Fixed Asset Acquisition by using Procurement Business Process

There are a couple of ways to acquire fixed asset in AX2012. However, the standard business practice is to acquire the fixed asset by using purchase requisition functionality available in Procurement and Sourcing module.

Below is the standard business process flow diagram for acquiring fixed asset by using the procurement process.

Setups and Configurations

Following are the prerequisite setups in order to complete the fixed asset acquisition process by using purchase requisition.

1. Setup procurement hierarchy for fixed assets

2. Setup fixed asset identifier in procurement module

3. Setup business rule for fixed asset in procurement module

4. Setup fixed asset group in fixed asset module

5. Create items in product information management module

6. Create one default item group for fixed asset, also setup posting profile for fixed asset procurement categories

 Step by Step

1. End user will create purchase requisition by selecting the fixed asset items

2. Select the fixed asset items F&F and EQP in purchase requisition (Add items form)

3. End user will submit the purchase requisition for fixed asset

4. Procurement specialist will make sure to create the RFQ and enter RFQ reply for purchase requisition. Also enter the fixed asset group for purchase requisition in purchase requisition details.

5. Procurement specialist will accept the reply and approve the purchase requisition

6. Once purchase requisition status is Approved, procurement specialist will convert the PR to PO (System will generate the PO number) by using release approve purchase requisition functionality.

7. Confirm the purchase order

8. New fixed asset check box is already marked in PO lines (fixed asset tab)

9. Once the PO is received, the system will create the Fixed asset for the lines in PO. The asset number is generated for the fixed asset. However, the status of fixed asset in value model is “Not yet acquired”. (Note: There will be no acquisition price, once the product receipt has been posted for PO)

   Note: Once the fixed asset purchase order is received, If the acquisition is less than threshold (in my case it’s 5000AED) system will not create the check mark for Depreciation in fixed asset. If the asset acquisition cost is more than 5K system will automatically mark the check in Depreciation box available in the value model.

10. Finance needs to post the invoice for the purchase order, once the invoice posted the status of the asset will be Open. Moreover, the acquisition price and date for fixed asset are also updated in the value model.

Below are the list of screen shots for each step

1- Create Purchase requisition hierarchy(Procurement category) for fixed asset groups F&F and EQP. These procurement categories need to be linked with fixed asset items which will be created in product information management module.

2- Setup fixed asset identifiers, make sure to create one identifier for each asset group.

3- In the Business rule for fixed asset determination, select the procurement category and fixed asset group. Also, define the thershold limit for each asset group.

4- Fixed asset group will be created in fixed asset module. 

5- There will be one default item for each fixed asset group. Business user will select the same item when ever they will acquire fixed asset for a particular group.

6- Purchase requisition will be created for the fixed asset items.

7- Procurement specialist will make sure to select the fixed asset group in purchase requisition details.

8- Procurement specialist will create the RFQ for purchase requisition and add vendor for RFQ replies.

9- RFQ reply will be received from the vendors and updated the reply in the form. After comparison Procurement specialist can accept/reject the replies. 

Note: After acceptance procurement specialist can't make any change in the reply. 

10- Procurement specialist will convert the approved purchase requisition to PO by using the release approved purchase requisition functionality(available in procurement and sourcing module)

11- Once the receiving has been posted by the End user, the system will generate the asset number for the lines, the same asset is now available in fixed asset master.  Below is the receiving voucher for fixed asset product receipt. 

12- Finance will generate the invoice for the PO, below is the invoice voucher

13- We can see that system has generated the asset and checked the depreciation check box for fixed asset in the value model form.

If you have any queries regarding this post feel free to share.

Looking forward to your value addition

Cheers !