FIXED ASSETS - Revertisdemo.revertis.com/sitios/Documentos/Documentos/Demo Script Finanz… · 4 Microsoft Dynamics AX 2012 R2: Fixed Assets PROBLEMS THIS DEMO ADDRESSES This script

MICROSOFT DYNAMICS® AX 2012 R2:

FIXED ASSETS

December 2012

Version 1.0

2

Microsoft Dynamics AX 2012 R2: Fixed Assets

Contents

Introduction ........................................................................................................................................ 3

Audience .............................................................................................................................................. 3

Problems this Demo Addresses ................................................................................................. 4

Key Benefits and Solutions ........................................................................................................... 4

Overview .............................................................................................................................................. 6

DEMO 1: Create Fixed Asset with Value Models................................................................. 7

DEMO 2: Fixed Asset Acquisition ........................................................................................... 13

Fixed Assets Acqusition Using Proposal in the Fixed AssetS Journal ....................................................................................... 13

Acquire Fixed Asset from Purchasing ................................................................................................................................................. 16

Record Acquisitions in the Inventory to Fixed Assets Journal .................................................................................................... 19

DEMO 3: Fixed Asset Depreciation ........................................................................................ 20

Using Proposals in the Fixed Assets Journal to Record Depreciation...................................................................................... 20

Using Proposals in the Depreciation Book Journal to Record Depreciation ......................................................................... 21

DEMO 4: Fixed Assets Disposal............................................................................................... 23

Register Disposal Sales Using Free Text Invoice ............................................................................................................................. 24

Provision for Reserve ................................................................................................................................................................................ 26

DEMO 5: Fixed Asset Reports .................................................................................................. 27

OPTIONAL DEMO 6: Fixed Assets module Setup........................................................... 31

Depreciation Profiles ................................................................................................................................................................................ 32

Depreciation Books ................................................................................................................................................................................... 34

Value Models............................................................................................................................................................................................... 37

Major Types ................................................................................................................................................................................................. 41

Fixed Asset Group ...................................................................................................................................................................................... 41

Posting Profile ............................................................................................................................................................................................. 45

Setting up Disposal ................................................................................................................................................................................... 48

Disclaimer ..................................................................................................................................................................................................... 51

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INTRODUCTION

This document examines The Microsoft Dynamics® AX 2012 R2 fixed assets module, which enables the ability to

easily setup, maintain, and track the valuation of your fixed assets. You can track multiple valuations for the same

fixed asset by using different depreciation methods and conventions.

Support has been provided to add fixed assets to the system in multiple ways. These include adding the fixed

asset when recording a vendor invoice and through journal entry in the fixed assets, accounts payable and general

ledger modules. Parameters around acquisitions, valuation, and other business policy rules can be defined at the

module level and for each value model.

Depreciation proposals can be run for each depreciation frequency, providing for fast and accurate depreciation

journal entry creation. Additionally, workflow and budget controls can be enabled to guarantee accuracy and

control of the processes.

Throughout the processes, a complete history is maintained. This includes an accurate, comprehensive audit trail

between the fixed assets transactions and their corresponding general ledger entries. Reports, such as fixed asset

transactions and fixed asset balances, can be generated, and up-to-date inquiries can be performed to track your

fixed assets activities.

AUDIENCE

The demonstration in this document should be used to show the value of Microsoft Dynamics AX 2012 R2 fixed

assets to a business decision maker (BDM) and accounting personas. The following role examples represent key

decision makers, selection process personnel and influencers, and evaluators:

Accounting Manager (Phyllis)

Phyllis manages the accounting department by processing general ledger transactions, reviewing and approving

transactions, and reviewing aging reports. She also makes sure that her team accurately completes financial

procedures on time.

Accountant (Cassie)

Cassie either does the books (for a small business), or audits the books (for any size company). In an internal role

as an employee, Cassie handles accounting duties in a complex finance department.

Accounts Payable Coordinator (April)

April receives vendors invoices for company fixed assets and posts acquisition transactions from purchasing.

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PROBLEMS THIS DEMO ADDRESSES

This script focuses on the fixed assets accounting life cycle in a company. There is demonstrated flexibility

of fixed assets acquisition and maintaining value until their disposal.

This script focuses on the following processes:

Fixed asset setup

Fixed asset acquisition

Fixed asset depreciation

Fixed asset disposal

Fixed asset reporting

KEY BENEFITS AND SOLUTIONS

FLEXIBLE CONFIGURATION OPTIONS FOR SETUP AND MAINTENANCE OF FIXED ASSETS

Fixed assets can be set up to track non-transactional data about the asset. Flexible setup includes the ability to

define the following types of information:

Basic fixed asset details, such as location, type, major type, property type and property group, and

user-defined reference data and notes.

Technical information about the fixed asset, such as the make, model, and maintenance dates and

condition.

Insurance information for the fixed asset, such as the insurance vendor, policy number and amount, the

insured value, and the replacement cost.

You can group fixed assets to categorize information in a meaningful way.

Accounting information, such as default financial dimensions, can be assigned to fixed assets value

models.

MULTIPLE VALUATION TRACKING FOR THE SAME FIXED ASSET

Fixed assets enables the tracking of multiple valuations for the same fixed asset. This can be done by setting up

the fixed asset in one or more of the following ways:

Associating the fixed asset to multiple value models where the value model determines the

depreciation method, convention, and posting layer.

Associating the fixed asset to multiple depreciation books where the association determines the

depreciation method and convention, but does not integrate into the general ledger.

RECORDING FIXED ASSET ACQUISITIONS AND VALUATION ACTIVITY

Microsoft Dynamics AX 2012 R2 supports different ways to record acquisitions of fixed assets. You can record the

acquisition of a fixed asset when recording a vendor invoice, vendor invoice journal, general journal, or in a fixed

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asset journal. Depreciation proposals can be generated for each depreciation period in a fixed asset journal.

Additional valuations, such as adjustments and revaluations, can be recorded in the fixed asset journal.

Microsoft Dynamics AX 2012 R2 supports the following fixed assets business requirements for acquisition and

valuation activities:

Record fixed asset acquisition amounts through vendor invoices or vendor invoice journals.

Record fixed asset acquisition amounts through general journals or fixed asset journals.

Generate and edit depreciation proposals based on depreciation method, convention, and frequency.

Record adjustments to the acquisition costs of the asset.

Record adjustments to the depreciation of an asset.

Record additional valuation adjustments to an asset, such as write ups, write downs and revaluations.

Transfer an asset from one financial dimension to another, such as one department to another

department.

Split an asset to another asset.

Record additional activity to an asset that does not affect valuation or service life.

Record the disposal of an asset by sale or scrap. This includes any realized gain or loss from the

disposal of the asset.

REPORTING AND INQUIRIES

Various reports and inquiries are available to provide required information about your fixed assets.

Fixed asset transaction inquiries

Fixed asset movement reports which provide information around the various valuation movement of

an asset over time

Fixed asset balance reports

Fixed asset book compare report which provides a comparison between two books; or value models

and depreciation books

Fixed asset statement report

FLEXIBLE FORECASTING

You can record the forecast of your fixed asset acquisitions and depreciations in a fixed asset budget

journal entry. The fixed asset budget journal entry can also update the ledger budget register. An inquiry

and a report are available to view the fixed asset budget entries

DEMO PRESET CONFIGURATION:

This script was written to work with the Microsoft Dynamics AX 2012 R2 RTM Virtual Machine (VM),

released in December 2012. Make sure that the VM is up and running and that you have logged on. The

script addresses key pain points and challenges that different roles might face. However the demo can be

completed as the system administrator.

Domain: CONTOSO

User: Administrator

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Password: pass@word1

OVERVIEW

This demo introduces the basic steps required to configure, maintain and retire Fixed Assets in Microsoft

Dynamics AX 2012 R2. The following diagram provides an overview of the major concepts covered AX

2012 R2 fixed asset module functionality.

This Demo script introduces you to key features that are available to users of the Fixed Assets module in

AX 2012 R2.

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DEMO 1: CREATE FIXED ASSET WITH VALUE MODELS

To set up a fixed asset, follow these steps:

1. On the navigation pane, click Fixed

assets, Common, Fixed assets, and then

click Fixed assets.

2. Click the Fixed asset button to create a

new fixed asset.

3. In the Fixed asset group field, select

the Fixed asset group: FURN_FIX.

4. Type name of the Fixed Asset:

Documents Case

Depending on the setups completed in a company, various information can auto-populate based on Fixed

asset group setup as follows here:

Fixed asset number is assigned when Auto numbering is activated from either the Fixed asset group or

Parameters in Fixed assets. Type, Major type, Property type, Value model, Depreciation books

5. Set up, if necessary, additional attributes

of the Fixed Asset in the following

FastTabs: Technical Information,

Insurance, Location

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6. Click the Value Models button on the

Action Pane.

In the Status field on the asset's Value models form, the field at first uses a value of Not yet acquired.

The other statuses are assigned manually or automatically as follows:

• Open - Set when an asset is acquired.

• Suspended - Assigned manually. This status is used for periodic suspension of depreciation calculation.

• Closed - Assigned to depreciable assets when the net book value becomes zero.

• Sold - Assigned to assets disposed of by sale.

• Scrapped - Assigned to assets disposed of as scrap through a journal.

The selections made in definition of Fixed Asset Group resulted automatic assignment of the Value

models. Value models determine what financial information is recorded and stored for a fixed asset.

In order to demonstrate the concept of Value models, close currently opened Value models, relevant for

newly being set up Fixed Asset, and move to a Fixed Asset FURN_FIX-000008 available in sample data and

open its Value models.

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7. On Fixed Asset number FURN_FIX-

000008 click button Value Models, and

after that, Transactions. In the current

form, the transactions relevant for the

selected fixed asset in context with the

specified value model are displayed.

8. On the transaction list, select the first

record (acquisition). Select the Voucher

button to show the journal entries posted

to General Ledger related to the

acquisition transaction for the specific

fixed asset.

9. Close Voucher transaction and Fixed

Asset transactions forms.

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Demonstrate additional capabilities of

Value models. Present summary amounts

of transactions posted in Value model.

10. In Value models form select first Value

model 150_SLLR. From buttons menu

select Inquiry and Balances menu.

11. Present Fixed Asset transactions

balances in breakdown specific to

transaction type.

12. Close Fixed Asset Balances and Value

models forms

13. Move back to newly created Fixed

Asset Documents Case press button

Value models.

14. Select Value model 150_SLLR

15. In tab General fill information in fields:

Acquisition date: 1/1/2013

Acquisition price: 165,000

Acquisition method: PURCHASE

Meaning of all fields on the General tab:

Acquisition date field, specify a date that will be used for the Acquisition proposal in the Fixed

asset journal and General journal. The default date will be the date when the fixed asset record is

entered in the Fixed assets form. Change the date, if it is necessary. When an acquisition is posted,

the acquisition date is updated with the date of the actual acquisition.

Acquisition price field, specify an amount that will be used for Acquisition proposal in the Fixed

Assets journal and General journal. Only fixed assets that are set up with an acquisition price are

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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.

In the Acquisition method field, select how the fixed asset is acquired. Acquisition methods define

the ways assets are obtained, such as through purchases or donations, and can be entered into the

Fixed asset value models form or the Asset depreciation book form.

In the Issue field group, the following applies:

o The Disposal date field shows the date when the fixed asset is sold or scrapped.

o The Sales value field shows the selling price of the fixed asset. The field is updated when

the fixed asset is sold.

o In the Replacement date field, enter the date planned to replace the fixed asset. The

default date is the acquisition date plus the service life.

In the Provisions field group, in the Type field, click the arrow to make a selection. This setup starts

the functionality of reserves for profit on assets.

16. Review the Depreciation tab. Majority

of data in fields has been defaulted from

definition of Fixed asset group (refer to

optional demo about setting up Fixed

asset module).

Explain the meaning of the fields on the Depreciation tab:

o In the Depreciation field, the check box is selected based on the Value model setup. The check box

can be cleared or selected manually. Clearing the check box is useful if the asset has not yet been

put in service and a company wants to guarantee that depreciation is not calculated.

o In the Depreciation run date field, the field displays the expected starting date for the first

depreciation calculation. This date defaults based on the placed–in-service date and selected

depreciation convention. No depreciation can be calculated and posted before the placed in

service date. Therefore, if the depreciation is set up to start before the placed in service date, the

first depreciation calculated after the placed in service date will also include the depreciation before

the placed in service date.

o In the Service life field, the remaining life of the asset is displayed in years.

o In the Expected scrap value field, enter the expected value below which Fixed Asset will not be

depreciated.

o Selected option Create depreciation adjustments with basis adjustments means that if there is

an acquisition adjustment posted after depreciation run, deprecation adjustments will be posted

also.

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o Depreciation convention determines depreciation run date and is based on predefined

conventions (setup in Value model definition). These are as follows: Half year, Full month, Mid

quarter, Mid-month (1st of month), Mid-month (15th of month) Half year (start of year), Half year

(next year).

Additional information

Purchase/Sale tab – Displays information

about the purchase or sale of the asset.

The fields here are system populated.

Vendor account – The vendor account

number is updated automatically when a

fixed asset is acquired by using Vendor

invoices.

Purchase order – The identification

number of the purchase order.

Invoice – The identification number of

the vendor invoice.

Customer account – The customer

account is updated automatically when a

fixed asset is disposed of externally by

using a free text invoice.

Invoice – Identification of the free text

invoice.

17. Open Financial Dimensions tab, and

then set Default financial dimension

BusinessUnit to 002 – Auto.

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The value models associated with the selected fixed asset, and also many of the fields of the value model,

are automatically populated based on the value models set up for the selected Fixed asset group. These

suggested value models can be used, or a user can select different value models:

If a company only records asset transactions for accounting purposes; one value model will typically

be sufficient.

If tax transactions are also recorded, an additional value model must be available; typically one that

uses the tax posting layer.

18. Click the Overview tab, and then

select second value model T_150_SLLR.

The reason for having second value model

is depreciation calculation for tax purpose.

On the General tab, notice that Posting

layer is set to Tax.

19. Enter the information in the following

fields:

Acquisition date: 1/1/2013

Acquisition price: 165,000

Acquisition method: PURCHASE

Click the Depreciation tab, and then

review the information and validate the

defaulted data (like in step 16).

20. Repeat step 17 and enter dimensions

for this Value model.

21. Close the Value model and Fixed

Asset forms.

End of Demo Scenario 1

DEMO 2: FIXED ASSET ACQUISITION

FIXED ASSETS ACQUSITION USING PROPOSAL IN THE FIXED ASSETS JOURNAL

Fixed asset acquisitions can be created by using the Proposals functionality in the Fixed Assets journal. To generate

a Proposal, fixed assets must be set up with the expected acquisition price already entered.

Before recording the acquisition, the fixed asset should be created (Ref Demo 1). To use Proposals to record the

acquisition of assets, perform the following steps.

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1. On 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

FACurr. Fixed Assets journal for posting in

current layer.

Note: This same proposal functionality is found in the

Depreciation book journal. To find the journal from the

Navigation Pane, click Fixed assets, click Journals, and

then click Depreciation book journal

4. Click the Lines button.

5. Click the Proposals button, and then click

Acquisition proposal.

6. Click the Select button.

7. In the Criteria column, for the Fixed asset

number, select the new asset Document

Case.

8. Click OK twice.

9. Note the line suggested with the item and

the price.

10. Click the Post button, and then click Post

in the asset journal.

11. On the Infolog form, click Close.

12. Close all the forms. Fixed Asset FUNR_FIX-

000010 has been acquired.

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13. Navigate to the Fixed Assets card, select

the newly acquired fixed asset FUNR_FIX-

000010, and then open Value Models.

14. Select Value model T_150_SLLR, and then

click Transactions. Unless Acquisition has

been posted in the journal for Value

model 150_SLLR Value model

T_150_SLLR derived acquisition

transaction form it.

15. Close the Transaction form.

16. On the 150_SLLR Value model, click View

details.

17. In open Value models setup form with

selected value model 150_SLLR, expand

the Derived Value models FastTab.

18. Present the setup of the derived

transactions by related value models to

the 150_SLLR.

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ACQUIRE FIXED ASSET FROM PURCHASING

You can present the following information about options to acquire fixed assets from the Accounts Payable

module.

As shown in the following screen shot, you can enable an option in Fixed Asset parameters that allows fixed assets

to be acquired from purchase orders.

Fixed assets can be acquired from the level of purchase order. An acquisition transaction is posted after a vendor

invoice is posted. After you select a purchase order/invoice option, you can create a fixed asset in the Line details

section of the Fixed Asset tab by selecting the New fixed asset? check box, as shown in the following screen

shot.

In following scenario, before recording the acquisition, the new fixed asset should be created (prepare for this

option executing Demo 1 and create a new fixed asset in the fixed asset group COMP).

To record an asset acquisition by using the Vendor Invoice journal, perform the following steps.

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19. On the Navigation Pane, click Accounts

payable, click Common, click Vendor

invoices, and then click Open vendor

invoices.

20. Click Invoice, and then click Vendor

Invoice. This initiates a new record for a

vendor invoice.

21. In the Invoice account box, click US-104.

22. Under Invoice Identification, in the

Number box, type INV-1001, and in the

Invoice Description box, type Purchase

of Computer Desk Fixed Asset.

23. Under Invoice Dates, in the Posting date

box, enter or select 1/15/2013.

24. Under Invoice Lines, click Add line.

25. In the Procurement category, under

Office Machines and Their Supplies and

Accessories, click Computers (New

category).

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26. Under Quantity, enter 1.

27. Under Unit Price, center 4500 to

correspond with Acquisition price of Fixed

Asset.

28. In Line details, click the Fixed Asset.

29. In the Fixed asset number drop-down list

box, click the newly created fixed asset

computer (in this case, COMP-000007).

30. Click the Post button twice. After this, the

invoice has been posted and the fixed

asset has been acquired.

31. In Fixed Assets, in the Fixed Asset box,

click Computer, and open its Value

models. Click the General tab, and then

notice that the Acquisition date box and

the Acquisition price box are populated

with the values from the posted vendor

invoice.

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32. Click the Purchase/Sale tab, and then

notice that there is information regarding

the posted vendor invoice in the Vendor

account box and the Invoice box.

33. Close all forms.

RECORD ACQUISITIONS IN THE INVENTORY TO FIXED ASSETS JOURNAL

Another acquisition option available in Microsoft Dynamics AX is acquisition from inventory. The Inventory to

Fixed Assets journal is used to record acquisition of assets that are assembled by the company, usually by using

inventory items. This journal works like other inventory journals, with the addition of the following fields:

Fixed asset number

Value model

Transaction type

When the Inventory to Fixed Assets journal is posted, one or more inventory items are taken from inventory and

transformed into a fixed asset.

Note: To set up the Inventory to Fixed Assets journal, click Inventory and warehouse management > Setup >

Journals > Journal names, inventory. In the Journal type field, enter Fixed assets.


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DEMO 3: FIXED ASSET DEPRECIATION

USING PROPOSALS IN THE FIXED ASSETS JOURNAL TO RECORD DEPRECIATION

To use Proposals in the Fixed Assets journal to

record the depreciation of assets, perform the

following steps.


assets, click Journals, and then click Fixed

assets.


journal.



Depreciation proposal.

5. In the To date field, enter the ending date

of the period for which you want to create

depreciation proposal lines; in this case,

enter 1/31/2013.

6. On the Asset Proposal and Depreciation

proposal forms, click OK.

Note: To summarize monthly depreciations into one journal line, on the Depreciation proposal form, you

can select the Summarize depreciation check box. For example, if the To date is December 31, 2013, and

there is no depreciation posted since July 1, 2013, the amounts for all depreciation from July through

December are summarized on one journal line, and the Date field on the proposed journal lines is then set

to December 31, 2013.

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7. Review the suggested entries of all Fixed

Assets depreciation proposal for the first

month of year 2013.

8. Click the Post button, and then click Post.


10. Close all the forms.

Note: These steps for Depreciation posting

should be performed for each Value model and

for all posting layers. This is not recommended to

derive depreciation transactions from other Value

models.

Note: Posting from the Fixed Assets Journal results in posting transactions to General Ledger Accounts.

USING PROPOSALS IN THE DEPRECIATION BOOK JOURNAL TO RECORD

DEPRECIATION

To use proposals in the Depreciation book journal

to record the depreciation of assets, perform the

following steps.


assets, click Journals, and then click

Depreciation book journal.


journal.

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Depreciation proposal.

5. In the To date field, enter the ending date

of the period for which you want to create

depreciation proposal lines; in this case,

enter 12/31/2013.

6. Click Summarize depreciation.

7. Click the Select button to specify criteria.

In the Criteria column, in the row with

Fixed asset group in the Field column,

select BUILDINGS.

8. In the Criteria column, in the row with

Depreciation book in the Field column,

enter FED.

9. Click OK on the

AssetDepBookProposalDepreciation

and Depreciation proposal forms.

10. Review the suggested entry. Summarized

depreciation from1/31/2013 has been

calculated for each Fixed Asset from

filtering criteria.

11. Click the Post button, and then click Post.


13. Close all the forms.

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Note: Proposals are used to record depreciation. In addition to registering depreciation manually by using the

Fixed assets journal or Depreciation book journal, proposals can also be created within these journals for

depreciation, consumption depreciation, extraordinary depreciation, and bonus depreciation (Depreciation book

journal only).

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.

Using depreciation proposals is helpful for periodic financial statements because depreciations for multiple fixed

assets can be calculated and posted in a single operation.


DEMO 4: FIXED ASSETS DISPOSAL

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.

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REGISTER DISPOSAL SALES USING FREE TEXT INVOICE

To register the disposal of assets by sales using

the free text invoice, perform the following steps.

1. On the Navigation Pane, click Accounts

receivable, click Common, click Free text

invoices, and then click All Free text

invoices.

2. Click the Free text invoice button to

create a new invoice.

3. In the Customer account field, select the

customer US-003 to whom this asset is

being sold. Set Date to 12/31/2013, Sales

Tax group to NY, Item Sales Tax group

to ALL, Quantity to 1, and Amount to

2100.

4. In the Description field, enter a

description of Sales of Computer for the

asset or the disposal.

5. Click the Line details FastTab. On the

General tab, in the Fixed asset number

box, select COMP-000004.

Note: When recording a disposal, it is not required to indicate the ledger Main account number when the Fixed

Asset setup for disposal is completed in the Posting profile.

6. Click Post, and then click OK to post the

invoice.

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7. Check the status of Value models in Fixed

Asset COMP-00004. The status is Sold.

Note: As explained in Demo 2, step 16, due to

relation of derived Value models and Disposal

transaction, Status of the Value model

T_150_SLLR has also been set to Sold.

8. On the Purchase/Sale tab, under Sales

account, check the values in the Customer

account and Invoice fields.

9. On the Fixed asset balances form for the

selected fixed asset, review Inquiry \

Balances with summary of all transactions.

10. Close all forms.

Note: Disposal sales and disposal scrap can be posted using the Fixed Assets journal.

Disposal scrap is considered an internal transaction, only journals are used to post disposal scrap. Free text

invoicing cannot be used.

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PROVISION FOR RESERVE

After posting an asset disposal transaction, Microsoft Dynamics AX 2012 R2 determines whether the asset is set up

for provision functionality. If the asset is set up with provisional functionality, Microsoft Dynamics AX 2012 R2

verifies whether the requirement setup for the Provision type is met. This means the asset is owned by the

company at least as long as the length of ownership required.

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.

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.


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DEMO 5: FIXED ASSET REPORTS

Fixed assets transactions

To run this report, click Fixed assets > Reports > Transactions > Fixed asset transactions. Select the parameters

shown in the following screen shot.

As shown in the following screen shot, this report displays fixed assets transactions with a date, voucher number,

transaction types, and amounts. It also provides summary information about acquisition amount and the current

net book value of fixed assets.

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Fixed asset movement

To run this report, click Fixed assets > Reports > Transactions > Fixed asset movements. Select the parameters

shown in the following screen shot.

As shown in the following screen shot, this report displays a list of fixed assets movements on different transaction

types during the selected time period.

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Fixed asset balances

To run this report, click Fixed assets > Reports > Transactions > Periodic > Fixed asset balances. Select

the parameters shown in the following screen shot.

As shown in the following screen shot, the report displays fixed assets balances with amounts per each transaction

type.

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Fixed asset book compare

To run this report, click Fixed assets > Reports > Transactions > Periodic > Fixed asset book compare. Select

the parameters shown in the following screen shot.

As shown in the following screen shot, this report displays a comparison of selected depreciation books with Cost

basis, Year to date depreciation, accumulated depreciation, and net book value for each asset.

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OPTIONAL DEMO 6: FIXED ASSETS MODULE SETUP

Most of the basic setup steps 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

following steps are standard:

1. Depreciation profiles

2. Fiscal calendar

3. Depreciation books

4. Value models

5. Fixed asset groups

6. Posting profiles

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DEPRECIATION PROFILES

Depreciation profiles are used to define rules for calculating depreciation. Creating profiles is required for

depreciable assets. This usually refers to tangible assets, but intangible assets can also use depreciation profiles.

Financial assets, such as shares of stocks or bonds, are considered non-depreciable. Therefore, depreciation

profiles are not required for these assets. The following methods are available for depreciation calculation:

Straight line service life

Reducing balance

Manual

Factor

Consumption

Straight line life remaining

200% reducing balance




Note: The preceding list of depreciation methods does not include country-specific extensions.

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For various assets with their specific depreciation

requirements, a separate depreciation profile with

specific depreciation method can be created. For

the purpose of demonstration, there should be at

least two depreciation profiles created. To set up

a depreciation profile, perform the following

steps.


assets, click Setup, click Depreciation,

and then click Depreciation profiles.


depreciation profile.

3. In the Depreciation profile field, enter

text to uniquely identify the profile: 200%.

4. In the Name field, enter a name that

describes the profile: 200% reducing

balance.

5. In the Method field, select a depreciation

method: 200% reducing balance.

6. In the Depreciation year field, select:

Calendar.

7. In Period frequency field, select:

Monthly.

8. Repeat the preceding steps to create

another depreciation profiles for straight

line life remaining depreciation method

identified as SL_REMAIN and 150 percent

reducing balance identified as 150%.

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DEPRECIATION BOOKS

35


To set up a Depreciation book, perform the

following steps.


assets, click Setup, click Depreciation,

and then click Depreciation books.


depreciation book.

3. In the Depreciation book field, enter a

code to identify the depreciation book:

FED.

4. In the Description field, enter text that

describes the depreciation book: Federal

tax.

5. In the Depreciation field, select the check

box to calculate depreciation.

6. In the Depreciation profile field, select

the depreciation profile for this

depreciation book: 200%.

7. In the Alternative depreciation profile

field, select a depreciation profile, if it is

necessary. The alternative depreciation

profile is used when two depreciation

methods are combined (through statutory

regulations) and a company can post the

highest depreciation. For purpose of this

demo, select SL_REMAIN.

36


8. 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:

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.

The existing depreciation amounts for the

period being rerun are deleted.

9. 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.

10. Select the Create depreciation

adjustments with basis adjustments

check box to automatically generate

depreciation adjustments when the basis

of the asset is adjusted with another

adjustment type entry.

11. You can set up an additional Depreciation

book named STATE for a state tax

purpose, which can be based on only the

SL_REMAIN depreciation profile.

37


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.

38


To set up a value model, perform the following

steps.


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: 150%_SLLR.

4. In the Description field, enter text that

gives more information about the value

model: 150% RB switch to SLLR.

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:

150%.

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. For the purpose of this

demo, select SL_REMAIN.

39


8. In the Posting layer field, click the arrow

to select the posting level. For Fixed asset

transactions: Current.

9. Select the Create depreciation

adjustments with basis adjustments

check box to automatically generate

depreciation adjustments when the basis

of the asset is adjusted with another

adjustment type entry.

10. Repeat steps 2–10 for a similar setup of a

Value model identified as T_150_SLLR

being a combination of 150 percent and

SLLR depreciation profiles but with the

Posting layer set to Tax.

11. Return to the setup of the 150%_SLLR

Value model.

40


14. Click the Derived value models FastTab.

15. In the Value model field, select the value

model T_150_SLLR to copy asset

transactions from one value model to a

different value model. This is useful when

an asset is set up with one value model for

accounting and a different one for tax

purposes.

16. In the Transaction type field, select a

Transaction type for the derived value

model for instance: Acquisition,

Acquisition adjustment, Disposal - sale,

or Disposal - scrap.

17. Click the Derived depreciation books

FastTab.

18. In the Depreciation book field, select

Depreciation books FED and STATE to

copy asset transactions from one

depreciation book to another depreciation

book. This is useful when an asset is set up

with one depreciation book for accounting

and a different one for tax purposes.

19. In the Transaction type field, click the

arrow to select a Transaction type for the

depreciation book for instance:

Acquisition, Acquisition adjustment,

Disposal - sale, or Disposal - scrap.

Note: It is not recommended to set the

derived transaction type for depreciation

because it is just a copy of the amount

and not a calculation.

20. Close the form.

41


MAJOR TYPES

Several fields are available on the General

FastTab of the Fixed asset groups form that can

be used to better classify the asset, especially for

reporting. The Major type field requires some

setup.

To create a Major type, perform the following

steps.

1. Click Fixed assets, click Setup, and then

click Major types.


record.

3. Enter a unique identifier in the Major type

field: OFFICE.

4. In the Description field, enter a short

description for the Major type: Office

equipment.

FIXED ASSET GROUP

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.

42


To set up a fixed asset group, perform the

following steps.


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:

FURN_FIX.

4. In the Name field, enter a name for the

Fixed asset group: Furniture and Fixtures.

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

For the purpose of the demo setup, click

Tangible.

6. In the Major type field, select a top-level

asset classification for reporting only;

select: OFFICE.

7. In the Autonumber Fixed assets field,

select the check box to indicate that

Microsoft Dynamics AX 2012 R2 creates

the numbers for the items.

8. In the Number sequence code field,

select the number sequence code to use

when assets are auto numbered.

9. In the Autonumber bar codes and Bar

code number sequence fields, make

selections for bar codes the same way as

for numbers.

43


10. In the Property type field, select the type

for fixed assets with the group:

Fixed asset – Regular assets, to be

processed usually.

Continuing property – Property that

exists for inventory purposes only. For

example, telephones, radios, or mobile

devices that 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.

Other – Intangible assets that must

display separately on the balance sheet.

This field is used only for reports or

searches.

11. In the Location field, select a location for

fixed assets within the group. The available

locations are set up in the Fixed asset

location form at Fixed assets > Setup >

Fixed assets locations.

12. In the GIS layer ID field, identify the

default Geographic Information System

(GIS) layer for fixed assets within the

group. A layer represents the type of data

being viewed, such as street or water. A

GIS database is a third-party application.

44


13. In the Replacement cost factor field,

enter the percentage to increase or

decrease the 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.

14. In the Insured value factor field, enter the

percentage to increase or decrease the

insured 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.

45


POSTING PROFILE

46



assets, click Setup, and then click Fixed

asset posting profiles.


3. In the Posting profile field, enter a brief

code to identify the Posting profile: ALL.

4. In the Description field, enter text to

better identify the Posting profile: FA

General 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. In the

Groupings field, for general demo

purposes, type ALL to indicate the setup is

used for all assets, unless defined in

another line.

7. In the Fixed asset number field, you may

select the number to assign to the line.

Leave it blank for demo purposes.

47


8. 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: 180100 in USMF demo

data company setup.

9. 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:

300160 in USMF demo data company.

Note: There can be exceptions. When you enter transactions, Microsoft Dynamics AX 2012 R2 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 R2 can meet a company's requirement for financial reporting, whether it must be detailed or

summarized. Additional information on how to set up Posting profiles follows:

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.

48


SETTING UP DISPOSAL

The setup is the same whether creating a

setup for Sale or Scrap. To set up the

requirements for disposal, perform the

following steps.


assets, click Setup, click Fixed asset

Posting profiles, click the Disposal

button, and then click Sale or scrap.


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:

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.

49


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:

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.

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.

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.

50


Note 1: The default value of the Sales value type column is All because the same ledger accounts are frequently

used for the disposal, whether the fixed asset was disposed of with a profit or loss. However, to set up ledger

accounts for the same value model and the same fixed asset differently for disposals with profit versus disposals

with loss, select Gain and Loss in the Sales value type field.

Note 2: To post asset disposals, the following setup is required:

For each Value model that is used in disposal of assets, define a Main account and Offset account to use

with the net book value transaction type in the Post value field.

For each Value model that is used in disposal of assets, define the Main account and Offset account to

use for Disposal - sale or Disposal - scrap (or both) in the Fixed asset Posting profiles form.

End of Optional Demo Scenario 6

51


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may be claimed as the property of others.

The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the

date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be

a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the

date of this presentation. Microsoft may make changes to specifications and product descriptions at any time, without notice.

This content is provided “as-is”. Information and views expressed in this content, including URL and other Internet Web site

references, may change without notice. Some examples depicted herein are provided for illustration only and are

fictitious. No real association or connection is intended or should be inferred.

Sample code included in this presentation is made available AS IS. THE ENTIRE RISK OF THE USE OR THE RESULTS FROM THE

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