013.
e.
f.
Click OK to run the batch job
Do not close the Fixed Asset Card window

3.
2 - 30
Review the created journal lines.

a.

Management > Fixed Assets > FA G/L Journals.
b.
In the Fixed Asset G/L Journal window, review the created

journal lines.

FIGURE 2.13: FIXED ASSET G/L JOURNAL WITH DEPRECIATION LINES

4.
5.

a.
Click Post to post the journal lines.
b.
lines?, click Yes.
c.

Review the changed book value and posted ledger entries.

a.
In the Fixed Asset Card window for the Reception Department

Computer fixed asset, on the Lines FastTab, review the value in
the Book Value field.

2 - 31

The value has decreased, because of the posted depreciation.
FIGURE 2.14: DECREASED BOOK VALUE AFTER POSTED DEPRECIATION

You can click the link in the Book Value field to review the posted FA ledger
entries.
Write-down and Appreciation of Fixed Assets

Write-down of a Fixed Asset
A write-down is a decrease in the value of a fixed asset. A decrease may be the
result of the asset becoming out of date or damaged.
You can use write-down entries as a correction to decrease an assets depreciable
base when the depreciation of the asset was too low in the past. The assets value
decrease is posted as a loss in the financial statement.
Note: The handling of write-down (Appreciation) transactions on posting and
reporting in Microsoft Dynamics NAV is controlled by the FA Posting Type Setup
table settings. For more information, please refer to Module 1: Fixed Assets Setup.
2 - 32


Demonstration: Integrate a Writedown with a G/L
Journal
To post a write-down entry to a depreciation book for which write-down has G/L
integration, you must use an FA G/L journal. To set up the FA posting group to
which you have to post write-down, follow these steps:
Demonstration Steps
1.
In the navigation pane, click Departments > Administration >

Application Setup > Financial Management > Posting Groups >
FA Posting Groups.
2.
Right-click the column header, select Choose Columns, add the

Write-Down Account and the Write-Down Expense Acc. fields,
and then click OK.
3.
On the line with the TELEPHONE posting group, in the Write-Down

Account field, enter 1230.
4.
In the Write-Down Expense Acc. field, enter 8640.
5.
Click OK.
Demonstration: Post a Write-down

The Switchboard fixed asset decreased in value over time, and you must post a
write-down for this fixed asset.
Demonstration Steps
To post a write-down entry, follow these steps.
1.

2.
In the Fixed Asset G/L Journal window, enter the information in the
following table.
Field
Value
Posting Date
01/31/14
Document Type
<Blank>
Account Type
Fixed Asset
Account No.
FA000090
FA Posting Type
Write-down
Amount
-300
3.
On the Home FastTab, click Insert FA Bal. Account.

2 - 33

The program creates a second line with a balancing entry.
FIGURE 2.15: WRITE-DOWN JOURNAL ENTRIES

4.
Click Post.
5.
lines?, click Yes.
6.
posted., click OK.
Note: If the entries do not have to be integrated with the general ledger, you
can also post write-down from the FA journal.
Appreciation of Fixed Assets

Appreciation is an increase in the value of a fixed asset (typically land and
buildings). It can also be used for a fixed asset that increases in value because of
increased demand for the item.
You can use an appreciation entry as a correction to increase an assets
depreciable base when the depreciation of the asset was too high in the past. This
value is posted as a gain in the financial statement.
2 - 34


Demonstration: Integrate an Appreciation with the FA G/L
Journal
Use an FA G/L journal to post an appreciation transaction to a depreciation book
in which appreciation has a G/L integration. Before posting appreciation in the FA
G/L journal, you must set up FA posting groups for appreciation. To set up FA
posting groups for posting appreciation, follow these steps:
Demonstration Steps
1.

FA Posting Groups.
2.
Right-click the column header, select Choose Columns, add the

Appreciation Account and the Appreciation Bal. Account fields,
and then click OK.
3.
On the line with the TELEPHONE posting group, in the Appreciation

Account field, enter 1220.
4.
In the Appreciation Bal. Account field, enter 8640.
5.
Click OK.
Demonstration: Post an Appreciation

The Switchboard fixed asset increased in value, and you must post an appreciation
for this fixed asset.
Demonstration Steps
To post an appreciation entry, follow these steps:
1.
In the navigation pane, click Financial Management > Fixed Assets

> FA G/L Journals.
2.
In the Fixed Asset G/L Journal window, enter the information in the
following table.
Field
Value
Posting Date
01/31/14
Document Type
<Blank>
Account Type
Fixed Asset
Account No.
FA000090
FA Posting Type
Appreciation
Amount
150
3.
Click Insert FA Bal. Account.

2 - 35

The program creates a second line with a balancing entry.
FIGURE 2.16: APPRECIATION JOURNAL ENTRIES

4.
Click Post.
5.
lines?, click Yes.
6.
posted., click OK.
Note: If the entries do not have to be integrated with the general ledger, you
can also post appreciation from the FA journal.
2 - 36

Lab 2.4: Post Write-down

The Reception Department Computer fixed asset was damaged while in service.
This decreased the value of the fixed asset by 200. Cassie has to post a write-down
to reflect the decreased value.
Note: Before completing this lab, make sure that in the FA Posting Groups
window, for the IT-EQUIP posting group, you set up write-down accounts to which
write-down will be posted. To open the FA Posting Groups window, in the
navigation pane, click Departments > Financial Management > Administration
> Setup > Posting Groups > FA Posting Groups. For the IT-EQUIP posting group,
in the Write-Down Account field enter 1230 and in the Write-Down Expense
Acc. enter 8640.
Objectives
Post a write-down.
Post a Write-down
Exercise Scenario
Post a write-down for the Reception Department Computer fixed asset. Use the
FA G/L journal, because this value is associated with the depreciation book that is
integrated with the general ledger.
Use information from the following table.
Field
Value
Posting Date
11/01/2013
FA Posting Type
Write-down
Amount
-200.00
Task 1: Post a Write-down

High Level Steps
1.
Open the Fixed Asset G/L journal.
2.
Create a write-down line by filling in the mandatory fields.
3.
4.
Post the journal.
5.
Review the revalued book value on the fixed asset card.

2 - 37

Detailed Steps
1.
Open the Fixed Asset G/L journal.

a.
2.
3.

Create a write-down line by filling in the mandatory fields.

a.
In the Fixed Asset G/L Journal window, in the Posting Date

field, type 11/1/2013.
b.
In the Account Type field, click the field, and then select Fixed
Asset.
c.
In the Account No. field, click the field, and then select the
number of the Reception Department Computer fixed asset.
d.
Write-Down.
e.
In the Description field, type Write-down.
f.
In the Amount field, type -200.00.

a.
On the Home FastTab, click Insert FA Bal. Account to add a

balancing line.
Note: To insert a balancing account by using the Insert FA Bal. Account

function, you must have the appropriate accounts set up in the FA Posting Groups
window.
FIGURE 2.17: FIXED ASSET G/L JOURNAL WITH WRITE-DOWN
2 - 38


4.
5.
Post the journal.

a.
Click Post to post the journal.
b.
lines?, click Yes.
c.

Review the revalued book value on the fixed asset card.

a.

b.
Select the line with fixed asset FA000110 and click Edit to open
the fixed asset card for the Reception Department Computer
fixed asset.
On the Lines FastTab, in the Book Value field, you can see the decreased book
value because of the posted write-down.
FIGURE 2.18: FIXED ASSET CARD WITH DECREASED BOOK VALUE

2 - 39
Fixed Asset Disposals

When you sell or otherwise dispose of a fixed asset, the disposal value must be
posted. Disposal of the whole or a part of a fixed asset is the last step in the
typical life cycle of a fixed asset. For partially disposed of fixed assets, you can post
several disposal entries. Before you can dispose of parts of an asset, you must split
the asset into two separate assets. Then you must completely dispose of one part,
and the other part remains in the current fixed asset.
Use the FA G/L journal to post a disposal transaction to a depreciation book for
which disposal has general ledger integration.
Use the FA journal to post a disposal transaction to a depreciation book for which
disposal does not have general ledger integration.
Salvage Value
Salvage value represents the residual value of a fixed asset when it can no longer
be used. Post the salvage value of an asset from a purchase invoice or from the FA
journal when you post the acquisition cost.
To post salvage value from a purchase invoice, add the Salvage Value field to the
purchase lines by using the Choose Column function. Enter the salvage value in
the field as a positive or negative number, and then post the invoice as usual.
Typically, the salvage value is posted with a negative sign.
The salvage value reduces the depreciation base and therefore reduces all
depreciation amounts. The final rounding amount reduces only the last
depreciation amount. For example, a fixed asset costs 4800 today. After 4 years of
usage, its salvage value is defined as 800. When you use the Straight-line
depreciation method for calculating depreciation, this asset is depreciated at 1000
each year. If no salvage value existed, the depreciation would be 1,200 for each
year, and not 1,000. Therefore, the salvage value has caused a reduction in the
yearly depreciation of 200 each year.
Note: You can post the salvage value either when you post acquisition cost or
later. Entering a salvage value at the same time as the acquisition cost is important
if you also select the Depr. Acquisition Cost check box on the purchase line. In this
case, the program calculates the depreciation basis as follows: acquisition cost
minus salvage value.
You can calculate depreciation below the book value of zero. Therefore, you must
select the Allow Depr. below Zero check box in the depreciation book.
This enables the Calculate Depreciation batch job to continue calculating
depreciation even if the book value of the fixed asset is zero or below zero.
2 - 40


In order to calculate depreciation below zero, you must set the values for the
specific fields in the individual FA depreciation books, such as Depr. below Zero
% or Fixed Depr. Amount below Zero.
When you reach the period where book value is just above zero and you want to
calculate the depreciation for the period, so that the system can depreciate below
zero, please be aware that Microsoft Dynamics NAV 2013 cannot calculate the
depreciation from book value above zero to book value below zero in one step.
Instead you must run the Calculate Deprecation batch job two times. The system
can calculate depreciation only from above zero to zero, or from zero to below
zero.
For example, an asset has a book value of 800 and you want to calculate
depreciation below zero:
1.
In the FA depreciation book for the asset, in the Fixed Depr. Amount
below Zero field, enter 1,000.
2.
Run the Calculate Depreciation batch job for the asset. The program
calculates the depreciation as 800. This makes the book value 0.
3.
Run the Calculate Depreciation batch job for the asset for the next
period. The program calculates the depreciation as 1.000. This makes
the book value -1.000.
Scenario Using Salvage Value

Salvage value is used to determine depreciation amounts.
For example, an asset has a book value of 4800. After a usage of 4 years, its
salvage value is defined as 800. When you use the Straight-line depreciation
method for calculating depreciation, the asset is depreciated at 1000 each year. If
no salvage value is defined after 4 years, the same asset is depreciated at 1200
each year.
Depreciation profile
With the specified

salvage value
Without a salvage
value
Purchase today
4800
4800
Depreciation Year 1
-1000
-1200
Depreciation Year 2
-1000
-1200
Depreciation Year 3
-1000
-1200
Depreciation Year 4
-1000
-1200
Salvage value Year 4
-800
This example shows that specifying the salvage value of 800 reduces the
depreciation amount of 200 per year.

2 - 41

Note: A salvage value is not posted as an alternative to a final rounding
amount. Set up the final rounding amount in the FA depreciation book. This
amount reduces the last depreciation amount. The program does not post the final
rounding amount.
Final Ending Book Value

The final ending book value is frequently used to represent a fully depreciated
asset that is still active. When you use a salvage value, a reduction in depreciation
over the life of the asset is allowed. However, some local laws give only the
reduction of the last depreciation amount. You can reduce the last depreciation
amount by inserting an ending book value on the fixed asset card. When you use
this feature on most of the fixed assets, you can set up a default ending book
value in the relevant depreciation book.
Disposal of Fixed Assets

When you sell or otherwise dispose of a fixed asset, you must post the disposal
value together with any related gain or loss.
A disposal entry must be the last entry posted for an asset so that you can record
related disposal costs for an asset. You must record related disposal costs in the FA
G/L journal before the actual disposal entry. You must also post all disposal entries
through the FA G/L journal, the FA journal, or a sales invoice.
Set up the disposal method for each depreciation book in the Disposal
Calculation Method field. The program can handle disposals by using one of the
following methods:
Net method: Post to either a disposal loss or gain account. This is the
most common disposal method.
Gross method: Post to a book value gain or loss account and to a

sales gain or loss account. When you enter the sales price in a journal,
the program calculates the gain or loss on the disposal and calculates
all other relevant entries. The gain or loss amount is calculated
automatically from the difference between the sales price and the
book value.
Note: For information about both methods, please refer to the Help within
Microsoft Dynamics NAV 2013 on the Depreciation Book Card window on the
Disposal Calculation Method field by clicking F1.
2 - 42


Scenario Disposing of a Fixed Asset
The fixed asset Warehouse was purchased for 100,000. The depreciation on the
fixed asset was 70,000. A new highway is built near the warehouse. This results in
appreciation of the fixed asset of 40,000. The resulting book value is 70,000
(Acquisition Cost Account Depreciation + Appreciation). The warehouse is finally
sold for 20,000, and the losses on the fixed asset are 50,000.
The following table shows the amounts used in the following examples, by using
both Net and Gross methods of disposal.
Field
Value
Acquisition Cost
100,000
Acc. Depreciation
70,000
Appreciation
40,000
Book Value
70,000 (Acq. Cost - Acc. Deprec. +

Apprec.)
Sales Price
20,000
Loss
50,000 (Sales Price - Book Value)
When you post the disposal of a fixed asset by using a journal or sales invoice, the
system calculates the gain or loss on disposal and creates the other entries. The
following examples show which amounts are posted to the accounts when you
post the disposal of a fixed asset. In the end, the result of both methods is the
same in the financial statement. However, depending on the method, a different
G/L account is used, and other amounts are registered on the different accounts.
Disposal of Fixed Assets Example A

In the example of disposal in the following table, appreciation is included in the
book value and is a part of the calculation of gain or loss. You select this in the FA
Posting Type Setup window, by selecting the Include in the Gain/Loss Calc.
check box. When you use the Net method, the disposal amount of 50,000 is
allocated to the Losses Acc. on Disp. account.
Field
Net
Gross
Method
Method
G/L Account
Debit
Cash
20,000
Acq. Cost Acc. on

Disposal
Credit
Debit
Credit
20,000
100,000

100,000
2 - 43

Field
Accum. Depr. Acc. on
Disposal
Net
Gross
Method
Method
70,000
Appreciation Acc. on
Disposal
70,000
40,000
40,000
50,000
Apprec. Bal. Acc. on

Disp.
Book Value Acc. on
Disposal
70,000
Sales Acc. on Disposal
20,000
Disposal of Fixed Assets Example B

In the example of disposal in the following table, appreciation is included in the
book value, but not included in the gain or loss calculation. This results in a
smaller loss than the loss that results from the Net disposal calculation method.
When you use the Net method, the disposal amount is allocated to the Losses
Acc. on Disp. and Apprec. Bal. Acc. on Disposal accounts. The Gross method
posts the sale amount of 20,000 to the credit of the Sales Acc. on Disposal
account and the fixed asset book value of 70,000 to the Book Value Acc. on
Disposal account. In both cases, the Cash account is debited for the sales price of
20,000.
Field
Net
Gross
Method
Method
G/L Account
Debit
Cash
20,000
Acq. Cost Acc. on

Disposal
Accum. Depr. Acc. on
Disposal
Debit
70,000
100,000
70,000
40,000
10,000
Apprec. Bal. Acc. on

Disp.
40,000
Credit
20,000
100,000
Appreciation Acc. on
Disposal
2 - 44
Credit

40,000

Field
Book Value Acc. on
Disposal
Net
Gross
Method
Method
70,000
Sales Acc. on Disposal
20,000
Post the Disposal through the FA G/L Journal

Another way to post disposals is through the FA G/L journal.
To post disposals through the FA G/L journal, follow these steps:
1.
In the navigation pane, click Financial Management > Fixed Assets

> FA G/L Journals.
2.
In the Fixed Asset G/L Journal window, enter the appropriate

information on the line.
3.
In the Amount field, enter the disposal amount as a credit or

negative number.
4.
On the Actions FastTab, click Post.
5.
lines?, click Yes.
6.
posted., click OK.
You can also post the FA disposal in combination with a VAT posting group. The
program automatically creates the sales VAT amount. If the program has to post
the sales VAT automatically, enter the gross amount in the Amount field.
To view the results of the journal entry, follow these steps:
1.
In the Fixed Assets window, select the asset that you want to view.
2.
In the Navigate FastTab, in the Fixed Asset group, click

Depreciation Books.
3.
In the FA Depreciation Books window, on the Navigate FastTab, in

the Depr. Book group, click Ledger Entries.
4.
In the FA Posting Category field, select the line with Disposal, and
then, on the Actions FastTab, click Navigate.
5.
In the Navigate window, select the general ledger entry line. On the
Actions FastTab, click Show. The General Ledger Entries window
appears. It displays the entries created by the disposal transaction.
If you record a disposal for an asset without integration to the general ledger, you
must record it in an FA Journal. The same information that is in the FA G/L
journal is recorded automatically.

2 - 45

When you trade in an asset, you must record both the sale of the old asset (the
disposal) and the purchase of the new one (the acquisition). You cannot record
this type of transaction as a single transaction.
Note: Avoid using the Inactive check box on the fixed asset card until two
years after the last transaction on the asset. If an asset is sold in the current fiscal
year and the asset is recorded as inactive, the asset will not appear in the Fixed
Asset - Book Value 01 report for the current fiscal year.
Partial Disposal
You can also dispose of a part of a fixed asset instead of the whole fixed asset.
When you sell or otherwise dispose of a part of an asset, you must split the asset
into two or more assets before you record the disposal transaction.
For more information about how to dispose of a part of a fixed asset, refer to the
Fixed Asset Reclassifications module in this course.
Disposal from a Sales Invoice or a Sales Order

You can create a sales invoice by selecting the type of the fixed asset on the line.
This lets you invoice an asset to a customer. The disposal of a fixed asset through
a sales invoice or sales order works in the same manner as the disposal through a
FA G/L journal.
Demonstration: Dispose of a Whole Fixed Asset from a

Sales Invoice
The following demonstration shows how to create a sales invoice to dispose of an
asset.
Note: You can also use a sales order to dispose of a fixed asset. The procedure
for disposing of a fixed asset by using a sales order is the same as that using a sales
invoice.
Demonstration Steps
To dispose of a whole fixed asset by using a sales invoice, follow these steps:
2 - 46
1.

> Receivables > Sales Invoices.
2.
Click New to create a new sales invoice.
3.
Press ENTER to have the program fill in the invoice number

automatically.
4.
In the Sell-to-Customer No. field, enter 30000.


5.
In the Posting Date and Document Date fields, enter 01/31/14.
6.
When you receive a warning about a Credit Limit check, click Yes.
7.
On the Lines FastTab, click the Type field, and then select Fixed
Asset.
8.
Select the No. field, and then select the asset FA000030 VW
Transporter.
9.
Type 1 in the Quantity field. No more than one asset for each sales
line can be sold.
10. In the Unit Price Excl. VAT field, enter the net sales price. For
example, enter 15,000.00.
11. Right-click the column header, select Choose Column, add the Depr.
until FA Posting Date field, and then click OK.
12. Select the Depr. until FA Posting Date check box.
13. On the Home FastTab, click Statistic to view the sales statistics for
this invoice.
The program calculated the sales VAT.
14. Click OK to close the Sales Invoice Statistics window.
15. Click Post, to post the invoice.
click Yes.
An error message about the combination of the Project and Customer Group
dimensions appears.
17. On the Lines FastTab, click Line > Dimensions.
18. In the Edit Dimension Set Entries window, select the VW Project
dimension line, and then click Delete.
19. Click Yes.
20. Click OK to close the Edit Dimension Set Entries window.
21. Click Post to post the invoice.
22. Click OK to close the Sales Invoice window.

2 - 47
Lab 2.5: Dispose of a Fixed Asset with a Sales Invoice

The company decided to dispose of the Reception Department Computer fixed
asset in the middle of its depreciation period by selling it to a customer. Cassie
must depreciate the fixed asset up to the posting date and post a sales invoice to
register the disposal in the program.
Note: Before completing this lab, make sure that in the FA Posting Groups
window, for the IT-EQUIP posting group, you set up write-down accounts on
disposal to which write-down will be posted during disposal. To open the FA
Posting Groups window, in the navigation pane, click Departments > Financial
Management > Setup > Posting Groups. For the IT-EQUIP posting group, fill in
the Write-Down Acc. on Disposal field with 1230 and the Write-Down Bal. Acc.
on Disposal with 8640.
Objectives
Post a disposal of a whole fixed asset with sales invoice.
Dispose of a Whole Fixed Asset

Exercise Scenario
Create a sales invoice for the Reception Department Computer fixed asset by
using the information from the following table.
Field
Value
Sell-to Customer
50000
Posting Date
01/31/2014
Shipment Date
01/31/2014
Quantity
Unit Price Excl. VAT
700
On the sales line, select the Depr. until FA Posting Date check box to have the
program depreciate the fixed asset up to the posting date.
2 - 48


Task 1: Dispose of a Whole Fixed Asset
High Level Steps
1.
Create a sales invoice.
2.
Fill in the mandatory fields.
3.
Post the sales invoice.
4.
On the fixed asset card, verify the book value and make sure that the
fixed asset is marked as disposed of.
Detailed Steps
1.
2.
Create a sales invoice.

a.

Management > Receivables > Sales Invoices.
b.
Click New to create a new sales invoice.
Fill in the mandatory fields.

a.
Press ENTER to have the program fill in the invoice number

automatically.
b.
In the Sell-to-Customer No. field, enter 50000.
c.
In the Posting Date and Document Date fields, enter 01/31/14.
d.
On the Shipping FastTab, in the Shipment Date field, enter

01/31/14.
e.
On the Lines FastTab, in the Type field, click the field and select
Fixed Asset.
f.
Select the No. field, and select the asset Reception Department
Computer. In this case, its number is FA000120.
g.
Type 1 in the Quantity field. No more than one asset for each
sales line can be sold.
h.
In the Unit Price Excl. VAT field, type 700.00.
i.
Select the Depr. until FA Posting Date check box to have the
program calculate the depreciation up to the FA posting date.

2 - 49
FIGURE 2.19: SALES INVOICE

3.
4.
Post the sales invoice.

a.
Click Post, to post the invoice.
b.

c.
Click OK to close the Sales Invoice window.
On the fixed asset card, verify the book value and make sure that the
fixed asset is marked as disposed of.
a.
2 - 50

Management > Fixed Assets > Fixed Assets, and open the
fixed asset card for the Reception Department Computer fixed
asset.


The current book value is now zero, and when the Disposed of check box is
selected, it indicates that the fixed asset was disposed of. To view the FA ledger
entries, click the link in the Book Value field.
FIGURE 2.20: FIXED ASSET CARD OF A DISPOSED ASSET

2 - 51
Correct an Entry
In Microsoft Dynamics NAV 2013, there are two methods of correcting an
incorrectly posted entry:
Cancel an entry: You can cancel an incorrectly posted FA entry for

one or more fixed assets by using the Cancel FA entries batch job,
which can be run on the FA Ledger Entries window from the
Actions FastTab. To cancel entries for various assets at the same time,
run the Cancel FA Ledger Entries batch job that can be accessed
from a depreciation book. When you cancel an entry, the batch job
creates a correcting journal entry that you can review and post. If the
assets are integrated with the general ledger, the batch job creates
lines in the FA G/L journal. Otherwise, the batch job creates lines in
the FA journal. The program marks the entry from the journal line and
the entry from the FA ledger entry as error ledger entries. This can be
possible only if the two entries have the same FA posting dates, the
same FA posting types, and the same amounts with opposite signs,
debit and credit. When you post the journal, the program removes
the fixed asset ledger entries from the FA Ledger Entries window
and posts them to the FA error ledger. You can view the error ledger
entries in the FA Error Ledger Entries window.
Reverse an entry: Using the Reverse Transactions function, you can

reverse (undo) entries. When you reverse an entry, the program
automatically posts an entry with a negative amount. This is a general
method of correcting all general ledger postings and can be used
only with entries generated from a general journal line. You can
reverse entries from the G/L registers, fixed asset ledger entries, and
other ledger entries windows. You cannot reverse fixed asset ledger
entries associated with sold fixed assets and fixed assets ledger entries
if reversing an entry results in a negative book value for the fixed
asset.
Note: The important difference between the two methods is that when you
reverse an entry, the program posts an entry with the opposite sign in the same
table. When you cancel entries, the program moves the incorrect entries to the FA
error ledger. Therefore, we recommend that you do not use the Reverse
Transactions function to correct an incorrect acquisition cost entry, because in this
case the Calculate Depreciation batch job cannot calculate the depreciation
correctly. We recommend that you use the Cancel FA Entries batch job to correct
FA entries.
Because the program uses the FA posting date in many calculations, you should
correct entries with incorrect FA posting dates.
2 - 52


Be aware that the Cancel FA Entries batch job usually creates entries with the
original FA Posting Date unless you select otherwise in the batch job request
window. This may result in posting to a closed fiscal year. If an FA entry occurred
in a closed fiscal year, you must cancel it. If the posting period is restricted in the
Allow FA Posting From and Allow FA Posting To fields in the FA setup page,
the program cannot post the cancellation. However, you can make a correction
entry for an asset in the current fiscal year.
You can cancel entries in previous fiscal years by selecting the entries to be
canceled and running the Cancel FA Ledger Entries batch job as usual.
Cancel Depreciation
Use the Cancel FA Ledger Entries or Cancel FA Entries batch job to cancel
incorrect depreciation entries. Both batch jobs work similarly. The Cancel FA
Entries batch job cancels incorrect entries for a specific fixed asset, whereas the
Cancel FA Ledger Entries batch job cancels entries for various fixed assets.
You can run the Cancel FA Entries batch job from the fixed asset card of the asset
for which you want to cancel entries.
To run the Cancel FA Entries batch job, on the fixed asset card, on the Navigate
FastTab, click Ledger Entries, select the ledger entry or entries to cancel, and
then, on the Actions FastTab of the FA Ledger Entries window, click Cancel
Entries.
FIGURE 2.21: CANCEL FA ENTRIES BATCH JOB REQUEST PAGE

2 - 53

To run the Cancel FA Ledger Entries batch job, on the depreciation book card,
on the Actions FastTab, click Cancel FA Ledger Entries.
In the batch job request window, you can set filters for fixed assets, select the
period of fixed asset entries to be included in the journal, select the fixed asset
transaction types, and select whether you want the batch job to include a
balancing account.
FIGURE 2.22: CANCEL FA LEDGER ENTRIES BATCH JOB REQUEST PAGE
2 - 54


Note: When you cancel entries with the Cancel Entries function, the Cancel
FA Ledger Entries batch job suggests all depreciation entries in the selected period
for the cancellation. If any manual postings were made with this posting type in the
selected period, the program also includes these entries in the cancellation
suggestion.
After you cancel the entries, run the Calculate Depreciation batch job again to
calculate and create the correct entries. When you cancel an FA entry, both the
original entry and the cancellation entry are excluded from the depreciation
calculation.
Demonstration: Cancel and Recalculate Depreciation

In this demonstration, you cancel an incorrectly posted depreciation for fixed asset
FA000060 and then post the correct entry. The depreciation entry for December
31, 2013 should be -50.00 instead of -47.00.
Demonstration Steps
To cancel an FA entry, follow these steps:
1.

2.
Open the fixed asset card number FA000060.
3.
On the Lines FastTab, select the line with the COMPANY depreciation
book, and then click Depr. Book > Ledger Entries.

2 - 55

The FA Ledger Entries window appears.
FIGURE 2.23: FA LEDGER ENTRIES

The page displays all the depreciation entries. In this example, the entry on
December 31, 2013 should have been -50.00 instead of -47.00.
4.
Select the entry with the posting date 12/31/2013 and on the Home
FastTab, click Cancel Entries from the Functions group.
5.
In the Cancel FA Entries batch job request window, click OK to run

the batch job.
6.
When you receive the message The ledger entries have been
transferred to the journal., click OK.
Note: You can select the Use New Posting Date check box and enter a new
posting date in the New Posting Date field when you want to apply a new posting
date to the journal entries created by the batch job. If these fields are cleared, the
program copies the posting date of the fixed asset ledger entries to be canceled to
the journal entries. You can also use these options when, for example, you must
correct only the posting date of an incorrect entry.
2 - 56


7.
Close the FA Ledger Entries page.
8.
Switch to the Microsoft Dynamics NAV window. In the navigation

> FA G/L Journals.
The program automatically creates the necessary entries in a journal.
FIGURE 2.24: FIXED ASSET G/L JOURNAL WITH ERROR ENTRY

Note: The program automatically filled in the FA Error Entry No. field.
9.
On the Home FastTab, click Insert FA Bal. Account No. Make sure
that G/L account 8820 is inserted.
10. Click Post to post the cancellation journal.

lines?, click Yes.
posted., click OK.
14. Open the fixed asset card number FA000060.
15. On the Lines FastTab, select the line with the COMPANY depreciation
book, and then click Depr. Book > Ledger Entries.

2 - 57

The incorrect entry with posted depreciation for December 2013 is removed from
the FA ledger entries.
16. Close the FA Ledger Entries window.
17. On the Lines FastTab, select the line with the COMPANY depreciation
book, and then click Depr. Book > Error Ledger Entries.
In the FA Error Ledger Entries window, you can see error ledger entries that the
program moved from the FA ledger entries after you canceled them.
FIGURE 2.25: FA ERROR LEDGER ENTRIES

After the entry is canceled, you must post the correct entry.
To post the correct entry, follow these steps:
2 - 58
1.
In the Fixed Asset Card window for fixed asset FA000060, on the
Home FastTab, click Calculate Depreciation.
2.
In the Calculate Depreciation batch job request window, set the FA

Posting Date window to 1/2/2014 to include two days from January
2014.
3.
In the Posting Description field, type Depreciation Dec 2013 Jan

2014.
4.
Select the Insert Bal. Account No. check box.
5.
Click OK.
6.
Switch to the Microsoft Dynamics NAV window. In the navigation

> FA G/L Journals.
7.
Review the created depreciation line and a balancing line.


Make sure that the depreciation amount is -50.
FIGURE 2.26: FIXED ASSET G/L JOURNAL DEPRECIATION ENTRIES

8.
9.
lines?, click Yes.
posted., click OK.
11. In the Fixed Asset Card window for fixed asset FA000060, on the
Lines FastTab, click Depr. Book > Ledger Entries.

2 - 59

In the FA Ledger Entries window, the correct entry is displayed.
Cancel a Fixed Asset Sale

If you accidentally disposed of a fixed asset by selling it through a sales invoice
and you must cancel the sale, use the Cancel Entries function in the FA Ledger
Entries window.
Note: You cannot use the Reverse Transaction function for entries that have
sold fixed assets or for transactions that were not created in a general journal, for
example, a sold fixed asset created through a sales invoice.
When you sell a fixed asset, the program creates multiple ledger entries that may
include Disposal entries, Gain/Loss entries, Depreciation, and other entries, for
example, Customer Ledger entries and VAT entries. To cancel a fixed asset sale,
you must run the Cancel Entries function only for the FA ledger entry that has
the FA Posting Type field set to Proceeds on Disposal. The program will create
a FA G/L journal line which you should post with a balancing account.
The balancing account can be a G/L Account or a Customer Account. When VAT is
registered on posting the sale of the fixed asset, you must make sure that the VAT
is also considered when you cancel the sale.
2 - 60


Therefore, you should add the VAT amount to the suggested amount and fill in
the General Posting Type and the Posting Group fields.
After you post the FA G/L journal line, the program automatically cancels all
entries related to the fixed asset disposal, removes them from the FA ledger
entries, and creates corresponding FA error ledger entries.
Demonstration: Cancel a Fixed Asset Sale

In this demonstration, you cancel the transaction where you disposed of the
Reception Department Computer fixed asset by selling it through the sales
invoice.
To perform this demonstration, you should have completed the Disposing of a
Fixed Asset lab in the Fixed Asset Disposals lesson of this module.
Demonstration Steps
To cancel the fixed asset sale, follow these steps:
1.

2.
Open the fixed asset card for the Reception Department Computer
fixed asset.
Note: On the Lines FastTab, the Disposed Of check box is selected which
indicates that you disposed of this fixed asset.
3.
On the Navigate FastTab, click Ledger Entries.

2 - 61

The FA Ledger Entries window shows the ledger entries created by the sales
invoice.

4.
Select the ledger entry with the FA Posting Type field set to
Proceeds on Disposal, and then, on the Home FastTab, click Cancel
Entries.
5.
In the Cancel FA Entries batch job request window, click OK to

create a journal entry.
6.
7.
Do not close the Fixed Asset Card window.
8.

The batch job created an error entry and filled in the FA Error Entry No. field.
9.
2 - 62
Add a balancing line, selecting G/L journal 2910 as the balancing

account. To do this, select the next line, then in the Account Type
field select G/L Account. In the Account No. field select 2910. In the
Amount field enter -700.00.

FIGURE 2.29: FA G/L JOURNAL

Note: Or, if you set up the balancing accounts in the FA Posting Groups
window for the IT-EQUIP posting group, you can select the Insert Bal. Account
check box to have the program insert the balancing account automatically.
10. Click Post to post the journal.
lines?, click Yes.
posted., click OK.

2 - 63

In the Fixed Asset Card window for the Reception Department Computer fixed
asset, the program cleared the Disposed Of check box.
FIGURE 2.30: FIXED ASSET CARD AFTER CANCELED SALE

13. To view the FA ledger entries, on the Navigate FastTab, click FA
Ledger Entries.
2 - 64


The program removed the ledger entries that were generated by the sales invoice.
FIGURE 2.31: FA LEDGER ENTRIES AFTER CANCELED SALE

Note: In the given example, there is a depreciation ledger entry that was not
canceled. This entry was created because, when the fixed asset was disposed of, you
selected the Depr. until FA Posting Date check box to depreciate the asset up to
the FA posting date. If you want to cancel this entry also, run the Cancel Entries
function for this entry exactly as for any other depreciation entry that you want to
cancel. If a fixed asset is fully depreciated when you dispose of it through a sales
invoice, and then you cancel the sale, the program cancels all entries created by the
sales invoice.
14. To view the created FA error ledger entries, on the Navigate FastTab
of the fixed asset card, click Error Ledger Entries.
Note: When you must correct all entries, including VAT Ledger Entries and
Customer Ledger Entries, you should manually change the amount and fill in the
Gen. Posting Type, Gen. Bus. Posting Group, and Gen. Prod. Posting Group
fields before you add a balancing line with a corresponding balancing account.

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Reverse Journal Postings
To reverse postings made in the general journal, use the Reverse Transaction
function.
Reversing a transaction, in contrast to canceling a transaction, does not remove
the entries from the FA ledger, but automatically creates the same entry with the
opposite sign. Use this function with caution. To make sure that the program
correctly calculates depreciation, we recommend that you use the Cancel Entries
function for fixed asset entries.
To reverse a transaction posted from the general journal, follow these steps:
1.
Open the relevant window (such as G/L registers or fixed asset ledger
entries).
2.
Select the entry that you want to reverse.
3.
On the Actions FastTab, in the Functions group, click Reverse

Transaction.
4.
In the G/L Registers window, select the register that you want to
reverse.
5.
On the Actions FastTab, in the Functions group, click Reverse

Register.
6.
Change the description in the Description field if it is necessary.
7.
On the Actions FastTab, in the Reversing group, click Reverse.
8.
Click OK.
The program automatically creates the same entry with the opposite sign.
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Lab 2.6: Cancel and Recalculate Depreciation

Cassie notices that the depreciation posted for the Lift of Furniture fixed asset for
January 2014 has a missing posting description. Cassie decides to cancel the
depreciation and post the depreciation again with the corrected information.
Note: Before you complete this lab, make sure that you completed the
previous demonstration in this module where you posted depreciation for fixed
asset FA000080 for January 2014 without a posting description.
Objectives
Cancel and recalculate depreciation.
Cancel and Recalculate Depreciation

Exercise Scenario
Cassie has to cancel the depreciation for fixed asset FA000080 for January 2014 by
using the Cancel FA Ledger Entries batch job, recalculate the depreciation by
running the Calculate Depreciation batch job, and then post the correct
depreciation in the FA G/L journal.
In the corrected entry, change the document number to D2014010001 and add a
posting description, "Depreciation January 2014."
Task 1: Cancel and Recalculate Depreciation

High Level Steps
1.
Open the fixed asset card for fixed asset FA000080 Lift for Furniture.
2.
Open the FA Ledger Entries window from the fixed asset card.
3.
Select the ledger entry with FA posting date 1/31/2014, and run the
Cancel Entries function.
4.
In the created journal entry, add a balancing line.
5.
Post the canceled entries.
6.
Review the FA error ledger entries.
7.
8.
In the created journal entry, add a description and change the

document number.
9.
Post the correct depreciation in the FA G/L journal.
10. Review the corrected FA ledger entries.

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Detailed Steps
1.
2.
Open the fixed asset card for fixed asset FA000080 Lift for Furniture.
a.

b.
Open the fixed asset card for fixed asset FA000080.
a.
On the Lines FastTab, click Depr. Book > Ledger Entries.
FIGURE 2.32: FA LEDGER ENTRIES FOR FA000080

3.
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Select the ledger entry with FA posting date 1/31/2014, and run the
Cancel Entries function.
a.
Select the line with the incorrect depreciation entry where the
posting description is missing and the FA Posting Date field is
set to 1/31/2014.
b.
On the Home FastTab, click Cancel Entries.
c.
In the Edit Cancel FA Entries batch job request window, click

OK to transfer the postings to the FA G/L journal.
d.


4.
5.
6.

a.

b.
On the Home FastTab, click Insert FA Bal. Account No.

a.
Click Post to post the canceled entries.
b.
lines?, click Yes.
c.


a.

b.
c.
On the Lines FastTab, select the line with the COMPANY

depreciation book and then click Depr. Book > Ledger Entries.
d.
The incorrect entry with posted depreciation for January 2014 is

removed from the FA ledger entries.
e.
f.

depreciation book and then click Depr. Book > Error Ledger
Entries.
Error ledger entries now show the posted canceled entries.
FIGURE 2.33: FA ERROR LEDGER ENTRIES

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7.
8.
9.

a.

b.
c.
On the Home FastTab, click Calculate Depreciation.
d.
In the Calculate Depreciation batch job request window, make

sure that the Depreciation Book field is set to COMPANY.
e.
f.
In the Posting Description field, type Depreciation January

2014.
g.
h.
In the created journal entry, add a description and change the

document number.
a.

b.
Make sure that the Description field is filled in with

Depreciation January 2014 on both depreciation and balancing
lines.
Post the correct depreciation in the FA G/L journal.

a.
b.
lines?, click Yes.
c.

10. Review the corrected FA ledger entries.
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a.

Management> Fixed Assets > Fixed Assets.
b.
c.

depreciation book, and then click Depr. Book > Ledger Entries.


The FA Ledger Entries window shows the corrected entry with posted
depreciation for January 2014 where a posting description is present. The error
ledger is removed from the FA ledger entries.

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Lab 2.7: Cancel Entries

Cassie looks through the FA ledger entries for fixed asset FA000020 and sees that
the depreciation for November 2013 is posted two times. Cassie has to cancel one
of the entries.
Note: Before you complete this lab, make sure that you completed the
previous demonstration in this module where you posted depreciation for fixed
asset FA000020 for November 2013 in the recurring journal.
Objectives
Cancel a ledger entry.
Cancel an Entry
Exercise Scenario
To cancel the incorrect entry, Cassie uses the Cancel FA Ledger Entries batch job
that she runs from the FA Ledger Entries window. Then, she has to post the
created journal entries and verify that the entry is canceled.
Cancel the depreciation entry for November 2013 for fixed asset FA000020.
Task 1: Cancel a Ledger Entry

High Level Steps
1.
Open the fixed asset card for fixed asset FA000020, the Toyota Supra
3.0.
2.
3.
Select one of the ledger entries with FA posting date 11/30/2013, and
run the Cancel Entries function.
4.
5.
6.
Detailed Steps
1.
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Open the fixed asset card for fixed asset FA000020, the Toyota Supra
3.0.
a.

b.


2.
a.
On the Lines FastTab, click Depr. Book > Ledger Entries.
FIGURE 2.35: FA LEDGER ENTRIES FOR FA000020

3.
4.
Select one of the ledger entries with FA posting date 11/30/2013, and
run the Cancel Entries function.
a.
Select the line with the incorrect depreciation entry (the

document number should start with G) where the FA Posting
Date field is set to 11/30/2013.
b.
On the Home FastTab, click Cancel Entries.
c.
In the Cancel FA Ledger Entries batch job request window, click

OK to transfer the postings to the FA G/L journal.
d.

a.

b.
On the Home FastTab, click Insert FA Bal. Account No.

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Note: On the created journal entry, the FA Entry No. field is filled in
automatically. The value in this field indicates that this is an error entry and it will
be posted to the FA error ledger.
5.
6.

a.
Click Post to post the canceled entries.
b.
lines?, click Yes.
c.


a.

b.
c.

depreciation book, and then click Depr. Book > Ledger Entries.
The incorrect entry with posted depreciation for November 2013 is removed from
FIGURE 2.36: FA LEDGER ENTRIES FOR FA000020 AFTER CANCELING THE ENTRY
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d.
e.

depreciation book, and then click Depr. Book > Error Ledger
Entries.
The FA Error Ledger Entries window now shows the posted error entries.
FIGURE 2.37: FA ERROR LEDGER ENTRIES FOR FA000020
Document Fixed Asset Transactions

The program automatically assigns consecutive entry numbers to all entries that
you post to depreciation books. In the FA registers, the entries are sorted in entry
number order regardless of FA numbers or depreciation book numbers.
FA Registers
A register is created automatically with each posting, either directly from a fixed
asset journal or indirectly from purchase invoices or sales invoices. The individual
registers are also numbered (one is the first number).
To view a report of the existing register numbers, follow these steps:
1.
In the navigation pane, click the Departments > Financial

Management > Fixed Assets > FA Register.
2.
In the Fixed Asset Register report request window, set the filters for
the relevant fixed asset. If you do not set any filters, the report shows
the register for all fixed assets.

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3.
Click Print or Preview to see the register.
FIGURE 2.38: FIXED ASSET REGISTER REPORT PRINT LAYOUT

The Fixed Asset Register report shows posted fixed asset ledger entries that are
sorted and divided by register number.
Trace Transactions
The program automatically assigns a source code to all posted entries so that
transactions can be traced to their origin. This code is shown in the Source Code
field in the FA Ledger Entries window that is accessed from a fixed asset card.
In the Reason Code field, you can also assign a reason code to the transactions.
Note: By default, the Source Code and Reason Code fields are not displayed
in the FA Ledger Entries window. To add the fields, use the Choose Column
function.
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Fixed Asset Reports

When you prepare a balance sheet and income statement, you may have to print
reports to analyze the depreciation, acquisition, disposal, and gain or loss values
for the accounting period. You may also need reports about accumulated
depreciation and book value at the end of the period.
You may need a list of all the fixed assets for inventory, insurance, and other
management purposes.
To access fixed asset reports, in the navigation pane, click Departments >
Financial Management > Fixed Assets, and then, under Reports, select the
report that you want to run. Or, you can run reports from the Action Pane in the
windows where they are available, such as the Fixed Asset Card or Fixed Assets
window.
This section describes the most frequently used reports in the Fixed Assets
application area.
Note: For information about other reports that are not covered in this
module, refer to the Help within Microsoft Dynamics NAV 2013 on the request page
of the respective report by clicking F1.
Fixed Assets List Report

The Fixed Asset List is used for inventory, insurance, and other management
purposes and shows information about each fixed asset without transaction data.
This information is retrieved from the fixed asset cards and fixed asset
depreciation books.
To print a list of all fixed assets, follow these steps:
1.

2.
In the Fixed Assets window, on the Report tab, click Fixed Asset
List.

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The Fixed Asset List report request window appears.
FIGURE 2.39: FIXED ASSET LIST REPORT REQUEST PAGE
2 - 78
3.
On the Options FastTab, select which depreciation book to print from

and indicate whether each fixed asset must be printed on a separate
page.
4.
On the Fixed Asset FastTab, set a filter to select the assets to include
in the report. If the field is blank, all assets will be included. You can
also set other filters, such as by FA class code, FA subclass code, and
budgeted asset.


5.
Click Preview to preview the report.
FIGURE 2.40: FIXED ASSET LIST REPORT PRINT LAYOUT
Fixed Asset Book Value Reports

To print or preview a report about depreciation, acquisitions, and disposals for a
selected period, and also the book value at the end of the period, you can use the
following two reports:
Book Value 01
Book Value 02
The reports include similar information. However, the Book Value 01 report
displays one line for each asset and must be printed in landscape orientation. The
Book Value 02 report displays the information on several lines for each asset.
To obtain information on Write-downs, Appreciation, Custom 1, and Custom 2
posting types included in the Book Value 02 report, select either the Acquisition
Type or the Depreciation Type field in the FA Posting Type Setup window.

2 - 79

You can include reclassified entries in the Book Value 02 report. To print one of
these reports, follow these steps:
1.

> Fixed Assets.
2.
Under Reports, select FA Book Value 01 or FA Book Value 02.
Note: You can set options and filters in the report request window for both
Book Value 01 and Book Value 02 reports by using the same method.
FIGURE 2.41: FIXED ASSET - BOOK VALUE 02 REPORT REQUEST PAGE
2 - 80


3.
On the Options FastTab of the Book Value 02 report request

window, select the depreciation book of the period for which you
want to view the report.
4.
Select the starting and ending dates of the period from which to
include data.
5.
You can group totals by FA class, subclass, location, main asset, global
dimensions, and FA posting group by using the Group Totals field.
6.
If you want to print the report for each fixed asset, select the Fixed
Asset check box.
7.
Select the Include Reclassification check box to include reclassified

entries on the report.
8.
Select the Budget Report check box to calculate depreciation from

the last FA posting date up to the specified ending date.
Note: Please be aware that when you use the Budget Report option, the
system only calculates deprivation for the Straight-line depreciation method.
If you want to run the Budget report for all assets with the Declining-balance
depreciation method, you will receive a message that states that the budget
calculation has not been done on fixed assets with the Declining-balance, DB1/SL,
or DB2/SL depreciation methods.
The assets with the declining balance are included in the report, but no depreciation
is calculated.
The Use Custom 1 Depreciation must also be disabled in the Depreciation Book
table when you want to run the book value reports as budget reports.
Or, you can use the Projected Value report instead of the book value reports.

2 - 81

9.
On the Fixed Asset FastTab, you can set a filter to select the assets to
include in the report. If the field is blank, the report contains
information on all active assets.
10. Click Print or Preview.
FIGURE 2.42: FIXED ASSET BOOK VALUE 02 PRINT LAYOUT PREVIEW
Fixed Asset Analysis Report

The Fixed Asset Analysis report is a combined report that has the option to
print most of the posting information related to fixed assets.
To print or preview the Fixed Asset Analysis report, follow these steps:
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1.

2.
In the Fixed Assets window, on the Report tab, click Analysis.

FIGURE 2.43: FIXED ASSET ANALYSIS REPORT REQUEST PAGE

2 - 83

3.
On the Options FastTab, enter information in the fields as described

in the following table.
Field
Description
Depreciation Book
Select the code of the depreciation book

to be included in the report.
Starting Date
Enter the starting date (FA posting date)

of the period that the report should
include.
Ending Date
Enter the ending date (FA posting date)

include.
Date Field 1
Select the fields to specify which types of

date to show in two columns of the
report.
Date Field 2
Amount Field 1
Amount Field 2
Amount Field 3
Period 1
Period 2
Period 3
Select the types of amounts the report

shows in three columns. Select the fields
to choose 1 of the 11 available types.
Select how the amounts that you
selected are calculated. The following
options are available:
Before Starting Date: Only amounts
before the starting date are included.
Net Change: Amounts with an FA
posting date between the dates specified
in the Starting Date and Ending Date
fields are included. Amounts on the
starting date and on the ending date are
also included in Net Change.
At Ending Date: Amounts posted on or
before the date entered in the Ending
Date field are included.
2 - 84
Group Totals
If you want the report to group the fixed

assets and print group totals, click the
field to select a group type.
Print per Fixed Asset
Select this check box if you want the

report to print a line for each fixed asset.
Only Sold Assets

report to include information only for
sold assets.


Field
Budget Report
Description
report to calculate future depreciation
and book value.
4.
On the Fixed Asset FastTab, select the assets to include in the report.
If the field is blank, the report includes all the fixed assets.
5.
Click Print to print the report or click Preview to view it on screen.
FIGURE 2.44: FIXED ASSET - ANALYSIS REPORT PRINT LAYOUT PREVIEW
G/L Analysis Report

If G/L integration is activated for a depreciation book, this report shows amounts
posted to the general ledger coming from the FA application area. The report is
based on the posting date in the FA ledger, whereas all other reports use the FA
posting date.
To run the G/L Analysis report, follow these steps:
1.

2.
In the Fixed Assets window, on the Report tab, click G/L Analysis.

2 - 85
FIGURE 2.45: FIXED ASSET - G/L ANALYSIS REPORT REQUEST PAGE
2 - 86


3.
On the Options FastTab, fill in the fields as described in the following

table.
Field
Description
Depreciation Book

to be included in the report.
Starting Date
Enter the starting date (FA posting date)

include.
Ending Date
Enter the ending date (FA posting date) of

the period that the report should include.
Date Field 1
Select the fields to specify which types of

date to show in two columns of the
report.
Date Field 2
Amount Field 1
Amount Field 2
Amount Field 3
Period 1
Period 2
Period 3
Select the types of amounts the report

shows in three columns. Select the fields
to choose 1 of the 9 available types.
Select how the amounts that you selected
are calculated. The following options are
available:
<Blank>: Amounts posted to the FA
ledger that correspond to the posting
type selected in the Amount Field 1 field.
If you select the Acquisition option, the
report will include acquisition costs.
Disposal: Amounts posted to disposal
accounts. Only disposed assets will have
values in this column. If you select the
Acquisition option, the report will include
acquisition costs.
Bal. Disposal: Amounts posted to the
balance disposal accounts. This option can
only be used together with Write-down,
Appreciation, Custom 1, and Custom 2 FA
posting types. The balance disposal
accounts are used only if the posting types
are not included in the calculation of gain
and loss and the disposal calculation
method is Net. The Bal. Disposal accounts
are not used if the disposal calculation
method is Gross.

2 - 87

Field
Description
Group Totals
Select the field to select a group type if

you want the report to group the fixed
assets and print group totals.

report to print a line for each fixed asset.
Only Sold Assets

report to include information only for sold
assets.
4.
On the Fixed Asset FastTab you can select which assets to include in
the report. If you leave the fields blank, you will receive information
on all assets (except inactive assets).
5.
Click Print to print the report or Preview to view it on screen.
FIGURE 2.46: FIXED ASSET - G/L ANALYSIS REPORT PRINT LAYOUT PREVIEW
FA Posting Group - Net Change Report

The FA Posting Group - Net Change report shows the net change posted in the
fixed asset ledger entries for each FA posting group. If G/L integration is activated
for a depreciation book, the amounts in the report are the same as the net change
in the G/L accounts assigned to the FA posting groups. You can use the report
when you reconcile the fixed asset ledger and general ledger.
The report contains two sections. The first section shows the net change for each
G/L account for each FA posting group. The second section shows the total
change in each G/L account for all FA posting groups.
2 - 88


You can use the FA Depreciation Book FastTab to set filters if the report should
include only certain depreciation books, fixed assets, or FA posting groups. You
can select the information to view in the report by using the Options FastTab.
To run the FA Posting Group - Net Change report, follow these steps:
1.

2.
Under Reports, click FA Posting Group - Net Change.
FIGURE 2.47: FA POSTING GROUP - NET CHANGE REPORT REQUEST

PAGE
3.
On the Options FastTab, in the Starting Date field, enter the starting
date of the period that the report should include.
4.
In the Ending Date field, enter the ending date of the period that the
report should include.
5.
Select the Only Totals per G/L Account check box if you want the
report to show only the total change in each G/L account for all fixed
asset posting groups. This option is for the second section of the
report.
6.
On the FA Depreciation Book FastTab, you can set filters if the

report should include only certain depreciation books, fixed assets, or
FA posting groups.

2 - 89

7.
Click Print or Preview.
FIGURE 2.48: FA POSTING GROUP - NET CHANGE REPORT PRINT LAYOUT PREVIEW
Budget Fixed Asset Transactions

To prepare the budgeted income statement, balance sheet, and cash flow, you
may need information about future investments, disposals, and depreciation of
fixed assets. When you set up a budgeted asset, you can plan for the addition of
assets. After an asset is bought, you must create the new asset and post it with the
actual acquisition cost through the FA journal, a purchase invoice, or the FA G/L
journal. You can then compare the budgeted cost to the actual cost. A budgeted
asset is not integrated to the general ledger. This information is available from the
FA Projected Value report.
2 - 90


You can indicate that the asset was created for budgeting by selecting the
Budgeted Asset check box on the fixed asset card, on the Posting FastTab.
FIGURE 2.49: FIXED ASSET CARD - POSTING FASTTAB
Demonstration: Budget Future Acquisition Costs

In this demonstration, you prepare a budget for future acquisition costs, by
setting up a fixed asset card for fixed assets that the company intends to buy in
the future.
Demonstration Steps
To budget for future acquisition costs, follow these steps:
1.

Fixed Assets.
2.
Click New to create a new fixed asset.
3.
Press ENTER to automatically assign number to the asset.
4.
In the Description field, type Ferrari.
5.
In the Serial No. field, type ZM 21 241.
6.
On the Lines FastTab, in the Depreciation Book Code field, click the
field and then select COMPANY.
7.
In the FA Posting Group field, click the field and select CAR.
8.
In the Depreciation Method field, click the field and select Straightline.

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9.
In the Depreciation Starting Date field, type 1/1/2013.
10. In the Depreciation Ending Date field, type 1/31/2021.

11. On the Posting FastTab, in the FA Class Code field, click the field and
select TANGIBLE.
12. In the FA Subclass Code field, click the field and select CAR.
13. In the FA Location Code field, click the field and select SALES.
14. Select the Budgeted Asset check box to prevent posting to the
general ledger.
FIGURE 2.50: FIXED ASSET CARD FOR A BUDGETED ASSET

Now you can post the acquisition cost for the budgeted fixed asset by using the
FA journal.
15. Close the Fixed Asset Card window.
16. Click Departments > Financial Management > Fixed Assets > FA
Journals to open the Fixed Asset Journal window.
17. Enter and post the budgeted acquisition cost as shown in the image,
Fixed Asset Journal.
2 - 92

FIGURE 2.51: FIXED ASSET JOURNAL

18. Post the journal line.
The budgeted acquisition cost now appears in the Fixed Asset Statistics window.
You can open the Fixed Asset Statistics window from the FA depreciation book
for the budgeted asset by clicking Statistics on the Home FastTab.

2 - 93
Follow Up on Budgeted Acquisition Costs

When you actually buy a budgeted fixed asset, you must set up a new fixed asset
card. Follow the Budget Future Acquisition Costs procedure, but when you post
the actual acquisition cost (in either the FA G/L journal or the FA journal), enter
the number of the budgeted asset in the Budgeted FA No. field. The system
posts an acquisition cost with an opposite sign for the budgeted asset. This means
that the total acquisition cost on the budgeted asset is the difference between the
budgeted and the actual acquisition cost.
2 - 94


Demonstration: Budget Future Disposal of Fixed Assets
When your company plans to sell assets within the budget period, you can enter
information about the expected sales price and sales date on the FA depreciation
book.
The Projected Disposal Date field specifies the date on which you plan to
dispose of the fixed asset. This date is shown in the Fixed Asset - Projected
Value report.
The Projected Proceeds on Disposal field specifies the expected proceeds from
disposal of the fixed asset. The amount from this field is shown in the Fixed Asset
- Projected Value report.
Demonstration Steps
To budget future disposal of a fixed asset, follow these steps:
1.

2.
3.
In the Fixed Asset Card window, on the Home FastTab, click

Depreciation Books.
4.
In the FA Depreciation Book window, right-click the column header

and select Choose Column, add the Projected Disposal Date and
Projected Proceeds on Disposal fields, and then click OK.
5.
Enter the information that is shown in the FA Depreciation Books

figure.
FIGURE 2.53: FA DEPRECIATION BOOKS

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6.
Click OK.
Calculate Budgeted Future Disposal

To view the projected disposal values and have the program calculate the gain or
loss, use the Fixed Asset - Projected Value report. For example, run the report
for fixed asset FA000090 for which you set up projected disposal.
To run the Fixed Asset - Projected Value report, follow these steps:
2 - 96
1.
In the Fixed Asset Card window, on the Report tab, click Projected
Value.
2.
In the FA Projected Value report request window, on the Options

FastTab, in the First Depreciation Date field, enter 1/1/2013.
3.
In the Last Depreciation Date field, enter 1/1/2020.
4.
Select the Projected Disposal check box.
5.
Select the Print per Fixed Asset check box.
6.
On the Fixed Asset FastTab, set the filter in the No. field to
FA000090.

FIGURE 2.54: FIXED ASSET - PROJECTED VALUE REPORT REQUEST PAGE

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7.
Click Preview to view the report on screen or Print to print it.
FIGURE 2.55: FIXED ASSET - PROJECTED VALUE REPORT PRINT LAYOUT
Calculate Budgeted Depreciation

You can also use the Fixed Asset - FA Projected Value report to calculate future
depreciation.
To view the calculated future depreciation in the Fixed Asset - FA Projected
Value report, follow these steps:
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1.
In the Fixed Asset Card window, on the Report tab, click Projected
Value.
2.
In the FA Projected Value report request window, on the Options

FastTab, in the First Depreciation Date field, enter 1/1/2013.
3.
In the Last Depreciation Date field, select 1/1/2020.
4.
5.
On the Fixed Asset FastTab, in the No. field, select FA000130.
6.
In the Budgeted Asset field, select Yes to see budgeted assets only.

FIGURE 2.56: FIXED ASSET - PROJECTED VALUE REPORT REQUEST PAGE

2 - 99

7.
FIGURE 2.57: FIXED ASSET PROJECTED VALUE REPORT PRINT LAYOUT

The report shows the following budgeted depreciation information:
The book value and accumulated depreciation at the beginning of

the selected period.
Changes during the period.
The book value and accumulated depreciation at the end of the

selected period.
To see total values for all assets, in the report request window, on the Options
FastTab, clear the Print per Fixed Asset field, and, on the Fixed Asset FastTab,
click Delete to clear the filter in the No. field.
Copy Fixed Asset Transactions to the G/L Budget

In Microsoft Dynamics NAV 2013, you can use the Copy FA Entries to G/L
Budget batch job to copy posted or projected fixed asset transactions to the G/L
budget.
To copy posted FA ledger entries that include FA ledger entries posted to
budgeted assets, follow these steps:
2 - 100
1.

2.
Open the depreciation book card from which you want to copy
entries.


3.
On the Actions FastTab, click Copy FA Entries to G/L Budget.
FIGURE 2.58: COPY FA ENTRIES TO G/L BUDGET

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On the Options FastTab, you can select options as described in the following
table.
Field
Description
Copy Depr. Book
Enter the depreciation book from which

to copy entries.
Copy to G/L Budget Name
Enter the name of the budget to which

you want to copy. Select the field to
select the budget.
Starting Date
Enter the starting date from which you

want to copy entries. The program uses
the FA posting date of entries.
Ending Date
Enter the ending date until which you

want to copy entries. The program uses
the FA posting date of entries.
Posting Description
Enter a description if one is necessary.
Insert Bal. Account
Select this check box to copy the

balancing entry to the G/L budget.
Copy
Select the type(s) of entries to copy.
On the Fixed Asset FastTab, you can set filters for the assets from which to copy
When you run the batch job, any entries that are posted for the selected assets are
copied automatically to the G/L budget. The date of the G/L budget entries and
dimensions for the budget entries are the same as the FA posting date and the
dimensions posted to the FA ledger entry.
You can copy projected fixed asset transactions to the G/L budget by selecting the
budget to copy to in the Copy to G/L Budget Name field in the FA - Projected
Value Report.
When you preview or print the report, both posted and projected transactions are
copied to the selected G/L budget. Each budget entry is automatically assigned a
description of the fixed asset number and transaction type that was copied to the
budget.
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Lab 2.8: Budget a Fixed Asset

Scenario
The company plans to purchase a new fixed asset soon, an Audi A5 car, for
internal transportation purposes. Cassie has to register the budgeted fixed asset in
the program, post the budgeted acquisition cost and depreciation, and then copy
the projected transactions to the G/L budget.
Objectives
Budget a fixed asset.
Budget a Fixed Asset

Exercise Scenario
To register the budgeted fixed asset, post budgeted acquisition cost and
depreciation, and then copy the projected transactions to the G/L budget, use
information from the following table.
Field
Value
Description
Audi A5
Serial No.
AU 14101 E
FA Posting Group
CAR
Depreciation Method
Straight-line
1/1/2014
12/31/2018
Vendor No.
62000
62000
Amount
50,000.00
Copy to G/L Budget Name
2014
Task 1: Create a Budgeted Fixed Asset

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High Level Steps
1.
Create a fixed asset card and select the Budgeted Asset check box to
indicate that this is a budgeted fixed asset.
Detailed Steps
1.
Create a fixed asset card and select the Budgeted Asset check box to
indicate that this is a budgeted fixed asset.
To create a budgeted fixed asset card, follow these steps:
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a.

b.
Click New.
c.
Press ENTER to automatically assign the number to the asset.
d.
In the Description field, type Audi A5.
e.
In the Serial No. field, type AU 14101 E.
f.
On the Posting FastTab, select the Budgeted Asset check box to

prevent posting to the general ledger.
g.
On the Lines FastTab, in the Depreciation Book Code field, click

the field, and then select COMPANY.
h.
In the FA Posting Group field, click the field and select CAR.
i.
In the Depreciation Method field, click the field and select

Straight-line.
j.
k.
In the Depreciation Ending Date field, type 12/31/2018.
l.
On the Maintenance FastTab, fill in the Vendor No. and

Maintenance Vendor No. fields with 62000.

FIGURE 2.59: FIXED ASSET CARD FOR BUDGETED ASSET

m. Click OK.
Task 2: Post the Projected Acquisition Cost and Depreciation

High Level Steps
1.
Open the FA journal and create a line with acquisition cost.
2.
Post the FA journal line.
3.
Open the fixed asset card for the Audi A5 fixed asset.
4.
Use the Fixed Asset - FA Projected Value report to calculate future

depreciation.
5.
Post the projected depreciation for January 2014 by using the

Calculate Depreciation batch job and the FA journal.

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Detailed Steps
1.
Open the FA journal and create a line with acquisition cost.

a.

Management > Fixed Assets > FA Journals.
b.
c.
In the FA No. field, click the field, and select the number of the
Audi A5 budgeted asset.
d.
In the FA Posting Type field, click the field and select

Acquisition Cost.
e.
In the Description field, type Projected Acquisition Cost.
f.
In the Amount field, type 50,000.00.
FIGURE 2.60: FA JOURNAL WITH PROJECTED ACQUISITION COST

2.
3.
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Post the FA journal line.

a.
b.
lines?, click Yes.
c.

a.

b.


4.
Use the Fixed Asset - FA Projected Value report to calculate future

depreciation.
a.
On the Report tab, click Projected Value.
b.
In the Fixed Asset - Projected Value report request window,

make sure that the Depreciation Book field is set to COMPANY.
c.
In the First Depreciation Date field, type 1/1/2014.
d.
In the Last Depreciation Date field, type 12/31/2018.
e.
f.
On the Fixed Asset FastTab, set the filter to the Audi A5 fixed
asset.
g.
Click Preview to view the projected depreciation for the fixed

asset.
FIGURE 2.61: FIXED ASSET - PROJECTED VALUE REPORT PREVIEW

h.
Close the report print preview.
i.
In the Fixed Asset Card window, on the Home FastTab, click

Calculate Depreciation.
j.
In the Calculate Depreciation batch job request window, make

sure that the Depreciation Book field is set to COMPANY.
k.
In the FA Posting Date, type 1/31/2014.
l.
In the Posting Description field, type Projected Depreciation

January 2014.
m. Click OK to generate the FA journal line.

n.


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The program generated a line with projected depreciation for January 2014.
FIGURE 2.62: FA JOURNAL WITH PROJECTED DEPRECIATION

5.
Post the projected depreciation for January 2014 by using the

Calculate Depreciation batch job and the FA journal.
a.
b.
lines?, click Yes.
c.

To view the posted projected entries, on the fixed asset card, click the link in the
Book Value field on the Lines FastTab.
Task 3: Copy the Projected Transactions to the G/L Budget

High Level Steps
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1.
Open the COMPANY depreciation book card.
2.
Run the Copy FA Entries to G/L Budget function.
3.
In the Copy FA Entries to G/L Budget batch job request form, select
the options to copy the acquisition cost and depreciation entries for
the budgeted asset.


Detailed Steps
1.
2.
Open the COMPANY depreciation book card.

a.
In order to complete this task, you should setup the Acquisition

Cost Bal. Acc. field for the CAR FA posting group.
b.
Click Departments > Administration > FA Posting Groups
c.
Right-click on the columns header and select the Choose

Columns function to add the Acquisition Cost Bal. Acc. field.
d.
Select the line with the CAR FA posting group.
e.
In the Acquisition Cost Bal. Acc. field type 8640.
f.
Click OK to close the Edit - FA Posting Groups window.
g.

Management > Fixed Assets > Depreciation Books.
h.
Select the COMPANY depreciation book and then click Edit.
Run the Copy FA Entries to G/L Budget function.

a.
3.
In the Depreciation Book Card window, on the Actions FastTab,

click Copy FA Entries to G/L Budget.
In the Copy FA Entries to G/L Budget batch job request form, select
the options to copy the acquisition cost and depreciation entries for
the budgeted asset.
a.
In the Copy FA Entries to G/L Budget batch job request form,

on the Options FastTab, in the Copy to G/L Budget Name field,
click the field, and select 2014.
b.
In the Starting Date field, type 1/1/2014.
c.
In the Ending Date field, type 12/31/2014.
d.
In the Posting Description field, type Budgeted Asset Audi A5.
Note: If you set up the balancing account in the FA Posting Groups window
for the CAR posting group, you can select the Insert Bal. Account check box to
have the program insert the balancing account automatically.
e.
f.
Under the Copy field group, select the Acquisition Cost and
Depreciation check boxes.

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g.
On the Fixed Asset FastTab, in the No. field, type FA000140 to

set the filter to the number of the budgeted asset Audi A5.
FIGURE 2.63: COPY FA ENTRIES TO G/L BUDGET BATCH JOB REQUEST

WINDOW
2 - 110
h.
i.
To view the copied entries in the budget, click Departments >

Financial Management > General Ledger > G/L Budgets, and
then double-click the line with budget 2014.


Scroll down to locate the copied entries.
FIGURE 2.64: G/L BUDGET 2014
Cost Accounting Depreciation

Some companies conduct a part of their cost accounting from the Fixed Asset
application area. Microsoft Dynamics NAV 2013 handles the cost accounting
depreciation for the cost accounting.
Demonstration: Cost Accounting Depreciation Book

Demonstration Steps
To set up a depreciation book for cost accounting called COST, follow these steps:
1.

Application Setup > Financial Management > Fixed Assets >
Depreciation Books.
2.
Click New.
3.
In the Code field, type COST.
4.
In the Description field, type Cost Accounting Depreciation Book.

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5.
In the Disposal Calculation Method, click the field and select Gross.
6.
Select the Allow Correction of Disposal, Allow Depr. below Zero,

and Allow Indexation check boxes.
7.
Clear the Use FA Ledger Check check box to force the program to
check if an acquisition cost is the first entry and a disposal (if any) is
the last entry. For example, you can post accumulated depreciation as
a debit when acquisition cost is posted as a credit.
8.
Clear the Use Same FA+G/L Posting Dates check box.
9.
On the Integration FastTab, select the Depreciation field to make

sure that only the depreciation is integrated with the general ledger.
The program posts depreciation by using a posting group for costaccounting depreciation.
FIGURE 2.65: DEPRECIATION BOOK CARD - COST

10. Click OK.
2 - 112


Demonstration: Cost Accounting Posting Groups
You must set up a COST posting group so that the program posts the cost
accounting depreciation correctly to the general ledger.
You must set up a COST posting group so that the program posts the cost
accounting depreciation correctly to the general ledger.
Before setting up the posting group, two income statement accounts must be set
up, so that entries do not affect the gain or loss in the financial statement, even
though they are posted to the financial statement.
Demonstration Steps
1.

> General Ledger > Chart of Accounts.
2.
Click New.
3.
In the No. field, type 8920.
4.
In the Name field, enter Cost Accounting Accumulated

Depreciation.
5.
Click OK > OK & New.
6.
In the No. field, type 8930.
7.
In the Name field, enter Cost Accounting Depreciation.
8.
Click OK.
9.
Click Indent Chart of Accounts.
10. Click Yes.

To set up a FA posting group, follow these steps:
1.

FA Posting Groups.
2.
Create a new line and fill in the fields as shown in the FA Posting
Groups figure.

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3.
Click OK.
Cost Accounting Booked Value of Zero

If the asset must be depreciated to the book value of zero, set up the annual
depreciation percentage or the annual depreciation value in the related fields in
the FA depreciation book as if the asset had a booked value.
When the book value is zero, select the Allow Depr. Below Zero check box on
the COST depreciation book card for additional postings.
When you run the Calculate Depreciation batch job for the COST depreciation
book, be aware that the batch job creates entries in the FA G/L journal because
depreciation postings were integrated to the general ledger automatically. The
program requires a balancing account for this. On the Options FastTab of the
Calculate Depreciation batch job, you can select the Insert Bal. Account check
box to have the program insert the expense account from the FA posting group
COST automatically.
Cost accounting is not bound by any law. Therefore, you can change the
depreciable base of assets that have a COST depreciation book. You can do this by
using indexation.
2 - 114


Demonstration: Cost Accounting on the Fixed Asset Card
On the fixed asset card, for each asset in the FA depreciation books for which the
program will calculate cost accounting depreciation, you must set up a new line
with the cost-accounting depreciation book and the relevant FA posting group.
Demonstration Steps
To set up the cost-accounting depreciation book and the relevant FA posting
group for fixed asset FA000090, follow the steps:
1.

> Fixed Assets > Fixed Assets and open the fixed asset card for
fixed asset FA000090.
2.
On the Lines FastTab, create a new line and fill in the fields as shown
in the following table.
Field
Value
TAX
FA Posting Group
COST
Depreciation Method
Straight-Line
2/1/2013
1/31/2021

2 - 115
FIGURE 2.67: FIXED ASSET CARD

Make sure that you select the new cost-accounting FA posting group so that the
program posts to the correct accounts. When you have set up all the FA
depreciation books for the relevant assets, you can start to create the acquisition
costs for them all.
If the depreciation books are identical to the acquisition costs of other FA
deprecation books, use the Copy Depreciation Book batch job to copy the
existing amounts from the standard depreciation book.
In order to complete this demonstration, you should perform a FA Journal Setup
for the COST depreciation book:
2 - 116
3.

4.
On the View-Depreciation Book List window, select the line for the
COST depreciation book and on the Navigate FastTab, select FA
Journal Setup.


5.
Create a new line and fill in the fields as shown in the following table.
Field
Value
FA Jnl. Template Name
ASSETS
FA Jnl. Batch Name
DEFAULT
Gen. Jnl. Template Name
ASSETS
Gen. Jnl. Batch Name
DEFAULT
Insurance Jnl. Template Name
INSURANCE
Insurance Jnl. Batch Name
DEFAULT
6.
Click OK to close the window.
Copy the COMPANY depreciation book to the new depreciation book COST:
7.

8.
Select the line with the COMPANY depreciation book and on the
Home FastTab in the Manage group, click Edit.
9.
On the Depreciation Book Card for the COMPANY depreciation book,

on the Actions FastTab, select Copy Depreciation Book.
10. On the Options FastTab, in the Copy from Book field, select
COMPANY.
11. On the Options FastTab, in the Copy to Book field, select COST.
12. In the Starting Date field, type 1/24/2013.
13. On the Fixed Asset FastTab, set the filter to fixed asset FA000090.
14. Click OK to run the batch job.
15. Click OK to close the Edit Depreciation Book Card COMPANY
Company Book window.

2 - 117

Post the copied lines in the FA journal. The program is set up so that the
acquisition costs of these assets are never posted to the general ledger. This is why
you must post FA journals.
1.
In the Navigation pane click Departments > Financial Management

> Fixed Assets > FA Journal.
2.
Select the FA Journal line for the FA000090 fixed asset.
3.
On the Home FastTab, click Post to post the journal line.
4.
lines?, click Yes.
5.
posted., click OK.
When you calculate the depreciation, the program uses the acquisition cost as a
baseline.
Indexation
When you receive a maintenance invoice, you can record it in one of the following
ways:
If you have activated G/L integration for the depreciation book to

which you are posting, use a purchase invoice or an FA G/L journal.
If you have not activated G/L integration for the depreciation book to
which you are posting, you can use only an FA journal.
In Microsoft Dynamics NAV 2013, you can index fixed assets to adjust values for
general price-level changes by using the Index Fixed Assets batch job.
Index Fixed Assets Batch Job

You can use the Index Fixed Assets batch job to index various types of fixed
asset transactions, such as acquisition cost, depreciation, appreciation, and
maintenance. With the help of this batch job, you can index fixed assets that are
linked to a depreciation book. When you run the batch job, the program creates
journal lines based on conditions that you select. Then, you can review and post
the journal lines.
To use the Index Fixed Assets batch job, you must select all the Allow
Indexation check boxes on the depreciation book.
2 - 118


Note: In the "Index Fixed Assets" demonstration in this lesson, you will use the
COST depreciation book because this book is prepared for indexing fixed assets. You
can use the indexation with the COST depreciation book but not the default
depreciation book (in this case, the COMPANY book). This is because the
COMPANY depreciation book is used for the balance sheet and the financial
statement. You must not change the depreciation base of this COMPANY book by
indexation.
To open the Index Fixed Assets batch job request window, follow these steps:
1.

> Fixed Assets > Index Fixed Assets.
FIGURE 2.68: INDEX FIXED ASSETS BATCH JOB REQUEST PAGE

2 - 119

2.
On the Options FastTab, you can select options as described in the

following table.
Field
2 - 120
Description
Depreciation Book
Select the field to select the

depreciation book for which you
want to index fixed assets.
Index Figure
Type an index figure. The batch job

uses this figure to calculate the
index amounts entered in the
journal. For example, to index by
4%, type 104 in this field. To index
by -2%, type 98 in this field.
FA Posting Date
Enter the FA posting date to display

in the FA Posting Date field in the
resulting journal lines. The batch job
includes ledger entries up to the
date specified in this field. If the Use
Same FA Posting Dates field for
the depreciation book is selected,
this date must be the same as the
posting date entered in the Posting
Date field.
Posting Date
Enter a posting date so that it

appears in the Posting Date field in
the resulting FA G/L journal lines for
assets that are integrated with the
general ledger. If the Use Same
FA+G/L Posting Dates check box is
selected in the depreciation book
that is used by the batch job, this
date must be the same as the fixed
asset posting date entered in the FA
Posting Date field.
Document No.
Leave this field blank when you set

up a numbering series for the fixed
asset journal batch in the No. Series
table. The fixed asset journal batch
currently has no journal lines
entered in it. The batch job
automatically assigns the next
available number in the series to the
journal lines that are copied to the
fixed asset journal batch.


Field
Description
Posting Description
Enter a posting description to

appear on the resulting journal
lines.
Insert Bal. Account

batch job to insert balancing
account(s) in the resulting journal.
The batch job uses the accounts
that you set up in the FA Posting
Groups window.
Index
Under the Index field group, you

can select the fixed asset transaction
types to be indexed for the fixed
assets included in the batch job.
3.
On the Fixed Asset FastTab, you can set filters to select the fixed
assets to index.
Demonstration: Index Fixed Assets

In this demonstration, you index fixed assets that are associated with the COST
depreciation book by 2 percent.
Note: Before you complete this procedure, make sure that you have copied
acquisition cost entries from the COMPANY to the COST depreciation books. To
copy the entries, use the Copy Depreciation Book batch job.
Demonstration Steps
To index fixed assets, follow these steps:
1.

> Fixed Assets > Index Fixed Assets.
2.
On the Options FastTab, in the Depreciation Book field, click the

field and select COST.
3.
In the Index Figure field, type 102.00.
4.
5.

2 - 121

6.
Under the Index field group, select the Acquisition Cost check box.
7.
On the Fixed Asset FastTab, set the filter to fixed asset FA000090.
FIGURE 2.69: INDEX FIXED ASSETS EXAMPLE
2 - 122


8.
Click OK to create the indexation entries. The FA journal line is now

automatically created in the journal.
9.
Check the entry that you created, and post it to the ledger.
If the index figures are for simulation purposes only, you can create a special
depreciation book in which to store them. These entries do not affect any of the
other depreciation books. You can also index manually by entering a journal line.
Click the Index Entry field to mark the entries. This makes the index entries
identifiable.
Reverse Indexation
You can correct an indexing error by using the Cancel FA Ledger Entries batch
job and then running the Index Fixed Assets batch job again. For detailed
information about how to correct FA entries, refer to the Fixed Assets
Reclassifications module in this course.
Minor Assets
Minor assets are assets that are fully depreciated in the same fiscal year as they are
purchased. Whether an asset is classified as a minor asset depends on local
legislation.
The FA depreciation book for minor assets has two significant settings:
The depreciation method is usually Straight-line.
The depreciation starting date and the depreciating ending date are
the same. The effect of this is that the program always calculates 100
percent depreciation, even when other acquisitions and depreciation
have already been posted to this asset.
Set Up a Minor Asset

For this example, you create a fixed asset card called Minor Asset 2000 filling in
the fields as shown in the following table.
Field
Value
COMPANY
FA Posting Group
MACHINERY
01/01/13
01/01/13
Typically, you set up a separate G/L account and FA posting group for minor asset
depreciation. However, for this example, you can use the existing MACHINERY
posting group.

2 - 123

Using the FA G/L journal, add acquisition costs as shown in the following table.
Date
Acquisition
01/07/13
600
01/09/13
800
01/12/13
500
Use G/L account 2910 as the balancing account number for each acquisition.
Note: According to the default setup in the FA journal templates, the program
should fill in the document number for each line automatically. If an error message
appears that indicates that the document line already exists, post each journal line
one by one.
After you post the journal, the fixed asset card for Minor Asset 2000 should
appear as shown in the Fixed Asset Card Minor Asset 2000 figure.
FIGURE 2.70: FIXED ASSET CARD - MINOR ASSET 2000

Most companies set up one minor asset fixed asset card each year because
legislation for minor assets sometimes changes from one fiscal year to the next.
2 - 124


Calculate Depreciation on a Minor Asset
Every time that you purchase an asset that is classified as a minor asset, post the
acquisition cost and depreciation to the same minor asset card. The program
collects acquisition costs of all minor assets and then depreciates them by 100
percent when you calculate the next periodic depreciation.
To calculate depreciation on a minor asset, follow these steps:
1.

> Fixed Assets > Fixed Assets, and then open the fixed asset card
for Minor Asset 2000.
2.
On the Actions FastTab, click Calculate Depreciation.
3.
On the Options FastTab, enter information as shown in the following

table.
Field
Value
Depreciation Book
COMPANY
FA Posting Date
12/31/14
Posting Date
12/31/14
Posting Description
Depreciation Minor Assets Year 2014
4.
5.
6.
Close the Fixed Asset Card window.
7.

> Fixed Assets > FA G/L Journals to review the journal lines created
by the batch job.

2 - 125

If the program did not insert a balancing account automatically, click Insert FA
Bal. Account.
FIGURE 2.71: FIXED ASSET G/L JOURNAL DEFAULT JOURNAL BATCH

8.
9.
lines?, click Yes.
posted., click OK.
11. Open the fixed asset card for Minor Asset 2000.
On the Lines FastTab, in the Book Value field, the book value for the
minor asset is 0.
12. Click the link in the Book Value field to display the journal entries.
2 - 126


The ledger entries for the minor asset should look as shown in the FA Ledger
Entries for Minor Asset 2000 figure.
FIGURE 2.72: FA LEDGER ENTRIES FOR MINOR ASSET 2000

2 - 127
Lab 2.9: Manage a Minor Asset

Scenario
The company acquired stationery products for the staffpens and notebooksin
the course of the year. Cassie, the accountant, has to register the stationery assets
in the program. Because these assets have a short life span, Cassie registers them
as a minor asset. Then, she posts the acquisition cost, and when the asset life span
is over, she posts the full depreciation for the minor asset.
Objectives
Register an asset, classified as minor asset.
Post the acquisition cost.
Post depreciation.
Manage a Minor Asset

Exercise Scenario
To register assets classified as minor assets, Cassie creates a fixed asset card with
the same starting and ending depreciation dates. Then, she posts the acquisition
cost in the FA G/L journal. At the end of the year, she posts the full depreciation
for all minor assets that were posted to the minor asset card.
Note: Typically, one fixed asset card is used for all minor assets. Even though
a fixed asset card was already created for minor assets, in this lab you create a new
card for demonstration purposes.
Task 1: Manage a Minor Asset

High Level Steps
2 - 128
1.
Create a fixed asset card with the same starting and ending
depreciation dates.
2.
Use the FA G/L journal to post acquisition cost.
3.
Use the Calculate Depreciation batch job and FA G/L journal to post
depreciation.


Detailed Steps
1.
Create a fixed asset card with the same starting and ending
depreciation dates.
To create a fixed asset card for a minor asset, follow these steps:
a.

b.
Click New.
c.
Press ENTER to have the program assign a number to the fixed

asset.
d.
In the Description field, type Minor Asset.
e.
On the Lines FastTab, in the Depreciation Book Code field, click

the field and select COMPANY.
f.
In the FA Posting Group field, click the field and select

MACHINERY.
g.
In the Depreciation Method field, click the field and select

Straight-line.
h.
i.
In the Depreciation Ending Date field, type 1/1/2014.
FIGURE 2.73: FIXED ASSET CARD FOR MINOR ASSETS

2 - 129

j.
2.
Click OK.
Use the FA G/L journal to post acquisition cost.
To post the acquisition cost for the new minor asset, follow these steps:
a.

b.
In the Fixed Asset G/L Journal window, in the Posting Date

field, create two acquisition lines by using information in the
following tables.
Line 1.
Field
Value
Posting Date
01/15/2014
FA Posting Type
Acquisition Cost
Description
Minor Asset Pens
Amount
100
Line 2.
Field
Value
Posting Date
02/01/2014
FA Posting Type
Acquisition Cost
Description
Minor Asset Notebooks
Amount
150
c.
Add two balancing lines with G/L account 2910 as a balancing

account.
d.
Select the next line and enter the date 1/15/2014. In the
Account No. field select 2910. In the Amount field enter -100.
e.
Select the next line and enter the date 2/1/2014. In the Account
No. field select 2910. In the Amount field enter -150.
Note: The Document No. field values should be different for each FA G/L
Journal line. However, the balancing lines should have the Document No. field
values corresponding to that of the FA G/L Journal lines they balance.
2 - 130

FIGURE 2.74: FA G/L JOURNAL WITH ACQUISITION COST

f.
g.
lines?, click Yes.
h.

i.

fixed asset card for minor assets.
On the Lines FastTab, you can see the changed book value in the Book Value
field. To see the posted acquisition cost entries, click the link in the field.
3.
Use the Calculate Depreciation batch job and FA G/L journal to post
depreciation.
To fully depreciate the minor assets, follow these steps:

a.
On the fixed asset card for minor assets, on the Home FastTab,
click Calculate Depreciation.
b.
On the Options FastTab, enter information as shown in the

following table.
Field
Value
Depreciation Book
COMPANY
FA Posting Date
12/31/14
Posting Date
12/31/14
Posting Description
Depreciation Minor Assets Year 2014

2 - 131

c.
d.
e.
Close the Fixed Asset Card window.
f.
On the navigation pane, click Departments > Financial

Management > Fixed Assets > FA G/L Journals to review the
journal lines created by the batch job.
FIGURE 2.75: FA G/L JOURNAL WITH DEPRECIATION FOR MINOR ASSETS

g.
h.
lines?, click Yes.
i.

j.

fixed asset card for minor assets.
On the Lines FastTab, in the Book Value field, the book value is 0 which indicates
that the minor assets were fully depreciated.
2 - 132

Module Review
Module Review and Takeaways
Primary transactions that you can perform with fixed assets in Microsoft Dynamics
NAV 2013 include but are not limited to acquisitions, depreciations, write-downs,
appreciations, and disposals. You can handle all these transactions in the Fixed
Assets application area of Microsoft Dynamics NAV 2013.
Four types of journals are available for posting transactions with fixed assets:
FA G/L journal
FA journal
FA Reclassification journal
Insurance journal
The primary difference between the FA G/L journal and the FA journal is that you
use the FA G/L journal for fixed assets that are integrated to the general ledger. If
you do not want your transactions to be reflected in the general ledger, use the
FA journal.
Additionally, you can calculate budgets, cost-accounting, and indexation for fixed
assets.
Microsoft Dynamics NAV 2013 provides two ways to correct entries: by reversing
entries, or by canceling entries through the Cancel FA Entries batch job or
through the Cancel FA Ledger Entries batch job. Reversing entries automatically
posts the same entry with a negative amount and can be used only with entries
posted from a journal. The Cancel FA Entries/Cancel FA Ledger Entries batch
jobs are designed specifically for FA ledger entries. This method removes the
incorrectly posted ledger entry from the ledger entries and moves it to the error
ledger entries. To have the program calculate depreciation correctly, we
recommend that you cancel FA entries instead of reversing them.
The extensive list of reports designed for fixed assets enables you to track and
analyze ledger entries, review net change for each G/L account for fixed assets
posting groups, review detailed information about fixed asset transactions and the
book value for each asset, and collect other important information for reporting
purposes.
In Microsoft Dynamics NAV 2013, you can also handle minor assets that are
typically depreciated in a year. To set up correct depreciation for minor assets, you
enter the same starting and ending depreciation dates.

2 - 133
2 - 134

MODULE 3: FIXED ASSET RECLASSIFICATIONS

Module Overview
With Microsoft Dynamics NAV 2013, you can reclassify fixed assets. Reclassifying
fixed assets can be useful when you have to do one of the following:
Transfer an asset to another location or from one dimension value to

another.
Split an asset.
Dispose of only a part of the asset.
Combine two assets.
Objectives
The objectives are:
Transfer a fixed asset.
Split a fixed asset.
Dispose of a part of a fixed asset.
Combine assets.

3-1
Asset Transfers
You can use asset transfers when you want to transfer, split, or combine assets.
Use the reclassification journal for all postings from asset transfers.
Some companies frequently transfer assets from one location to another. For
example, assume that, while an asset is being assembled, a worker puts it in the
warehouse. When the assembling process is complete, someone has to move the
asset to another location in the administration.
A company always has to have an exact overview of the current location of all its
assets. Therefore, you should register this process in Microsoft Dynamics NAV
2013.
Transferring Assets
When you transfer a fixed asset, the program moves the fixed asset entries
(acquisition cost and depreciation) from one fixed asset account to another fixed
asset account.
To transfer an asset from one location to another in Microsoft Dynamics NAV
2013, follow these steps:
1.
Set up a new fixed asset card to which the fixed asset will be
transferred.
Note: You can use the Copy Fixed Asset batch job from the Process
FastTab to copy the information from the old fixed asset and then change the
corresponding fields.
3-2
2.
In the Fixed Asset Card window for the new asset, on the Lines
FastTab, enter a new location in the FA Location Code field.
3.
Assign a depreciation book to the new asset.

Module 3: Fixed Asset Reclassification

4.

> Fixed Assets > FA Reclass. Journals.
FIGURE 3.1: FA RECLASS. JOURNAL

5.
Move 100 percent of the assets acquisition cost and depreciation by

filling in the fields in the FA reclassification journal as described in the
following table.
Field
Description
FA Posting Date
The date of the reclassification.
Document No.
The document number for the

transaction.
FA No.
The number of the asset that you are

transferring from.
New FA No.
The number of the asset that you are

transferring to.
Description
A text description for the transaction.
The code of the book to which the line

will be posted.

3-3

Field
Description
Reclassify Acq. Cost

Amount
The amount of the asset acquisition

cost to be transferred. By default, this
field is hidden. Or, you can enter the
percentage of the acquisition cost to
transfer by filling in the Reclassify
Acq. Cost % field.
Reclassify Acq. Cost %
The percentage of the asset acquisition

cost to be transferred. The program
uses the following formula:
Reclassified amount = Reclassify Acq.
Cost % / 100 * Accumulated Amount of
the posting type (depreciation, writedown, appreciation, custom 1, custom
2, and salvage value). Or, you can enter
the amount of the acquisition cost to
transfer by filling in the Reclassify
Acq. Cost Amount field.
Reclassify Acq. Cost

Amount
The amount of the asset acquisition

cost to be transferred. By default, this
field is hidden. If you enter an amount
in this field, the program internally
calculates the value in the Reclassify
Acq. Cost % field as Reclassify Acq.
Cost Amount / Accum. Acquisition Cost
* 100. Or, you can enter the percentage
of the acquisition cost to transfer by
filling in the Reclassify Acq. Cost %
field.
Reclassify Acquisition
Cost
Select this check box to transfer the

selected acquisition cost.
Reclassify Depreciation
Select this check box to transfer the

depreciation.
Insert Bal. Account
If you set up balancing accounts in the

FA Posting Groups window, select this
option so that the program
automatically inserts the balancing
account in the FA G/L journal. If you
did not set up the default balancing
accounts, do not fill in this field.
6.
3-4
After you have filled in the FA reclassification journal line(s), click

Reclassify.


Microsoft Dynamics NAV 2013 automatically creates lines in the FA G/L journal by
using the specified template and batch. If the fixed asset is not integrated with the
general ledger, the program creates lines in the FA journal, and in this case, you
do not have to create balancing lines.
7.

> Fixed Assets > FA G/L Journal.
Note: You can post these lines to complete the fixed asset transfer. If the
balancing accounts were not set up in the FA Posting Group table, you must enter
the balancing accounts before posting the lines.
8.
If the entries must be adjusted, adjust them, and then post the journal
lines.
When you post the FA G/L journal, the program moves both the fixed assets
entries and the G/L entries from one asset account to another.
The Fixed Asset - Book Value 02 report which provides an overview of the total
of all assets or each asset can help you decide which asset you have to reclassify.
Splitting Fixed Assets

With Microsoft Dynamics NAV 2013, you can also split an asset by transferring
portions of its acquisition cost to several assets. To split an asset, you use the
reclassification journal in exactly the same way as you transfer an asset. The only
difference is that you transfer acquisition cost and depreciation to multiple assets.
You can use the reclassification journal to split one asset into two assets and still
keep a part of it as the original asset.
For example, you can move 40 percent of the acquisition cost and depreciation
for an asset to a different asset, whereas 35 percent moves to a third asset, and 25
percent remains for the original asset.
If the precise percentage is unknown, then use a reclassification amount. This
amount refers to the original acquisition amount. In the current version of
Dynamics NAV 2013, you cannot enter a quantity. You have to calculate the
amount to be transferred.
Before you transfer acquisition and depreciation to new assets, you must first set
up the new asset.

3-5
Lab 3.1: Splitting a Fixed Asset

Scenario
Cassie is managing fixed assets in the company. She decides to reclassify fixed
asset FA000050 Conveyor Belt so that 50% of its acquisition cost and depreciation
is split between fixed asset FA000060 Conveyor Lift and fixed asset FA000070
Conveyor Computer, 30% for FA000060 and 20% for FA000070.
Objectives
Split a fixed asset.
Splitting a Fixed Asset

Exercise Scenario
To split the posted acquisition cost and depreciation, Cassie uses the FA
reclassification journal where she enters the percentage of acquisition costs and
depreciation to transfer. Cassie uses December 31, 2013 as the FA posting date to
include the FA ledger entries posted until this date.
Note: Before completing this lab, make sure that you set up the balancing
accounts in the FA Posting Groups window for the MACHINERY posting group. To
open the FA Posting Groups window, in the navigation pane, click Departments
> Financial Management > Setup > Posting Groups > FA Posting Groups. For
demonstration purposes, use account 8640 as an acquisition cost balancing account
(the Acquisition Cost Bal. Acc. field). If you do not set the default accounts, you
have to select them manually on the FA G/L journal lines.
Task 1: Split a Fixed Asset

High Level Steps
3-6
1.
View the current book value, posted acquisition cost, and

depreciation for the fixed asset that you plan to split and for the
assets among which the acquisition cost percentage will be split.
2.
Create two FA reclassification journal lines: one where you transfer

30% of the acquisition cost and depreciation of fixed asset FA000050
to FA000060, and another where you transfer 20% of the acquisition
cost and depreciation of fixed asset FA000050 to FA000070.
3.
Reclassify fixed asset FA000050.
4.
Review the generated FA G/L journal lines and make sure that you
select balancing accounts for each reclassification journal line.


5.
Post the journal lines.
6.
Review the book value and posted FA ledger entries for all three fixed
assets to make sure that the program split up fixed asset FA000050
correctly.
Detailed Steps
1.
View the current book value, posted acquisition cost, and

depreciation for the fixed asset that you plan to split and for the
assets among which the acquisition cost percentage will be split.
a.

b.
Select the line with fixed asset FA000050 and then click View.
On the Lines FastTab, in the Book Value field, you can see the current book value
of the fixed asset. In the given example, it is 5,940.00.
FIGURE 3.2: FIXED ASSET CARD FOR FIXED ASSET FA000050

c.
Click the link in the book value field to view the FA ledger entries.

3-7

In the FA Ledger Entries window, you can see the posted acquisition cost and
depreciation ledger entries.
FIGURE 3.3: FA LEDGER ENTRIES FOR FIXED ASSET FA000050
2.
3-8
d.
Close the FA Ledger Entries and Fixed Asset Card windows.
e.
Repeat steps 2 through 4 for fixed assets FA000060 and

FA000070 to view their current book value and ledger entries. In
this example, FA000060 has a book value of 3,992.00, and the
book value of FA000070 is 2,394.00.
Create two FA reclassification journal lines: one where you transfer

30% of the acquisition cost and depreciation of fixed asset FA000050
to FA000060, and another where you transfer 20% of the acquisition
cost and depreciation of fixed asset FA000050 to FA000070.
a.

Management > Fixed Assets > FA Reclass. Journals.
b.
Create a line to transfer 30% of acquisition cost and depreciation

from fixed asset FA000050 to fixed asset FA000060 by filling in
the fields as shown in the following table.


Field
Value
FA Posting Date
12/31/2013
Document No.
G05025
FA No.
FA000050
New FA No.
FA000060
30
Reclassify Acquisition Cost
Yes
Yes
Insert Bal. Account
Yes
c.
Create another line to transfer 20% of acquisition cost and

depreciation from fixed asset FA000050 to fixed asset FA000070
by filling in the fields as shown in the following table.
Field
Value
FA Posting Date
12/31/2013
Document No.
G05026
FA No.
FA000050
New FA No.
FA000070
20
Yes

3-9

Field
Value
Yes
Insert Bal. Account
Yes
FIGURE 3.4: FA RECLASSIFICATION JOURNAL

Note: If you did not set up balancing accounts in the FA posting groups, do
not select the Insert Bal. Account check box, as balancing accounts will not be
inserted automatically in the FA G/L journal. You will have to create balancing lines
in the FA G/L journal manually. The value that you should type in the Document
No. field depends on how you set up number series on the journal batch. You may
have to adjust the Document No. field manually on the journal lines.
3.
3 - 10
Reclassify fixed asset FA000050.

a.
On the Home FastTab, click Reclassify to have the program

create FA G/L journal lines.
b.
When you receive the message Do you want to reclassify the

journal lines?, click Yes.
c.

successfully reclassified., click OK.


4.
Review the generated FA G/L journal lines and make sure that you
select balancing accounts for each reclassification journal line.
a.

b.
In the Fixed Asset G/L Journal window, make sure that the
Document No. field contains the unique document numbers on
each line. This depends on how you set up number series in the
journal batch. If the document numbers have to be adjusted,
adjust them manually.
FIGURE 3.5: FA G/L JOURNAL WITH RECLASSIFICATION LINES

5.
Post the journal lines.

a.
b.
lines?, click Yes.
c.


3 - 11

6.
Review the book value and posted FA ledger entries for all three fixed
assets to make sure that the program split up fixed asset FA000050
correctly.
a.

b.
Select the line with fixed asset FA000050, and then click View.
Because you have split the fixed asset, the book value, shown in the Book Value
field on the Lines FastTab, decreased by 50%.
FIGURE 3.6: FIXED ASSET CARD FOR FIXED ASSET FA000050 AFTER RECLASSIFICATION
c.
3 - 12
Click the link in the Book Value field to view the FA ledger
entries.


In the FA Ledger Entries window, you can see the new reclassification entries
with the Reclassification Entry check box selected.
FIGURE 3.7: FA LEDGER ENTRIES AFTER RECLASSIFICATION

d.
e.

f.
Select the line with fixed asset FA000060, and then click View to
open the Fixed Asset Card window for fixed asset FA000060.

3 - 13

The book value increased because of the transferred 30% of acquisition cost and
depreciation from fixed asset FA000050.

g.
3 - 14
Click the link in the Book Value field to view the fixed asset
ledger entries.


You can see the reclassification entries created from splitting fixed asset
FA000050.

h.

i.

3 - 15

The book value increased because of the transferred 20% of acquisition cost and
depreciation from fixed asset FA000050.

j.
3 - 16
Click the link in the Book Value field to view the fixed asset
ledger entries.


You can see the reclassification entries created from splitting fixed asset
FA000050.
Partial Disposal of an Asset

Sometimes you have to partially dispose of an asset instead of disposing of the
whole asset. To dispose of a part of an asset, split the asset through the FA
reclassification journal and then dispose of one of the assets that you gained from
the split.
Best Practice: To make sure both assets are seen together in reports, you can
make them a main asset and a component asset.
To dispose of a part of an asset, follow these steps:
1.
Set up a new asset for the partial disposal amount.
2.
Post a reclassification of the part to sell.
3.
Post the disposal to the new asset.

3 - 17

Microsoft Dynamics NAV 2013 automatically calculates the gain or loss of the
partial disposal.
Note: When you post a partial disposal, the sales goes to the original asset.
The program handles the disposed-of asset as if it is completely sold. You cannot
post additional entries to the asset after you post an entry with the FA posting type
Disposal. For example, you must dispose of a motherboard which is a part of a
computer, a fixed asset. You first have to reclassify the fixed asset into two assets
with corresponding acquisition costs and depreciation amounts. Next, you dispose
of the new asset (the motherboard). Therefore, the acquisition cost and depreciation
amount of the original fixed asset (the computer) will be reduced correspondingly.
3 - 18

Lab 3.2: Disposing of a Part of an Asset

Scenario
The company decided to sell a segment of the Lift for Furniture fixed asset. This
fixed asset is registered as a single asset in the program. Cassie has to dispose of
the part of the asset that will be sold.
Objectives
To dispose of a part of an asset.
Disposing of a part of an asset.

Exercise Scenario
To dispose of a part of the Lift for Furniture asset, Cassie has to create a new asset
for the part to be sold, use the reclassification journal to reclassify the Lift for
Furniture fixed asset into two assets, and then dispose of the resulting part. The
estimated acquisition cost of the part to be sold is 1/4 of the total acquisition cost
and depreciation amount. This part of the fixed asset will be sold to customer
10000 for unit price 1000 excluding VAT.
Task 1: Dispose of a Part of the Lift for Furniture Fixed Asset

High Level Steps
1.
Create a fixed asset card for the segment of the fixed asset to be
disposed of.
2.
On the new fixed asset card, assign a depreciation book to this fixed
asset.
3.
In the reclassification journal, split the Lift for Furniture fixed asset to
move 25% of its book value (acquisition cost and depreciation) to the
new fixed asset.
4.
Post the generated FA G/L journal lines.
5.
Create and post a sales invoice to dispose of the new fixed asset that
represents the segment of the Lift for Furniture fixed asset.

3 - 19

Detailed Steps
1.
Create a fixed asset card for the segment of the fixed asset to be
disposed of.
a.

Management > Fixed Assets > Fixed Assets, and then click
New.
b.
In the Fixed Asset Card window, press ENTER to have the

program assign the number to the fixed asset.
c.

table.
Field
Description
Lift for Furniture Segment
Serial No.
AKW23587
Responsible Employee
MH
d.

table.
Field
3 - 20
Value
Table
COMPANY
FA Posting Group
MACHINERY
Depreciation Method
Straight-line
2/1/2013
2/28/2021


e.

table.
Field
Table
FA Class Code
TANGIBLE
FA Subclass Code
MACHINERY
FA Location Code
PROD
FIGURE 3.12: FIXED ASSET CARD FOR THE NEW FIXED ASSET
f.
2.
Click OK.
On the new fixed asset card, assign a depreciation book to this fixed
asset.
a.
In the Fixed Assets window, select the line with fixed asset
FA000080, and then click Edit.

3 - 21

On the Lines FastTab, in the Book Value field, review the current book value of
the fixed asset before you split it to move 25% of its value to the newly created
fixed asset.

Note: If you did not finish the Calculating Depreciation demonstration in the
Fixed Asset Transactions module of this course, the book value for fixed asset
FA000080 will differ because in that demonstration you calculate and post
depreciation for January 2014 for this fixed asset.
3 - 22


b.
Click the link in the Book Value field to view the posted
acquisition cost and depreciation ledger entries.

c.
3.
In the reclassification journal, split the Lift for Furniture fixed asset to
move 25% of its book value (acquisition cost and depreciation) to the
new fixed asset.
a.

Management > Fixed Assets > FA Reclass. Journals.
b.
In the FA Reclass. Journal window, create a reclassification line

to transfer 25% of the Lift for Furniture fixed asset value
(acquisition cost and depreciation) to the new fixed asset by
filling in the lines as shown in the following table.

3 - 23

Field
Value
FA Posting Date
1/31/2014
FA No.
FA000080
COMPANY
Description
Splitting Lift for

Furniture
25
Yes
Yes
Insert Bal. Account
Yes
Note: To include all the acquisition cost and depreciation entries in the
reclassification, the date in the FA Posting Date field should be equal to or later
than the date of the last posted depreciation for the asset that you selected in the
FA No. field.
3 - 24


c.
In the New FA No. field, enter the number of the new asset that
you created. In this example, it is the Lift for Furniture Segment
asset. This number may be different in your case, depending on
how many assets you created before you created a new asset in
this lab. Click the field and select the Lift for Furniture Segment
fixed asset.
FIGURE 3.15: FA RECLASS. JOURNAL
4.
d.
Click Reclassify to create FA G/L journal lines on the basis of the

reclassification journal line.
e.
When you receive the message Do you want to reclassify the

journal lines?, click Yes.
f.

successfully reclassified., click OK.
Post the generated FA G/L journal lines.

a.


3 - 25

In the FA G/L Journal window, the program created the journal lines.
FIGURE 3.16: FA G/L JOURNAL
3 - 26
b.
Review the lines and make adjustments if they are necessary.
c.
On the Home FastTab, click Post to post the journal lines.
d.
lines?, click Yes.
e.

f.

g.

MODULE 4: FIXED ASSETS MAINTENANCE

Module Overview
All companies have to keep track of the maintenance on their fixed assets.
Microsoft Dynamics NAV 2013 helps a company to keep maintenance
information up to date.
This module, Microsoft Dynamics NAV 2013 Fixed Assets Maintenance, explains
how to set up maintenance information for fixed assets and describes the
functionality and processes of registering maintenance on fixed assets.
In Microsoft Dynamics NAV 2013, you can also view statistics, analyze them, and
print reports for the maintenance of fixed assets.
Objectives
The objectives are:
Set up maintenance information.
Register maintenance costs.
Review fixed asset maintenance by using the maintenance cost

reports.

4-1
Setting Up Maintenance Information

Maintenance expenses are routine periodic costs charged to preserve the value of
fixed assets. Unlike capital improvements, maintenance expenses do not increase
the value of the assets.
To use the fixed asset maintenance functionality in Microsoft Dynamics NAV 2013,
you should set up the following:
Maintenance information on the fixed asset card.
Fixed asset posting groups to allow posting of the maintenance costs

to the general ledger.
Allocation keys to maintain costs allocated to departments and

projects.
Maintenance codes so that you can select the type of maintenance

when you post maintenance costs.
Fixed Asset Card

On the fixed asset card, on the Maintenance FastTab, you can set up
maintenance information for the fixed asset as described in the following table.
Field
4-2
Value
Vendor No.
The number of the vendor who supplied

the fixed asset.
The number of the vendor who usually

performs the maintenance for the asset.
Under Maintenance

indicate that the fixed asset is under
maintenance. You can use this
information as a filter in reports.
Next Service Date
The date of the next scheduled service.

This information can be used as a filter
in reports.
Warranty Date
The date on which the warranty expires.

Module 4: Fixed Assets Maintenance

Field
Insured
Value
This field is set to Yes for the insured
fixed assets (for which the insurance
entries were created and posted to an
insurance account from a purchase
invoice, credit memo, or journal line).
You can click the link in the field to view
the insurance ledger entries.
For more information about insuring
fixed assets, refer to the Fixed Asset
Insurance module in this course.
FIGURE 4.1: MAINTENANCE FASTTAB ON FIXED ASSET CARD
Setting Up FA Posting Groups

In Microsoft Dynamics NAV 2013, all maintenance costs can be recorded to the
fixed asset. In addition to entering maintenance information on the fixed asset
card, you should select a maintenance expense account number in the FA
Posting Groups window to allow posting of the maintenance costs to the general
ledger.
To set up an FA posting group for the maintenance costs, follow these steps:
1.

> Administration > FA Posting Groups.
2.
In the FA Posting Groups window, for each posting group, select the
Maintenance Expense Account field, and then select the relevant
G/L account.

4-3

For demonstration purposes, do not change the default account in the
Maintenance Expense Account field.
Setting Up Allocation Keys

You can use allocation keys to allocate maintenance costs to several accounts,
departments, or projects. For example, you could set up an allocation key to
allocate depreciation costs on cars with 35 percent to the administration
department and 65 percent to the sales department. If you set up allocations, the
program allocates the amount on the fixed asset general journal or the recurring
journal to one or more balancing accounts. When you use the Reclassify function
from the fixed asset reclassification journal or the Insert FA Bal. Account function
from the fixed asset G/L journal, the program will insert the account(s) that you
set up. You can allocate keys such as acquisition cost, depreciation, and
maintenance.
To set up an allocation key, follow these steps:
4-4
1.

> Administration > FA Posting Groups.
2.
In the FA Posting Groups window, select a line with the posting

group for which you want to set up allocation keys, and then, on the
Navigate FastTab, click Allocations and select the allocation key.


The FA Allocations window appears where you can set up allocation keys.
FIGURE 4.3: FA ALLOCATIONS WINDOW

3.
In the FA Allocations window, fill in the fields according to the

guidelines in the following table.
Field
Description
Account No.
Enter the G/L account number to allocate

the amount on a journal line to. Select
the field to view the list of accounts.
Account Name
This field contains the name of the

account selected in the Account No.
field. The program fills in this field
automatically.
Allocation %
Enter the percentage of the amount to

allocate to the account on this line.
Note: You can allocate dimensions to those other than the default global
dimensions by selecting a line, clicking Dimensions on the Navigate FastTab, and
then selecting the required dimension code and values in the Edit Dimension Set
Entries window.

4-5

Allocating Dimensions
To allocate a dimension, follow these steps:
1.

> Administration >FA Posting Groups.
2.
In the FA Posting Groups window, select a line with the posting

group, and then, on the Navigate FastTab, click Allocations >
Maintenance.
3.
In the FA Allocations window, select a line with the account for

which you want to allocate dimensions, and then click Dimensions
on the Navigate FastTab.
4.
In the Edit Dimension Set Entries window, select the required

dimension code and values.
FIGURE 4.4: CAR MAINTENANCE WINDOW

5.
4-6
Click OK.


Setting Up Maintenance Codes
The Maintenance Code field is used to describe the kind of maintenance
performed on a fixed asset. For example, routine service or repair.
Use the Maintenance window to set up the codes that you can enter in the
Maintenance Code field. To open the Maintenance window, in the navigation
pane, click Department > Financial Management > Fixed Assets, and then,
under Setup, click Maintenance.
FIGURE 4.5: MAINTENANCE WINDOW

To create a new maintenance code, click New on the Home FastTab, and then, in
the Code field, type the code for the maintenance. In the Description field, type a
description of the maintenance.

4-7
Maintenance Registration and Costs

Every time that a fixed asset is sent for service, you have to record the relevant
information, such as date of service, vendor number, service agent name, and
phone number. Microsoft Dynamics NAV 2013 lets you register and easily track
this information.
When the service is completed, and you receive a maintenance invoice, you
register the maintenance costs through an FA G/L journal, purchase invoice, or FA
journal, depending on whether the associated depreciation book is integrated
with the general ledger.
Keeping Track of Service Visits

Every time someone performs maintenance on a fixed asset, you can register this
in the Maintenance Registration window.
To track a service visit, follow these steps:
1.

2.
Select the line with the fixed asset for which you want to register a
service visit.
3.
On the Home FastTab, click Maintenance Registration.
The Maintenance Registration figure shows an example of a registered

maintenance for fixed asset FA000030.
FIGURE 4.6: MAINTENANCE REGISTRATION WINDOW
4-8


4.
To register a maintenance visit, fill in the fields as described in the

following table.
Field
Description
Service Date
Enter the date the fixed asset is

being serviced.
Enter the number of the vendor

who is performing the maintenance.
Comment
Enter a description of the

maintenance being performed.
Service Agent Name
Enter the name of the person who is

performing the service or repair.
Service Agent Phone No.
Enter the telephone number of the

service agent.
5.
You can now schedule the next maintenance for the fixed asset by
setting the Next Service Date field on the Maintenance FastTab of
the fixed asset card.
6.
Click OK.
Following Up on Service Visits

To see which assets are scheduled for service visits, you can print the
Maintenance - Next Service report. The report can also be used to update the
Next Service Date field on the fixed asset cards.
To run the report, follow these steps:
1.

> Fixed Assets > Maintenance Next Service.

4-9

The Maintenance - Next Service report request window appears.
FIGURE 4.7: MAINTENANCE - NEXT SERVICE REPORT REQUEST WINDOW
4 - 10
2.
On the Options FastTab, define the period that the report should
show by filling in the Starting Date and Ending Date fields. Fixed
assets that have a next service date that is before the date in the
Starting Date field or after the date in the Ending Date field will not
be included in the report.
3.
On the Fixed Asset FastTab, you can set any filters that you want so
that the report includes a specific fixed asset or an asset with specific
class and subclass codes.


4.
Click Print to print the report or Preview to preview the report on

screen.
FIGURE 4.8: MAINTENANCE WINDOW - NEXT SERVICE REPORT PRINT PREVIEW
Recording Maintenance Costs

When you receive the maintenance invoice, you can record the maintenance costs
in Microsoft Dynamics NAV 2013 in one of the following ways:
If G/L integration is activated for the depreciation book, use a

purchase invoice or an FA G/L journal.
If G/L integration is not activated for the depreciation book, use only
an FA journal.
Recording Maintenance Costs Using the Purchase Invoice

To record maintenance costs using the purchase invoice, follow these steps:
1.

2.
Click New.
3.
Press ENTER to have the program assign the number to the invoice.

4 - 11

4.
Fill in the invoice as shown in the Purchase Invoice figure.
FIGURE 4.9: PURCHASE INVOICE WINDOW

Make sure that on the Lines FastTab, you set the Type field to Fixed Asset and
the FA Posting Type field to Maintenance.
Note: The FA Posting Type is not included in the standard layout. However,
you can insert it with the Choose Column function.
4 - 12
5.
On the Home FastTab, click Post to post the invoice.
6.
When you receive the message Do you want to post the Invoice?,
click Yes.


Note: You can also set the type of maintenance. The Maintenance Type is
not included in the standard layout. However, you can insert it by using the Page
Designer.
Recording Maintenance Costs Using the FA Journal

When you post to a depreciation book in which the G/L integration is deactivated
for maintenance costs, you must use a fixed asset journal. This may be useful
when, for example, you want to record maintenance for a third-party fixed asset
that must not be reflected in the general ledger, for example leased warehouse
premises. The way that you post maintenance costs in an FA G/L journal resembles
the way that you post in an FA journal. In an FA journal, you do not have to
specify the balancing account.
In this example, you will post maintenance costs for FA000050 though an FA
journal. Because the G/L integration is activated for maintenance costs for this
fixed asset, you will deactivate it temporarily for demonstration purposes, post the
maintenance costs, and then reactivate the G/L integration.
To post maintenance costs, follow these steps:
1.

2.
Double-click the COMPANY depreciation book.
3.
On the Integration FastTab, clear the Maintenance field.
4.
Click OK.
5.

> Fixed Assets > FA Journals.
6.
In the Fixed Asset Journal window, fill in the fields as shown in the
following table.
Field
Value
FA Posting Date
01/23/14
Document Type
Invoice
FA No.
FA000050
FA Posting Type
Maintenance
Amount
951.20
Maintenance Code
SERVICE

4 - 13

Note: The Maintenance Code field is not included in the standard layout.
Use the Choose Column function to insert it.
FIGURE 4.10: FIXED ASSET JOURNAL WINDOW

7.
8.
lines?, click Yes.
9.
posted., click OK.
10. After you post the journal, activate the G/L integration of
maintenance in the COMPANY depreciation book again. On the
Integration FastTab, select the Maintenance field.
4 - 14

Lab 4.1: Posting Allocation Transactions

Scenario
Fixed Asset FA000070 Conveyor Computer stopped working and underwent
maintenance repairs. On November 12, 2014, Cassie, the accountant, receives a
maintenance invoice and has to post maintenance costs in Microsoft Dynamics
NAV 2013. The amount of the maintenance costs is 200.00. The maintenance
balancing G/L account for the fixed asset posting group that fixed asset FA000070
belongs to is 8640. Cassie also receives instructions that she should allocate 25%
of the maintenance costs for this fixed asset to G/L account 8330.
Objectives
Set up allocation and post maintenance costs so that the amount is allocated.
Posting an Allocation Transaction

Exercise Scenario
To post the maintenance costs with the allocated amount, Cassie sets up
allocation keys for the MACHINERY fixed asset posting group and then posts the
maintenance costs in the fixed asset G/L journal.
Task 1: Posting an Allocation Transaction

High Level Steps
1.
2.
For the MACHINERY posting group, set up G/L account 8640 to use it
as a maintenance balancing account.
3.
For the MACHINERY posting group, set up maintenance allocation

keys so that 25% of amount is allocation to G/L account 8330.
4.
Create a maintenance line in the Fixed Asset G/L Journal window.
5.
Use the Insert FA Bal. Account function.
6.
Make sure that the program inserted two balancing lines, one with
75% of the balancing amount to post to account 8640 and one with
25% of the balancing amount to post to account 8330.
7.
Post the fixed asset G/L journal.
8.
Review the posted maintenance ledger entries.

4 - 15

Detailed Steps
1.

a.
2.
3.

For the MACHINERY posting group, set up G/L account 8640 to use it
as a maintenance balancing account.
a.
In the FA Posting Groups window, right-click the column header

and use the Choose Column function to add the Maintenance
Bal. Acc. field.
b.
For the MACHINERY posting group, fill in the Maintenance Bal.

Acc. field with 8640.
For the MACHINERY posting group, set up maintenance allocation

keys so that 25% of amount is allocation to G/L account 8330.
a.
With the MACHINERY posting group line selected, on the

Navigate FastTab, click Allocations > Maintenance.
b.
In the FA Allocations window, set the Account No. field to

8330.
c.
In the Allocation % field, type 25.0.
FIGURE 4.11: FA ALLOCATIONS WINDOW
4 - 16

4.
d.
Click OK.
e.
Close the FA Posting Groups window.
Create a maintenance line in the Fixed Asset G/L Journal window.

a.

b.
In the FA G/L Journal window, right-click the column header and

use the Choose Column function to add the Maintenance Code
field.
c.
Create a line filling in the fields as shown in the following table.

Field
5.
Value
Posting Date
11/12/2014
Document Type
Invoice
Account Type
Fixed Asset
Account No.
FA000070
Depreciation Book
COMPANY
FA Posting Type
Maintenance
Description
Maintenance
costs
Maintenance Code
SERVICE
Amount
200.00
Use the Insert FA Bal. Account function.

a.
On the Home FastTab, click Insert Bal. Account.

4 - 17

6.
Make sure that the program inserted two balancing lines, one with
75% of the balancing amount to post to account 8640 and one with
25% of the balancing amount to post to account 8330.
a.
Make sure that the program inserted two balancing lines:
FIGURE 4.12: FIXED ASSET G/L JOURNAL WINDOW

7.
8.
4 - 18
Post the fixed asset G/L journal.

a.
b.
lines?, click Yes.
c.


a.

b.
Select the line with fixed asset FA000070 and then, on the Home
FastTab, click Maintenance Ledger Entries.
c.
To view detailed posted G/L, VAT, and maintenance ledger

entries, select the posted maintenance ledger entry with the FA
Posting Date of 11/12/2014 and, on the Home FastTab, click
Navigate.
d.
In the Navigate window, select an entry type and then click

Show.

Lab 4.2: Posting Maintenance Transactions

Two fixed assets are under maintenance in the company: FA000010 Mercedes 300
and FA000090 Switchboard. Cassie has to post maintenance costs for both fixed
assets. Fixed asset FA000010 is serviced by the maintenance vendor set up on the
fixed asset card. The maintenance costs for this fixed asset should be reflected in
the general ledger. Fixed asset FA000090 is serviced by a third party, and Cassie
receives instructions that the maintenance for this fixed asset should not be
reflected in the general ledger.
To post maintenance costs for FA000010, Cassie uses the purchase invoice. To
post maintenance costs for FA000090, Cassie uses the COST depreciation book
that is associated with this fixed asset and has no integration with the general
ledger.
Note: To complete this lab, you should complete the demonstration
procedures in the Cost-Accounting Depreciation and Indexation lessons of the Fixed
Assets Transactions module of this course where you create the COST depreciation
book and assign it to FA000090 by using the Copy Depreciation Book batch job.
To run the batch job, click Copy Depreciation Book on the Actions FastTab of the
depreciation book card. Make sure that you add a line for the COST depreciation
book in the FA Journal Setup window and post the corresponding FA Journal lines.
Objectives
Post maintenance costs in the purchase invoice and in the fixed asset journal.
Posting Maintenance Costs

Exercise Scenario
Use the data in the following table when you post maintenance costs for fixed
asset FA000010.
Field
Value
Buy-from Vendor No.
44127914
FA Posting Type
Maintenance
Vendor Invoice No.
2568
Quantity
Direct Unit Cost excl. VAT
3000.00
Posting Date
11/30/2014
Document Date
11/30/2014

4 - 19

Make sure that the maintenance balancing account is set up for the CAR fixed
asset posting group. Use G/L account 8640 as a maintenance balancing account.
Use the data in the following table when you post maintenance costs for fixed
asset FA000090.
Field
Value
Document Type
Invoice
FA Posting Type
Maintenance
200.00
Maintenance Code
SERVICE
FA Posting Date
11/30/2014
Task 1: Posting Maintenance Costs in the Purchase Invoice

High Level Steps
1.
Make sure that the maintenance balancing account is set up for the
CAR fixed asset posting group in the FA Posting Groups window.
2.
3.
Fill in the fields on the General FastTab.
4.
Create a maintenance line on the Lines FastTab.
5.
Post the purchase invoice.
6.
Detailed Steps
1.
4 - 20
Make sure that the maintenance balancing account is set up for the
CAR fixed asset posting group in the FA Posting Groups window.
a.

Management > Administration > Posting Groups > FA
Posting Groups.
b.
In the FA Posting Groups window, right-click the column header

and use the Choose Column function to add the Maintenance
Bal. Acc. field if it is not already visible.
c.
For the CAR posting group, fill in the Maintenance Bal. Acc. field
with 8640.
d.
Click OK.


2.
3.

a.

Management > Payables > Purchase Invoices.
b.
Click New.
c.
Press ENTER to have the program assign the number to the

invoice.
Fill in the fields on the General FastTab.

a.

table.
Field
Value
Buy-from Vendor No.
44127914
Vendor Invoice No.
2568
Posting Date
11/30/2014
Document Date
11/30/2014
4.
Create a maintenance line on the Lines FastTab.

a.

table.
Field
Value
Type
Fixed Asset
No.
FA000010
FA Posting Type
Maintenance
Quantity
3000.00

4 - 21
FIGURE 4.13: PURCHASE INVOICE WINDOW

5.
6.
4 - 22
Post the purchase invoice.

a.
Click Post to post the invoice.
b.


a.

b.


In the Maintenance Ledger Entries window, for the created ledger entry, the G/L
Entry No. field shows the number of the posted G/L entry because this
transaction was posted to the COMPANY depreciation book which has integration
with the general ledger for maintenance transactions.
FIGURE 4.14: MAINTENANCE LEDGER ENTRIES WINDOW FOR FIXED ASSET FA000010
c.
Click Close.
Task 2: Posting Maintenance Costs in the Fixed Asset journal

High Level Steps
1.
Open the Fixed Asset Journal window.
2.
Create a maintenance journal line. Make sure that you use the COST
depreciation book.
3.
Post the fixed asset journal.
4.
Review the posted maintenance ledger entries
Detailed Steps
1.
Open the Fixed Asset Journal window.

a.


4 - 23

2.
Create a maintenance journal line. Make sure that you use the COST
depreciation book.
a.
Right-click the column header and use the Choose Column

function to add the Maintenance Code field if it is not visible.
b.
Create a line, filling in the fields as shown in the following table.

Field
4 - 24
Value
FA Posting Date
11/30/2014
Document Type
Invoice
FA No.
FA000090
COST
FA Posting Type
Maintenance
Description
Switchboard Maintenance
Amount
200.00
Maintenance Code
SERVICE

FIGURE 4.15: FIXED ASSET JOURNAL

3.
4.
Post the fixed asset journal.

a.
b.
lines?, click Yes.
c.

Review the posted maintenance ledger entries

a.

b.
In the Maintenance Ledger Entries window, for the created ledger entry, the G/L
Entry No. field is empty because this transaction was posted to the COST
depreciation book which has no integration with the general ledger for
maintenance transactions.

4 - 25
FIGURE 4.16: MAINTENANCE LEDGER ENTRIES FOR FIXED ASSET FA000090

c.
Click Close.
Maintenance Cost Reporting

In Microsoft Dynamics NAV 2013, you can view and analyze posted maintenance
costs in the following locations:
4 - 26
The Fixed Asset Statistics window shows the maintenance amount.

You can access the Fixed Asset Statistics window from the fixed
asset card.
The Maintenance Ledger Entries window shows posted

maintenance entries. You can access the Maintenance Ledger
Entries window from the fixed asset card or from the Fixed Assets
view.
The Maintenance - Details report shows detailed information on

maintenance ledger entries.
The Maintenance - Analysis report shows maintenance expenses for

fixed assets for different time periods broken down by fixed asset
categories.
The Maintenance Register report shows posted maintenance entries

that are sorted and divided by register number.
The Maintenance Next Service report shows the next date on

which service is planned for each fixed asset.


Statistics and Maintenance Ledger Entries
To view the maintenance statistics and corresponding posted maintenance ledger
entries, follow these steps:
1.

2.
Select a line with the fixed asset for which you want to view the
maintenance statistics. For example, select the line for fixed asset
FA000050.
3.
On the Home FastTab, click Statistics.

4 - 27

4.
Click the amount in the Maintenance field to open the Maintenance

Ledger Entries window where you can view the maintenance ledger
entries that make up the amount in the Fixed Asset Statistics
window.
FIGURE 4.18: MAINTENANCE LEDGER ENTRIES

Or, you can view the maintenance ledger entries by selecting a fixed asset in the
Fixed Assets view, and then clicking Maintenance Ledger Entries on the Home
FastTab, or by clicking Maintenance Ledger Entries on the Home FastTab of the
fixed asset card.
4 - 28


Maintenance - Details Report
The Maintenance - Details report shows detailed information on maintenance
ledger entries posted to each fixed asset for the depreciation book that you select
in the report request window.
To run the Maintenance - Details report, follow these steps:
1.

> Fixed Assets > Maintenance Details.
FIGURE 4.19: MAINTENANCE DETAILS REPORT REQUEST WINDOW

2.
On the Options FastTab, select which depreciation book to print

from, whether to view a new page for each asset, and whether you
want to include reversed entries.
3.
On the Fixed Asset FastTab, you can set a filter to select the asset(s)
to include in the report.

4 - 29

4.
Click Preview to view the report on the screen or Print to print it.
FIGURE 4.20: MAINTENANCE DETAILS REPORT PRINT LAYOUT
4 - 30


Maintenance - Analysis Report
In the Maintenance - Analysis report, you can view maintenance expenses for
fixed assets for different time periods broken down by fixed asset categories. You
can also select the total of all the selected assets or a total for each asset.
To run the Maintenance - Analysis report, follow the steps:
1.

> Fixed Assets > Maintenance Analysis.
FIGURE 4.21: MAINTENANCE - ANALYSIS REPORT REQUEST WINDOW

4 - 31

2.
On the Options FastTab, fill in the fields as described in the following

table.
Field
Depreciation Book

that the report will include.
Date Selection
Select whether you want to use the

posting date or the FA posting date in
the report.
Starting Date
Enter the starting date to be included in

the report.
Ending Date
Enter the ending date to be included in

the report.
Amount Field 1
Use the three amount fields to have the

report show maintenance amounts for
different maintenance types. If you do
not fill in the Amount Field 1, Amount
Field 2, and Amount Field 3 fields, the
report will include all maintenance costs
regardless of their maintenance code.
Amount Field 2
Amount Field3
Period 1
Period 2
Period 3
4 - 32
Description
Select how the program will calculate the

maintenance amounts shown in the
report by selecting Before Starting
Date, Net Change, or at Ending Date.
Net Change is the period between the
starting and ending date.
Group Totals
Select a category that the report will use

to group fixed assets and show totals. For
example, maintenance expenses for fixed
assets can be shown for each fixed asset
class.

report to show amounts for each fixed
asset.


3.
FIGURE 4.22: MAINTENANCE - ANALYSIS PRINT LAYOUT

4 - 33

Maintenance - Register Report
Use the Maintenance Register report to view all posted maintenance entries that
are sorted and divided by register number. We recommend that you set a filter.
Otherwise, the report may show a large amount of information.
Note: You can print this report at the same time that you post a journal. To
print the report as part of a posting process, on the Actions FastTab of the journal,
in the Posting group, click Post and Print.
To run the Maintenance Register report, follow these steps:
1.

> Fixed Assets > Maintenance Register.
FIGURE 4.23: MAINTENANCE REGISTER REPORT REQUEST WINDOW
4 - 34


2.
On the FA Register FastTab, set the filters that you want to use.
3.
FIGURE 4.24: MAINTENANCE REGISTER

4 - 35

Maintenance - Next Service Report
Use the Maintenance - Next Service report to view the date of the next service
for each fixed asset.
To run the Maintenance - Next Service report, follow these steps:
1.

> Fixed Assets > Maintenance Next Service.
FIGURE 4.25: MAINTENANCE - NEXT SERVICE REPORT REQUEST WINDOW
4 - 36


2.
On the Options FastTab, you can fill in the Starting Date and Ending
Date fields to set a period to include in the report.
3.
On the Fixed Asset FastTab, you can set a filter to only include
specific fixed assets in the report.
4.
FIGURE 4.26: MAINTENANCE - NEXT SERVICE PRINT LAYOUT

4 - 37
Module Review
To register and track fixed asset maintenance in Microsoft Dynamics NAV 2013,
you must set up maintenance information on the fixed asset card. You must also
set up fixed asset posting groups and fixed asset maintenance codes. You can use
fixed asset allocation keys, to allocate maintenance costs to several accounts,
departments, or projects.
You register maintenance not only to help the company keep track of all cost
allocated to maintenance, but also to keep track of and follow up on service visits.
Similar to other fixed asset transactions, you post maintenance costs in two ways,
depending on whether the depreciation book assigned to the fixed asset has G/L
integration for maintenance. If the G/L integration is activated, you use the
purchase invoice or fixed asset G/L journal to post maintenance costs. If the G/L
integration is not activated, you use the fixed asset journal to post maintenance
costs.
You can view and analyze the posted maintenance costs in the Fixed Asset
Statistics window or in the Maintenance Ledger Entries window. The
Maintenance - Details, Maintenance - Analysis, Maintenance - Register, and
Maintenance - Next Service reports provide the company with a detailed and
complete overview of fixed asset maintenance information.
4 - 38

MODULE 5: FIXED ASSET INSURANCE

Module Overview
Fixed Assets Insurance in Microsoft Dynamics NAV 2013 describes how to insure
fixed assets in a company.
Managing insurance in Microsoft Dynamics NAV 2013 includes setting up
insurance information, assigning assets to insurance policies, monitoring insurance
coverage, updating insurance information, and indexing fixed asset insurance.
Objectives
The objectives are:
Set up insurance information.
Assign an asset to an insurance policy.
Monitor insurance coverage.
Update, correct, and delete insurance information.
Set up insurance indexing.

5-1
Setting Up Insurance Information

Set up general information about an insurance policy on the insurance card. In
Microsoft Dynamics NAV 2013, you create one insurance card for each insurance
policy.
Fixed Asset Setup Page

In the Fixed Assets Setup window, you set up general information about fixed
asset insurance.
To set up general information about fixed asset insurance, follow these steps:
1.

> Fixed Assets > FA Setup.
FIGURE 5.1: FIXED ASSET SETUP
5-2

Module 5: Fixed Asset Insurance

2.
On the General FastTab, enter information in the insurance fields as

Field
Value
Insurance Depr. Book
The value in this field specifies a

depreciation book code. If you use
the insurance facilities, you must
enter a code to post insurance
coverage ledger entries. For example,
to post an acquisition entry with an
insurance number or a disposal of an
insured asset, you have to select a
book in this field. This restriction
exists because the disposal of an
asset automatically stops the
insurance coverage. To disconnect
sold assets from insurance policies,
select a depreciation book code that
is assigned to all fixed assets. You
should set up the default
depreciation book before you set up
the insurance depreciation book. The
code in this field is also used when
you sell a fixed asset and the values
from insurance policies change. Click
the field, and then select a code.
Automatic Insurance
Posting
If you want to post insurance

coverage ledger entries automatically
when you post acquisition cost
entries with the Insurance No. field
filled in, select this check box. If this
check box is cleared, the program
creates entries in the insurance
journal instead of posting to the
insurance coverage ledger entries.
3.
On the Numbering FastTab, select the Insurance Nos. field, and

then select the code for the number series that the program uses to
assign numbers to insurance policies.
4.
Click OK.

5-3

Insurance Types
In Microsoft Dynamics NAV 2013, you can group insurance policies into insurance
types, for example, insurance against theft or fire insurance.
To set up the insurance types, follow these steps:
1.

> Fixed Assets > Insurance Types.
FIGURE 5.2: INSURANCE TYPES
5-4
2.
To create a new insurance type, click New.
3.
In the Code field, enter the code of the insurance type.
4.
In the Description field, enter a description of the insurance type.
5.
Click OK.


Insurance Card
You create an insurance card for each insurance policy related to fixed assets. On
the insurance card, you specify general information about the insurance policy.
To set up a new insurance policy, follow these steps:
1.

> Fixed Assets > Insurance.
2.
Select a line with the insurance policy for which you want to create an
insurance card.
3.
On the Home FastTab, click View.
FIGURE 5.3: INSURANCE CARD

4.
On the General FastTab, fill in the fields as described in the following

table.
Field
Description
No.
The number or code for the insurance policy

that the program uses. This field is filled in by
the program automatically.
Description
The description of the insurance policy.
Insurance
Vendor No.
The number of the vendor from whom the

insurance policy was purchased.

5-5

Field
5-6
Description
Effective Date
The date from which the insurance policy is

valid.
Expiration Date
The date until which the insurance policy is

valid.
Insurance Type
The type of insurance that is covered by the

given insurance policy. Click the field to select a
type. You set the insurance types in the
Insurance Types window.
Policy No.
The policy number recorded on the insurance

policy.
Annual
Premium
The amount of the annual insurance premium.

When you register this information for all the
insurance policies, an overview of the insurance
costs and other insurance information appears
in different insurance reports.
Policy Coverage
The amount of coverage this insurance policy

provides. When registering this information for
all the insurance policies, you can see whether
the company is over- or underinsured in the
Insurance Statistics window.
Blocked
Select this check box if you want to block the

insurance account. You cannot post to a blocked
insurance account. For example, a fixed asset is
assigned to several insurance policies that
overlap one another. In this case the fixed asset
is over-insured, and one of the overlapping
insurance accounts is blocked.
Last Date
Modified
The field shows the date when the insurance

card was last modified. When you change the
information on the insurance card, the program
automatically updates this field to show the
current system date.


5.
On the Posting FastTab, fill in the fields as described in the following

table.
Field
Description
FA Class Code
A fixed asset class code to assign to the

insurance policy. If you select a class code in this
field, the program uses this class by default
every time that you post to this insurance policy.
FA Subclass
Code
A fixed asset subclass code to assign to the

insurance policy. If you select a subclass code in
this field, the program uses this subclass by
default every time that you post to this
insurance policy.
FA Location
Code
A fixed asset location code to assign to the

insurance policy. If you select a location code in
this field, the program uses this location by
default every time that you post to this
insurance policy.
6.
Click OK.
Demonstration: Setting Up an Insurance Card

Demonstration Steps
To set up a new insurance card, follow these steps:
1.

2.
Click New to create a new insurance card.
3.

table. In the No. field, press ENTER.
Field
Value
No.
Description
Fire Insurance
Effective Date
01/01/14
Insurance Type
FIRE
Policy No.
157-254-5678
Annual Premium
15,000.00

5-7

Field
Policy Coverage
Value
2,500,000.00
FIGURE 5.4: INSURANCE CARD FOR FIRE INSURANCE

4.
5-8
Click OK.


Setting Up Insurance Journal Templates
The program automatically creates an FA journal template when you open the
Fixed Asset Journal window. To set up additional journal templates, follow these
steps:
1.

> Fixed Assets > Insurance Journal Templates.
2.
Click New to set up a new insurance journal template.
FIGURE 5.5: INSURANCE JOURNAL TEMPLATES

3.
Fill in the fields as described in the following table.

Field
Description
Name
Type the name of the template.
Description
Type a description of the journal

template.
No. Series
Click the field and select a number series

from the list.
Posting No. Series
Click the field and select a posting

number series from the list.
Source Code
This field is filled in by the program

automatically.
Reason Code
Click the field and select a reason code

from the list.

5-9

4.
Click OK.
Setting Up Insurance Journal Batches

To set up batches under an insurance journal template, follow these steps:
1.
In the Insurance Journal Templates window, select a line with the

insurance journal template for which you want to set up journal
batches.
2.
On the Navigate FastTab, click Batches.
FIGURE 5.6: INSURANCE JOURNAL BATCHES

3.
Click New to create a new journal batch or select one of the empty
lines.
4.
Fill in the fields as described in the following table.

Field
5 - 10
Description
Name
Type a code that identifies the batch.
Description
Type a description of the batch.
No. Series
Select the field to select a number series

other than the default number series that
is entered automatically. Select the
number series, and then click OK to copy
it to the field.


Field
Description
Posting No. Series
Select the field to select a posting

number series other than the default
number series that is entered
automatically. Select the posting number
series, and then click OK to copy it to the
field.
Reason Code
The value in this field specifies a reason

code used to indicate why an entry was
created.
Click the field to open the Reason Code
window, and then select an appropriate
reason code to assign to the insurance
journal batch. In this case the same
reason code is used for all entries posted
from this journal batch.
Note: The journal batch supplies default values if you do not fill in the
corresponding fields on the journal lines.
5.
Click OK.
Default Journal Templates and Batches for Each User

In Microsoft Dynamics NAV 2013, in the FA Journal Setup window, you can set
up a default set of insurance journal templates and batches for each depreciation
book and specify a default set for each user.
These default journal templates and batches are used when you duplicate entries
from one depreciation book to another, create journal lines by running a batch
job (the Calculate Depreciation or Index Fixed Assets batch jobs), duplicate
acquisition-cost entries in the insurance journal, or when the program
automatically posts to the insurance coverage ledger.
To set up default insurance journal templates and batches, follow these steps:
1.

2.
Select a line with the relevant depreciation book, and then, on the
Navigate FastTab, click FA Journal Setup.
3.
Select a line with the relevant user ID, click the Insurance Jnl.
Template Name field, and then select a template to be used by
default for the given user and depreciation book.

5 - 11

4.
Select the Insurance Jnl. Batch Name field, and then select a batch
to be used by default for the given user and depreciation book.
FIGURE 5.7: FA JOURNAL SETUP

5.
Click OK.
Attaching Assets to Insurance Policies

In Microsoft Dynamics NAV 2013, you can attach any asset to an insurance policy.
Attaching fixed assets to insurance policies gives you an easy way to find the
relevant insurance policy for an asset when you want it.
Linking Fixed Assets to Insurance Policies

After you complete the setup of the insurance information, the fixed assets can
be linked to the insurance policies.
You can link one or more assets to a single insurance policy. You can also link one
asset to the same insurance policy with different amounts.
A fixed asset can be attached to the insurance policy in one of the following two
ways:
5 - 12
Post an acquisition cost with the Insurance No. field filled in on the
FA journal or FA G/L journal line or on the purchase invoice.
Post an acquisition cost without filling in the Insurance No. field on

the journal line, and then use the insurance journal to post the
acquisition cost to the insurance coverage ledger.


You can post acquisition cost to the insurance coverage ledger from any of the
following:
Purchase invoice
FA G/L journal
FA journal
Insurance journal
When the Insurance No. field has a value, the Insured field on the Maintenance
FastTab in the Fixed Asset Card window is automatically set to Yes.
After you sell a fixed asset, the program automatically sets the Insured field on
the fixed asset card to No.
Demonstration: Linking a Fixed Asset to an Insurance

Policy When Posting Acquisition Cost Through a Purchase
Invoice
In this demonstration, you create a new fixed asset, and then, when you post the
acquisition cost through a purchase invoice, you link the fixed asset to an
insurance policy.
Demonstration Steps
To set up a new fixed asset, follow these steps:
1.

2.
Click New.
3.
On the General FastTab, in the No. field, press ENTER.
4.
In the Description field, type Warehouse Lift.
5.
On the Lines FastTab, set the Depreciation Book field to COMPANY.
6.
In the FA Posting Group field, click the drop-down list, and select
MACHINERY.
7.
In the Depreciation Starting Date field, set the date to 1/1/14.

5 - 13

8.
In the No. of Depreciation Years field, type 10.

9.
Click OK, to close the Fixed Asset Card window.
Make sure that G/L integration is activated for the acquisition cost in the
COMPANY depreciation book, by clicking Departments > Financial
Management > Fixed Assets > Depreciation Books, opening the depreciation
book card for the COMPANY depreciation book, and then verifying that on the
Integration FastTab, the Acquisition Cost check box is selected.
To post an acquisition cost for the fixed asset and link it to an insurance policy
from a purchase invoice, follow these steps:
5 - 14
1.

2.
Click New.
3.
Press ENTER to have the program fill in the next number for the
purchase invoice
4.
In the Buy-from Vendor No. field, type 30000.
5.
6.
In the Document Date field, type 1/31/14.


7.
In the Vendor Invoice No. field, type 4256.
8.
On the Lines FastTab, in the Type field, click the field and select
Fixed Asset.
9.
In the No. field, click the field and select Warehouse Lift Fixed
Assets.
10. In the FA Posting Type field, make sure that Acquisition Cost is
selected.
11. In the Quantity field, type 1.
12. In the Direct Unit Cost Excl. VAT field, type 17,350.00.
13. Right-click the header on the Lines FastTab, click Choose Column,
add the Insurance No. field, and then click OK.
14. In the Insurance No. field, click the field, and select INS000050.
FIGURE 5.9: PURCHASE INVOICE

15. Click Post.
click Yes.

5 - 15

Linking a Fixed Asset to an Insurance Policy When Posting
Acquisition Cost in an FA Journal or FA G/L Journal
When you post acquisition cost for a fixed asset through an FA journal or FA G/L
journal, you link the fixed asset to an insurance policy by selecting the required
policy in the Insurance No. field on the journal line.
Linking a Fixed Asset to an Insurance Policy Through an

Insurance Journal
If you posted the acquisition cost of a fixed asset without linking it to an insurance
policy, either from the purchase invoice or from one of the FA journals, you can
link the fixed asset to an insurance policy by posting the acquisition cost from an
insurance journal.
For example, if you did not enter insurance number INS000040 in the Insurance
No. field on the purchase invoice for fixed asset FA1500, you can still attach the
insurance policy to the assets acquisition cost from an insurance journal.
To post an insurance journal, follow these steps:
5 - 16
1.

> Fixed Assets > Insurance Journals.
2.
In the Posting Date, type 1/31/2014.
3.
In the Insurance No. field, enter INS000040.
4.
In the FA No. field, enter FA1500.
5.
In the Amount field, type 17,350.00.
6.
In the Amount field in the journal line, enter the acquisition cost of
the asset. For this example, use the previous examples information
for FA1500. Enter FA1500 in the FA No. field, enter INS000040 in the
Insurance No. field, and enter the acquisition cost of 17,350 in the
Amount field.

FIGURE 5.10: INSURANCE JOURNAL

7.
8.
lines?, click Yes.
9.
posted., click OK.

> Fixed Assets > Fixed Assets, and then double-click the line with
the fixed asset FA1500 to open the fixed asset card.
11. To verify the total value insured for the fixed asset, on the Navigate
FastTab, click Total Value Insured.

5 - 17
FIGURE 5.11: TOTAL VALUE INSURED
Monitoring Insurance Coverage

Microsoft Dynamics NAV 2013 provides multiple ways to monitor and analyze the
insurance coverage of the fixed assets that include but are not limited to the
following:
5 - 18
View the Total Value Insured per FA matrix, which shows the amount
of insurance registered with each insurance policy.
View statistics for fixed assets where you can see an overview of the
annual premium, the policys coverage, and the fixed asset value that
has to be insured for the insurance policy.
Run the Insurance - List report to obtain the list of insurance policies
and primary information about each policy.

Run the Insurance - Uninsured FAs report to obtain the list of fixed
assets for which amounts were not posted to an insurance policy.
Total Value per FA Matrix

The Total Value Insured per FA matrix lists all the fixed assets by each policy and
the insured amount.
To view the matrix, follow these steps:
1.

2.
In the Insurance window, on the Home FastTab, click Total Value

Insured per FA.
3.
In the Total Value Insured per FA window, on the Options FastTab,

in the Rounding Factor field, you can select a rounding factor for the
amounts in the columns.
4.
On the Matrix Options FastTab, you can set filters if it is necessary.
FIGURE 5.12: TOTAL VALUE INSURED PER FA

5 - 19

5.
On the Home FastTab, click Show Matrix.
FIGURE 5.13: T. VALUE INSURED PER FA MATRIX
Statistics
The Insurance Statistic window provides an overview of a selected insurance. You
can view the annual premium, the policys coverage, and the total insured value.
You can also use the statistics to analyze the insurance policies and to determine
whether assets are over or under insured. The program compares the policy
coverage amount to the value of fixed assets actually covered by the policy and
shows the resulting amount in the Over/Under Insured field.
To view the insurance statistics, follow these steps:
5 - 20
1.

2.
Select a line with the relevant insurance. For example, select insurance
INS000050.
3.
On the Home FastTab, click Statistics.

FIGURE 5.14: INSURANCE STATISTIC

4.
To view the values that make up the total value insured, click the
amount in the Total Value Insured field to open the Ins. Coverage
Ledger Entries window.
FIGURE 5.15: INS. COVERAGE LEDGER ENTRIES

5 - 21

List of All Insurance Policies
To obtain an overview of all the insurance policies, you can print or preview the
Insurance - List report that displays all the policies and the most important fields
from the insurance cards.
To print the report, follow these steps:
1.

> Fixed Assets > Insurance List.
2.
In the Insurance - List report request window, on the Insurance

FastTab, you can set the filters that you want.
3.
FIGURE 5.16: INSURANCE - LIST REPORT PRINT PREVIEW
Uninsured Fixed Assets

To verify that all fixed assets are assigned to an insurance policy, print or preview
the Insurance Uninsured FAs report. This report displays the individual fixed
assets for amounts that are not posted to an insurance policy.
To print the report, follow these steps:
1.

> Fixed Assets > Uninsured FAs.
2.
In the Insurance Uninsured FAs report request window, on the

Fixed Asset FastTab, you can set the filters that you want.
3.
Click Preview to view the report on the screen, or Print to print it.
5 - 22

FIGURE 5.17: INSURANCE UNINSURED FAS REPORT PRINT PREVIEW
Updating Insurance Information

Insurance details change occasionally: the annual premium is adjusted, coverage
can change, and insurance can expire.
In Microsoft Dynamics NAV 2013, you can update insurance information.
Modifying and Deleting Insurance Cards

Each year when you receive your annual renewal notice, if the rates change, you
have to manually update the value in the Annual Premium field in the Insurance
Card window.
If the information about the coverage amount also changes, you have to update
the Policy Coverage field value to make sure that you analyze the insurance
policy coverage correctly.

5 - 23

Terminating Fixed Asset Coverage from an Insurance
Policy
A fixed assets insurance coverage automatically terminates when you post a
disposal entry to the depreciation book that is selected in the Insurance Depr.
Book field in the Fixed Asset Setup window.
For example, if the Insurance Depr. Book field is set to COMPANY, posting to the
disposal in the TAX depreciation book does not affect the insurance coverage
ledger.
The termination occurs regardless of whether you selected the Automatic
Insurance Posting check box in the Fixed Asset Setup page.
In the following example, fixed asset FA000020 is sold on 01/31/14 for the
amount of 40,000. To terminate the coverage from an insurance policy for this
asset, follow these steps:
1.

> Fixed Assets, and then click FA G/L Journals or FA Journals,
depending on whether the G/L integration for disposal is activated in
the COMPANY depreciation book.
In this example, the FA G/L journal is used, because the G/L integration for
disposal is activated in the COMPANY depreciation book.
2.
In the Fixed Asset G/L Journal window, create a disposal line filling
in the fields as shown in the following table.
Field
5 - 24
Value
Posting Date
1/31/2014
Account Type
Fixed Asset
Account No.
FA000020
COMPANY
FA Posting Type
Disposal
Description
Toyota Supra 3.0 Disposal
Amount
-40,000.00
Bal. Account Type
G/L Account
Bal. Account No.
2910

FIGURE 5.18: FIXED ASSET G/L JOURNAL

3.
Click Post.
4.
When you receive the message Do you want the journal lines?, click
Yes.
5.
posted., click OK.
6.
Close the Fixed Asset G/L Journal window.
7.

Fixed Assets, and then double-click the line with the fixed asset
FA000020 to open the fixed asset card.

5 - 25

The program automatically sets the Insured field on the Maintenance FastTab to
No.

8.
Click OK to close the window.
9.

10. On the Home FastTab, click Total Value Insured per FA.
11. Click Show Matrix to open the T. Value Insured per FA Matrix
window.
Note: The insurance value for the Toyota Supra 3.0 fixed asset no longer
exists.
5 - 26


12. Close the T. Value Insured per FA Matrix and Total Value Insured
per FA windows.
13. In the Insurance window, select the line with the insurance number
INS000020, and then, on the Navigate FastTab, click Coverage
Ledger Entries.
14. Verify that the entry for fixed asset number FA000020 is marked as
disposed.
Correcting Insurance Entries

If an incorrect entry is posted to the insurance coverage ledger, you can correct it
by creating a reclassifying entry in the insurance journal.
To correct an insurance coverage ledger entry, follow these steps:
1.

2.
If a fixed asset was linked to an incorrect insurance number, correct it

by creating two lines in the insurance journal: one line with a plus
amount and another line with a minus amount.
3.
4.
When you receive the message Do you want the journal lines?, click
Yes.
5.
posted., click OK.
The program detaches the fixed asset from the incorrect insurance policy and
attaches it to the correct insurance policy.
Indexing Insurance
When the value of fixed assets is decreased or increased, you have to update the
insurance coverage ledger entries to reflect the actual value of fixed assets. You
can run the Index Insurance batch job to index the value for insurance that is
necessary for fixed assets.
Index Insurances Batch Job

The Index Insurances batch job creates entries in the insurance journal that you
can adjust and post.
In the batch job request window, in the Index Figure field, you specify the index.
For example, enter a decrease of 10% as 90, and enter an increase of 3% as 103.

5 - 27

Demonstration: Indexing Insurance
The value of the companys cars decreased by 5%. In this demonstration you run
the Index Insurance batch job to index the fixed assets with the CAR subclass
code.
The Index Insurance batch job is used to update the value of the covered fixed
assets.
Demonstration Steps
To index fixed assets, follow these steps:
5 - 28
1.

> Fixed Assets > Index Insurance.
2.
On the Options FastTab, in the Index Figure field, type 95.
3.
4.
Do not fill in the Document No. field so that the program uses the
No. Series field of the Insurance Journal batch job when it creates
the indexation journal entries.
5.
In the Posting Description field, type Car Value 2014.
6.
On the Fixed Asset FastTab, set a filter to select the fixed assets to be
indexed. Set the FA Subclass Code field to CAR.


All fixed assets with the FA Subclass Code field on the fixed asset card set to CAR
are selected automatically.
FIGURE 5.20: INDEX INSURANCE BATCH JOB REQUEST WINDOW

7.

5 - 29

The batch job calculates this amount as five percent of the total value insured
from the Insurance Statistics window and creates a line in the insurance journal.
8.

FIGURE 5.21: INSURANCE JOURNAL

9.
Verify that the batch job created entries correctly, and then click Post
to post the insurance coverage ledger changes.
lines?, click Yes.
posted., click OK.
5 - 30

Module Review
In Microsoft Dynamics NAV 2013, you can create insurance policies on the
insurance cards, link fixed assets to these insurance policies, and monitor
insurance coverage for all insurance policies.
You can link a fixed asset to an insurance policy by posting an acquisition cost
with the Insurance No. field filled in on the FA journal, FA G/L journal line, or
purchase invoice, depending on whether the depreciation book attached to the
fixed asset has integration with the general ledger. Or, you can post an acquisition
cost without filling in the Insurance No. field on the journal or purchase line, and
then use the insurance journal to post the acquisition cost to the insurance
coverage ledger and link the fixed asset to an insurance policy.
You can monitor the insurance coverage by using the Total Value Insured per FA
matrix, insurance statistics, and different insurance reports. You should make sure
that the company always keeps all information on insurance updated either
manually or by using the indexation functionality.

5 - 31
5 - 32


Microsoft Dynamics NAV 2013 - 80434 - Fixed Assets

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Microsoft Dynamics NAV 2013 - 80434 - Fixed Assets

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COURSE 80434:

Microsoft Official Training Materials for Microsoft Dynamics

Microsoft Official Training Materials for Microsoft Dynamics

Module 1: FIXED ASSETS SETUP

Microsoft Official Training Materials for Microsoft Dynamics

Fixed Assets in Microsoft Dynamics NAV 2013

Microsoft Official Training Materials for Microsoft Dynamics

Module 4: FIXED ASSETS MAINTENANCE

Module 5: FIXED ASSET INSURANCE

Microsoft Official Training Materials for Microsoft Dynamics

Fixed Assets in Microsoft Dynamics NAV 2013

Microsoft Official Training Materials for Microsoft Dynamics

MODULE 1: FIXED ASSETS SETUP

Fixed Assets setup

Fixed Assets posting group

Fixed Assets journals

Microsoft Official Training Materials for Microsoft Dynamics

Fixed Assets in Microsoft Dynamics NAV 2013

Main assets and asset components

Recording opening transactions

Using duplication lists with depreciation books

Copying fixed assets and Fixed Assets ledger entries

Give a visual overview of a typical fixed asset life cycle.

Describe the fields on the Fixed Assets setup page.

Describe fixed asset posting groups.

Explain depreciation books for fixed assets.

Explain depreciation tables.

Set up fixed assets journal templates.

Set up a fixed asset card.

Set up main assets with asset components.

Explain how to record opening transactions.

Explain how to duplicate entries to depreciation books.

Explain how to copy fixed assets and FA ledger entries.

Microsoft Official Training Materials for Microsoft Dynamics

Module 1: Fixed Assets Setup

Fixed Assets Process Flow

Microsoft Official Training Materials for Microsoft Dynamics

Fixed Assets in Microsoft Dynamics NAV 2013

FIGURE 1.1: FIXED ASSET PROCESS FLOW

Microsoft Official Training Materials for Microsoft Dynamics

Module 1: Fixed Assets Setup

Fixed Assets Setup

FIGURE 1.2: FIXED ASSET SETUP

Microsoft Official Training Materials for Microsoft Dynamics

Fixed Assets in Microsoft Dynamics NAV 2013

Fixed Assets Nos.

Microsoft Official Training Materials for Microsoft Dynamics

Module 1: Fixed Assets Setup

Fixed Assets Posting Groups

FIGURE 1.3: FA POSTING GROUPS

Accumulated depreciation amounts

Acquisition costs on disposal

Accumulated depreciation on disposal

Microsoft Official Training Materials for Microsoft Dynamics

Fixed Assets in Microsoft Dynamics NAV 2013

Use the same G/L accounts as the MACHINERY posting group.

Do not allocate depreciation expenses or other FA posting types.

Open the FA Posting Groups window.

Set up an IT-EQUIP FA posting group by filling in the fields with the

In the navigation pane, click Departments > Financial

In the FA Posting Groups window, create a new line, filling in the

Acquisition Cost Account

Accum. Depreciation Account

Acq. Cost Acc. on Disposal