The purchasing department is not allowed to set up new fixed assets and often we don't know about the fixed asset until it shows up on an invoice. Our current process is that the purchasing department puts the asset to a fixed assets clearing account, the accountant then adds the asset into the fixed assets system which removes the asset cost from the clearing account and adds it to the fixed assets acquisition cost account.
We are looking to implement Business Central's fixed asset module. I see how to add the fixed assets directly from purchasing - but I don't see how to link it if it is an already existing purchase to my fixed assets and retain a similar process that we have above. Can someone advise?
Thank you Alexander - I do think that will work, I was just hoping to do it in one step not two steps. Sounds like unless I create the asset ahead of time or at the time of purchase then it is two steps, adding the asset alone will not clear it from the clearing account. I must add the asset, then enter a journal. Thank you for your help!
The best process is to create the FA prior to or at the same time as you receive the invoice then you can post your invoice directly to the fixed asset without having to use the clearing account.
so user needs to manually reverse the previously posted journal, and create a purchase invoice to acquire the FA. It doesn't seem to be a connection between the 2 steps.
You can basically achieve the same process in BC. Purchasing department will post the invoice to a clearing account (debit of clearing account and credit of accounts payable). Then your accountants will create a fixed asset card, and then they can use e.g. Fixed Asset G/L Journal with selection of that clearing account as a balancing account - after posting the journal you should get the desired result: clearing account will be cleaned and you will get a value on the fixed asset account.
Here is more info on the subject: learn.microsoft.com/.../fa-how-acquire
Remember Fixed Asset Journal is different from Fixed Asset G/L Journal :-)
Hi Colson - You can create a clearing account in your COA similar to your existing process. You can use a General Journal to load the cost in this clearing account, with appropriate description and/or dimension tagging so you can locate this entry when you want to book an actual FA. Now when you create a FA Master and book a purchase invoice to post an acquisition cost, you can then reverse the Journal you created.
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