Fixed asset setup: presentation

This article presents the basics about the fixed asset setup in Dynamics AX 2012.

1/ Prerequisites

Before using Fixed assets module, several prerequisites must be setup : number sequences, journal names and default descriptions.
  • Number sequences
    • Access: Organization administration > Common > Number sequences > Number sequences
    • Two number sequences must be created for the FA parameters:
      • Automatic number for « Fixed asset number »
      • Automatic number for « Fixed asset transfer »
    • One sequence per journal names: acquiring, depreciating, adjustment, …
    • Several number sequences per asset groups (optional).
  • Journal names
    • Access: General Ledger >Setup > Journals > Journal names
    • Create journal with the type « Post fixed Assets ».

AssetSetupFA001

  • Default descriptions
    • Access: Organization administration > Setup > Default descriptions
    • Two default descriptions to setup :
      • Fixed asset – posting, ledger
      • Fixed asset – reversal of reserve

AssetSetupFA002

2/ Assets setup

The standard steps for asset setup are as follows:
  • Depreciation profiles
  • Fiscal calendar
  • Depreciation books
  • Value models
  • Fixed asset groups
  • Posting profiles
  • Parameters
AssetSetupFA003

2.1/ Depreciation profiles

Depreciation profiles are used to define rules for calculating depreciation. Several methods are available for depreciation calculation.
Access: FA > Setup > Depreciation > Depreciation profiles
  • Create a new depreciation profile and enter a code and a name.
  • Select Method.
  • Field the percentage (depend of the method).
  • In the Depreciation year field, select Calendar or Fiscal.
  • Select the period frequency to define when the depreciation is posted.

AssetSetupFA004

2.2/ Fiscal calendar

Fiscal calendars are used with fixed asset depreciation, financial transactions and budget cycles. You can select a fiscal calendar for a value model or depreciation book. This fiscal calendar will be used by the fixed assets that use the selected value model or depreciation book.
Access: GL > Setup > Fiscals calendar

AssetSetupFA005

2.3 / Depreciation books

You can use depreciation books to track depreciation for tax or other nonfinancial purposes without affecting the General ledger.
Access: FA > Setup > Depreciation > Depreciation books
AssetSetupFA006

2.4/ Value model

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.

Access:FA > Setup > Value models

AssetSetupFA007

2.5/ Fixed assets groups

There are many reasons for setting up Fixed asset groups, including:
  • To simplify the setup of assets
  • To help inquiries, reporting, and setting up posting profiles
  • To create a template with default information that is copied to a new asset when the company acquires a similar asset
For the reporting, you can create a “major type” classification to link to fixed assets group
  • Access: FA > Setup > Major types
Access: FA > Setup > Fixed assets groups
AssetSetupFA008

  • Link fixed asset group with one or several value model and define the depreciation period.

AssetSetupFA009

2.6/ Posting profiles

Fixed assets posting profiles are used to define the integration of fixed asset to General ledger.At least one posting profile must be set up.
Access: FA > Setup > Fixed assets posting profiles
AssetSetupFA010

2.7/ Parameters

In this form, you can select the option for the accouting rules, acquisition from purchase order, …

Access:FA > Setup > Fixed assets parameters

AssetSetupFA011
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9 thoughts on “Fixed asset setup: presentation

  1. Hi Violaine,

    Very good explanation about the FA Setup .

    I am not clear about the Calendar or Fiscal In the Depreciation year field.

    What is the difference between these two options .
    Which is the best option either Calendar or Fiscal ?
    What are the advantages & disadvantages if i select calendar or year ?

    Could you explain the difference between Calendar or Fiscal with an example ?

    Reply
    • Hello Lally,
      The option you have to select depends of the type of year that you use to calculate depreciation.
      If the calculation of the depreciation is based on a calendar notion, every months for example, choose Depreciation year = calendar and period frequency = monthly.
      But if you calculate the depreciation every 4 weeks for example, and it is the same period you setup for the fiscal year, choose Depreciation year = fiscal and period frequency = fiscal period.

      Reply
  2. Hi Violaine ,

    Thank you for the reply .

    Assume that if i select the option – Fiscal year and Fiscal period then how system will come to know the Depreciation period 4 weeks or 6 weeks ( you mentioned that for example 4 weeks ) How does system will come to know that depreciation period ?

    Reply
  3. Hi Violaine,

    I have an item that I need to capitalised thru procurement. Part A,item group is fixed asset. Upon invoicing, we capitalised it. In the FA register the amount was captured correctly based on the invoice value but in the ledger, it was captured incorrectly. The value seems to be an average price for the Part A. Kindly advise where it goes wrong?

    thanks

    Reply
  4. Hi Violaine,

    Very good blog and explanation!!!!!

    Keep it up!.

    Please update me as follows with regards to Australia:

    What is the best way of calculating depreciation if you want to calculate straight line based on a specific percentage. For example, you want to charge at 13.29% per annum straight line. The problem is through straight line (based on no. of months only) it does not provide the depreciation matching to exact amount as per the requirement. With Straight line method based on life we have to import the client balances that would not match with his historical months depreciation generated in legacy system. I tried and found that in ‘depreciation profile’ there is a feature called manual, with this you can add manual rates, but again it do not give you precise calculation based on client calculated depreciation in recent months of the same year. What do you suggest or what should be the approach?

    You quick feedback will help please.

    Reply
    • Hello,
      You cann’t enter directly a rate in the system. The rate is calculated with the total of periods and the remaining periods. For example, if your fixed asset is depreciated in 5 years(20%), and you do the migration after 2 years, you need to put number of years = 5, total of periods = 60, periods remaining = 36.

      Reply
  5. Can you explain disposal process with posting profiles. Means which ledger account should give in main account and offset account in posting profile disposal-sale, and net book value. And is there any ledger posting difference if we did disposal of asset through FA journal and Free text invoice? Please clarify me with solutions. Thanks

    Reply

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