3 Steps to Achieve Fixed Asset Capitalization in Dynamics NAV 2018

First of all, let me tell you that it is not a standard feature in Dynamics NAV, but it is a workaround used to transfer the value of Inventory Item to a Fixed Asset and this is what we will explain in the next paragraph.

The case we faced with a client, that the company purchase a fixed asset and keep it as “Inventory Item” in Fixed Asset warehouse location.

So a physical count are made on the Inventory Item with item category “Fixed Asset”, then he can know the quantity of every fixed asset in all warehouse locations.

After that, he can transfer the Fixed Asset Inventory item to a specific location that will be used thereby Using Transfer Order.

Fixed asset capitalization can be made after finishing the transfer order on the specified location and then create it in Fixed Asset Module.

Let’s go through the steps of the capitalization of the Inventory Item “Fixed Asset”.

First: A Negative Adjustment made on the specific item from Item Journal.

Note: Product Posting Group Created with the name “Fixed Asset Capitalization” linked with GL Account “Fixed Asset Capitalization.

The GL Entry will be made from Item Journal will be as follows:

• Debit: Fixed Asset Capitalization 1000 EGP
• Credit: Inventory Account (1000) EGP

Second: Create a Fixed Asset on Fixed Asset Module.

Third: Acquire Fixed Asset

• From Fixed Asset Card, Go to Ribbon “Action”.

• Select Acquire Fixed Asset Button.
• Complete the wizard with the following requirements:
  • Enter the Amount of Fixed Asset Acquisition Amount.
  • Enter the GL Account of Fixed Asset Capitalization.

• Click Finish.

The GL Entry will be made from Acquire Fixed Asset will be as follows:

• Debit: Fixed Asset Account 1000 EGP
• Credit: Fixed Asset Capitalization Account (1000) EGP

Result:

• A negative adjustment made on the Item to reduce the quantity of the item to Zero Value. Item Quantity = Zero.
• FA Capitalization GL Account = Zero (Debit 1000 EGP / Credit 1000 EGP)
• Fixed Asset Acquisition made with 1000 EGP in Fixed Asset Module.

Hope you enjoy it.