Configuring Fixed assets

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)

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.

In addition to supporting the General ledger, the Fixed assets module in Microsoft Dynamics AX 2012 has other functionality, including:

• Provides detailed documentation for the company’s assets.
• Simplifies the tracking of depreciation.
• Calculates write-ups or write-downs.
• Allows for the acquisition and disposal of assets.
• Allows the accounting of assets for tax preparation.

Because most fixed assets represent a significant investment for companies, the ability to track and keep sound financial records on fixed assets is important.

1. Create Fixed asset groups, you can create as many asset groups as you need example

• Automobiles
• Computers
• Machinery
• Buildings
• Copyrights or trademarks (a special class of assets frequently called intangible assets)

And each of these groups can have different rules to depreciate. And you can configure a special number sequence for each group or you can configure the same number sequence for all

1.1.1.     Click Fixed assets, click Setup, and then click Fixed asset groups.

1.1.2.     Click the New button to add a line.

1.1.3.     In the Fixed asset group field, enter a code to identify the Fixed asset group.

1.1.4.     In the Name field, enter a name for the Fixed asset group.

1.1.5.In the Type field, click the arrow to select a type to assign to the Fixed asset group. The following choices are available:

• Tangible
• Intangible
• Financial
• Land and buildings
• Goodwill
• Other

1.1.6.In the Major type field, select a top-level asset classification for reporting only.

1.1.7. In the Autonumber Fixed assets field, select the check box to indicate that Microsoft Dynamics AX 2012 creates the numbers for the items.

1.1.8.In the Number sequence code field, select the Number sequence code to use when assets are autonumbered.

1.1.9.In the Autonumber bar codes and Bar code number sequence fields, make selections for bar codes the same way as for numbers.

1.1.   Configuring Depreciation profiles

1.1.1.Click on Fixed assets à Setup à Depreciation à Depreciation profile

1.1.2.Click New

1.1.3.Depreciation profile set a identifier

1.1.4.Name Set a name

1.1.5.Select Method

1.1.1. Select depreciation year

1.1.1.Select period frequency

1.1.   Configuring value models

1.1.1.Click on Click on Fixed assets à Setup à Value models

1.1.1.1.Set value model

1.1.1.2.Set description

1.1.1.3.Select Depreciation profile

1.1.1.4.Select posting layer

1.1.1.5.Select calendar

1.1.1.Click on fixed asset groups button

1.1.1.1.Select Fixed asset group

1.1.1.2.Select value model

1.1.1.3.Mark depreciation box in case that the fixed asset  should calculate depreciation

1.1.1.4.Service life, here you have to set a number in years 5, 10, 20 years

1.1.1.5.Depreciation periods, this field will calculated automatically depending on what you set in the previous field

1.1.1.6.Select a depreciation convention

IMPORTANT NOTE: Microsoft Dynamics AX calculate depreciation in base on periods not in percentage, that’s why is very important calculate the periods and in base on those periods calculate the service life in years

1.1.   Set Up a Fixed Asset Group – Value Models Button

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.

1.1.1.From the Fixed assets group form, click the Value models button.

1.1.2.Click the New button to add a line.

1.1.3.In the Value model field, select a Value model. This selection populates most fields on the form.

1.1.4.     Select the Depreciation check box to indicate depreciation is calculated.

1.1.5.     In the Depreciation convention field, click the arrow to make a selection.

In this option you will find the previous configuration that you made this configuration will be default available when you make a new fixed asset when you select the group for that specific fixed asse

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1. Configuring a fixed asset 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.

At least one posting profile must be set up.

To set up Posting profiles, follow these steps.

• On the Navigation Pane, click Fixed assets, click Setup, and then click Fixed asset posting profiles.
• Click the New button to add a line.
• In the Posting profile field, enter a brief code to identify the Posting profile.
• In the Description field, enter text to better identify the Posting profile.
• 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.
• In the Value model field, click the arrow to select the value model.
• In the Groupings field, click the arrow to select from the following options:
  • Table to indicate the setup is specific to a particular asset.
  • Group to indicate the setup is used for a Fixed asset group.
  • All to indicate the setup is used for all assets, unless defined in another line.
• 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:
  • If Table is selected in the Grouping field, the lookup displays all Fixed assets, so that posting accounts can be assigned for individual assets.
  • 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.
  • 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.
• 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.
• 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
• Here you can configure all of the options or you can configure only the options that you needConfiguring Disposal
• 

Here you must configure the options for sale and scrap,

Sales option you must configure on this two options for each fixed asset group gain and loss and you need to select one account for each option

Scrap option you must configure this option for each fixed asset group and select one account for each option

Fixed assets parameters

Go to Fixed assets à Setup  à Fixed assets parameters

1. Set the minimum depreciation amount
2. Allow multiple acquisitions, check the box
3. Posting profile select the default posting profile
4. Allow asset acquisition from purchasing, check the box
5. Create asset during product receipt or invoicing
6.  
7. Configure number sequencesHere we recommend to make manually all the number sequence because there are some internal processes that could use any number sequence, if it does not exist it will be show an error screen