Inventory to Fixed Asset Valuation

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Posted on by Vaibhav Sangave

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I am converting an item to FA using inventory to FA journal. System is by default taking the weighted average cost for FA. I need to set FA price as per FIFO basis. I tried running revaluation. Its adjusting to Asset ledger but FA price remains same. It affects my depreciation.

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Ludwig Reinhard Microsoft Employee on at

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Hello Vaibhav Sangave,

What you describe is right (standard behavior). The revaluation does not affect your fixed asset, which is a shortcoming/gap.

What kind of item did you use? Was it a stocked item? If so, wouldn't it be possible to use a different (service) item?

Best regards,

Ludwig

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Vaibhav Sangave 217 on at

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Thanks For revert Ludwig.

Yes its stocked item. Its actual item being tracked with serial number so I would prefer to use it as such.

What would you suggest I do? I am worried this behaviour will put my FA valuation in question. Also it will impact my depreciation calculation.

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Ludwig Reinhard Microsoft Employee on at

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Hi Vaibhav Sangave,

Can you identify the extent of the adjustment that has been posted with the inventory recalculation/closing?

Once you have this, you can use this amount for example and post a revaluation in the fixed asset module to get your values right.

The alternative would be grapping a developer and asking him to fix this.

Best regards,

Ludwig

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Vaibhav Sangave 217 on at

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Thanks again Ludwig Reinhard!!!

I can identify the amount but at cumulative level. Not at individual Asset level. So difficult to identify. Anyways, I think I would take up your suggestion and request development team to look into it.

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Community Member on at

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Hi Vaibhav :-)

I had exactly the same issue that the stock closing posted onto the Fixed Asset account but didn't affect the Fixed Asset sub ledger about 2.5 years ago.

I reported this issue to Microsoft and it was escalated to the product team which gave the following answer:

"The system is working as intended in the design where the inventory recalculation adjustments are not changing the fixed assets transaction since AX v2.5 SP3. The inventory close should never affect fixed asset as this is a legal violation. In that sense the reported issue is following the standard rules of Dynamics AX."

Our workaround was that we always used the inventory marking when we wanted to move items to the fixed assets --> Then the chance that the transaction will have an adjustment will be much lower.

P.S.: To correct the Fixed Asset sub ledger we did the following:

1. Identify the fixed assets and the adjusted amounts --> Which is easily possible if you go to the:

Inventory Management --> Periodic --> Closing and Adjustment --> Click on the recalculation or closing and then on the Button "Settlement" --> There you can filter the field Reference for "Fixed Asset" --> There you'll find all adjusted amounts separately and you should be able to see the Fixed Asset Number.

2. We've corrected it by creating a fixed assets journal and post an acquisition for each of the fixed asset which was adjusted by the stock recalculation --> The offset account was as well the fixed asset account --> so in the GL it actually posted

Fixed Asset / Fixed Asset --> So nothing

But it corrected the fixed asset sub ledger.

After we've started to use the marking there are almost no such issues anymore, so it is from my point of view quite a good workaround.

P.S.2.: I actually also had a link to a MS Connect suggestion for which you could vote that Microsoft will adjust this behaviour ... but unfortunately this link is not working anymore.

Regards

Berat :-)

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Rehan ahmed MCP 75 on at

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Dear Berat,

can you please suggest, My scenario is to charge the depreciation on stocked items, in your above example, if i do it through closing and adjustment, how can i know the depreciation to charge for Assets, not clear to me.

If any one have solution please suggest .

Regards

Rehan Ahmed

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Ludwig Reinhard Microsoft Employee on at

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Hi Rehan Ahmed,

Do you mind opening a new thread for this one.

I believe the content is different from what has been originally asked and therefore it is better to open a new one.

Would be great if you could do this and provide some background info why you want to charge the depreciation on a stocked item.

Many thanks and best regards,

Ludwig

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Rehan ahmed MCP 75 on at

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OK opening new one also,

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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