[How to] Configure Fixed Asset Derived Books in MSD365 FO

Dear Dynamics 365 Lovers,

By God’s grace, I wrote this article to demonstrate the concept of Fixed Asset Derived Books and how that requirement is achieved in MSD365 FO

Let’s explore 

What is Fixed Asset Derived Books?

In industry, majority of the companies maintain their separate books/layer for company act (Current Layer) and for income tax (Tax Layer) and also there are local book (Operations Layer) as well for local statutory purpose.

It means these separate books have their separate acquisition, Depreciation, Disposal etc.

By the derived book setup, system allow user to enter a transaction once and update multiple assets and books automatically in the same journal.

Business Scenario

Fixed Asset INFRASTRUCTURE INDIA has three separate books for three layers

1. FAInfraCur- Current Layer/ Company Act
2. FAInfraOp- Operations Layer/ Statutory Layer
3. FAInfraTx- Tax layer/ Income Tax

Book ‘FAInfraOp’ and book ‘FAInfraTx’ will be set up as derived books for book ‘FAInfraCur’ for the Acquisition transaction type and depreciation type. In book ‘FAInfraCur’,you enter an acquisition transaction for asset INFRASTRUCTURE INDIA for 1,500.00.

As a result the rest two derived books will be acquired automatically in the same journal, and this can be done for any transaction type such as depreciation, disposal etc.

Configuration

Pre-requisite

Make sure the posting profile is setup for all the books which are required for derived book postings

Link derived books to the main book

In our case we shall link Book ‘FAInfraOp’ (Operations) and book ‘FAInfraTx’ (Tax) to our main book ‘FAInfraCur’ (Current)

Navigate to Fixed Asset – Setup- Books

From book section Select the main book (‘FAInfraCur’ in our case) and add books ‘FAInfraOp’ & ‘FAInfraTx’ into the derived books field

From transaction type sections add required transaction types such as acquisition, depreciation, it will bring the entry when the main book is used for the same transaction type, we will see later in this blog.

Important – Make sure the pre-requisite (already addressed earlier in this blog) is met before making these setup

The configurations are done

Booking Derived book transactions 

Lets create an acquisition proposal for Main book ‘FAInfraCur’, where the derived books are setup, and expectation is to have automatic acquisition of FAInfraOp’ (Operations) and book ‘FAInfraTx’ (Tax).

Lets add the acquisition value before running acquisition proposal

Now, create fixed asset journal for Current layer – Create acquisition proposal for main book ‘FAInfraCur’

System will create one line for Acquisition ‘FAInfraCur’, however in the same journal in the book section other two books will be created by system,

Now post the journal

And now we can see all the books are acquired because by only one transaction and with having the correct setup, all the books are now acquired, and hence the expectation is met.

We can also check the transactions for each book and it will show same as expected booking

Above was for acquisition, now lets see the similar function with depreciation, where we shall run depreciation proposal for only main book  FAInfraCur and it will automatically bring rest of the derived books

We already added 'Depreciation' derived books setup earlier, see below, where we added derived books ‘FAInfraOp’ and book ‘FAInfraTx’ to main book ‘FAInfraCur’  for depreciation transaction type

Lets create depreciation for main book ‘FAInfraCur’

We will have only one line for depreciation for main book FAInfraCur’ created 

And if we check the book section, it will have the derived book line created in the same journal

Now post the journal and check the respective books, it will show the depreciation for all the books as required.

See below

Depreciation for Current book FAInfraCur’ 

Depreciation for Operations/ ‘FAInfraOp’

Depreciation for tax / ‘FAInfraTx’

All were posted automatically by the main book we have posted.

This is it for  this blog, I hope this will help you to understand and meet the customer requirement for this topic.

Stay blessed and stay connected for more article.