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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Fixed Asset Receipt/Is...
Microsoft Dynamics AX (Archived)

Fixed Asset Receipt/Issue account question

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Posted on by SteveWhyte 583

I have been reading this scenario from the Microsoft TechNet site in order to understand how Fixed Assets are created using procurement. https://technet.microsoft.com/en-us/library/gg231804.aspx

My question is in regarding the Fixed Asset Receipt and Fixed Asset Issue Accounts. The FA purchase scenario ends with DR and CR Balances in the FA Receipt and FA Issue accounts respectively.

What account type are these two accounts (Asset, Liability, Balance, Expense).? Are these accounts written off at the end of the year or should they net out to zero? Do they go to some suspense account then netted off?

Would really appreciate an answer to this question. 

Steve

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

    Hi Steve,

    I think that there is no technical restriction in AX that specifies whether a Balance Sheet (BS) or Profit and Loss (P&L) account needs to be used.

    Personally, I would prefer using BS accounts; probably separate ones that are not used elsewhere to reflect the 'bridging' nature of that transaction, as those accounts should net out to zero.

    BS accounts seem to be preferrable because the fixed asset acquisition should not exert an influence on your company's profit.

    Best regards,

    Ludwig

  • SteveWhyte Profile Picture
    SteveWhyte 583 on at

    Hi there Ludwig:

    Really great hearing from you again. The reason for my question is this.

    I have been following the process (I have the AX 365 Financials exams next week) of how Fixed Assets can be purchased via purchase order. If the Fixed Asset Receipt and Fixed Asset Issue Accounts keep getting DR and CR entries when FAs are purchased but I don't see where there are corresponding entries to move out the entries it does not seem that these are clearing accounts and their balances will continue to grow as assets are purchased through purchasing. Or am I missing something here?

    Steve

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

    Hi Steve,

    Please have a look at the following postings that I just created in a USMF contoso company.

    FAscreen.png

    The green lines that result from the packing slip posting offset each other and can be ignored.

    The same holds for the blue lines that are related to the fixed asset issue and receipt accounts that are setup in the inventory posting profile.

    What remains is the yellow highlighted posting DR: Fixed asset, CR: Payable

    The FA issue and FA receipt accounts thus works together with the FA posting profile and the vendor posting profile and offset each other.

    What is a bit unfortunate in the example is that the same asset account 180100 is always used. This makes is more difficult to identify what remains because you have to refer to the posting type to see this.

    Hope this helps and answers your question.

    Best regards,

    Ludwig

  • Verified answer
    SteveWhyte Profile Picture
    SteveWhyte 583 on at

    Thanks Ludwig for your response.

    It definitely does make it clearer.

    I will go through your example again but I am much clearer now

    Regards,

    Steve

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