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Microsoft Dynamics AX (Archived)

How to Charge Depreciation on stocked product ?

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Posted on by 75

It is a client requirement they want to put there assets into inventory, for example IT equipment, machines in the warehouse and start depreciation from the day first whether they are in use or stored only.

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  • Suggested answer
    Ludwig Reinhard Profile Picture
    Microsoft Employee on at

    Hello Rehan Ahmed,

    The standard application records the depreciation for your fixed assets in the fixed asset module. There is no direct relationship to your inventory and you consequently cannot track your fixed assets at the same time in inventory without making some system modifications. There are some ISV solutions available that can do that but it depends on your requirements why you need this linkage between inventory and fixed assets. Can you provide some additional information on that? (for example to you want to lease/rent your fixed assets, track them for costing purposes, etc.)

    Best regards,

    Ludwig

  • Rehan ahmed MCP Profile Picture
    75 on at

    Hello Ludwig Reinhard,

    Thank you for your time, and comments i am agree with your comments, The reason to link between inventory and fixed assets is , our client store assets into the warehouse after purchase, and want to charge depreciation on item stored whether they are in use or not.

    later on when end user ( requester from the company require the material he will create internal request and send to warehouse, warehouse officer will create material issue note and post it. ( this functionality also not found in AX) only issuance to production is there in AX.

  • Verified answer
    Ludwig Reinhard Profile Picture
    Microsoft Employee on at

    Hi Rehan Ahmed,

    Is it an option to allocate the depreciation on a GL basis only for example by making use of GL allocation rules? This does not have an influence on your inventory but it might be an option to get the costs allocated at least on a financial basis.

    If this does not work out for you then you have to think about making a system modification.

    Best regards,

    Ludwig

  • Rehan ahmed MCP Profile Picture
    75 on at

    Hi, Ludwig

    I am agree with you, need to think for customization,

    Thanks for your time.

    Regards

    Rehan Ahmed

  • Verified answer
    Ludwig Reinhard Profile Picture
    Microsoft Employee on at

    Hi Rehan Ahmed,

    Before making an adjustment take a look at the Russian local features. As far as I remember, they have a built in linkage between fixed assets and inventory. Not sure if you can use it but it might be worth taking a look at it.

    Best regards,

    Ludwig

    P.S. If there is nothing else open then it would be great if you could verify the answers to get this thread closed.

  • Rehan ahmed MCP Profile Picture
    75 on at

    Thanks for your reply, i also check Russian local features, not found any thing related to depreciation on inventory items as per my requirement

    Regards

    Rehan Ahmed

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