Fixed assets depreciation in project module

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Posted on by imran ul haq

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Hi All

I have one query related to fixed assets depreciation value, actually i have one fixed assets that i can use in my different projects and its depreciation value i want to allocate to the all the projects in which it is used. How i can map or do this.

What i was thinking is, i will depreciate my fixed assets from the Fixed assets module where it will debit my Depreciation expense and credit the accumulated depreciation(system entry). Then i will get the depreciation value of the fixed assets and that value i will allocate to my projects in a definite percentage by passing the expense journal in which i will offset the depreciation expense account.

please advise, thanks in advance.

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André Arnaud de Cal... 300,904 Super User 2025 Season 2 on at

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Hi Imran,

Standard AX does not have a functionality to achieve this. You need to perform a manual procedure by e.g. filling a journal or consider a customization.

The only value integration between Assets and Project is the ability to use an investment project to capitalize the costs to be used as acquisition value when the investment project is completed.

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imran ul haq 4,017 on at

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thanks Andre for your usual help.

So, i will depreciate my fixed assets from the Fixed assets module where it will debit my Depreciation expense and credit the accumulated depreciation(system entry), this will update my fixed asset module and then the depreciation value of the fixed assets which i got from the depreciation journal i will allocate it to my projects in a definite percentage by passing the expense journal from the project in which i will offset the depreciation expense account, to avoid double booking of the expense.

please advise, thanks in advance.

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André Arnaud de Cal... 300,904 Super User 2025 Season 2 on at

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Hi Imran,

can you explain what advise you are looking for? In my previous reply I mentioned that there is no functional support for your requirement. Or this will be a manual procedure or you have to do a customization.

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imran ul haq 4,017 on at

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Yes i gone through that, what i am looking for is that for the manual process what we have to do, what i was thinking is mentioned in my previous posts, just want to confirm i am on the right track or something else i have to do.

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David Massey on at

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As Andre mentioned there is not automated process for depreciating the value of a project. The question is "Why" do you want to depreciate the value of the project? The costs incurred in completing the "Fixed Asset" have not changed. Over time the value of the completed project may depreciate, but that is what Fixed Asset management is tracking. (Investment project cost transferred to a Fixed Asset)

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imran ul haq 4,017 on at

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i think there is some confusion here, i want to put the depreciation of my fixed assets in the project as the cost of the project. For Example, i used one of my machine for two month in three projects, as the machine is my fixed asset and i depreciate the machine from my fixed assets module. This depreciation i want to allocate in my three project, so how i can achieve it.

I think for this i have to allocate manually by passing the expense journal. What i have to do is, first i will run the depreciation from the fixed assets module (Accumulated depreciation credit, depreciation expense debit) then what so ever the value i will get from this depreciation i will pass the expense journal in the project, in which i will offset(credit) the depreciation expense account.

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André Arnaud de Cal... 300,904 Super User 2025 Season 2 on at

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Hi Imran,

I was assuming you had a requirement like this. In the a similar past I had requirement where they wanted to have a kind of internal rental of their assets based on "real" costs with a surcharge. We then did a customization as many assets were involved and the depreciation was not just straight line.

The manual procedure you mentioned looks quite OK. I would prevent using the same ledger accounts as used for the depreciation of your assets. If you use other main accounts you get a kind of coverage costs like the payroll allocation on hours. Then you are also able to reconcile the ledger accounts.

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imran ul haq 4,017 on at

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Thanks Andre for your reply.

i will use the depreciation expense account only, or better to say i will just transfer the amount from the depreciation expense (amount came after running the depreciation from the Fixed assets) to the project (in project i will create the category depreciation and that category i will map to the new ledger account which fall in the project COGS), so when i will pass expense journal user will select the Depreciation category (Debit) and off set the depreciation expense account (credit).

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