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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Maintain fixed assets ...
Microsoft Dynamics AX (Archived)

Maintain fixed assets less than threshold

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Posted on by Community Member

A company wants to maintain a threshold $ 2,500 but want to track the assets even with less than the threshold value? How do I achieve this in AX ?

Do I also select such assets in assets type (property type) as Continuing?? Also please explain the concept of Continuing Property type

Thanks

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  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Dhruv Singhvi,

    If you setup a capitalization threshold of 2500$ in the fixed asset group and activate the FA parameter 'consider capitalization' threshold. AX will create the fixed asset even if you purchase the asset for only 1000$ but removes the depreciation checkbox in the fixed asset value model.

    In other words, you can identify and track the asset even if the amount is less than the capitalization threshold.

    An alternative to this procedure is are the fixed asset global identication setups that can be made in the procurement and sourcing module. Making use of this functionality allows you expensing assets directly if they do not pass the threshold(s) specified. For Details, please see here: technet.microsoft.com/.../hh227512.aspx

    The continuing property type is explained here: technet.microsoft.com/.../aa573347.aspx

    Hope this helps,

    Ludwig

  • Suggested answer
    Community Member Profile Picture
    Community Member on at

    In case of "consider capitalization threshold" option selected-  asset below threshold won't be expensed immediatley to profit and loss account ?

    For this we need to pass an entry ?  

  • Community Member Profile Picture
    Community Member on at

    Ludwig,

    Also if procurement function is not used by company to aquire fixed assets, then how would it be done ?

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Dhruv Singhvi,

    If you do not acquire your fixed assets through purchase orders then the capitalization thresholds are not taken into consideration. That is usually the case if you simply record your fixed assets through posting a vendor invoice journal and specify the fixed asset as the offset account type. In this case, you either need to change your process to bring it in line with what AX expects or you implement a system modification.

    Hope this helps,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    I have one workarounds

    1. If i create a fixed asset group for such assets say Threshold Assets. In value model we use depricition profile as SLM, 1 month life . In that case it will write off to zero after a month and still stay in fixed asset and remain in fixed asset register

  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi,

    That sounds like a feasible workaround.

    What I could imagine alternatively is seting up a separate fixed asset group + value model with a 0 month life.

    In addition, setup the fixed asset acquisition account to an expense account for that fixed asset group.

    Once you post the purchase invoice from the vendor through an invoice Journal, the amount posted will directly be expensed but the fixed asset created.

    Might save you one additional depreciation step.

    Hope this helps,

    Ludwig

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