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Introduction 0-1
Welcome........................................................................................................................................... 0-1
Microsoft Dynamics Courseware Contents ......................................................................... 0-2
Documentation Conventions .................................................................................................... 0-3
Student Objectives ....................................................................................................................... 0-4
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Fixed Assets in Microsoft Dynamics® AX 2012
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INTRODUCTION
Welcome
We know training is a vital component of retaining the value of your Microsoft
Dynamics® AX 2012 investment. Our quality training from industry experts keeps
you up-to-date on your solution and helps you develop the skills necessary for
fully maximizing the value of your solution. Whether you choose Online Training,
Classroom Training, or Training Materials; there is a type of training to meet
everyone's needs. Choose the training type that best suits you so you can stay
ahead of the competition.
Online Training
Classroom Training
Training Materials
Training Materials enable you to learn at your own pace, on your own time with
information-packed training manuals. Our wide variety of training manuals
feature an abundance of tips, tricks, and insights you can refer to again and
again:
Look for a complete list of manuals available for purchase on the Microsoft
Dynamics website: www.microsoft.com/Dynamics.
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Fixed Assets in Microsoft Dynamics® AX 2012
Within the Microsoft Dynamics Training Materials you find a variety of different
exercises. These exercises are offered in three levels to accommodate the variety
of knowledge and expertise of each student. We suggest you try the level three
exercises first, if you need help completing the task look to the information in the
level two exercises. If you need further assistance each step of the task is outlined
in the level one exercise.
Challenge Yourself!
Level 3 exercises are the most challenging. These exercises are designed for the
experienced student who requires little instruction to complete the required task.
Step by Step
Level 1 exercises are geared towards new users who require detailed instructions
and explanations to complete the exercise. Level 1 exercises guide you through
the task, step by step, including navigation.
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Introduction
Documentation Conventions
The following conventions and icons are used throughout this documentation to
help you quickly and effectively navigate through the information.
CAUTION: Cautions are found throughout the training manual and are preceded
by the word CAUTION in bold. Cautions are used to remind you of a specific result
of a specific action which may be undesirable.
HINT: Hints are found throughout the training manual and are preceded by the
word HINT in bold. Hints are used to suggest time-saving features or alternative
methods for accomplishing a specific task.
NOTE: Notes are found throughout the training manual and are preceded by the
word NOTE in bold. Notes are used to provide information which, while not
critical, may be valuable to an end user.
EXAMPLE: Examples are found throughout the training manual and are preceded
by the word EXAMPLE in bold. Examples bring to light business scenarios that may
better explain how an application can be used to address a business problem.
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Student Objectives
What do you hope to learn by participating in this course?
1.
2.
3.
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MODULE 1: INTRODUCTION
Module Overview
Businesses today need a software package that can record and track the details
of financial and non-financial activity for fixed assets. To do this, a fully integrated
solution is required. Microsoft Dynamics® AX 2012 provides the functionality to
meet these requirements.
Objectives
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Fixed Assets in Microsoft Dynamics® AX 2012
• Fixed assets
• Current assets
It is important to define the differences between fixed and current assets before
discussing how to account for each. The classification of assets is not based on
the physical nature of the asset, but instead on the purpose of the ownership of
the asset.
Current assets are those that a company depletes in the typical course of
business over the next year or business cycle, whichever is shorter. Examples of
current assets include the following:
• Cash
• Accounts receivable
• Prepaid expenses
• Inventory
Fixed assets are assets which a company owns and uses in the day-to-day
operations of the company and are not intended for resale to customers. The
useful lives of these assets spans multiple years. Examples of fixed assets include
the following:
• Automobiles
• Computers
• Machinery
• Buildings
• Copyrights or trademarks (a special class of assets frequently called
intangible assets)
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Module 1: Introduction
Based on these definitions, the same asset may be classified as a fixed asset in
one company and as a current asset or inventory item in another. An example of
a company where the same asset may be classified as both fixed and current is an
automobile dealership. The vehicles held for sale are inventory items in addition
to current assets, whereas the manager's company car is a fixed asset.
The Fixed assets module provides subledger detail that supports a controlling
account in General ledger the same way the Accounts receivable and Accounts
payable modules provide subledger detail to support the associated controlling
accounts in General ledger. This relationship between the subledgers and the
General ledger is achieved through setups where specifications are provided for
one or more ledger accounts.
Because most fixed assets represent a significant investment for companies, the
ability to track and keep sound financial records on fixed assets is important.
All fixed assets are treated as balance sheet transactions in the year they are
acquired. This means the asset is posted as an asset to a balance sheet account.
Fixed assets represent permanent value and not just expenditures in the year of
acquisition.
Fixed assets are typically depreciated, or expensed, over their useful life.
Additional adjustments may also be necessary. The most common adjustment,
known as depreciation, is an entry that expenses the part of the asset’s original
purchase price that was used during the year.
Various methods are used for depreciation. One of the methods, straight line, is
generally computed by taking the costs of the acquisition and dividing those
costs by the expected service life of the asset. The rules that determine the
calculation of depreciation are usually defined in the local legislation.
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For all assets, the value of the asset in the balance sheet (net book value) should
be reviewed at least one time each year. You can do this monthly, quarterly,
semi-annually, or annually. Together with this value review, an adjustment of the
value of the asset in the balance sheet (write-down or write-up) may be
necessary. The write-down or write-up amounts are usually caused by some
extraordinary occurrences in the market that affect the price if the company were
to reacquire the asset. For example the increased price of a building may be
caused by the real estate market. Accounting principles in some countries or
regions prohibit the write-up of assets.
When an asset no longer has use to the company, because it is either being sold
or scrapped, the asset must be removed from the accounting books. Therefore,
the original acquisition price and accumulated depreciation of the asset are
reversed, and any surplus or loss from the disposal is posted to the profit and
loss statement.
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Module 1: Introduction
Structure
This section covers the organization of the Microsoft Dynamics AX 2012 Fixed
assets module. This includes the following:
For management of fixed assets, a company needs a Fixed assets form, where all
information (both financial and non-financial) about the asset is kept.
• Acquisition price
• Value adjustments
• Depreciation
• Budget
• Tax information
• Technical information
• Location
• Bar codes and asset numbers
• Insurance information
• Maintenance data
• Relations between other assets
• Pictures, files and documents related to the asset
• Acquisition
• Depreciation
• Value adjustments (such as write-down)
• Disposal by sale or scrap
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Fixed Assets in Microsoft Dynamics® AX 2012
The Fixed assets module has the same options available in other Microsoft
Dynamics AX 2012 modules including:
• Common
• Journals
• Inquiries
• Reports
• Periodic
• Setup
Expanding the Journals folder shows there are four journals available for
transaction entry in the Fixed assets module:
• Fixed assets
• Inventory to fixed assets
• Fixed asset budget
• Depreciation book journals
In Inquiries and Reports, information about assets and asset transactions can be
found and printed. This can be used for analysis, management of fixed assets and
for financial reporting.
Periodic jobs make it easier for the user to perform many similar asset updates
such as assigning bar codes.
Setup is an important part of each module. In Setup, the user decides which
functionality is used and how the module operates.
1. The Fixed asset form (table) in a Fixed asset module includes financial and
non-financial information. List up to seven non-financial pieces of
information that may be recorded.
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Module 1: Introduction
Integration
At a minimum, a Fixed asset module is integrated to the General ledger. All asset
transactions posted in the Fixed asset module must also update the asset values
in the company's chart of accounts.
General Ledger
The integration to the General ledger is the minimum integration point required
and is the most important for Fixed assets.
In General ledger, the value of all fixed assets is usually summarized on some
ledger accounts necessary for financial reporting.
• Accounts in the balance sheet show the value of the fixed assets.
• The profit and loss statement includes accounts for depreciation and
adjustments of individual asset values (write-ups or write-downs)
during the particular fiscal year.
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These few accounts can summarize the value of hundreds of assets and several
hundreds or thousands of asset transactions. The integration of the Fixed assets
module to the General ledger is comparable to the integration of Accounts
Receivable to the General ledger, in that summary or control accounts in General
ledger are used.
The integration of the Fixed assets module to the General ledger is identified by
Fixed asset posting profiles. This is created in the Setup menu by clicking Fixed
assets, then clicking Setup, and then clicking Fixed asset posting profiles. The
Fixed asset parameters form controls integration into several modules within
Microsoft Dynamics AX 2012.
Purchase Order
Integration of the Fixed assets module to the Purchase order module is required
when purchase orders are used for asset acquisitions. When you use purchase
orders with fixed assets, there are three main methods by which recording asset
acquisitions are integrated between the Purchase order module and the Fixed
assets module:
• The user first creates a fixed asset in the Fixed assets module, and
then records the acquisition on the purchase order line. Absent any
changes to the Fixed asset parameters, this is the default method.
This integration requires no special setup; integration is achieved
when the following steps occur:
o The Fixed asset parameters are left unmodified and as
configured by the initial installation of Microsoft Dynamics AX
2012.
o The user enters a purchase line with an asset Transaction type,
Fixed asset number, and Value model.
• The fixed asset is created automatically at the time that the users
posts the purchase order product receipt or vendor invoice,
depending upon the settings in the Fixed assets parameters form.
The acquisition is recorded when the user posts the vendor invoice.
• The user creates the fixed asset automatically at the time that the
purchase order product receipt or vendor invoice is posted,
depending upon the settings in the Fixed assets parameters form.
The acquisition is recorded later, by using the fixed assets journal.
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Module 1: Introduction
Inventory
The integration of the Fixed assets module to the Inventory management module
is used for two kinds of asset acquisitions:
• Purchase orders
• Self-constructed property (asset assembly)
When assets are purchased from external sources, inventory items may be used
as reference. The company can also build assets internally. Because of the
integration with inventory, the user can take items out of the stock and assemble
them into assets.
Special fixed asset posting accounts are used to activate integration to the
Inventory module. Users have to be aware of the influence the Fixed assets
module may have on inventory value. Additional explanation of inventory
valuation is covered in a later lesson.
Accounts Payable
The Accounts payable module provides several data entry options (fields) for
recording vendor invoices. When recording an asset acquisition, some of these
fields are used for entry of the asset acquisition, for example the asset number,
transaction type, and more.
Using the default parameter settings in Fixed assets and Accounts payable, no
setup is necessary for integration, because each vendor invoice entered into a
journal can have an asset Transaction type. This automatically updates the Fixed
assets module and the General ledger.
Accounts Receivable
The Accounts receivable module is used to record asset transactions when an
asset is sold to an external customer and an invoice must be issued for its
disposal. For asset sales, the functionality of Free text invoicing is used. In
Accounts receivable, the Fixed asset number and Value model assigned to the
invoice line carries the integration to the Fixed assets module. Therefore, no
setup is necessary for the integration of the Accounts receivable module to the
Fixed assets module.
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Fixed Assets in Microsoft Dynamics® AX 2012
Integration Summary
The following table summarizes the integration of Fixed assets.
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Module 1: Introduction
Module Review
This lesson introduced the basic concepts of Fixed assets. The lesson also
discussed how Microsoft Dynamics AX 2012 assists companies in the basic
tracking of fixed assets and how to integrate into the other financial modules.
One additional highlight mentioned in the lesson is how important is it to
maintain sound financial records as they relate to a company's fixed assets.
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Fixed Assets in Microsoft Dynamics® AX 2012
Structure
1. The Fixed asset form (table) in a Fixed asset module includes financial and
non-financial information. List up to seven non-financial pieces of
information that may be recorded.
MODEL ANSWER:
1. Technical information
2. Location
4. Insurance information
5. Maintenance data
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Module 1: Introduction
MODEL ANSWER:
Integration between the Fixed asset module and General ledger is achieved
when all asset transactions posted in the Fixed asset module also update the
asset values in the company's chart of accounts.
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MODULE 2: SETUP PROCEDURES
Module Overview
This chapter focuses on the setup procedures that are required for the Fixed
assets module. The materials presented include the system, module, and some
country or region-specific setup features that are available for Microsoft
Dynamics® AX 2012 Fixed assets. Several labs are available in this course to help
reinforce the main concepts.
Objectives
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Fixed Assets in Microsoft Dynamics® AX 2012
To record fixed asset transactions using journals, you must create at least one
journal name using the journal type Post fixed assets in the setup of the General
ledger module. If budgets for fixed assets are required, you must also create a
journal name that uses the journal type Fixed asset budget.
If the company must post book and tax transactions, the company must set up an
additional journal name that uses the journal type Post Fixed assets. This is
necessary because each journal name can only be set up to post into one posting
layer at a time.
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Module 2: Setup Procedures
To add an Inventory management journal name from the main menu, follow
these steps:
Main Accounts
Full integration of Fixed assets with the General ledger requires the following:
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To set up General ledger accounts from the Navigation Pane, click General
ledger, click Common, and then click Main accounts.
The Main accounts form in the figure includes several Fixed asset ledger
accounts. Depending on the complexity of the Fixed asset register and the
company requirements for financial reporting, a company might have to set up
several accounts for asset values in the balance sheet. However, the balance sheet
only needs one account for setting up the integration.
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Module 2: Setup Procedures
Number Sequences
The following three options are available for assigning numbers to Fixed assets:
When you set up Fixed asset groups, a default number sequence for bar codes
can be selected. When a Fixed asset is set up that is a member of a Fixed asset
group, the bar code number can automatically be assigned, depending on the
system setup.
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4. In the Text field, free form text can be entered or variable codes can
be used to assign system text. The following table displays a list of
variables to use.
Variable code System text for Fixed System text for Fixed
assets – posting, ledger assets – reversal of reserve
%1 Transaction date Transaction date
%3 Voucher Voucher
%4 Asset Asset of the reserve
%5 Fixed asset group Value model of the reserve
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Module 2: Setup Procedures
2. There are two steps outlined in the chapter for full integration of Fixed assets.
What are the two steps?
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Ken is the Controller for Contoso. Ken has to set up ledger accounts to use for
transactions that relate to the company vehicles that Contoso is purchasing.
Challenge Yourself!
• Create acquisition (current and prior year), accumulated depreciation
(prior year), disposal (current and prior year), and depreciation
expense accounts.
• Change the Account name for the current year's accumulated
depreciation ledger account 180280.
• Use the information in the following table when you create or
change the accounts.
Step by Step
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Ken is the Controller for Contoso. Ken wants to set up a unique number sequence
to use for numbering the company vehicles that Contoso is purchasing.
Challenge Yourself!
Set up a number series that can be used for the vehicles. Use the information in
the table to create the number sequence.
Field Value
Number sequence code CARS
Name Company vehicles
Smallest 1
Largest 999999
Next 1
Format CAR######
Continuous Selected
Step by Step
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Module 2: Setup Procedures
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Most of the basic setup steps covered in this section are accessed by clicking
Fixed assets, and then clicking Setup. The sequence of setup steps used in this
section, although optional to follow, serves as a practical suggestion for
efficiency. The standard steps are as follows:
• Depreciation profiles
• Fiscal calendar
• Depreciation books
• Value models
• Fixed asset groups
• Posting profiles
• Parameters
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.
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Module 2: Setup Procedures
Most companies use one or more of the straight-line methods, one or more of
the reducing balance methods, or the manual method for depreciation
calculations. Regardless of the method that is used, the rationale for all methods
is to allocate or accrue the depreciable value of the asset into accounting periods.
The depreciable value of the asset is the acquisition price reduced by a scrap
value, if any. Many Depreciation profiles with the same depreciation method for
different calculations can be created.
1. From the Navigation Pane, click Fixed assets, click Setup, click
Depreciation, and then click Depreciation profiles.
2. Click the New button to create a new depreciation profile.
3. In the Depreciation profile field, enter text to uniquely identify the
profile.
4. In the Name field, enter a name that describes the profile.
5. In the Method field, select a depreciation method. The available
methods are listed in the table in the next section, and are described
in the Depreciation methods content in this course.
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The preceding table indicates the remaining fields that display based on the
depreciation method selected.
The available options that display in the Period frequency field depend on
the selection in the Depreciation year field.
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Module 2: Setup Procedures
Fiscal Calendars
There is no limit to the number of fiscal calendars that you can create, and no
limit to the number of fiscal years that can be created for a fiscal calendar. Each
fiscal calendar is independent of your organization, and can be used by multiple
legal entities in the organization.
You can create and delete fiscal calendars, fiscal years, and periods in the Fiscal
calendars form. To access the Fiscal calendars form, click General ledger, click
Setup, and then click Fiscal calendars.
Additional Reading: For more information about the Fiscal calendars form,
refer to the Financials I in Microsoft Dynamics AX 2012 course.
Fiscal calendars are used with fixed asset depreciation, financial transactions, and
budget cycles. When you create a fiscal calendar, you can use it for multiple
purposes. You can select a fiscal calendar for a value model or depreciation book,
and that fiscal calendar will be used by the fixed assets that use the selected
value model or depreciation book. You can select from any fiscal calendar that is
defined in the Fiscal calendars form.
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The Upgrade fixed asset calendars form is available from the Upgrade
preprocessing checklist.
Note: When you upgrade fixed asset calendars, each new fiscal calendar must
have a unique name.
1. Review the list of companies that use fixed asset calendars, and then
review the names of the fixed asset calendars in the Calendar name
column. If all the calendar names in the Calendar name column are
unique, you do not have to make any changes.
2. If two or more calendars have the same name in the Calendar name
column, a new name must be assigned so that each calendar name is
unique. For each duplicate calendar name, a new name is suggested
in the New name column. You can change these suggested names.
3. When you are finished, click Set to ready for upgrade to upgrade
the fixed asset calendars to fiscal calendars.
Depreciation Books
You can use depreciation books to track depreciation for tax or other non-
financial purposes without affecting the General ledger. Multiple Depreciation
books can be set up and used to track, for example:
• Federal tax
• State tax
• Alternative Minimum Tax (AMT)
A company can use this feature to set up and run one depreciation method for
book purposes and one or more additional depreciation method(s) for tax
purposes.
At Contoso, the controller and the accountant must manage the depreciation for
their Fixed assets. For tax purposes, Contoso uses different depreciation methods
(depending on the tax authority) than the method that is used for accounting
purposes.
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Module 2: Setup Procedures
Because Microsoft Dynamics AX 2012 only supports one tax layer, the controller
turns on the new depreciation book functionality. By doing this, he or she can
define an unlimited number of books for asset management that do not post into
their General ledger. The accountant then sets up all the necessary depreciation
books for the company's assets.
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12. In the Calendar field, select the calendar for this depreciation book.
The following advantages are gained by linking the Depreciation
book to its own calendar:
o Until the periods are closed for a specific Depreciation book, the
depreciation can be rerun as many times as necessary. This is
useful if the wrong Depreciation convention is applied to the
assets.
o The existing depreciation amounts for the period being rerun are
deleted.
13. Select the Allow net book value higher than the acquisition costs
check box so that the net book value for an asset can exceed the
acquisition costs for the asset.
14. Select the Allow negative net book value check box so that the net
book value amount for an asset can be negative.
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.
1. From the Navigation Pane, click Fixed assets, click Setup, and then
click Value models.
2. Click the New button to add a new line.
3. In the Value model field, enter a name to identify the value model.
4. In the Description field, enter text that gives more information about
the value model.
5. Select the Depreciation check box if assets with this value model are
depreciable.
6. In the Depreciation profile field, select a Depreciation profile for the
value model.
7. In the Alternative depreciation profile field, select an Alternative
depreciation profile for the value model. The alternative depreciation
profile is used when two depreciation methods are combined
(through statutory regulations) and a company can post the highest
depreciation.
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Module 2: Setup Procedures
Note: Fixed asset transactions can be recorded in journals only for value models
that use the same posting layer as defined for the journal name. For example, if the
journal name is for the Tax posting layer, value models for the Current or
Operations posting layers are not visible for the journal because they cannot be
posted in the journal.
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The Major type field requires some setup. To create a Major type, follow these
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.
4. In the Description field, enter a short description for the Major type.
1. On the Navigation Pane, click Fixed assets, click Setup, and then
click Fixed asset groups.
2. Click the New button to add a line.
3. In the Fixed asset group field, enter a code to identify the Fixed
asset group.
4. In the Name field, enter a name for the Fixed asset group.
5. In the Type field, click the arrow to select a type to assign to the
Fixed asset group. The following choices are available:
o Tangible
o Intangible
o Financial
o Land and buildings
o Goodwill
o Other
6. In the Major type field, select a top-level asset classification for
reporting only.
7. In the Autonumber Fixed assets field, select the check box to
indicate that Microsoft Dynamics AX 2012 creates the numbers for
the items.
8. In the Number sequence code field, select the Number sequence
code to use when assets are autonumbered.
9. In the Autonumber bar codes and Bar code number sequence
fields, make selections for bar codes the same way as for numbers.
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Module 2: Setup Procedures
10. In the Property type field, select the type for fixed assets with the
group:
o Fixed asset – Regular assets, to be processed usually.
o Continuing property – Property that exists for inventory purposes
only. For example, telephones, radios, or mobile devices which
fall below the capitalization threshold. Typically, enter a service
life of zero (0) for continuing property assets from the valuation
report that reconciles with the general ledger.
o Other – Intangible assets that must display separately on the
balance sheet.
The most important part of the Fixed assets group setup, is the allocation of
value models to each particular Fixed asset group. This setup suggests the
number of financial life cycles for the asset and set up depreciation for the asset.
To allocate value models to the Fixed asset group, follow these steps.
1. From the Fixed assets group form, click the Value models button.
2. Click the New button to add a line.
3. In the Value model field, select a Value model. This selection
populates most fields on the form.
4. Select the Depreciation check box to indicate depreciation is
calculated.
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Fixed Assets in Microsoft Dynamics® AX 2012
There are two choices for service life entries - enter data into the Depreciation
periods field and let Microsoft Dynamics AX 2012 calculate the Service life, or
enter data into the Service life field and the Depreciation periods calculate.
Posting Profile
You can use the posting profile in the Fixed assets module to define the
integration of Fixed assets to the General ledger. Correct setup of posting profiles
is important to ensure correct ledger transactions and accurate financial
reporting.
1. On the Navigation Pane, click Fixed assets, click Setup, and then
click Fixed asset posting profiles.
2. Click the New button to add a line.
3. In the Posting profile field, enter a brief code to identify the Posting
profile.
4. In the Description field, enter text to better identify the Posting
profile.
5. The entries made on the right side of this form work together with
the option button selected on the left side of the form for the type of
transaction. Therefore, first select each option button and then click
the Add button to make entries on the Value model line.
6. In the Value model field, click the arrow to select the value model.
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Module 2: Setup Procedures
7. In the Groupings field, click the arrow to select from the following
options:
o Table to indicate the setup is specific to a particular asset.
o Group to indicate the setup is used for a Fixed asset group.
o All to indicate the setup is used for all assets, unless defined in
another line.
8. In the Fixed asset number field, select the number to assign to the
line. The lookup in this column depends on the selection made in the
Groupings field as follows:
o If Table is selected in the Grouping field, the lookup displays all
Fixed assets, so that posting accounts can be assigned for
individual assets.
o If Group is selected in the Grouping field, the lookup shows all
Fixed asset groups so that accounts can be assigned for Fixed
asset groups.
o If All is selected in the Grouping field, there is no lookup option
because the accounts are automatically related to all assets with
this value model.
9. In the Main account field, click the arrow to select the account from
the chart of accounts to use for entries. The Main account is typically
an account in the balance sheet.
10. In the Offset account field, select the account to use as the offset.
Typically, the Offset account is a profit or loss account because the
second part of the transaction being posted is income or expense.
However, there can be exceptions.
When you enter transactions, Microsoft Dynamics AX 2012 uses the combination
of the Type of transaction, Value model, Groupings, and Account number
fields to determine the accounts to use for the Main account and Offset account.
By using the combination of these fields, Microsoft Dynamics AX 2012 can meet a
company's requirement for financial reporting, whether it must be detailed or
summarized.
• 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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Fixed Assets in Microsoft Dynamics® AX 2012
Disposal Button
In many countries or regions, the net book value of an asset on the balance sheet
is not posted to a single account, but is divided into several accounts. All the
tables and examples in this training material use the United States dollar (USD) as
their currency.
As the preceding table shows, the transactions for an asset can be posted
separately to multiple accounts including an acquisition account, current year
acquisitions, depreciation this year, and more.
When an asset is sold, a company has to adjust their balance sheet to reflect the
sale. You can do this manually, or you can set up a posting profile to
automatically reverse the transactions. If a company selects to set up accounts for
automatic reversal, accounts can be set up separately for assets that are scrapped
and those that are sold.
The setup is the same whether creating a setup for Sale or Scrap. To set up the
requirements for disposal, follow these 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.
3. In the Value model field, select the value model for this line.
4. In the Valid for field, click the arrow to select from the following
options:
o Table to indicate the setup is specific to a particular asset.
o Group to indicate the setup is used for a Fixed asset group.
o All to indicate the setup is used for all assets, unless defined in
another line.
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Module 2: Setup Procedures
5. In the Fixed asset relation field, select the asset to assign to the line.
The lookup in this column depends on the selection made in the
Valid for field as follows:
o If Table is selected in the Valid for field, the lookup displays all
Fixed assets so that posting accounts can be assigned for
individual assets.
o If Group is selected in the Valid for field, the lookup shows all
Fixed asset groups so that accounts can be assigned for Fixed
asset groups.
o If All is selected in the Valid for field, there is no lookup option
because the accounts are automatically related to all assets with
this value model.
6. In the Post value field, select the type of entry being reversed.
7. In the Main account field, select the account from the chart of
accounts to use for entries. The Ledger account is typically an
account in the balance sheet.
8. In the Offset account field, select the account to use as the offset.
Typically, the Offset account is a profit or loss account because the
second part of the transaction being posted is either income or
expense. However, there can be exceptions.
9. Repeat these steps to define the possible reversals for the same
Value model, Valid for, and Fixed asset relation combination, then
select a different Post value and enter the appropriate Ledger
account and Offset account.
10. Close the form.
Note: 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.
• 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.
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Fixed Assets in Microsoft Dynamics® AX 2012
Reason Codes
Reason codes are standardized codes that can be used in various transaction
types or for changes to field values to provide background data about the
transaction. For example, auditors or managers frequently want to see reasons
recorded for various transactions. Using standard reason codes instead of
transaction text gives users guidelines on what codes to select from, and provides
management and auditors with the ability to analyze transaction history by
specific reason. Reason codes can be used with Fixed assets.
1. Click Fixed Assets, click Setup, and then click Asset reasons.
2. Click the New button to create a new reason.
3. Enter a unique Reason Code as identification.
4. Enter a Default Comment for the reason code. The comment
entered is displayed as the default comment when you select this
reason in transactions or for fixed asset changes.
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Module 2: Setup Procedures
5. Select the Asset check box to use this reason code for fixed asset
transactions.
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Module 2: Setup Procedures
Ken is the Controller for Contoso. Ken performs analysis on the kind of cars
Contoso is acquiring, and he also researches the tax laws.
Challenge Yourself!
Create a depreciation profile with the name CARS, by using this information.
Step by Step
1. On the Navigation Pane, click Fixed assets, click Setup, click
Depreciation, and then click Depreciation profiles.
2. Click the New button to add a line.
3. In the Depreciation profile field, enter CARS.
4. In the Name field, enter Cars, reducing balance.
5. In the Method field, click the arrow to select Reducing balance.
6. In the Percentage field, enter 30.
7. In the Depreciation year field, verify the selection is Calendar.
8. In the Period frequency field, verify the selection is Yearly.
9. Close the form.
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Fixed Assets in Microsoft Dynamics® AX 2012
Ken is the Controller for Contoso. Ken determines that Contoso plans to dispose
of the vehicles when the depreciated value is less than 5,000 USD. Ken sets up
two value models to use with the Depreciation profile for the cars Contoso is
purchasing.
Challenge Yourself!
Create the two value models for the purchased cars.
2. Link the two Value models by using derived value models with a
Transaction type of depreciation.
3. Set the Leave net book value at field to 5,000.
Step by Step
1. On the Navigation Pane click Fixed assets, click Setup, and then
click Value models.
2. Click the New button to add a line.
3. In the Value model field, enter CARS.
4. In the Description field, enter Cars.
5. Select the Depreciation check box.
6. In the Depreciation profile field, select CARS.
7. In the Round off depreciation field, enter 1.00.
8. In the Leave net book value at field, enter 5,000.
9. In the Posting layer field, select Current.
10. Click the New button to add a line.
11. In the Value model field, enter CARS-TAX.
12. In the Description field, enter Cars, tax.
13. Select the Depreciation check box.
14. In the Depreciation profile field, select CARS.
15. In the Round off depreciation field, enter 1.00.
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Module 2: Setup Procedures
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Fixed Assets in Microsoft Dynamics® AX 2012
Ken is the Controller for Contoso. Ken learns that the service life for the vehicles
Contoso is purchasing is five years. Ken plans to set up a Fixed asset group, CARS,
to simplify the entry required for the vehicles Contoso is purchasing.
Challenge Yourself!
Create a Fixed asset group for the cars that Contoso is purchasing.
Step by Step
1. On the Navigation Pane, click Fixed assets, click Setup, and then
click Fixed asset groups.
2. Click the New button to add a line.
3. In the Fixed asset group field, enter CARS.
4. In the Name field, enter Cars.
5. Select the Autonumber fixed assets check box.
6. In the Number sequence code field, select CARS.
7. Click the Value models button.
8. In the Value model field, click the arrow to select CARS.
9. In the Service life field, enter 5.
To assign the tax Value model to the Fixed asset group, follow these steps.
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Module 2: Setup Procedures
Ken is the Controller for Contoso. Ken plans to set up a posting profile, CARS, to
integrate Fixed assets to the General ledger. To complete the setup, Ken has to
complete the following table by filling in the main and offset accounts to use for
the Value model and Transaction type.
Use the main accounts that were created in the earlier lab. Remember, a main
account in the posting profile is usually a balance account, and an offset account
is usually a profit and loss account, but there can be exceptions.
Note: The following labs must be completed before working on this lab.
Challenge Yourself!
• Determine the Main accounts and Offset accounts to use.
• Set up a posting profile.
• Set up the minimum required Disposal parameters for Disposal-
sale. Use account 180300 for the Main account and account 801100
for the Offset account.
• Use the information provided in the following table.
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Module 2: Setup Procedures
Step by Step
1. On the Navigation Pane, click Fixed assets, click Setup, and then
click Fixed asset posting profiles.
2. Click the New button to add a posting profile.
3. In the Posting profile field, enter CARS.
4. In the Description field, enter Vehicles profile.
5. In the left section of the pane, select Acquisition for the transaction
type.
6. Click the Add button to add a new line.
7. In the Value model field, click the arrow to select CARS.
8. In the Main account field, enter 180110.
9. In the Offset account field, enter 110170.
10. Click the Add button to add a new line.
11. In the Value model field, click the arrow to select CARS-TAX.
12. In the Main account field, enter 180110.
13. In the Offset account field, enter 110170.
14. In the left section of the pane, select Acquisition adjustment for the
transaction type.
15. Click the Add button to add a new line.
16. In the Value model field, click the arrow to select CARS.
17. In the Main account field, enter 180110.
18. In the Offset account field, enter 110170.
19. Click the Add button to add a new line.
20. In the Value model field, click the arrow to select CARS-TAX.
21. In the Main account field, enter 180110.
22. In the Offset account field, enter 110170.
23. In the left section of the pane, select Depreciation for the
transaction type.
24. Click the Add button to add a new line.
25. In the Value model field, click the arrow to select CARS.
26. In the Main account field, enter 180280.
27. In the Offset account field, enter 607300.
28. Click the Add button to add a new line.
29. In the Value model field, click the arrow to select CARS-TAX.
30. In the Main account field, enter 180280.
31. In the Offset account field, enter 607300.
32. In the left section of the pane, select Depreciation adjustment for
the transaction type.
33. Click the Add button to add a new line.
34. In the Value model field, click the arrow to select CARS.
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Fixed Assets in Microsoft Dynamics® AX 2012
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Module 2: Setup Procedures
Parameters
The last mandatory step in the setup of the Fixed assets module is the setup of
Parameters.
Capitalization Threshold
Companies are usually required to depreciate assets that cost more than a
defined amount. This defined amount, known as the Capitalization threshold, is
defined as the threshold amount where assets will be depreciated if their cost
price is equal to or exceeds the defined value. Assets that are depreciated will
have their depreciation expense recorded and reported on during the asset's
useful life. Similarly, assets that cost less than the threshold amount will not
depreciate, but all non-depreciation costs (acquisition cost, adjustments, and so
on) are still recorded and will update the general ledger. These assets are
recorded for tracking purposes only, usually to a ledger expense account.
Companies can define the threshold amount that they will use. Additionally, the
threshold can be different for different types of assets. For example, technology
purchases frequently have a different capitalization threshold than office
furniture.
To help in the ease of entry and for more accurate tracking, a capitalization
threshold is available in the Fixed asset group form. Assets auto created through
purchase orders with an acquisition cost lower than the asset group's defined
threshold will default the depreciation flag on the value models to an unchecked
state, to indicate that depreciation will not be recorded for the asset. Assets
purchased through fixed asset or other journals do not default the depreciation
flag based on the capitalization threshold, but can have alerts established on
their acquisition costs so that their depreciation check box can be manually
adjusted.
The value established in the Capitalization threshold will determine the initial
value of the Capitalization threshold field of an asset group, when a new fixed
asset group is created. The asset group's capitalization threshold value can be
changed at any time. The Capitalization threshold value set in the Fixed assets
parameters form is not otherwise used or evaluated.
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Fixed Assets in Microsoft Dynamics® AX 2012
1. On the Navigation Pane, click Fixed assets, click Setup, and then
click Fixed assets Parameters.
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Module 2: Setup Procedures
Reserves for deferred profits on assets cannot stay in the balance sheet
forever. They must be reclassified as a reduction of the acquisition price
of an asset or as revenue recognition. The account in this field is used for
revenue recognition. This field satisfies country or region-specific
requirements.
This journal is suggested when you add a new line, by clicking Fixed
assets, clicking Journals, and then clicking Inventory to fixed assets.
All other journals set up in the Inventory Management module are
available. However this is the default.
10. In the Default value model field, select the value model to use as a
default. This is a mandatory field.
11. Select the Default cash discount? check box to have Microsoft
Dynamics AX 2012 adjust the acquisition price of an asset for cash
payment discounts received. This causes adjustments being made to
the acquisition price and depreciation basis of an asset when a
discount is taken at the time of payment. The discount is posted to
the asset and not to the cash discount account set up in the system.
This check box satisfies country or region-specific requirements.
12. Click the Barcode FastTab.
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Fixed Assets in Microsoft Dynamics® AX 2012
13. Select the Autonumber fixed assets check box to have Microsoft
Dynamics AX 2012 assign numbers to new assets by using the
number sequence assigned on the Fixed asset group, or on the
Number sequences tab in Fixed assets parameters. This check box
must be selected for autonumbering. If cleared, fixed asset numbers
are assigned manually.
14. Select the Bar code equals fixed asset number check box to make
the bar code and Fixed asset numbers the same. This option works
with both manual and autonumbering. Bar codes can also be
assigned on the Fixed asset group level.
15. Click the Purchase orders FastTab.
16. Select the Allow asset acquisition from Purchasing check box to
allow posting of an asset acquisition transaction from Purchasing,
when a vendor invoice that includes a new or existing fixed asset is
posted. If this parameter is cleared, the acquisition transaction for an
asset can only be posted by using the Fixed assets module, in a fixed
asset journal or an acquisition proposal.
17. In the Restrict asset acquisition posting to user group field, select
a user group so that only members of this group can post asset
acquisition transactions directly from Purchasing, when you post a
vendor invoice that includes a new or existing fixed asset. This
parameter is available only if the Allow asset acquisition from
accounts payable parameter is selected.
If a user posting an invoice is not a member of this user group, then the
asset acquisition will not be created, and the asset acquisition
transaction must be created in the Fixed asset module.
18. Select the Create asset during product receipt or invoice posting
check box so that users can create a new fixed asset when a product
receipt is posted, or when a vendor invoice is posted, if the fixed
asset is not created when the product receipt is posted.
With the Create asset during product receipt or invoice posting check
box selected, the new fixed asset is created if the New fixed asset?
check box is selected on the lines of a product receipt or vendor invoice
before it is posted.
Note: If the Create asset during product receipt or invoice posting field is
cleared, a fixed asset must exist in the Fixed assets form before the asset number
can be referenced on the lines of a purchase order, product receipt, or vendor
invoice.
19. Select the Check for fixed assets creation during line entry check
box to check for assets eligibility based on assets rules, and sets
Asset Group on the line during line creation or update.
20. Click the Reason codes FastTab.
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Module 2: Setup Procedures
21. Select the Require reasons for asset changes check box to mandate
reason codes for changes of certain asset values.
22. To require reason codes for asset transactions, select the transaction
types from the Reason code requirements for transactions list
within the Fixed assets parameters form. Move the transaction
types that will require reason codes from the Not required to the
Required fields, by using the arrow buttons. Reverse the procedure
for those reason codes no longer required.
Depreciation Methods
Microsoft Dynamics AX 2012 has several depreciation methods that are designed
to fulfill the needs of most businesses. The depreciation methods are assigned in
the Depreciation profiles form. To access the Depreciation profiles form, click
Fixed assets, click Setup, click Depreciation, and then click Depreciation
profiles.
When you use the straight line method, the depreciable value of the asset is
reduced by the same amount for each period.
Microsoft Dynamics AX 2012 offers two methods for Straight line depreciation:
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Fixed Assets in Microsoft Dynamics® AX 2012
For Straight line Depreciation, two fields must be defined in the Depreciation
profile form - Depreciation year and Period frequency. These two fields are
related. The options in the Period frequency field depend on the option selected
in the Depreciation year field. Selecting Calendar causes the depreciation to be
updated on January first every year. Selecting Fiscal causes the depreciation basis
to be updated on the first date of the fiscal year.
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Module 2: Setup Procedures
With the reducing balance method, the value in the Percentage field for each
depreciation period reduces the depreciable value of the asset. The following
table shows an example of the resulting calculations when you use reducing
balance.
The example shows that the reducing balance method calculates depreciation at
25 percent of the net book value at the end of the previous depreciation period
(year).
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In addition to the reducing balance method described where the user enters the
percentage, there are four reducing balance methods that use predefined
percentages:
Manual Depreciation
The Manual method is selected when a user wants to enter a percentage that will
be used to calculate depreciation each period. The calculation of manual
depreciation applies as a percentage of the acquisition price.
The intervals for the Manual Depreciation method in the Interval field include:
• Yearly
• Monthly
• Quarterly
• Half-yearly
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Module 2: Setup Procedures
When the Manual method is selected, in addition to the fields on the form, the
button Manual schedules is activated. Click the Manual schedules button to
open the form.
The calculation of Manual depreciation always uses the calendar year for the
Depreciation year field. The totaling of all percentages for all intervals does not
have to be 100, but as a control, an error message is received if the accumulated
percentage is not 100.
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Factor Depreciation
The Factor depreciation method contains the Factor field and the Interval field.
The calculation of depreciation accrual amounts uses the values in these fields.
The entry in the Factor field determines whether Microsoft Dynamics AX 2012
calculates progressive or digressive depreciation. The calculation depends on the
factor (percentage) entered for this method, as follows:
• If the entry in the Factor field is larger than 50, the depreciation is
progressive. This means that the amount of depreciation increases
each depreciation period.
• If the entry in the Factor field is less than 50, the depreciation is
digressive. This means the amount of depreciation decreases each
depreciation period.
• If the entry in the Factor field is 50, depreciation is calculated exactly
like straight-line depreciation.
Consumption Depreciation
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Module 2: Setup Procedures
The Depreciation profiles form has no additional fields for the setup of
Consumption depreciation.
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For assets with a consumption factor of the type quantity, the quantity
set up for this factor by the selected end date is suggested as the
depreciation quantity for the period.
For assets set up with a consumption factor of the type percentage, the
percentage entered relates to the Estimated consumption field on the
asset.
Consumption units use the asset as reference for unit price entry. They are also
used for calculating the consumption depreciation in the Consumption
depreciation proposal. A unit can be km, kg, hour, and more.
On the asset itself, the value model that is used for consumption depreciation
must be set up with a depreciation profile based on the consumption method.
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Module 2: Setup Procedures
Depreciation Conventions
Depreciation conventions determine the amount of depreciation taken in the first
and last years of the Fixed asset using the depreciation book. Microsoft Dynamics
AX 2012 has predefined depreciation conventions as follows.
• Half year: Deduct a half-year of depreciation for the first year and
the last year that property is depreciated.
• Full month: Assets with a placed in service date during the month
start depreciating on the first day of the month. Assets discontinued
during the month are considered discontinued for depreciation
purposes on the last day of the month before the retirement.
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Fixed Assets in Microsoft Dynamics® AX 2012
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Module 2: Setup Procedures
When you enter a Fixed asset journal, on the Journal voucher form (accessed
from the Lines button), you have the option of entering additional Value models
and Depreciation books. The amounts for each Value model and Depreciation
book must be entered manually.
The Depreciation book journals are used for the alternative (usually tax)
depreciation books when you want to enter the journals separately or have
Microsoft Dynamics AX 2012 suggest the depreciation amounts for the various
books.
The following list provides an overview of the steps to set up Depreciation books
and create Depreciation book journals. Many of these steps are presented in this
course or in the content of other courses of the Fixed Asset course. Those not
presented elsewhere are described here.
To create a Fixed asset group for a Depreciation book, follow these steps.
1. From the Navigation Pane, click Fixed assets, then click Setup, click
Depreciation, and then click Depreciation books.
2. Click the Fixed assets groups button to open the Fixed asset group
/ depreciation book form.
3. Click the New button to add a new line.
4. In the Fixed asset group field, select a group to associate with the
Depreciation book.
5. In the Depreciation convention field, select the Depreciation
convention for the Depreciation book - Fixed asset group
combination.
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Fixed Assets in Microsoft Dynamics® AX 2012
After you create a Depreciation book, you can associate the book with an asset.
Note: The depreciation profiles can be changed at the individual asset and
depreciation book combination. Select the Depreciation tab to change
depreciation profile information. The service life information and convention must
also be entered for the asset and depreciation book combination.
1. On the Navigation pane, click Fixed assets, click Journals, and then
click Depreciation book journal.
2. Click the New button to add a line.
3. In the Name field, select a Journal name.
4. Click the Lines button.
5. In the Transaction type field, select a transaction type other than the
default type associated with the journal.
6. In the Fixed asset number field, select the asset for the journal entry.
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Module 2: Setup Procedures
Additional Reading: For more information about proposals, refer to the Asset
Transactions course.
Sequencing Activity
Steps
Create a depreciation book.
Create a fiscal calendar.
Create a fixed asset group for a depreciation book.
Attach a Depreciation book on a fixed asset.
Assign a fiscal calendar to a depreciation book.
Set up a depreciation convention on a depreciation book.
1. Click Fixed assets, click Setup, and then click Fixed assets provision
types.
2. Click the New button to add a line.
3. In the Type field, enter a code for the provision type.
4. In the Description field, enter text to describe the provision type.
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Fixed Assets in Microsoft Dynamics® AX 2012
There are two ways to process a profit on assets sold, referred to as the basic
option and the advanced option. The difference is summarized as follows:
• The basic option posts the sales price and the net book value of the
disposed asset to the same profit and loss account. This option does
not use Provision types.
• The advanced option provides functionality through which the profit
on the sale is posted temporarily to a balance sheet account.
Depending on the timing of the asset replacement, a company can
reclassify the profit to the income statement.
Basic Option
The profit or loss on an asset sale is the combination of the sales price and the
net book value in the year of the sale. Using the basic option, both the sales price
and net book value of the asset are posted to the same profit and loss account.
This recognizes the profit or loss on the asset sold.
The only required setup for the basic option is setting up a disposal account in
the Posting profile. Asset transactions can then be posted according to the setup
of the accounts for disposal. For more information about this topic, refer to the
Disposal Button content in this course.
The following table shows an example of the entry for the sale of an asset that
uses the basic option.
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Module 2: Setup Procedures
Advanced Option
The advanced option (reserve for profits on assets) is required by countries or
regions where legislation exists to postpone the revenue recognition of the profit
on, and frequently the taxation of, asset sales. This option uses the functionality
of reserves.
When you set up Posting profiles, two of the Transaction types that are available
are Provision for reserve and Transfer from reserve. Both transaction types are
useful for handling profit on sold assets.
When you use Provision for reserves, instead of posting to a profit account, the
profit on the sales of the asset is posted to the balance sheet as a liability.
The following table shows the results of posting the same transaction, but this
time using reserves.
Not all profits on assets can be handled as reserves. Local legislation dictates how
long a company can postpone taxation by using the reserve options.
When the balance is moved out of the reserves account, there are two possible
options:
• Include the profit on the sale of the asset in the acquisition cost of a
replacement asset.
• Reclassify the reserve entry for profit on the sale from the balance
sheet to the income statement.
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In this case, the profit is not immediately recognized as one amount in the chart
of accounts, but in stages. Because of the reduction in the acquisition price, the
depreciation amounts for the new asset are smaller and the net income of the
company is larger in coming years.
If the company has not acquired an asset within the legal deadline, the company
must transfer the reserve into the profit and loss statement as shown in the
following table.
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Module 2: Setup Procedures
If this requirement is met, the profit on the sale of this asset is posted on the
account for Provision for reserve according to the setup of the posting profile.
In the Fixed assets journal, the option for Revenue recognition of reserves can
be used. This command (on the Proposals button) starts a functionality that
creates journal lines for existing reserves according to the inquiry used for the
proposal. Microsoft Dynamics AX 2012 automatically controls the Months setup.
For reserves where the deadline Months is not yet expired, Microsoft Dynamics
AX 2012 only suggests an offset account. For those assets, the assumption is the
reserve and is posted against a new asset.
For reserves where the deadline Months is expired, the account for revenue
recognition of non-transferred reserved is suggested.
Additional Reading: For more information about the Account for revenue
recognition of untransferred reserves field, refer to the “Parameters” content in
this course.
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Module 2: Setup Procedures
You can use the Fixed asset group/depreciation book special depreciation
allowance form to set up default special depreciation information for a Fixed
asset group.
1. On the Navigation Pane, click Fixed assets, click Setup, click Fixed
asset groups, click the Depreciation books button, and then click
the Special depreciation allowance button.
2. In the Special depreciation allowance field, select the special
depreciation.
3. In the Priority field, set the priority of the special depreciation. For
each special depreciation you must have a unique priority. This
unique priority notifies the system of the order in which to take the
special amounts during the depreciation proposal process, when
there is more than one special allowance record associated with the
asset/depreciation book.
Note: Adding a special depreciation record to the Fixed asset group or the asset
does not post special depreciation. If there is one or more special depreciation
records associated with the asset/depreciation book, run the special depreciation
proposal process in the depreciation book journal lines to create the special
depreciation records, or, manually enter a special depreciation transaction without
having to create special depreciation records.
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For example, for Federal tax purposes in the United States, if more than 40
percent of the new assets are placed in service in the fourth quarter of the current
year, the assets must be depreciated by using the mid-quarter convention. This
feature provides an easy way for the user to update the convention.
1. On the Navigation Pane, click Fixed assets, click Periodic, and then
click Mass update.
2. In the Mass update form, select the Depreciation book that will be
mass updated.
3. Enter the Placed in service start and Placed in service end periods.
4. Select the Current depreciation convention that will be changed
and select the New depreciation convention.
5. Click the OK button.
The mass update functionality gives a quick and easy way to update multiple
depreciation conventions in a depreciation book.
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Module 2: Setup Procedures
Module Review
This chapter discussed the processes and details of how to set up the system and
the Fixed asset module. It also showed how the Fixed assets module integrates
with the other financial modules.
Having knowledge of this information is important so that users can plan for the
implementation of Fixed assets in their companies.
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Fixed Assets in Microsoft Dynamics® AX 2012
1. How many journal names of the type Post fixed assets must be set up to
record Fixed asset transactions?
(√) At least one journal name of the type Post fixed assets must be set up
( ) At least two journal names of the type Post fixed assets must be set
up
( ) At least three journal names of the type Post fixed assets must be set
up
( ) At least four journal names of the type Post fixed assets must be set
up
2. There are two steps outlined in the chapter for full integration of Fixed assets.
What are the two steps?
MODEL ANSWER:
2. Assign these accounts in the posting profiles for Fixed asset transaction
types.
1. Before the periods are closed for a Depreciation book, what is the number of
times depreciation can be rerun?
( ) The Depreciation book cannot be rerun.
( ) The Depreciation book can be rerun only one time, before the
periods are closed for a Depreciation book.
( ) The Depreciation book can be rerun only two times, before the
periods are closed for a Depreciation book.
(√) The Depreciation book can be rerun as many times as necessary until
the periods are closed for a Depreciation book.
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Module 2: Setup Procedures
MODEL ANSWER:
• 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.
MODEL ANSWER:
Depreciation Conventions
MODEL ANSWER:
Half year
Full month
Mid quarter
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Sequencing Activity
Steps
2 Create a depreciation book.
1 Create a fiscal calendar.
4 Create a fixed asset group for a depreciation book.
6 Attach a Depreciation book on a fixed asset.
3 Assign a fiscal calendar to a depreciation book.
5 Set up a depreciation convention on a depreciation book.
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MODULE 3: SETUP OF ASSETS
Module Overview
Microsoft Dynamics® AX 2012 offers many features that are useful in setting
up and managing Fixed assets. The structure and functionality of the Fixed asset
form, described in this training material, gives an improved representation about
how Microsoft Dynamics AX 2012 can help in the management of fixed assets.
Objectives
The objectives are:
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Fixed Assets in Microsoft Dynamics® AX 2012
The Fixed asset table holds both financial and non-financial information about
assets. Non-financial information relates to the physical asset. Most non-financial
information is recorded when the asset is set up. Examples of non-financial
information include the following:
• Asset name
• Serial number
• Maintenance dates
• Insurance information
• Bar code
• Location
To access the Fixed assets list page, from the navigation pane, click Fixed assets,
Common, Fixed assets, and then click Fixed assets. From the Fixed assets list
page, click the Edit or Fixed asset buttons, or double-click an asset to open the
Fixed assets form.
Non-financial information about an asset can be entered and stored in the Fixed
asset form. This information is frequently called fixed asset attributes.
Scenario
Cassie, the Accountant at Contoso, is responsible for managing the company's
fixed assets. Monthly Cassie reviews the purchase orders and invoices for new
assets purchased in the prior month. Because the items have not been recorded
as assets during the purchasing process, she enters a new asset record for each
identified asset. When Cassie enters the new asset, the first field that she enters is
the Fixed asset group, which is selected from a drop-down menu of predefined
groups. Several asset group attributes default on the asset. Cassie enters the data
for the remaining attributes, which are fields that provide a more detailed level of
asset tracking, while minimizing data entry.
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Module 3: Setup of Assets
General
As with most other forms in Microsoft Dynamics AX 2012, the first FastTab on the
form is the General FastTab. This FastTab contains many of the key fields
required to record an asset, such as the Fixed asset group and Fixed asset
number fields.
The following table shows the fields and field descriptions for the General
FastTab.
Field Description
Fixed Use the arrow to select a Fixed asset group.
Asset
Group
Fixed The Fixed asset number is allocated manually or automatically,
Asset depending on the setup in the Fixed asset groups and the
Number Fixed assets parameters forms.
Name Enter a Name to help identify the fixed asset. It can be used for
search and filter purposes, as a range, and for sorting in inquiries
and reports.
Search Enter a Search name as an alternative name for the asset. It
Name is used for search and filtering purposes.
Type The fixed asset type is defaulted to the asset from the Type field
in the Fixed asset group. The default can be changed for each
asset.
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Field Description
Major Use this field to identify high-level asset groups, such as
type Equipment, Buildings, Land, Infrastructure, and Utilities. Major
types are used for reporting only. Major types can be assigned
to fixed assets or fixed asset groups. Only Major types that are
not assigned to a fixed asset or fixed asset group can be deleted.
Property Select the type that describes the property:
type • Fixed asset - Regular assets, to be processed as usual.
• Continuing property - Property that exists for inventory
purposes only, such as telephones, radios, or mobile devices
that are less than the capitalization threshold. Typically, a
service life of zero (0) is entered for continuing property
assets and continuing property assets are excluded from the
valuation report that you reconcile with the general ledger.
• Other - Intangible assets that are presented separately on
the balance sheet.
This field is used only for reports or searches.
Asset Use the arrow to select an Asset activity code to track
activity fixed assets according to the activity categories they are used
code for. These codes are optional. To set up Asset activity
codes click Fixed assets, Setup, and then click Asset activity
codes.
Property Use the arrow to select a Property group to assign to a fixed
group asset.
Asset management can also require tracking a quantity, Unit of Measure (UOM)
and unit cost for the asset. This is frequently necessary when a group of similar
items are logically considered one asset, but each item is considered too
inexpensive to track as an asset. For example, a conference room chair might not
be tracked as an asset, but fifty chairs grouped and purchased at the same time
might be tracked as an asset. To help track these kinds of assets, fields for
Quantity, Unit of measure, and Unit cost are available on the asset record.
The following table shows the fields and field descriptions for Quantity, Unit of
measure, and Unit cost.
Field Description
Quantity Enter the number of units for the fixed asset. To track a quantity
of items as a single asset, enter a quantity greater than one for
Quantity and in the Unit of measure field, enter each.
Unit of Enter the common unit of measure for the asset, for example,
measure dozen, case, or each.
Unit cost Enter the cost for each unit.
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Module 3: Setup of Assets
Technical Information
The Technical information FastTab contains information about the asset such as
make, model, serial number, maintenance data, and more.
The following table shows the fields and field descriptions for the Technical
Information FastTab.
Field Description
Make Enter the Name of the manufacturer of the item.
Model Enter the Model number of the item.
Model year Enter the year the item is built.
Serial number Enter the Serial number for the fixed asset.
Guarantee date Enter the date the guarantee for the fixed asset starts.
Technical Free text fields to use to store technical information.
information 1, 2,
and 3
Last maintenance Enter the date of the last maintenance.
Next maintenance Enter the date of the next maintenance.
Information 1, 2, Fields for update information.
and 3
Asset condition Select a condition for the fixed asset from the list of
conditions created in the Asset conditions form, by
using the path Fixed assets > Setup > Fixed asset
conditions.
Insurance
Refer to the following table for the asset attributes that can be defined on the
Insurance FastTab. This contains information about the insurance details of the
asset.
Field Description
Insurance vendor The insurance company that insures the fixed asset.
Agent The insurance agent for the insurance policy of the fixed
asset.
Policy number The policy reference number or other policy identifier.
Policy expiration The expiration date on the insurance policy for the fixed
date asset.
Policy amount The amount for which the fixed asset is insured.
Insured value The value the fixed asset is insured for. As the value
changes over time, manually update this field or use a
periodic update to recalculate the value, if it is
necessary.
Replacement cost The cost to replace this fixed asset. As the cost changes
over time, manually update this field or use a periodic
update to recalculate the cost, if it is necessary.
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Field Description
Last periodic The date the replacement cost or insured value is last
value/cost update updated. The date is updated manually or by the
Update replacement costs and insured values
periodic process.
Insurance date 1 Insurance date fields used to track insurance end dates.
and 2
Insured at fair Select this check box to indicate that the insurance for
market value the fixed asset covers the cost to replace the item.
Note: If you use the Update replacement costs and insured values periodic
process to update the Insured value and Replacement cost fields, a value is
required in the Insured value field before you perform the periodic update.
Similarly, a cost is required in the Replacement cost field before you perform the
periodic update.
Location
Locations are used on the asset to indicate the main location of the asset. Refer
to the following table for the asset attributes that can be defined on the Location
FastTab.
Field Description
Location Select a location for the fixed asset. The available locations
are set up in the Fixed assets location form at Fixed assets
> Setup > Fixed assets locations.
Location Notes about the location of the fixed asset, such as Floor 4 -
memo Finance Department.
A location address combined with a location memo provides
a customized level of detail for the location of a fixed asset.
Room number The room number where the fixed asset is located.
Department Select the department or division that is responsible for the
asset.
Responsible Select an employee name. The available employees are set up
in the Worker form.
Bar code Bar code digits assigned to the fixed asset. If the Barcode
equals fixed asset number field in Fixed assets Parameters
is selected, a bar code is assigned when you create a fixed
asset record.
If the field is not selected and the bar code is set up in the
fixed asset group, a periodic job must be generated to assign
bar codes.
Missing asset Select this check box if the asset cannot be located.
Physical Date of the last physical inventory update for this fixed asset.
inventory
Contact The name of a person who might know more information
about the location of the fixed asset.
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Field Description
Lease note If leasing the fixed asset, enter a reference number for the
lease or a different note about the lease.
Titleholder The organization that holds the title for the fixed asset.
GIS reference The Geographic Information System (GIS) reference number
number that indicates the location of the fixed asset within the GIS
layer.
A GIS application is a third-party application, typically used to
track land and infrastructure.
Parcel ID If the asset is land, enter the identifier for the parcel (plot or
tract), such as 01-6211421.
Report Sorting
The Report sorting FastTab contains three alternative sort fields for the asset;
click the arrow in each field to select from the available sorting options.
The Reference and notes FastTab contains reference fields that are used for
recording comments about physical inventory and disposals.
The following table shows the fields and field descriptions for the Reference and
notes FastTab.
Field Description
Reference Comment to physical inventory.
Comments Comment to physical inventory.
Document Document location is an informational field that is used to
location enter a path where documents relevant to the asset can be
viewed. Examples of documents stored include warranty,
Instructions for Use, Contracts, and more.
Additionally, you can use the standard functionality of
document handling for management of asset related
documents.
Disposal Enter special procedures, if any, for suitable disposal of the
restrictions fixed asset. For example, fixed assets that contain hazardous
materials frequently have disposal restrictions.
Structure
The Structure FastTab indicates the relationship between the asset and other
assets, either as a main asset with underlying components or as a component
assigned to another asset.
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Fixed Assets in Microsoft Dynamics® AX 2012
The Structure FastTab has two fields. The first field displays a hierarchical
component structure. The other identifies the main fixed asset that this
component asset uses as its parent. A component fixed asset can be a main asset
(parent) for another component asset. This means the structure can have many
levels.
Set Up Assets
The main form used to set up fixed assets is the Fixed assets form. This form
builds upon and inherits information from many of the forms found in the Setup
menu section for fixed assets.
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Module 3: Setup of Assets
3. In the Fixed asset group field, select the Fixed asset group to which
the asset belongs. Depending on the setups completed in a
company, various information can auto-populate. Some of this
information is listed in the following table.
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Fixed Assets in Microsoft Dynamics® AX 2012
Value Models
The selections made in the Value models form determine what financial
information is recorded and stored for a fixed asset. The form is accessed by
clicking the Value models button on the Fixed assets form.
The tab pages of this form are used to view and adjust the setup of each value
model. From the Value models form a user can perform the following:
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Module 3: Setup of Assets
The value models associated with the selected fixed asset, and also many of the
fields of the value model, are auto 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.
When viewed from the asset's record, the Value models form will contain
additional fields unique to that asset, that are not visible when you view the
Value models form by using the path Fixed assets > Setup > Value models.
These are some fields on the Overview tab in the asset's value model that are
auto populated:
Note: When you enter transactions, only entries for value models with the same
posting layer as defined on the Journal name are recorded. Posting layers are
assigned to Journal names in the Posting layer field in General ledger > Setup >
Journals > Journal names > General FastTab. Posting layers are set up on the
Value model in the Posting layer field by using the path Fixed assets > Setup >
Value models > General FastTab.
Status
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:
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The update of the asset status is always done for each Value model. This is
necessary because an asset might be fully depreciated for tax purposes, but still
open for additional depreciation posting for accounting purposes.
In the Depreciation run date field, the field displays the expected starting date
for the first depreciation calculation. This is the date the value model is created.
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.
Example: An asset is set up on July 1, 2012, and the asset's Value models are
created. The fixed asset is placed in service on December 31, 2012, and the
depreciation profile is straight line quarterly. Depreciation starts on July 1, 2012
(based on the value in the Depreciation run date field), the acquisition price is
10,000.00 United States dollar (USD), and the service life is four (quarters).
All financial setup for an asset is completed by using the Value models button
from the Fixed assets form. Because most of the setup for the value model
is completed when the fixed asset group is set up, the remaining financial setup
of the asset can be done quickly.
To enter data on the asset's Value models form, follow these steps.
1. From the Fixed assets form, click the Value models button.
2. Click the General tab.
Note: The layout of the General and Depreciation tab pages can differ,
depending on the setup of the value model.
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Module 3: Setup of Assets
3. In the 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.
4. In the Acquisition price field, specify an amount that will be used for
Acquisition proposal in the Fixed asset 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 model.
5. 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. The list contains the methods created in the Acquisition
methods form, found at Fixed assets > Setup > Acquisition
methods. Acquisition methods that do not exist on fixed asset value
models or depreciation books can be deleted.
6. In the Issue field group, the following applies:
a. The Disposal date field shows the date when the fixed asset is
sold or scrapped.
b. The Sales value field shows the selling price of the fixed asset.
The field is updated when the fixed asset is sold.
c. 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.
7. In the Revaluation group field, click the arrow to make a selection.
Revaluation option is a country-specific feature (Spain).
8. 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.
9. Click the Depreciation tab.
10. 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.
Note: The Fixed assets parameter Consider capitalization threshold can also
affect whether the Depreciation field is enabled or disabled upon asset creation
from a product receipt or vendor invoice. Refer to the "Setup Procedures" course for
more information.
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11. In the Service life field, the remaining life of the asset is displayed.
The first time this value is equal to the Service life of the asset in
years. If the asset is partly depreciated, this field can be manually
edited.
12. In the Expected scrap value field, enter the currency amount under
which the asset should not be depreciated.
13. Click the Purchase/Sale tab. This tab displays information about the
purchase or sale of the asset. The fields here are system populated.
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Module 3: Setup of Assets
2. When you set up a Fixed asset, what is the initial status assigned by Microsoft
Dynamics AX 2012?
( ) Open
( ) Suspended
( ) Not yet acquired
( ) Scrapped
3. When you set up a Fixed asset, what is the main advantage of selecting a
Fixed asset group?
Lend Assets
Companies that loan fixed assets to either employees or other companies or
move assets temporarily to a different location within the company can track the
loaned asset in Microsoft Dynamics AX 2012.
1. From the Fixed assets form, select the asset, and then click the Lend
button.
2. In the Lending date field, enter the date the asset is loaned.
3. In the Expected return date field, enter the date the asset is
expected to be returned.
4. In the Actual return date field, enter the date the asset is actually
returned.
5. In the Loaned to field, click the arrow to select the worker to whom
the asset is loaned.
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Two set up options are available in Microsoft Dynamics AX 2012 for bar coding.
Bar codes can be assigned to the assets from:
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Module 3: Setup of Assets
To assign bar codes when fixed assets are created, follow these steps.
1. Click Fixed assets, click Setup, and then click Fixed assets
parameters.
2. On the Barcode FastTab, select the Bar code equals fixed asset
number check box, if each new asset entered into Fixed assets is to
immediately receive a bar code number that corresponds to the
number of the asset. The number of the asset is assigned from:
o The Number sequence assigned to the Fixed asset group.
o The Number sequence assigned to the Fixed asset number
Reference on the Number sequences tab of the Fixed
assets parameters form, if the selected Fixed asset group does
not contain a Number sequence for group specific numbering.
1. Select the Bar code equals fixed asset number check box in the
Fixed assets parameters form.
2. Click Fixed assets, click Periodic, and then click Assign fixed asset
number to bar code.
3. Process the batch job. This assigns bar codes to all existing assets.
Instead of using the fixed asset number codes as bar codes, you can
assign fixed asset bar code number sequences to specific fixed asset
groups.
1. Click Fixed assets, click Setup, and then click Fixed asset groups.
2. Select the fixed asset group to assign group-specific bar codes for
each fixed asset.
3. Select the Autonumber bar codes check box.
4. Select the appropriate number sequence for the fixed asset group in
the Bar code number sequence field.
Note: To print bar codes for fixed assets, click Fixed assets, click Reports, click
Base data, and then click Fixed asset bar codes.
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Fixed Assets in Microsoft Dynamics® AX 2012
Asset Budgeting
With Microsoft Dynamics AX 2012, separate budgets for Fixed assets can be
created that are not a part of the financial budgets entered in the Budgeting
module or the Fixed assets budget can be included in the financial budgets.
Entry of a budget directly on the asset allows for only the manual entry of asset
transactions. Therefore, fixed assets budgets are usually entered in the budget
journal. The layout of the budget journal resembles the ledger journal in the
Fixed Assets Module.
To create an entry in the Fixed asset budget journal, follow these steps.
1. On the navigation pane, click Fixed assets, click Journals, and then
click Fixed asset budget.
2. Click the New button to create a new record.
3. In the Name field, click the arrow to select the journal name to use
for the entry.
4. Click the Lines button.
5. In the Budget model field, click the arrow to select the budget
model to use for this entry.
6. In the Transaction type field, click the arrow to select the type of
transaction. This auto populates the values in many of the remaining
fields based on the related Posting profile.
7. In the Date field, enter the date for the budget entry.
8. In the Account field, click the arrow to select the fixed asset. This
could update the Value model and related fields, depending on the
fixed asset setup.
9. In the Debit or Credit field, enter a currency amount.
10. Click the Post button, and then select one of the following options:
o Transfer to fixed asset budget
o Transfer to fixed asset and ledger budget
11. In the dialog box, select the Delete existing entries check box to
delete existing fixed asset budget register entries.
12. Click OK.
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Module 3: Setup of Assets
In addition to creating manual entries, the budget journal has the same
functionality as the fixed assets journal. This means that the different types of
proposals are available for budgeting.
Additional Reading: For more information about this topic, refer to the
content of the “Asset Transactions” course.
The main difference between the Budget journal and other journals is the Post
functionality. When you post a Budget journal the user can decide whether to
update the budget accounts only on the Fixed asset budget, or whether to also
update the Ledger budget accounts.
1. When you use the Fixed asset budget journal, what options are available
when the Post button is selected?
( ) Transfer to history
( ) Transfer to fixed asset budget
( ) Transfer to fixed asset and ledger budget
( ) Both Transfer to history and Transfer to fixed asset budget
( ) Both Transfer to fixed asset budget and Transfer to fixed asset and
ledger budget
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Fixed Assets in Microsoft Dynamics® AX 2012
Additionally, assets can require maintenance or upgrades over the life of the
asset. It is convenient to quickly review, from the asset record, a summary of the
projects that have had work, maintenance or improvement, made against the
asset. It is also convenient to view, from the Projects form, the asset to which the
project relates. With Microsoft Dynamics AX 2012, assets that are not associated
with an Estimate project can be associated with the asset(s) it affects, and you can
view the affected assets from the Project or Fixed asset modules. This
functionality also extends into the defined project hierarchy so that views across
the main project and its subprojects are visible. By doing so, for example, phases
of work can span a series of subprojects that are associated with their parent
project and a specific fixed asset.
Vince opens the project form, reviews the resurfacing project, and makes sure
that the fixed asset numbers are assigned correctly on each phase and task of the
project. For example, Vince reviews the subproject record number "Resurface NE,"
to make sure that the fixed asset associated with it is "Loading Dock NE."
Because this asset and project association is used for an accurate history of
maintenance done to these assets, Vince knows this helps him in future decisions
about maintenance to these assets.
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Module 3: Setup of Assets
5. Select a fixed asset from the drop-down list of assets in the Fixed
asset number field.
Note: The Fixed asset number field is available for input only when the
following are true:
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Note: The Change of General Project Information form will also open upon
successive changes to the fixed asset associated with a parent project. Depending
on your selection in the Change of General Project Information form, you can
associate different assets with a subproject and its parent project.
If an asset number entered on the project does not have at least one value model
with a status of open, a warning message is displayed. You can continue to select
this asset; its value model status can update after the asset is updated through
the Project module functionalities.
After an asset is associated with a subproject, you can select the Include
subprojects check box at the top of the Projects form. This shows the fixed
assets that are associated with both the parent project and its subprojects in the
hierarchy, when the parent project is being viewed. This information is visible on
the Assets tab in the lower part of the Projects form.
If the Include subprojects check box is cleared when the parent project is being
viewed, or if the project being viewed is not a parent project, only the fixed asset
of the currently viewed project will show in the grid.
Scenario
Phyllis, the Accounting Manager for Contoso, is responsible for maintaining the
company's fixed assets accounting records. She opens the asset form and filters
the active set to include the production facility. She sees that the resurfacing
project phase for the Northeast side, subproject "Loading Dock NE," is
completed, and she must create a write up adjustment to reflect the maintenance
done to the facility. She opens the fixed asset journal entry program and creates
the write up adjustment to asset "Loading Dock NE", and posts the journal.
1. From the Fixed assets form, select the fixed asset you want.
2. Expand the Associated Projects FactBox.
3. Click a project within the list to open the Projects form, and then the
projects associated with the fixed asset display.
The details of the fixed assets associated with a project can also be viewed
directly from the Projects form.
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Module 3: Setup of Assets
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Fixed Assets in Microsoft Dynamics® AX 2012
Ken is the Controller for Contoso. Ken has approved a purchase order for a
laptop for use by the Finance group. Ken elects to depreciate the laptop for only
thirty six months. Ken forwards the specifications of the purchase order, together
with his depreciation recommendations, to the Accounting Department. The
information is summarized as follows:
Field Value
Name Laptop, Finance
Search Name FI Laptop
Fixed asset group Computer equipment
Fixed asset number System assigned
Responsible employee Phyllis Harris
Location 100
Service life (tax and accounting) Three years
Depreciation periods Thirty-six months
Acquisition price 2,000.00 USD
Cassie, the Accountant at Contoso, must create the fixed asset and review the
assigned depreciation books.
Challenge Yourself!
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Module 3: Setup of Assets
Step by Step
1. Click Fixed assets, click Common, click Fixed assets, and then click
Fixed assets.
2. Click the Fixed asset button to set up a new asset.
3. In the Fixed asset group field, click the arrow to select COMP.
4. In the Name field, enter Laptop, Finance.
5. In the Search name field, enter FI laptop.
6. Click the Location FastTab.
7. In the Responsible field, click the arrow to select Phyllis Harris
(Personnel number 000033).
8. In the Location field, click the arrow to select 100.
9. Click the Value models button.
10. In the Service life field for each line, enter 3.
11. In the Depreciation periods field, verify that 36 periods are
calculated on each line. Use the TAB key, if it is necessary, to move to
the field.
12. Click the General tab.
13. In the Acquisition price field, enter 2,000.
14. In the Posting profile field, click the arrow, if it is necessary, to
select ALL.
15. On the Overview tab, click the line where the Value model field is
COMP.
16. Repeat steps 12 through 14, for the Value model COMP.
17. Close the form.
18. Click the Depreciation books button.
19. Review the data in the form for accuracy.
20. Close the form.
21. Close the Fixed asset form.
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Fixed Assets in Microsoft Dynamics® AX 2012
Module Review
Setup of Assets provided detailed information about the fields and functionality
of the Fixed assets form. The concepts introduced here are key elements in the
decisions that must be made on how to create fixed assets in a company.
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Module 3: Setup of Assets
Set Up Assets
2. When you set up a Fixed asset, what is the initial status assigned by Microsoft
Dynamics AX 2012?
( ) Open
( ) Suspended
(√) Not yet acquired
( ) Scrapped
3. When you set up a Fixed asset, what is the main advantage of selecting a
Fixed asset group?
MODEL ANSWER:
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Fixed Assets in Microsoft Dynamics® AX 2012
Asset Budgeting
1. When you use the Fixed asset budget journal, what options are available
when the Post button is selected?
( ) Transfer to history
( ) Transfer to fixed asset budget
( ) Transfer to fixed asset and ledger budget
( ) Both Transfer to history and Transfer to fixed asset budget
(√) Both Transfer to fixed asset budget and Transfer to fixed asset and
ledger budget
MODEL ANSWER:
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MODULE 4: ASSET TRANSACTIONS
Module Overview
A robust Fixed Asset Accounting module requires several different fixed asset
Transaction Types, and detailed methods for recording those transactions.
Objectives
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Scenario
At the Contoso Company, the Accounting Department maintains close control of
the company's fixed assets. Regardless of whether a fixed asset is acquired by
purchase, or assembled, or if a fixed asset is disposed of by sale or scrap, all these
transactions can be tracked and recorded in Microsoft Dynamics AX 2012.
Additionally, not only can acquisitions and disposals be registered, value
adjustments and depreciations can also be recorded. Phyllis, the Accounting
Manager at the Contoso Company, appreciates this integrated functionality, and
she plans to conduct fixed asset functionality training to the Contoso Company
staff members.
The main form you can use to record these asset transactions is the Fixed assets
journal, which is accessed by clicking Fixed assets, Journals, and then Fixed
assets. The Transaction type field in the journal is used to differentiate between
the posted transactions. Journals are also available for Depreciation books and
Fixed asset budgets.
Note: Separate ledger accounts must be set up on the Posting profile for each
Transaction Type.
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Module 4: Asset Transactions
Note: When you enter transactions, you can only record entries for value
models with the same posting layer that is defined on the Journal name. Posting
layers are assigned to Journal names in the Posting layer field in the Journal
names form, which can be accessed by clicking General ledger, Setup, Journals,
and then Journal names. Posting layers are set up on the Value model in the
Posting layer field in the Value models form, which can be accessed by
clicking Fixed assets, Setup, and then Value models.
Acquisitions
You can manage acquisitions by using the Acquisition, Acquisition adjustment,
and Transfer from reserve Transaction types.
You can use the acquisition adjustment Transaction type when the parameter
setup prohibits multiple acquisitions, or when part of an acquisition must be
posted to a special ledger account.
Depending on how you set up the Allow multiple acquisitions parameter, you
can activate one or an unlimited number of acquisitions for each asset for each
value model. You should have multiple acquisitions for each asset when you
expect to post multiple transactions that affect the acquisition value of an asset.
For example, when a company purchases a truck and truck body from two
vendors and it records two transactions, but the completed truck with both
components becomes the actual asset.
To change this parameter, click Fixed assets, click Setup, and then click Fixed
assets parameters. For multiple acquisitions, select the Allow multiple
acquisitions check box. If you want only one acquisition for each asset per value
model, clear the Allow multiple acquisitions check box.
Depreciation
There are three Transaction types that you can use to post depreciation –
Depreciation, Depreciation adjustment, and Extraordinary depreciation.
You can use the Depreciation adjustment Transaction type for corrections to, or
the adjustment of, depreciation that is already posted.
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You can use the Extraordinary depreciation Transaction type for concurrent
depreciation of assets. Although Extraordinary depreciation functions the same
as basic depreciation does, Extraordinary depreciation works independently from
the basic depreciation. Because of this, you can posting and report Extraordinary
depreciation separately from the ordinary, basic depreciation.
Value Adjustments
There are three value adjustments that you can use in Microsoft Dynamics AX
2012 – Write up adjustment, Write down adjustment and Revaluation.
Write up and write down adjustments are transaction types that are posted
manually in the journals, and they are used mostly to adjust the value of an asset
to its current market value. You can do this, for example, to reflect an increase or
decrease in the market value of a building because of fluctuations in the real
estate market.
The revaluation, write up adjustment, and write down adjustment are all
adjustments to the acquisition price. The ledger account for those transactions is
a balance sheet account. The offset account might be a profit and loss or a
balance sheet account, depending on the transaction.
The primary reason for having revaluation as a separate transaction type is the
specific functionality of Revaluation groups and Revaluation proposals, which
are available for this Transaction type in the Fixed assets
journal. However, Revaluation groups and their setup, and also Revaluation
proposals, are only visible and available if country-specific features for Spain are
activated.
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Module 4: Asset Transactions
Disposal
There are four Transaction types that you can use for disposal – Disposal sale,
Disposal scrap, and Provision for reserve.
You can use Disposal sale and disposal scrap when the assets are no longer in
use. The net book value is set to zero and the asset is closed for future
transactions. Sale is an external disposal, whereas Disposal scrap is considered an
internal transaction.
The Provision for reserve and Transfer from reserve Transaction types are not
actual disposal transactions, instead they are transactions created together with
the external sale of an asset. The functionality of reserves is an alternative way of
accounting for profit on sales of assets. Usually, when a fixed asset is sold with
profit, the profit must be recognized in the year of the sale, and then it is posted
to the profit and loss part of the chart of accounts.
However, in some countries and regions, there is legislation that allows for the
postponement of profit recognition (and taxation) to later years. Provision from
reserve and Transfer from reserve meet those requirements.
Proposals
The following proposals are available from the lines in the Fixed asset journal.
• Acquisition
• Acquisition adjustment
• Depreciation
• Consumption depreciation
• Revenue recognition of reserves
• Extraordinary depreciation
The Depreciation books journal lines include most of the proposals in the Fixed
asset journal, except for the Acquisition adjustment proposal. A Bonus
depreciation proposal is also available.
Record Acquisitions
All fixed asset Transaction types can be recorded by using the Fixed assets
journal. To use this journal, click Fixed assets, click Journals, and then click Fixed
assets. Because of the integration found within Microsoft Dynamics AX 2012,
asset transaction entries for acquisitions can also be made in the General journal
of the General ledger and the Invoice journal of Accounts payable.
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Acquisition is the initial phase of the asset life cycle. This phase offers the most
options for ways to record the acquisition. All the options within the journal
functionality of Microsoft Dynamics AX 2012 can be used for both Acquisition
and Acquisition adjustment Transaction types.
Processes for the two types are identical, except for the Transaction type and
Transaction text.
Scenario
At the Contoso Company, computers are ordered for new employees at the time
that they sign the employment contract. Cassie, the Accountant at the Contoso
Company, receives notification that a new employee's employment has started.
Cassie is responsible for making sure that the fixed asset is created and recorded
correctly, and she creates the fixed asset for each computer. During processing,
asset acquisitions are usually recorded at the time that the computer invoice is
posted in purchasing. At the end of each month, Cassie verifies that these
acquisitions are recorded correctly, by comparing the Accounts payable records
to an Acquisition proposal.
Before the acquisition is recorded using the General journal, the fixed asset
should be created.
Additional Reading: For more information about how to create a fixed asset,
refer to the “Setup of Assets” course.
To record an asset acquisition using the General journal, follow these steps.
1. From the Navigation Pane, click General ledger, click Journals, and
then click General journal.
2. Click the New button to create a new journal.
3. In the Name field, select the journal name.
4. Optionally, change the Description to something easy to reference.
To create the journal lines in the General journal, follow these steps.
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Fixed Assets in Microsoft Dynamics® AX 2012
You can also use the Fixed assets journal to post acquisitions. This journal will
include tabs that display the Value models and Depreciation books that are
associated with the selected asset(s).
To record an asset acquisition using the Fixed assets journal, follow these steps.
1. From the Navigation Pane, click Fixed assets, click Journals, and
then click Fixed assets.
2. Click the New button to create a new journal.
3. In the Name field, click the arrow to select the journal used for
posting fixed asset acquisitions.
4. Enter the description for the journal in the Description field.
5. Click the Lines button.
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Module 4: Asset Transactions
11. Because this is an acquisition, enter the acquisition value in the Debit
field.
12. The Offset account type and Offset account will default based on
the Posting profile, which is determined by the Transaction type
and Value model selected.
13. On the Value models and Depreciation books tabs, make any
needed modifications. These will be populated based on the selected
asset.
14. Click the Post button, and then click Post the asset journal.
15. Click Close to close the Infolog form.
16. Close all the forms.
When the Inventory to Fixed assets journal is posted, one or more inventory
items are taken from inventory and transformed into a fixed asset.
To record the acquisition of assets created by the assembly of other items, follow
these steps.
1. From the Navigation Pane, click Fixed assets, click Journals, and
then click Inventory to fixed assets.
2. Click the New button to create a new journal.
3. In the Name field, select the journal name.
4. Click the Lines button.
5. Click the Fixed asset number arrow, and then click the asset that will
be recorded. The Value model will default based on the setup of the
asset.
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Note: Batch number, Serial number, and Quantity can be changed based on
the type and number of items assembled and being recorded as assets.
• Click Accounts payable, click Journals, click Invoices, and then click
Invoice journal
• Click Accounts payable, click Journals, click Invoices, and then click
Invoice register
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Module 4: Asset Transactions
Before recording the acquisition, the fixed asset should be created. To record an
asset acquisition by using the Invoice journal, follow these steps.
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Fixed Assets in Microsoft Dynamics® AX 2012
Before recording the acquisition, the fixed asset should be created. To use
Proposals to record the acquisition of assets, follow these steps.
1. From the Navigation Pane, click Fixed assets, click Journals, and
then click Fixed assets.
2. Click the New button to create a new journal.
3. In the Name field, click the arrow to select the journal.
4. Enter the description for the journal in the Description field.
5. Click the Lines button.
6. Click the Proposals button, and then click Acquisition proposal.
7. Click the Select button.
8. In the Criteria column, for the Fixed asset number, select the new
asset.
9. Click OK.
10. Click OK again.
11. Note the line suggested with the item and the price.
12. Click the Post button, and then click Post the asset journal.
13. Click Close to close the Infolog form.
14. Close all the forms.
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Module 4: Asset Transactions
Challenge Yourself!
Create an acquisition entry in the Fixed assets journal. Use the following
information:
Field Value
Fixed asset group MACH
Fixed asset number System assigned
Name Gas boiler #2
Search name Boiler 2
Acquisition price 10,000.00
Step by Step
1. From the Navigation Pane, click Fixed assets, click Common, click
Fixed assets, and then click Fixed assets.
2. Click the Fixed asset button to create a new asset.
3. In the Fixed asset group field, select MACH.
4. In the Fixed asset number field, the system defaults this number.
Note this number for the journal entry.
5. In the Name field, enter Gas boiler #2.
6. In the Search name field, enter Boiler 2.
7. Click the Value models button. Be aware that a Value model is
associated with the asset and that the Status is Not yet acquired.
8. Close all forms.
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Fixed Assets in Microsoft Dynamics® AX 2012
1. From the Navigation Pane, click Fixed assets, click Journals, and
then click Fixed assets.
2. Click the New button to create a journal
3. In the Name field, select FAA (FA Acquisition Journal).
4. Click the Lines button.
5. In the Transaction type field, select Acquisition.
6. In the Account field, select the asset previously created. The Value
model will default based on the set up of the asset selected in the
Account field.
7. In the Description field, select acquisition.
8. In the Debit field, enter 10,000.00. The Offset account type and
Offset account will default based on the Posting profile for the
Value model.
9. Click the Post button, and then click Post.
10. Click Close to close the Infolog form.
11. Close all the forms.
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Module 4: Asset Transactions
Challenge Yourself!
• Create a new asset for the projector.
• Create and post an acquisitions entry in the Inventory to Fixed
assets journal.
• Use inventory items 1507 and 1552. For item 1552, select 2 for the
Site, and select 21 for the Warehouse.
Field Value
Fixed asset group OFFI
Fixed asset number System assigned
Name Office Projector
Search Name Off Proj
Step by Step
1. From the Navigation Pane, click Fixed assets, click Common, click
Fixed assets, and then click Fixed assets.
2. Click the Fixed asset button to create a new asset.
3. In the Fixed asset group field, select OFFI.
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4. In the Fixed asset number field, the system defaults the number.
Note this number for the journal entry.
5. In the Name field, enter Office Projector.
6. In the Search name field, enter Off Proj.
7. Click the Value models button.
8. Be aware that two Value models are associated with the asset and
that the Status of each is Not yet acquired.
9. Close all forms.
1. From the Navigation Pane, click Fixed assets, click Journals, and
then click Inventory to fixed assets.
2. Click the New button to create a journal
3. In the Name field, select IFA.
4. Click the Lines button.
5. In the Fixed asset number field, select the asset previously created.
The Value model will default based on the set up of the asset.
6. In the Transaction type field, select Acquisition.
7. In the Item number field, select 1507.
8. Enter 1 in the Quantity field.
9. Click the New button to add a line.
10. In the Fixed asset number field, select the asset previously created.
The Value model will default based on the set up of the asset.
11. In the Transaction type field, select Acquisition.
12. In the Item number field, select 1552.
13. In the Site field, select 2.
14. In the Warehouse field, select 21.
15. Enter 1 in the Quantity field.
16. Click the Post button.
17. If it is necessary, click the OK button in the Autoreservation form.
18. If it is not already selected, in the Posting dialog box, select the
Transfer all posting errors to a new journal check box.
19. Click OK.
20. Click Close to close the Infolog form.
21. Close all the forms.
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Module 4: Asset Transactions
Additionally, there are several ways to create and acquire fixed assets directly
from purchase orders in Accounts payable.
Scenario
Cassie is the Accountant at the Contoso Company. She has selected a fixed
asset parameter so that she can create an asset during the purchase
order product receipt or vendor invoice transactions. Cassie has also cleared the
Allow asset acquisition from Purchasing field in the Fixed assets parameters
form. With this parameter cleared, the functionality of posting an asset
acquisition transaction through vendor invoice posting is not available for any
user.
Cassie also specifies accounts for the fixed asset receipt and the fixed asset issue
account for use on a specific item group or item. She has also activated
capitalization thresholds that will be validated when the asset is created. The
capitalization threshold for the computer equipment asset group is set to
2,500.00 USD.
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Now Alicia can select from a predefined list of asset groups, so she selects the
group most appropriate for the portable computer - COMP. When she selects the
fixed asset check box, the fixed asset number, value model, and Transaction type
become deactivated (the Transaction type uses acquisition and it cannot be
changed). Additionally, a reservation is created against the purchase order line to
reserve the ordered quantities for fixed asset usage. This guarantees that the
purchase order line purchase of a fixed asset cannot be selected against a sales
order. Alicia saves the purchase order, and no postings occur.
Later, Sammy, in Shipping and Receiving, records the receipt of the portable
computer. He enters a product receipt transaction, and then posts the product
receipt transaction. During the posting process, the new asset record is created
based on the asset group assigned to the purchase order line. The status of the
asset is Not yet acquired. Additionally, because the capitalization threshold
parameter is selected by Cassie, the product receipt line amount of 2,600 USD is
compared to the capitalization threshold of 2,500 USD on the asset group.
Because the line amount is greater than the threshold, the depreciation check
box is selected on the asset's value model and depreciation books defaulted from
the asset group. The new asset number is stored back on the purchase order line,
and the default value model assigned.
April, the Accounts Payable Coordinator, receives the vendor invoice for the
portable computer and posts the vendor invoice from the purchase order. The
asset status is unchanged because the parameter setting that Cassie has
deactivated prevents the posting of an asset acquisition transaction from
purchasing.
Cassie, the Accountant, is reviewing the assets that have a status of Not yet
acquired. She selects the asset record and clicks the value models button to view
the status of the asset on each value model assigned. After Cassie selects the
assets that will be posted in the fixed assets journal, manually or, through an
acquisition proposal, she posts the journal, and the assets are acquired. Their
value model status is set to Open.
Also when the asset acquisition is posted, a sold transaction is posted against the
item record removing the quantity on hand, and the asset quantity, unit of
measure and cost are updated.
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Module 4: Asset Transactions
Scenario Variations
The following are variations for this scenario.
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Fixed Assets in Microsoft Dynamics® AX 2012
Integration Methods
There are four available methods for integrating Fixed assets and Purchasing. The
method that is used depends on parameter settings and the process flow:
• A fixed asset can be manually created, and then the fixed asset
number is added to the line on the purchase order or vendor invoice.
An acquisition transaction automatically is posted for the asset when
the vendor invoice is posted.
• A fixed asset can be manually created before you add the fixed asset
number to the line on the purchase order or vendor invoice. No
acquisition transaction is posted for the asset when the vendor
invoice is posted.
• A new fixed asset automatically is created when a product receipt or
vendor invoice is posted that has the New fixed asset? check box
selected. An acquisition transaction automatically is posted for the
asset when the vendor invoice is posted.
• A new fixed asset automatically is created when a product receipt or
invoice is posted that has the New fixed asset? check box selected.
No acquisition transaction automatically is posted for the asset when
the vendor invoice is posted. The acquisition transaction is created
later through a fixed asset journal.
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Module 4: Asset Transactions
1. Click Fixed assets, click Setup, and then click Fixed asset
parameters.
2. Click the Purchase orders FastTab.
3. Select the Allow asset acquisition from Purchasing check box if an
asset acquisition should post when an authorized user posts a
vendor invoice, if the fixed assets fields are defined. If this field is
cleared, the acquisition transaction for an asset can only be posted
through the Fixed Assets module, either in a fixed asset journal or an
acquisition proposal. By default, this parameter is selected in
Microsoft Dynamics AX 2012.
4. In the Restrict asset acquisition posting to user group field select
a user group so that only members of this group can post to asset
acquisition transactions directly from purchasing, when they are
posting a vendor invoice that includes a new or an existing fixed
asset. This field is available only if the Allow asset acquisition from
Purchasing field is selected.
When a user group is specified, only users who are members of this
group can create fixed asset acquisitions directly from purchasing,
when posting the vendor invoice. If a user posting a vendor invoice is
not a member of this user group, then the asset acquisition will not
be created, and the asset acquisition transaction will have to be
created in the Fixed asset module.
5. Select the Create asset during product receipt or invoice posting
field to enable users to create a new fixed asset when a product
receipt is posted or when a vendor invoice is posted, if the fixed asset
is not created when the product receipt is posted.
Note: If the Create asset during product receipt or invoice posting field is
cleared, a fixed asset must exist in the Fixed assets form before the asset number
can be referenced on the lines of a purchase order, product receipt, or vendor
invoice.
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6. Select the Check for fixed assets creation during line entry field to
verify that a fixed asset is eligible based on existing fixed asset rules.
If this option is selected, the fixed asset group is set on the purchase
order line, according to the defined fixed asset rules, when the
purchase order line is created.
In Microsoft Dynamics AX 2012, because a specific fixed asset receipt and issue
accounts are available within the inventory posting accounts, companies can use
the same inventory items for internal asset acquisitions, purchases for resale, or
manufacturing for stock. You can use these accounts when you post acquisitions
of fixed assets in Purchasing when the following is confirmed:
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Module 4: Asset Transactions
Note: To access the Item model groups form click Inventory and warehouse
management, Setup, Inventory, and then click Item model groups.
In the following sections, more detail will be provided for the integration
methods discussed earlier. In scenario one a fixed asset is manually created, and
then the fixed asset number is added to the line on the purchase order or vendor
invoice. An acquisition transaction automatically is posted for the asset when the
vendor invoice is posted.
For this scenario, you must perform the following steps in the Fixed assets
parameters form:
Note: When you record the acquisition of fixed assets on a purchase order, you
record the entry using an item number. To keep fixed assets segregated from
inventory items, a company can create an item to specifically record fixed asset
transactions.
Start by using the Purchase order form to enter details, and then you will enter
the fixed asset number in the Fixed asset number field on the Fixed asset
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FastTab. The Value model and Transaction type fields default based on the
fixed asset that you selected.
After the item is received, the shipping clerk enters and posts a product receipt to
record the receipt of the item. After the vendor invoice is posted, the acquisition
is posted automatically and the status of the asset changes to Open. The Fixed
asset receipt inventory account is debited and two additional transactions occur -
the asset acquisition account is debited and the Fixed asset issue inventory
account is credited.
For this scenario, you must perform the following actions in the Fixed assets
parameters form.
Start by using the Purchase order form to enter details, and then select the New
fixed asset? check box on the Fixed asset FastTab. The Fixed asset group field
will now be enabled, and the Fixed asset number, Transaction type and Value
model fields will no longer be activated. Now, select the correct fixed asset group
in this field.
After the item is received, the shipping clerk will enter and post a product receipt
to record the receipt of the item. After a product receipt is posted that has the
New fixed asset? check box selected for a line, a new fixed asset is created upon
product receipt posting that has a status of Not yet acquired.
After the vendor invoice is posted, the acquisition is posted automatically and the
status of the asset changes to Open. The Fixed asset receipt inventory account is
debited and two additional transactions occur - the asset acquisition account is
debited and the Fixed asset issue inventory account is credited.
Note: If the New fixed asset? check box is not selected on the purchase line
when the product receipt posted, but it is selected when the invoice posted, then the
new fixed asset is created and acquired with a status of Open.
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Depending on the fixed assets parameter setup, you could use fixed asset
journals to post asset acquisitions. However, you do not need to create the asset
acquisition when the vendor invoice is posted if the following situations exist.
If these two situations exist, then you must use a fixed asset journal to post asset
acquisitions for these assets. You can use an acquisition proposal within the fixed
asset journal, to select the assets to acquire.
The following is an example of the posting, where an asset is created from the
product receipt and the asset acquisition is created directly from the vendor
invoice. The item model group for the item has the post financial inventory and
post physical purchase ledger integration options selected. The Post product
receipt in the ledger accounts payable parameter is selected. All accounts are
examples only. The purchase order line for product receipt and invoice posting is
1,500 USD.
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Note: Because the New fixed asset? check box is selected on the purchase
order line, the fixed asset receipt account and fixed asset issue accounts assigned to
the item/item group will be used to determine postings. These accounts are used
instead of the Receipt and Issue accounts that are used when the item is purchased
for resale.
This is an example of the posting, where an asset is created from the product
receipt and the asset acquisition is later created by using an acquisition proposal
inside a fixed asset journal. The Post product receipt in the ledger accounts
payable parameter is selected. The item model group for the item has the Post
financial inventory and Post physical purchase ledger integration options
selected. All accounts are examples only. The purchase order line for product
receipt and invoice posting is 1,500 USD.
The following table shows the vendor invoice posting (acquisition not posted in
Accounts payable).
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The following table shows the acquisition created by using a fixed asset journal.
Note: Because the New fixed asset? check box is selected on the purchase
order line, the fixed asset receipt account and fixed asset issue accounts assigned to
the item/item group will be used to determine postings. These accounts are used
instead of the Receipt and Issue accounts that are used when the item is purchased
for resale.
Note: The previous example assumes that an acquisition proposal is used in the
fixed assets journal, to select the fixed assets to acquire. If the assets are manually
selected within the journal lines, the journal creator is responsible for making sure
that the fixed assets issue account is used.
3. What are the steps that are required to restrict the ability to allow asset
acquisitions from purchasing to a particular user?
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Record Depreciation
There are three asset recording options for the following Transaction types –
Depreciation, Depreciation adjustment, and Extraordinary depreciation.
The processes for all three types are identical, except for the transaction type
and transaction text.
• Fixed assets journal (Fixed assets > Journals > Fixed assets
journal)
• Depreciation book journal (Fixed assets > Journals >
Depreciation book journal)
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In both journals, you can enter depreciation amounts manually, or use proposals
to suggest depreciation amounts. Manual entries are useful to make adjustments
to a limited number of assets, for example, when an auditor provides an
adjustment that must be booked. Proposals are useful to generate recommended
depreciation for all assets for a given period.
When you enter a Fixed asset journal, the user has the option of entering
additional Value models, Depreciation books, or both. The amounts for each
Value model and Depreciation book must be entered manually. All the amounts
are posted when the journal is posted.
In a Depreciation book journal, the user can add multiple lines to the journal to
select the various Depreciation books set up for the asset. Entries are not posted
to ledger accounts from depreciation book journals.
In the Fixed asset journal, entries are typically recorded that affect general
ledger accounts.
To record depreciation by using the Fixed assets journal, follow these steps.
1. From the Navigation Pane, click Fixed assets, click Journals, and
then click Fixed assets.
2. Click the New button to create a new line.
3. In the Name field, click the arrow to select the journal name.
4. Click the Lines button.
5. In the Date field, enter the posting date.
6. Click the Transaction type arrow, and then click Depreciation.
7. Click the Account arrow, and then click the asset to be depreciated.
The Value model will default based on the setup of the asset
selected in the Account field.
8. In the Description field, enter text that describes the transaction.
9. Because this is a depreciation entry, type the amount in the Credit
field. The Offset account type and Offset account will default
based on the setup in the Posting profile for the Value model linked
to the Fixed asset.
10. Click the Post button, and then click Post.
11. Click Close to close the Infolog form.
12. Close all the forms.
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You can record depreciation by using the Depreciation book journal. The
depreciation entries that are made in the Depreciation book journal post to the
depreciation book for the asset and not to the value model. Because of this, the
entries posted through this journal do not affect the ledger account balances.
1. From the Navigation Pane, click Fixed assets, click Journals, and
then click Depreciation book journal.
2. Click the New button to create a new journal.
3. In the Name field, click the arrow to select the journal name.
4. Click the Lines button.
5. Click the Transaction type arrow, and then click Depreciation.
6. In the Fixed asset number field, select the asset to be depreciated.
7. In the Depreciation book field, select the depreciation book to
which the transaction should be posted.
8. In the Description field, enter or select text that describes the
transaction.
9. Because this is depreciation, type the amount in the Credit field.
10. Click the Post button, and then click Post.
11. Click Close to close the Infolog form.
12. Close all the forms.
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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To use Proposals in the Fixed assets journal to record the depreciation of assets,
follow these steps.
1. From the Navigation Pane, click Fixed assets, click Journals, and
then click Fixed assets.
2. Click the New button to create a new journal.
3. In the Name field, click the arrow to select the journal name.
4. Click the Lines button.
5. Click the Proposals button, and then click Depreciation proposal.
6. In the To date field, enter the ending date of the period for which
you want to create depreciation proposal lines.
7. Click the Select button.
8. Enter the criteria for the proposal.
9. Click OK in the AssetProposal and Depreciation proposal forms.
10. Review the suggested entry.
11. Click the Post button, and then click Post.
12. Click Close to close the Infolog form.
13. Close all the forms.
1. From the Navigation Pane, click Fixed assets, click Journals, and
then click Depreciation book journal.
2. Click the New button to create a new journal.
3. In the Name field, click the arrow to select the journal name.
4. Click the Lines button.
5. Click the Proposals button, and then click Depreciation proposal.
6. In the To date field, enter the ending date of the period for which
you want to create depreciation proposal lines.
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Cassie is the Accountant at the Contoso Company. It is the end of the month, and
Cassie must create a proposal to depreciate all the assets in the Fixed asset group
FIXT. After she creates the proposal, Cassie's manager reviews it, and then Cassie
posts the proposal.
Challenge Yourself!
• Use the Fixed assets journal to create a depreciation proposal. Use
7/31/08 for the date.
• Post the depreciation.
Step by Step
1. From the Navigation Pane, click Fixed assets, click Journals, and
then click Fixed assets.
2. Click the New button to create a new journal.
3. Click the Name arrow, and then click FAD.
4. Click the Lines button.
5. Click the Proposals button, and then click Depreciation proposal.
6. In the To date field, enter 07/31/2012.
7. Click the Select button.
8. If it is necessary, click the Reset button to clear prior criteria.
9. In the Criteria field for the Fixed asset group, click the arrow to select
FIXT.
10. Click OK to close the AssetProposalDepreciation form.
11. Click OK to close the Depreciation proposal form.
12. Review the lines suggested in the journal.
13. Click the Post button, and then click Post.
14. Click Close to close the Infolog form.
15. Close all the forms.
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Write up adjustments and Write down adjustments are always entered as manual
journal lines, because no rules can typically be set up for those value adjustments.
The processes for using these journals are identical to the processes shown for
acquisitions and depreciations.
Revaluation, on the other hand, can be set up for each asset, so you can use
proposals. The process for using these proposals is identical to the processes
shown earlier in this content. As this functionality is specific to Spain, refer to the
localized content for Spain for additional details on this functionality.
Record Disposals
Asset disposal consists of the following Transaction types - Disposal sale,
Disposal scrap, and Provision for reserve.
The processes for registering these transactions are identical to the processes
shown for acquisitions and depreciations.
You can post asset transactions of the type Disposal sale in the Fixed assets
journal, General journal, and Accounts Receivable (as a free text invoice).
In the journals, the type Disposal sale is posted as a manually entered journal line.
The Asset number, Value model and Transaction type must be specified on the
journal lines. This is identical to the processes described for acquisitions and
depreciations.
The disposal of assets by sales can also be registered by using the free text
invoice. In free text invoicing the asset Transaction type is always assumed to be
Disposal sale.
To register the disposal of assets by sales using the free text invoice, follow these
steps.
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1. From the Navigation Pane, click Fixed assets, click Common, click
Fixed assets, and then click Fixed assets.
2. Select the asset record that was disposed of.
3. Click the Value models button.
4. In the Status field, note the status is Sold.
5. Select the line with the value model that was entered on the disposal
transaction.
6. Click the Transactions button.
7. Press CTRL+END, or scroll to the last record in the form.
8. Note the entries created for the disposal.
9. Close all forms.
Disposal Scrap
Disposal scrap can be posted just as Disposal sale, but because scrap is
considered an internal transaction, only journals are used to post Disposal scrap.
Free text invoicing cannot be used.
If this requirement is met, the profit on the sale of this asset is posted on the
account for Provision for reserve according to the setup of the posting profile.
Therefore, because of the checks performed by the system, Provision for reserve
is not to be posted manually. Refer to the Setup Procedures content for more
information.
Transfer from reserve is an asset transaction. This can be created by using the
Proposals functionality. This process is identical to the process described for
using proposals for acquisitions, except that the proposal type is Revenue
recognition of reserves.
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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.
1. Click Fixed assets, click Journals, and then click Fixed assets.
2. Click the New button to create a new journal.
3. In the Name field, click the arrow to select the journal name.
4. Click the Lines button.
5. Click the Proposals button, and then click Revenue recognition of
reserves.
6. In the Posting date field, enter the transaction date.
7. Click the Select button.
8. Enter the criteria for the proposal.
9. Click OK. Review the suggested entry in the Journal voucher form.
10. Click the Post button, and then click Post.
11. Click Close to close the Infolog form.
12. Close all the forms.
Or, to create the transfers from the General Journal, follow these steps.
1. Click General ledger, click Journals, and then click General journal.
2. Click the New button to create a new journal.
3. In the Name field, click the arrow to select the journal name.
4. Click the Lines button.
5. Click the Overflow menu, click Fixed assets, and then click Revenue
recognition of reserves.
6. In the Posting date field, enter the transaction date.
7. Click the Select button.
8. Enter the criteria for the proposal.
9. Click OK in the AssetProposalTransferCapital and Revenue
recognition of reserves forms.
10. Review the suggested entry.
11. Click the Post button, and then click Post.
12. Click Close to close the Infolog form.
13. Close all the forms.
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Challenge Yourself!
Record the disposal in the Fixed asset journal.
Step by Step
1. From the Navigation Pane, click Fixed assets, click Journals, and
then click Fixed assets.
2. Click the New button to create a new journal.
3. Click the Name arrow, and then click FADP_SC.
4. Click the Lines button.
5. In the Transaction type field, click the arrow to select Disposal-
scrap.
6. In the Account field, select MACH-003.
7. In the Debit field, enter 500.
8. Click the Value models FastTab, and note the entry for the MACH-
TAX value model.
9. Click the Post button, and then click Post.
10. Click Close to close the Infolog form.
11. Close all the forms.
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Transaction Reversals
The major transactions associated with assets include asset acquisitions,
depreciation, and disposals. After assets are acquired, Microsoft Dynamics AX
2012 also has extensive functionality to maintain and modify these transactions.
This includes the following:
• Transaction reversals
• Asset additions
• Updates to replacement costs and insured values
• Copying fixed assets
• Changing the fixed asset group
If a derived value model is used, both the original value model's transaction and
the derived value model's transaction associated with the original transaction will
be reversed when the original value model's transaction is reversed.
Similarly, if depreciation books are used for an asset, the depreciation book's
transactions that are associated with the original transaction will be reversed
when the original transaction is reversed.
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Reversed transactions will post to the same journal as the original transaction,
using the same journal number and fixed asset Transaction type.
Transactions which are the result of derived transactions posting, for example
because of a derived value model associated with a value model, will reverse at
the same time as the reversal of the original transaction from which they are
derived.
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This action creates an additional transaction on the asset/value model record that
reverses the original entry; for an acquisition reversal, the reversal will be negative
because the original acquisition transaction creates a positive balance for the
asset record. Additionally, the reversed transaction will update the general ledger
accounts that are used on the original transaction.
April, the Accounts Payable Coordinator at the Contoso Company, has received a
call from a vendor inquiring on payment for an invoice related to a computer
purchase. She examines the vendor transaction history and does not find the
invoice in question. After additional investigation, she realizes that the vendor
invoice is entered against the wrong vendor account.
April reverses the invoice from the incorrect vendor account, which in turn
reverses the acquisition transaction on the asset record, reverses the open
balance on the incorrect vendor, and creates the necessary General ledger
reversing entries. April enters the vendor invoice against the correct vendor
account, which in turn creates the acquisition transaction on the asset record.
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Cassie is recording an asset Disposal-scrap transaction and she clicked the Post
button too quickly, later realizing she had selected the wrong asset record. By
using transaction reversals, she can select the Disposal-scrap transaction from the
asset/value model transaction history and select Reverse transaction. This resets
the asset status to open, creates a positive disposal entry on the asset/value
model transaction history, and posts the general ledger reversal.
Cassie can now create a disposal transaction for the correct asset.
Note: After the reversal of a scrap transaction, in addition to the reversal of all
ledger and asset transactions related to the scrapping, the asset's status will be
changed from Scrapped to Open.
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Module 4: Asset Transactions
The complete set of transactions (which includes the original ledger transaction,
reversal ledger transaction, and the fixed asset transaction) are assigned the same
unique trace number when the transaction reversal occurs. This unique number is
derived from the Trace Number sequence and assists in auditing and reporting
on reversed transactions.
To trace a reversed transaction, from the reversed transaction, click the Reversed
tracing button, and then the Reversed tracing form that shows the traced
transactions will open.
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The replacement cost, which is defined as the cost to replace an asset, can
change based on several factors. Some examples include the following.
Companies also usually insure their assets for the full replacement cost or a
percentage of replacement cost, and have to regularly maintain these insured
values for insurance inventory and audit purposes.
Scenario
Cassie is the Accountant at the Contoso Company. She is responsible for
managing the company's fixed assets. She is also responsible for updating the
insured value and replacement cost for all assets annually; these values can
change because of various factors. The amounts can change at the same rate for
all assets (inflation) or for groups of assets that share characteristics (such as
computers, because of reduced technology costs).
Cassie defines the factors on all asset groups at 3.5 percent to reflect annual
inflation. For groups that experience changes at a different rate, she modifies the
change factors before she runs the periodic program. For example, Cassie
identifies that, because of a decrease in marketplace costs, the computers and
peripherals increase will only be 1.5 percent, so she sets the change factors on
the COMP fixed asset group to 1.5 percent.
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Module 4: Asset Transactions
The Replacement cost factor and Insured value factor fields are found in the
Fixed asset groups form. To access the Fixed asset groups form, click Fixed
assets, click Setup, and then click Fixed asset groups.
The following table shows the fields that are found on the General FastTab.
Factor Procedure
Replacement Enter the percentage to increase or decrease the
cost factor replacement cost of the fixed asset.
For example, if it costs 3.5 percent more this year to replace
assets in this group, enter 3.5.
The factor entered is only used if the replacement cost of a
fixed asset is updated by using the Update replacement
costs and insured values form.
Insured value Enter the percentage to increase or decrease the insured
factor value of the fixed asset. For example, enter 1.5 for 1.5
percent. The factor entered is only used if the insured value
of a fixed asset is updated by using the Update replacement
costs and insured values form.
Note: The Replacement cost factor and Insured value factor fields use a
value of zero when a fixed asset group is created.
Note: The Replacement cost factor and Insured value factor fields can be
negative numbers, but must be greater than minus (-) 100.
Use the Update Replacement Costs and Insured Values form to update the
replacement cost and insured value for fixed assets, according to the values
specified for the fixed asset groups.
To recalculate replacement costs and insured values for fixed assets, the
percentage by which to change the existing replacement costs and insured values
must first be specified. Afterward, the periodic update to actually recalculate the
values can be performed.
Note: The Insured value and Replacement cost fields in the Fixed
assets form can be manually edited at any time to update these values for
individual fixed assets.
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To update the replacement costs and insured values, follow these steps.
Note: The book value and net book value of fixed assets are not affected by the
periodic update. If no selections are made for specific assets or asset groups, all
assets are updated.
For example, the replacement cost of the Vehicles, Office Furniture, and Buildings
groups was updated by five percent yesterday, and now these assets are
considered accurately updated. To exclude these assets when all other fixed
assets are updated today, enter a date in the Last periodic value/cost update
field that is before yesterday (< yesterday's date) because the last periodic
update for the vehicles, office furniture, and buildings will have therefore
occurred outside the date criteria entered.
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Each periodic update has a cumulative effect so that updates must be planned
carefully. For example, if the replacement cost values for all assets are increased
by three percent on Tuesday and then an increase occurs in the replacement cost
values for office furniture by four percent on Friday, the cumulative total increase
of the replacement cost for office furniture assets will be 7.12 percent. The
following table shows the example effects:
2. Which of the following values cannot be used for a replacement cost factor?
( ) 65
( ) 3.5
( ) -100.5
( ) 17
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3. Which command is used to run an update of insured values for fixed assets?
4. The Update replacement costs and insured values function ran yesterday, but
one asset group was overlooked and not updated. What value must be
entered in the last periodic value/cost update field to exclude assets updated
yesterday? Assume today is 07/15/2012 (mm/dd/yyyy).
( ) >07/15/2012
( ) <07/15/2012
( ) <07/14/2012
( ) >08/30/2012
Copying an asset creates a new line that contains much of the same information
as the line for the original fixed asset, although some information might need to
be changed on the new line. The new fixed asset has zero balances and no
transactions.
1. Click Fixed assets, click Common, click Fixed assets, and then click
Fixed assets.
2. Select the asset to copy.
3. Click the Copy fixed asset button.
Fixed asset lines are created automatically with new fixed asset numbers, and the
Copy fixed asset dialog box does not appear if you selected one of the
following:
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If both check boxes are selected, then the Copy fixed asset dialog box will open.
Enter the new fixed asset number manually in the New fixed asset number field,
or alternatively select one of the existing asset numbers.
1. Click Fixed assets, click Common, click Fixed assets, and then click
Fixed assets.
2. Select the asset.
3. Click Change fixed asset group.
4. In the New group field, select the fixed asset group that the asset
will be changed to.
5. Together with the fixed asset group, or independently of it, the fixed
asset number can be changed. To change the fixed asset number
select the New fixed asset number check box. A fixed asset number
is automatically assigned to the fixed asset in the Fixed assets
number field, if automatic numbering is set up for fixed assets. The
number can be changed, if this is necessary.
If manual numbering is set up, the field is blank, and the new fixed
asset number must be entered.
6. Click the OK button.
7. Close the forms.
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Use this form to keep track of additions separately, although they are still
considered part of the asset. If the fixed asset number changes, all additions are
still associated with the fixed asset. If a fixed asset is deleted, the additions for
that asset are also deleted.
Scenario
Cassie, the Accountant at the Contoso Company, is responsible for managing the
company's fixed assets. Cassie reviews company purchases for the prior month to
determine the items purchased that must be tracked in the asset files. She sees a
2,000 USD invoice for a Fork Lift Mount Front End Loader and Dumper, to be
installed on one of the company's forklifts. The front end loader is not considered
an asset, but it is an add-on to the forklift which is currently being tracked as an
asset. The forklift asset number is appropriately referenced on the invoice which,
when posted, included the asset write up adjustment for the value of the front
end loader as indicated by the invoice entry clerk.
To track the front end loader in the asset file, Cassie opens the Fixed assets form
and selects the forklift. She records the front end loader data as an asset addition
to the forklift and enters additional details including an addition number,
description, amount, technical information and comments. Because the write up
adjustment (to reflect the increase in asset value for the forklift) is posted from
the invoice and this add-on does not increase the service life of the forklift, there
is no additional maintenance required at this point for tracking this item.
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1. Click Fixed assets, click Common, click Fixed assets, and then click
Fixed assets.
2. Select the asset.
3. Click the Fixed asset additions button. The Fixed asset additions
form opens.
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8. In the Unit cost field, enter the cost for each unit.
9. In the Quantity field, enter the quantity.
Some additions might be difficult to quantify, such as a paint job for
a vehicle. Enter a quantity that fits best. For example, if an asset
received one paint job, type 1.
The Total cost field will calculate based on the Unit cost and
Quantity fields.
10. Click the General tab.
11. Optionally, select the Increases service life check box, and populate
any attribute fields in the Model field group, or purchase related
fields in the Purchase field group.
12. Close the forms.
Note: The fields in this form are informational and do not correspond to other
areas of Microsoft Dynamics AX 2012. For example, the Purchase fields do not
necessarily correspond to purchase order documents. Therefore, they are not auto-
populated based on those documents, and must be manually populated.
Note: If an addition increases the service life of a fixed asset, you must modify
the Service life field value in the Value models form. Similarly, the creation of an
asset addition does not adjust the asset book value or future depreciation, so an
asset transaction (write up, for example) must be created if you want the asset book
value to change.
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Module 4: Asset Transactions
Module Review
The Asset Transactions discussed several aspects for Fixed asset transactions,
including:
• Transaction types
o Acquisition
o Acquisition
o Acquisition adjustment
o Depreciation
o Depreciation
o Depreciation adjustment
o Extraordinary depreciation
o Value adjustments
o Write up
o Write down
o Disposal
o Disposal sale
o Disposal scrap
o Provision for reserve
o Transfer from reserve
• Methods to register the different Transaction types, including the
following:
o Manually in a journal
o By using proposals in a journal
• Other asset transactions, including reversals, asset additions, and
updates.
This chapter also discussed the integrated nature of Microsoft Dynamics AX 2012,
which supports entry of these asset transactions in multiple modules.
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Fixed Assets in Microsoft Dynamics® AX 2012
MODEL ANSWER:
• Acquisition
• Depreciation
• Value adjustments
• Disposal
1. Which Fixed assets parameter must be selected so that a user can create a
fixed asset from a purchase order?
( ) Allow asset acquisition from Purchasing
( ) Restrict asset acquisition posting to a user group
(√) Create asset during product receipt or invoice posting
( ) Consider capitalization threshold
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Module 4: Asset Transactions
3. What are the steps that are required to restrict the ability to allow asset
acquisitions from purchasing to a particular user?
MODEL ANSWER:
Select the Fixed assets parameter Allow asset acquisition from Purchasing,
and then select the user group of which the user is a member in the Restrict
asset acquisition posting to user group field.
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Fixed Assets in Microsoft Dynamics® AX 2012
Record Depreciation
1. Which of the following is not a way to register depreciation?
( ) Using the Fixed assets journal - manually
( ) Using the Fixed assets journal - using a proposal
(√) Using the Inventory to Fixed assets journal
( ) Using the depreciation book journal
Record Disposals
1. What is the difference between Provision for reserve and Transfer from
reserve?
MODEL ANSWER:
MODEL ANSWER:
Disposal sale
Disposal scrap
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Module 4: Asset Transactions
Transaction Reversals
1. Which of the following are true about Fixed asset transaction reversals?
( ) The date of the reversal must be earlier than the original transaction
date.
( ) The fiscal period to which a reversal is posted must be of the status
Closed.
(√) The date of reversal cannot be earlier than the original transaction
date.
( ) Fixed asset transactions cannot be reversed.
MODEL ANSWER:
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Fixed Assets in Microsoft Dynamics® AX 2012
MODEL ANSWER:
Fixed assets > Setup > Fixed asset groups > General FastTab
2. Which of the following values cannot be used for a replacement cost factor?
( ) 65
( ) 3.5
(√) -100.5
( ) 17
3. Which command is used to run an update of insured values for fixed assets?
MODEL ANSWER:
Fixed assets > Periodic > Update replacement costs and insured values
4. The Update replacement costs and insured values function ran yesterday, but
one asset group was overlooked and not updated. What value must be
entered in the last periodic value/cost update field to exclude assets updated
yesterday? Assume today is 07/15/2012 (mm/dd/yyyy).
( ) >07/15/2012
( ) <07/15/2012
(√) <07/14/2012
( ) >08/30/2012
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MODULE 5: INQUIRIES AND REPORTS
Module Overview
This course focuses on how to run inquiries and reports in Microsoft Dynamics®
AX 2012. Many inquiries and reports are available throughout the system.
Objectives
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Fixed Assets in Microsoft Dynamics® AX 2012
Inquiries
Four inquiries are available from the Fixed assets table:
• Inquiry on transactions
• Inquiry on balances
• Inquiry on future transactions
• Inquiry on Change history
To access the Fixed asset transactions form, use one of the two methods below.
1. Click Fixed assets, click Inquiries, and then click Fixed asset
transactions.
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Module 5: Inquiries and Reports
1. Click Fixed assets, Common, Fixed assets, and then click Fixed
assets.
2. Select an asset in the Fixed asset list, and then click the Value
models button.
3. Click the Transactions button in the Value models form.
On the Fixed asset transactions form, Overview tab, all asset transactions are
listed for the value model if the transaction is made in:
• Fixed Assets
• General Ledger
• Accounts Payable
• Vendor Invoice
• Accounts Receivable
On the Financial dimensions tab, view the financial dimensions associated with
the transaction.
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Fixed Assets in Microsoft Dynamics® AX 2012
Inquiry options are available from the Value models form. To access the Value
models form, follow these steps:
1. Click Fixed assets, click Common, click Fixed assets, and then click
Fixed assets.
2. Select an asset.
3. Click the Value models button.
Inquiry on Balances
To view fixed asset balances from the Value models form, click the Inquiry
button, and then click Balances.
On the Fixed asset balances form, balances are summarized for various types of
transactions recorded for the asset/value model.
• All years
• This year
• Prior years
In the Budget model field, select a budget to compare to the actual balances.
To view future transactions from the Value models form, click the Inquiry
button, and then click Profile.
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Module 5: Inquiries and Reports
On the Profile form, on the Data tab, view the depreciation expected according
to the setup of the asset's value model.
The display is similar to a forecast instead of a budget because it is based on the
expected actual transactions, according to the date of inquiry, according to the
setup.
The Graphics tab shows a graphical overview of depreciation for each period,
accumulated depreciation, and the expected net book value.
Change History
To view the change history for an asset, you can use either of the following two
methods:
1. Click Fixed assets, click Common, click Fixed assets, and then click
Fixed assets.
2. Select an asset, and then click the Value models button.
3. Click the Inquiry button, and then click Change history.
1. Click Fixed assets, click Common, click Fixed assets, and then click
Fixed assets.
2. Select an asset, and then click the Depreciation books button.
3. Click the Inquiry button, and then click Change history.
Use the Fixed asset changes history form to view changes made to the service
life, depreciation periods, expected scrap value, and sales value for the asset in
the Value models or Depreciation books forms. If you are in the Fixed assets
parameters form and the Require reasons for asset changes check box is
selected, these records are available.
You can also view which user made the change, the previous field value, the new
field value, the date of the change, and other information.
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Fixed Assets in Microsoft Dynamics® AX 2012
The Fixed assets budget register entries form shows details for previously
made fixed assets budget register entries.
To view the budget register entries for a fixed asset budget, click the Budget
register entries button. For this button to be available, the following conditions
must be met:
• At the time the Fixed asset budget journal is posted, the Transfer
to fixed asset and ledger budget posting option is selected.
• The line is later transferred to the ledger budget using the Transfer
button in the Fixed asset budget transactions inquiry form.
To transfer fixed asset budget register entries to the ledger budget, follow these
steps.
The General tab displays information about the selected depreciation book
transaction.
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Module 5: Inquiries and Reports
1. Which of the following is not an inquiry that is available for each value model
on a Fixed asset?
( ) Inquiry on Transactions
( ) Inquiry on Status
( ) Inquiry on Balances
( ) Inquiry on Profile
2. The following steps are necessary to view the original document for a fixed
asset transaction. Put the following steps in order by numbering each to
indicate the correct order.
Steps
Click the Voucher button.
From the Navigation Pane, click Fixed assets, click Inquiries, and then
click Fixed asset transactions.
Click the Original document button.
Locate the transaction.
3. The following steps are taken to modify the budget amount posted to the
Ledger for a fixed asset transaction. Put the following steps in order by
numbering each to indicate the correct order.
Steps
Click the Transfer button.
In the Delete existing budget transactions field, select or clear the
check box to delete or retain the existing entry.
From the Navigation Pane, click Fixed assets, click Inquiries, and then
click Fixed assets budget register entries.
In the Amount in transaction currency field, edit the amount.
Click OK.
Locate the transaction.
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Fixed Assets in Microsoft Dynamics® AX 2012
4. When using the Show button from the Depreciation book transactions
form, what displays?
Reports
Microsoft Dynamics AX 2012 offers many reports for Fixed assets. The reports are
available from the various selections within the Reports section of the Navigation
Pane.
Additional Reading: The reports available for Fixed assets, the path used to
access the report, and a brief description of each report can be found in the
appendix.
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Module 5: Inquiries and Reports
Module Review
Understanding how to extract information entered into Microsoft Dynamics AX
2012, whether through inquiries or reports, is required to gain the full benefits of
the Fixed asset module.
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Fixed Assets in Microsoft Dynamics® AX 2012
1. Which of the following is not an inquiry that is available for each value model
on a Fixed asset?
( ) Inquiry on Transactions
(√) Inquiry on Status
( ) Inquiry on Balances
( ) Inquiry on Profile
2. The following steps are necessary to view the original document for a fixed
asset transaction. Put the following steps in order by numbering each to
indicate the correct order.
Steps
3 Click the Voucher button.
1 From the Navigation Pane, click Fixed assets, click Inquiries, and then
click Fixed asset transactions.
4 Click the Original document button.
2 Locate the transaction.
3. The following steps are taken to modify the budget amount posted to the
Ledger for a fixed asset transaction. Put the following steps in order by
numbering each to indicate the correct order.
Steps
4 Click the Transfer button.
5 In the Delete existing budget transactions field, select or clear the
check box to delete or retain the existing entry.
1 From the Navigation Pane, click Fixed assets, click Inquiries, and then
click Fixed assets budget register entries.
3 In the Amount in transaction currency field, edit the amount.
6 Click OK.
2 Locate the transaction.
4. When using the Show button from the Depreciation book transactions
form, what displays?
MODEL ANSWER:
Using the Show button from the Depreciation book transactions form
displays the original document.
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APPENDIX A: REPORTS
Fixed Asset Base Data Reports
Fixed Asset Listing
Fixed assets > Reports > Base data > Fixed asset listing
This report provides a list of fixed assets and the net book value for the selected
value models and depreciation books.
Print this report for a list of fixed assets included in the selected fixed asset
statement rows.
Fixed assets > Reports > Base data > Fixed asset statement rows
This report prints information about how fixed asset statement rows are set up.
Fixed assets > Reports > Base data > Fixed asset basis
This report shows the depreciation basis for a specific book and date range.
Fixed assets > Reports > Base data > Fixed asset additions
Print this report to view a list of fixed assets and their additions, based on the
fixed assets in the Fixed assets form and the additions in the Fixed asset
additions form.
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Fixed Assets in Microsoft Dynamics® AX 2012
Print this report to generate a physical inventory worksheet for use in counting
fixed assets.
Print this report to generate a list of fixed assets that are due for replacement.
The default replacement date is the acquisition date plus the service life.
Fixed assets > Reports > Base data > Fixed asset bar codes
This report prints information about asset acquisitions including the date, price,
and vendor information.
Fixed assets > Reports > Base data > Movement > Fixed asset disposals
This report prints information about asset disposals including the date, net book
value, sales value, and profit and loss information.
Fixed assets > Reports > Base data > Movement > Fixed asset mid-quarter
applicability
This report generates a list of the total cost basis of acquisitions for each quarter
and the percentage of the assets placed in service for each quarter.
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Appendix A: Reports
Fixed assets > Reports > Transactions > Fixed asset transactions
This report is a list of fixed assets transactions with date, voucher, transaction
types, amounts, and more.
Fixed assets > Reports > Transactions > Fixed asset movements
Print this report to view a list of fixed assets movements on different transaction
types during the selected time period.
Fixed assets > Reports > Transactions > Fixed asset reserve transactions
This report lists fixed assets reserve transactions with date, voucher, amounts, and
more.
Print this report to view a list of fixed assets balances with amounts for each
transaction type.
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.
This report prints insurance information about fixed assets. This includes policy
numbers, and insured values from the Insurance FastTab in the Fixed assets form.
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Fixed Assets in Microsoft Dynamics® AX 2012
This report prints a fixed asset statement with amounts for each transaction type
and net book values.
This report prints a fixed asset note to include with the yearly external financial
statement.
Fixed assets > Reports > Lending > Fixed asset lending
This report prints a lending report for fixed assets with lending date, borrower,
location, expected return date, and more based on the Lending details form.
This report prints lending history for fixed assets with lending date, expected
return date, actual return date, and more based on the Lending details form.
This report prints a future value calculation list for the selected budget model and
date intervals.
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COURSE: 80302
FIXED ASSETS IN
MICROSOFT DYNAMICS® AX 2012
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other Internet Web site references, may change without notice.
Unless otherwise noted, the examples depicted herein are provided for illustration only and are fictitious. No
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This courseware does not provide you with any legal rights to any intellectual property in any Microsoft
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