Acquire asset with remaining life between 2 companies

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We have a multi-company organization setup in ax and when selling assets between the companies, we want AX to determine what the remaining value of the asset is that it is to be acquired with in the purchasing company. I saw there was a depreciation model in ax with the name straight life remaining life and was wondering if this would solve the issue of intercompany asset purchases. Any comments or ideas are welcome on the matter.

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Ludwig Reinhard Microsoft Employee on at

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Hi gmaasz,

To my knowledge there is not default fixed asset intercompany sales function included in the standard application but you rather have to build it yourself through a modification if needed.

The straight life remaining depreciation model might be the right one to catch the correct values and calculate the correct depreciation; the problem is however, how to realize the intercompany purchase / sales of the fixed asset.

Best regards,

Ludwig

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@ludwig thanks for the update. We are creating and disposing the assets when selling between companies so no need for the system to pick it up automatically when selling them. Can you maybe elaborate on how I can go test the straight life remaining depreciation model. How does this work?

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MauricioSaldana on at

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Hi gmaasz,

This method is normally used when you are migrating assets into the D365, for example you purchase an asset with depreciation life of 5 years for 1000 euros, if you use straight line service you will depreciate 2000 every year.

Straight line remaining periods should be sue when you create an asset that is having depreciation life of 5 years but you already depreciate 1 year, so you will have:

Acquisition value of 1000

Depreciation of 2000

Net book value of 8000

You create the asset with a depreciation life of 5 years (60 periods if you use monthly depreciation)

Remaining periods of 48 so system will calculate 8000/48 = 166.66 if you multiply by 12 the result is 2000

Basically it is the same thing, but figures can change if we have decimals, that is something you need to check during your testing.

Hope that helps

Regards

Mauricio

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This is so helpful thanks. So where will I enter the remaining periods of the asset life? Is this during the asset creation?

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MauricioSaldana on at

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Correct you need to go to the assigned book on depreciation fast tab and inform the periods and relevant dates

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Community Member on at

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This looks good.

We use dynamics AX 2012 so it looks a bit different. Our assets are already acquired with the Straight Life Depreciation value model. Can I just update the periods remaining here and then it will calculate the new depreciation automatically?

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Ludwig Reinhard Microsoft Employee on at

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Hi gmaasz,

You can update the remaining periods here.

Yet, rather than selecting mid month as depreciation convention I regularly select none or full months.

Not sure if you need this mid months convention.

Recommendation: Just check out the different options mid months vs. none vs. full month before you make this setup in your prod. environment.

Best regards,

Ludwig

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I am struggling to find the area in the FA module in dynamics 2012 where the details in the picture is to be found.

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Ludwig Reinhard Microsoft Employee on at

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Hi gmaasz,

What picture do you refer to?

Are you looking for the tables that hold the data records?

Please provide some additional information.

Many thanks,

Ludwig

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Community Member on at

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Apologies, I am referring to the screen in Dynamixs 2012 were I can input the remaining life of an asset after its value model and depreciation profiles have been updated to the straight line life remaining depreciation profile.

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