Microsoft Dynamics AX (Archived)

Fixed Assets Create subclasses for one asset for wear and tear purposes

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Posted on by Ax2009 User

In AX 2009 RTM can we create

adequate asset subcategories to cater for various sub-assets for tax where only one asset is captured for accounting purposes.

For example

1. - Expenditure incurred on refurbishments, revamps or upgrades for specific stores are grouped together and capitalised as one asset; but for wear and tear or tax purposes certain components that make up that asset have a different useful life. Is there any way to setup one asset for accounting purpose and then setup sub classes for each of the components that make up that asset with a different useful life for wear and tear purposes only.
    
    Or is the only option to split one asset into various other assets?

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André Arnaud de Cal... 301,075 Super User 2025 Season 2 on at

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Hi AX2009 user,

Please review your text or used version in your post. You are mentioning AX2009, but the version selected is AX4. Also Administration and Setup is not matching 'Fixed assets'.

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Ax2009 User on at

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sorry. I selected Setup because I thought this would relate to the setup of Fixed Assets.

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Ludwig Reinhard Microsoft Employee on at

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Hi AX2009 User,

What I could think of to get this resolved is using different value models to track the different lifetimes and values of your assets. If you are not linking those value models you can even track different acquisition costs and depreciation, etc. for one single asset. As an example, a value model 'wear and tear' could be setup with an acquisition value of 1000 and be depreciated over 5 years while a 'tax' value model could hold an acquisition value of 800 and be depreciated over 8 years.

If you find this confusing, setting up two separate single fixed assets might be the better choice.

This setup can be realized by setting them up manually or - as you write - by splitting one fixed asset into several ones.

Please note that split in this context means that the total value is reduced by the one that is split.

If you could provide a concrete example, we could probably be more concrete than just mentioning possible options/Features in AX that might help.

Best regards,

Ludwig

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Ax2009 User on at

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Hi Ludwig.

Thank you for your response. We currently use Value Models to differentiate between the Accounting Layer and Tax Layer as you have mentioned above.

An example Shopfitting will be capitalized as one asset for Accounting purposes with a service life of 5 years at an Acquisition Cost of $120 000, and for the Tax Layer the service life is 4 years, however for the Tax Layer there should be 2 "subclasses" of that main asset which could be Shelving at $ 100 000 and Electrical at $20 000. For tax purposes Shelving could have a service life of 4 years for tax purposes but Electrical will have a service life of 1 year for tax purposes. Because the asset is capitalized as one asset for accounting purposes, even for tax purposes the Electrical portion of the asset has automatically inherited 4 years as service life because there was no sub classes for the tax layer, which results in incorrect depreciation being applied for the tax layer.

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Ludwig Reinhard Microsoft Employee on at

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Hi AX2009,

I could imagine that you setup different tax value models to account for the different life times and subclasses (e.g. tax-shelfing and tax-electrical). By doing this you could still work with one single asset and the total amount could e.g. be separated on the two tax value models by using the asset split functionality. This is a manual process but probably you can modify the standard code a bit to get it more automized.

Hope this helps,

Ludwig

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