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R2:
FIXED ASSETS
December 2012
Version 1.0
Contents
Introduction......................................................................................... 3
Audience.............................................................................................. 3
Problems this Demo Addresses............................................................4
Key Benefits and Solutions...................................................................4
Overview.............................................................................................. 5
DEMO 1: Create Fixed Asset with Value Models..................................7
DEMO 2: Fixed Asset Acquisition.......................................................13
Fixed Assets Acqusition Using Proposal in the Fixed AssetS Journal.................................................13
Acquire Fixed Asset from Purchasing................................................................................................16
Record Acquisitions in the Inventory to Fixed Assets Journal...........................................................19
INTRODUCTION
This document examines The Microsoft Dynamics AX 2012 R2 fixed assets module, which enables
the ability to easily setup, maintain, and track the valuation of your fixed assets. You can track
multiple valuations for the same fixed asset by using different depreciation methods and
conventions.
Support has been provided to add fixed assets to the system in multiple ways. These include adding
the fixed asset when recording a vendor invoice and through journal entry in the fixed assets,
accounts payable and general ledger modules. Parameters around acquisitions, valuation, and other
business policy rules can be defined at the module level and for each value model.
Depreciation proposals can be run for each depreciation frequency, providing for fast and accurate
depreciation journal entry creation. Additionally, workflow and budget controls can be enabled to
guarantee accuracy and control of the processes.
Throughout the processes, a complete history is maintained. This includes an accurate,
comprehensive audit trail between the fixed assets transactions and their corresponding general
ledger entries. Reports, such as fixed asset transactions and fixed asset balances, can be
generated, and up-to-date inquiries can be performed to track your fixed assets activities.
AUDIENCE
The demonstration in this document should be used to show the value of Microsoft Dynamics AX
2012 R2 fixed assets to a business decision maker (BDM) and accounting personas. The following
role examples represent key decision makers, selection process personnel and influencers, and
evaluators:
Accounting Manager (Phyllis)
Phyllis manages the accounting department by processing general ledger transactions, reviewing
and approving transactions, and reviewing aging reports. She also makes sure that her team
accurately completes financial procedures on time.
Accountant (Cassie)
Cassie either does the books (for a small business), or audits the books (for any size company). In
an internal role as an employee, Cassie handles accounting duties in a complex finance
department.
Accounts Payable Coordinator (April)
April receives vendors invoices for company fixed assets and posts acquisition transactions from
purchasing.
Fixed
Fixed
Fixed
Fixed
Fixed
asset
asset
asset
asset
asset
setup
acquisition
depreciation
disposal
reporting
Basic fixed asset details, such as location, type, major type, property type and property group,
and user-defined reference data and notes.
Technical information about the fixed asset, such as the make, model, and maintenance dates
and condition.
Insurance information for the fixed asset, such as the insurance vendor, policy number and
amount, the insured value, and the replacement cost.
You can group fixed assets to categorize information in a meaningful way.
Accounting information, such as default financial dimensions, can be assigned to fixed assets
value models.
Associating the fixed asset to multiple value models where the value model determines the
depreciation method, convention, and posting layer.
Associating the fixed asset to multiple depreciation books where the association determines the
depreciation method and convention, but does not integrate into the general ledger.
Record fixed asset acquisition amounts through vendor invoices or vendor invoice journals.
Record fixed asset acquisition amounts through general journals or fixed asset journals.
Generate and edit depreciation proposals based on depreciation method, convention, and
frequency.
Record adjustments to the acquisition costs of the asset.
Record adjustments to the depreciation of an asset.
Record additional valuation adjustments to an asset, such as write ups, write downs and
revaluations.
Transfer an asset from one financial dimension to another, such as one department to another
department.
Split an asset to another asset.
Record additional activity to an asset that does not affect valuation or service life.
Record the disposal of an asset by sale or scrap. This includes any realized gain or loss from the
disposal of the asset.
FLEXIBLE FORECASTING
You can record the forecast of your fixed asset acquisitions and depreciations in a fixed asset
budget journal entry. The fixed asset budget journal entry can also update the ledger budget
register. An inquiry and a report are available to view the fixed asset budget entries
Domain: CONTOSO
User: Administrator
Password: pass@word1
OVERVIEW
This demo introduces the basic steps required to configure, maintain and retire Fixed Assets
in Microsoft Dynamics AX 2012 R2. The following diagram provides an overview of the major
concepts covered AX 2012 R2 fixed asset module functionality.
This Demo script introduces you to key features that are available to users of the Fixed Assets
module in AX 2012 R2.
In the Status field on the asset's Value models form, the field at first uses a value of Not
yet acquired. The other statuses are assigned manually or automatically as follows:
Open - Set when an asset is acquired.
Suspended - Assigned manually. This status is used for periodic suspension of depreciation
calculation.
Closed - Assigned to depreciable assets when the net book value becomes zero.
Sold - Assigned to assets disposed of by sale.
Scrapped - Assigned to assets disposed of as scrap through a journal.
The selections made in definition of Fixed Asset Group resulted automatic assignment of
the Value models. Value models determine what financial information is recorded and
stored for a fixed asset.
In order to demonstrate the concept of Value models, close currently opened Value models,
relevant for newly being set up Fixed Asset, and move to a Fixed Asset FURN_FIX-000008
available in sample data and open its Value models.
Acquisition date field, specify a date that will be used for the Acquisition proposal in the
Fixed asset journal and General journal. The default date will be the date when the fixed
asset record is entered in the Fixed assets form. Change the date, if it is necessary. When
an acquisition is posted, the acquisition date is updated with the date of the actual
acquisition.
Acquisition price field, specify an amount that will be used for Acquisition proposal in the
Fixed Assets journal and General journal. Only fixed assets that are set up with an
acquisition price are available in the acquisition proposal. The acquisition price is updated
every time that an acquisition or an acquisition adjustment is posted for the fixed asset/value
Microsoft Dynamics AX 2012 R2: Fixed Assets
10
model.
In the Acquisition method field, select how the fixed asset is acquired. Acquisition methods
define the ways assets are obtained, such as through purchases or donations, and can be
entered into the Fixed asset value models form or the Asset depreciation book form.
In the Issue field group, the following applies:
o The Disposal date field shows the date when the fixed asset is sold or scrapped.
o The Sales value field shows the selling price of the fixed asset. The field is updated
when the fixed asset is sold.
o In the Replacement date field, enter the date planned to replace the fixed asset. The
default date is the acquisition date plus the service life.
In the Provisions field group, in the Type field, click the arrow to make a selection. This
setup starts the functionality of reserves for profit on assets.
o
o
In the Depreciation field, the check box is selected based on the Value model setup. The
check box can be cleared or selected manually. Clearing the check box is useful if the asset
has not yet been put in service and a company wants to guarantee that depreciation is not
calculated.
In the Depreciation run date field, the field displays the expected starting date for the first
depreciation calculation. This date defaults based on the placedin-service date and selected
depreciation convention. No depreciation can be calculated and posted before the placed
in service date. Therefore, if the depreciation is set up to start before the placed in service
date, the first depreciation calculated after the placed in service date will also include the
depreciation before the placed in service date.
In the Service life field, the remaining life of the asset is displayed in years.
In the Expected scrap value field, enter the expected value below which Fixed Asset will
not be depreciated.
Selected option Create depreciation adjustments with basis adjustments means that if
there is an acquisition adjustment posted after depreciation run, deprecation adjustments will
be posted also.
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Additional information
Purchase/Sale tab Displays
information about the purchase or
sale of the asset. The fields here are
system populated.
Vendor account The vendor
account number is updated
automatically when a fixed asset is
acquired by using Vendor invoices.
Purchase order The identification
number of the purchase order.
Invoice The identification number
of the vendor invoice.
Customer account The customer
account is updated automatically
when a fixed asset is disposed of
externally by using a free text
invoice.
Invoice Identification of the free
text invoice.
17. Open Financial Dimensions
tab, and then set Default financial
dimension BusinessUnit to 002
Auto.
The value models associated with the selected fixed asset, and also many of the fields of the
value model, are automatically populated based on the value models set up for the selected
Fixed asset group. These suggested value models can be used, or a user can select different
value models:
If a company only records asset transactions for accounting purposes; one value model will
typically be sufficient.
Microsoft Dynamics AX 2012 R2: Fixed Assets
12
If tax transactions are also recorded, an additional value model must be available; typically
one that uses the tax posting layer.
Fixed asset acquisitions can be created by using the Proposals functionality in the Fixed Assets
journal. To generate a Proposal, fixed assets must be set up with the expected acquisition price
already entered.
Before recording the acquisition, the fixed asset should be created (Ref Demo 1). To use Proposals
to record the acquisition of assets, perform the following steps.
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item and
the price.
10.Click
the Post
button, and then click
Post in the asset journal.
11.On the Infolog form, click Close.
12.Close all the forms. Fixed Asset
FUNR_FIX-000010 has been
acquired.
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You can present the following information about options to acquire fixed assets from the Accounts
Payable module.
As shown in the following screen shot, you can enable an option in Fixed Asset parameters that
allows fixed assets to be acquired from purchase orders.
Fixed assets can be acquired from the level of purchase order. An acquisition transaction is posted
after a vendor invoice is posted. After you select a purchase order/invoice option, you can create a
fixed asset in the Line details section of the Fixed Asset tab by selecting the New fixed asset?
check box, as shown in the following screen shot.
In following scenario, before recording the acquisition, the new fixed asset should be created
(prepare for this option executing Demo 1 and create a new fixed asset in the fixed asset group
COMP).
To record an asset acquisition by using the Vendor Invoice journal, perform the following steps.
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When the Inventory to Fixed Assets journal is posted, one or more inventory items are taken from
inventory and transformed into a fixed asset.
Note: To set up the Inventory to Fixed Assets journal, click Inventory and warehouse
management > Setup > Journals > Journal names, inventory. In the Journal type field, enter
Fixed assets.
End of Demo Scenario 2
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Note: To summarize monthly depreciations into one journal line, on the Depreciation
proposal form, you can select the Summarize depreciation check box. For example, if the
To date is December 31, 2013, and there is no depreciation posted since July 1, 2013, the
amounts for all depreciation from July through December are summarized on one journal
line, and the Date field on the proposed journal lines is then set to December 31, 2013.
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Depreciation proposals consider only fixed assets that are depreciable with the status of Open.
Depreciation proposals calculate depreciation for depreciation periods in which the depreciation has
not yet posted.
Depreciations for assets that have not yet been acquired or for projected depreciations can be
created by using Proposals and specifying a Posting date in the future.
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Note: Disposal sales and disposal scrap can be posted using the Fixed Assets journal.
Disposal scrap is considered an internal transaction, only journals are used to post disposal scrap.
Free text invoicing cannot be used.
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This transaction reverses the Provision for reserve transaction. Depending on the age of the
reserve, the Account field might have to be filled in manually. This is the case if the reserve can
still be used against an acquisition of a new asset. If the reserve is too old according to the setup of
the Provision type, the account for revenue recognition of reserves that are not transferred will be
suggested by the system.
End of Demo Scenario 4
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As shown in the following screen shot, this report displays fixed assets transactions with a date,
voucher number, transaction types, and amounts. It also provides summary information about
acquisition amount and the current net book value of fixed assets.
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As shown in the following screen shot, this report displays a list of fixed assets movements on
different transaction types during the selected time period.
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As shown in the following screen shot, the report displays fixed assets balances with amounts per
each transaction type.
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As shown in the following screen shot, this report displays a comparison of selected depreciation
books with Cost basis, Year to date depreciation, accumulated depreciation, and net book value for
each asset.
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Depreciation profiles
Fiscal calendar
Depreciation books
Value models
Fixed asset groups
Posting profiles
DEPRECIATION PROFILES
Depreciation profiles are used to define rules for calculating depreciation. Creating profiles is
required for depreciable assets. This usually refers to tangible assets, but intangible assets can also
use depreciation profiles. Financial assets, such as shares of stocks or bonds, are considered nondepreciable. Therefore, depreciation profiles are not required for these assets. The following
methods are available for depreciation calculation:
Note: The preceding list of depreciation methods does not include country-specific extensions.
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DEPRECIATION BOOKS
To set up a Depreciation book, perform the
following steps.
1. On the Navigation Pane, click Fixed
assets, click Setup, click
Depreciation, and then click
Depreciation books.
2. Click the New button to create a
new depreciation book.
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VALUE MODELS
Value models are necessary for fixed assets. Value models have the following characteristics:
They contain and connect all financial information about fixed assets.
They achieve complete setup of depreciation for an asset.
Each value model assigns an additional life cycle to the asset.
Each asset can have an unlimited number of value models attached.
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MAJOR TYPES
Several fields are available on the General
FastTab of the Fixed asset groups form
that can be used to better classify the
asset, especially for reporting. The Major
type field requires some setup.
To create a Major type, perform the
following steps.
1. Click Fixed assets, click Setup, and
then click Major types.
2. Click the New button to create a
new record.
3. Enter a unique identifier in the
Major type field: OFFICE.
4. In the Description field, enter a
short description for the Major type:
Office equipment.
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POSTING PROFILE
1. On the Navigation Pane, click Fixed
assets, click Setup, and then click
Fixed asset posting profiles.
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Ledger accounts must be set up for each value model that is used for posting. The same
ledger accounts can be used for several or even all value models.
The user can set up accounts as detailed as one account setup for each asset, and each
value model for each type of asset transaction.
Assets that belong to the same group are frequently posted to the same accounts, whereas
the option to set up accounts for each asset is rarely used.
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SETTING UP DISPOSAL
The setup is the same whether
creating a setup for Sale or Scrap. To
set up the requirements for disposal,
perform the following steps.
1. On the Navigation Pane, click Fixed
assets, click Setup, click Fixed
asset Posting profiles, click the
Disposal button, and then click Sale
or scrap.
2. Click the New button to add a line.
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Note 1: The default value of the Sales value type column is All because the same ledger
accounts are frequently used for the disposal, whether the fixed asset was disposed of with a profit
or loss. However, to set up ledger accounts for the same value model and the same fixed asset
differently for disposals with profit versus disposals with loss, select Gain and Loss in the Sales
value type field.
Note 2: To post asset disposals, the following setup is required:
For each Value model that is used in disposal of assets, define a Main account and Offset
account to use with the net book value transaction type in the Post value field.
For each Value model that is used in disposal of assets, define the Main account and Offset
account to use for Disposal - sale or Disposal - scrap (or both) in the Fixed asset
Posting profiles form.
End of Optional Demo Scenario 6
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DISCLAIMER
2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista, Microsoft Dynamics and
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The information herein is for informational purposes only and represents the current view of Microsoft
Corporation as of the date of this presentation. Because Microsoft must respond to changing market
conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot
guarantee the accuracy of any information provided after the date of this presentation. Microsoft may make
changes to specifications and product descriptions at any time, without notice.
This content is provided as-is. Information and views expressed in this content, including URL and other
Internet Web site references, may change without notice. Some examples depicted herein are provided for
illustration only and are fictitious. No real association or connection is intended or should be inferred.
Sample code included in this presentation is made available AS IS. THE ENTIRE RISK OF THE USE OR THE
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