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Finance | Project Operations, Human Resources, ...
Answered

Fixed Asset Capitalization Threshold

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Posted on by 2,162

Hello,

Does the Fixed Asset Capitalization Threshold feature works only through the PO or we can make it work through the Fixed Asset Master / Fixed Asset Journal as well?

For eg, if the acquisition value is less than 1,000 then the depreciation shouldn't calculate and while acquiring it, system should post it as an expense albeit the FA master will still be there in the FA Master form.

If it doesn't works through the FA Master / FA journal then whats the point of having the Capitalization Threshold fields in the FA Parameters and FA Groups when we anyways have to setup in the Procurement and Sourcing module?

pastedimage1636268080442v1.png

When I acquire an Asset through Acquisition journal with 500 Amount, why does it allows me to acquire it when the Cap Thresh is set at 1000. Further it also allows to depreciate it. How to restrict any acquisition less than the Cap Thresh through the FA Journal?

Best Regards,

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  • Verified answer
    Ludwig Reinhard Profile Picture
    Microsoft Employee on at

    Hi MYGz,

    It works only through the PO process of acquiring fixed assets.

    The point of having this parameter in the fixed asset parameters is possibly a historic one as it was already available there in the previous AX2012, AX2009 versions.

    Best regards,

    Ludwig

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