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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Register Zero Amount FA
Microsoft Dynamics AX (Archived)

Register Zero Amount FA

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Posted on by benjamin84 2,075

Dear All,

my company has zero amount FA,

during auditing, our auditor instructed us to register fa althrought the amount already zero.

how I do that ?

do I only create new fixed asset, do acquisition with zero amount and zero remaining life ? 

another question is : fixed asset journal for type depreciation only deprecite fa with remaining amount/life right ?

so its mean, we wont have depreciation journal with zero amount right ?

thank you

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  • Suggested answer
    ZvikaR Profile Picture
    ZvikaR 168 on at

    How can a fixed asset with 0 value can be depreciated?

    I don't think you need to acquire it with 0 amount, just create the FA in the FA list.

  • benjamin84 Profile Picture
    benjamin84 2,075 on at

    Hi Zvika,

    Happy New Year 2018 :)

    ok noted,

    btw, could I do acquisition in januari 2017 and state the amount, for example 120 USD, with life service 12 month , then I do depreciation in januari 2017 with 1 line with total amount depreciation  = 120 usd, then I update then life time = 0,

    could I do that ?

    Thank you

  • Suggested answer
    ZvikaR Profile Picture
    ZvikaR 168 on at

    you did not provide much information about your scenario (such as, was there original value to the asset? or has it started with 0 value, what kind of asset this was, why you need to keep track of it in your accounting system if it does not have any value - so hard to give you precise answer.

    However, I don't think your auditors would find it acceptable if you record random, made up numbers (120), even if you depreciate them later on.

    In addition, when recording and depreciating the values still stay on the balance sheet, (asset value and accumulate depreciation), and expense is recording impacting your P&L. hence the 120 does not just "disappear" - it still impacts your financial statements.

    Happy new year 

  • benjamin84 Profile Picture
    benjamin84 2,075 on at

    Hi Zvika,

    sorry :)

    Its was FA from year 2007, its life time and amount has zero since its been depreciated years ago.

    these FA has zero value, but my finance user want this fa listed at our FA in AX, he want we have history the acquisition amount and but since this has zero amount.

    if we don't do acquusiton then those FA will listed at FA not acquired yet right ?

    since we need to do acquisition with amount, then we need to do depreciation too right with same amount as acquisition amount, so next month deprecation will not have this fa again.

    no, we wont key-in the amount random, we still have the original value.

    so, its will affect our FS, noted, I will inform my user about this.

    Thank you

  • Suggested answer
    ZvikaR Profile Picture
    ZvikaR 168 on at

    ok, now that I don't have to guess I think I have a better suggestion.

    I assume you are already live with Dynamics 365/AX so this is just a historical detail you need to record into an existing system (and not data migration situation in a new implementation).

    keep in mind you are trying to record a transaction to the FA sub-ledger but for the wrong dates (since both the acquisition and the depreciation happened many years ago), so this will have to be recorded with comments explaining this posting.

    If I were you I would try the following (try it in a test environment, I did not have a chance to run through it myself, so this is just an idea):

    create/identify a balance sheet ledger account for "historical fixed asset clearing"

    create an acquisition journal for the acquisition amount - override the value in the offset account to the clearing account and post the journal.

    Manually create a depreciation journal (not through proposal) for the full acquisition amount - override the value in the offset account to the clearing account, and post the journal.

    This will achieve:

    - leader accounts for FA value and accumulated depreciation balance sheet accounts will have the correct amounts.

    - book of FA will show the acquisition and depreciation.

    - no impact on P&L since you did not allow depreciation to be posted into the Depreciation expense account.

  • benjamin84 Profile Picture
    benjamin84 2,075 on at

    Hi Zvika.

    noted,

    thank you very much for your help.

    appreciate.

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