Microsoft Dynamics AX (Archived)

Fixed Asset Acquisition - Asset Value in Product Receipt

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Hi all,

Is there anyone know how to set fixed asset value to be updated when product receipt?

Because currently I can only make fixed asset value updated when invoicing.

Beside that why set up in posting profile - Purchase Order - Fixed Asset Receipt is not working?

Although I have set this up, amount posted in product receipt will always refer to product expense, un-invoiced.

Thanks in Advance,

M.H.

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Community Member on at

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Hi Hasan,

Have you found any solution for this problem? I have this issue too.

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Ludwig Reinhard Microsoft Employee on at

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Helle Serene,

Why is it that you want to have the acquisition posted at the time of the product receipt? What is your business process / requirement and why would the posting of the invoice bee too late?

Best regards,

Ludwig

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Hi Ludwig,

Companies using IFRS as their Group accounting standards tend to have acquisition posted at GR posting. This is because according to IFRS, an asset should start depreciation when that asset is available for use (usually, this is when the asset is received).

Moreover, sometimes, it can take months for a final invoice to arrive since GR is posted, especially in those cases where assets have substantial values (=large depreciation per annual). Therefore, assets should be capitalized at GR posting in order to ensure depreciation amounts in the PL statemt are correct.

Is there any way that we can set up to have asset acquisition posted at GR posting?

Many thanks!

S.

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Ludwig Reinhard Microsoft Employee on at

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Hello Serene,

I assume that the term GR refers to the packing slip.

The answer to your question is in my opinion yes.

However, you might have to use a different process in AX to realize that.

As an example, if you follow the standard process of activating the fixed asset through the ordinary purchase order process you will have to wait until the invoice arrives before the acquisition amount is posted.

However, if you record the packing slip and receive a 'fixed asset' item in your inventory you can add a value to it and transfer it to the fixed asset module by making use of the inventory to fixed asset journal. Doing that would allow you to immediately start depreciating the fixed asset.

There are also other processes possible that typically require the use of bridging accounts for recording the PO process and which will be cleared through the use of fixed asset journals recorded in the fixed asset module. Those processes are not as 'smooth' and automatic as the PO acquisition process but rather require a manual interaction in the form that somebody posts the acquisition through a fixed asset journal.

Does this make sense to you?

Best regards,

Ludwig

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HI Ludwig,

Thank you for your reply.

GR refers to product receipt (goods receipt). Is it the same as the packing slip in your words?

Let me clarify the 2 options you wrote:

- Option 1: We'll have an inventory item (as a fixed asset). Once the product receipt is posted, the inventory item is assigned a value. Then we will manually use the Inventory to fixed asset journal to move the item's value to the fixed asset number.

- Option 2: The asset can be treated as either an inventory item or a procuremt category? For the setup, we will assign a bridging account for product receipt posting for the inventory item/procuremt category. Once the product receipt posting is done, we'll manually move the amount from the bridging account to the asset by using the Fixed assets journal.

Do I understand them correctly?

Btw, in the Inventory mgmt\Setup\Posting\Posting > PO tab, there's Fixed asset receipt section (as Hasan mentioned). Where can we use this Fixed asset receipt?

Thanks very much for your help!

S.

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Ludwig Reinhard Microsoft Employee on at

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Hi Serene,

Actually the item does not have to be a stocked item with a value but can also be a procurement category. If you use procurement categories, there is actually a 'third' option that makes use of global fixed asset identifiers specified in the procurement and sourcing module (see e.g. technet.microsoft.com/.../hh227512.aspx). Yet, also here the limitation is that you have to make use of bridging accounts and manual fixed asset journal postings if you want to have the activation of the asset earlier than with the posting of the PO invoice. When doing that you have to ensure that your FA Parameters are setup in a way that you do not activate the FA more than once!

Hope that you can follow those comments and that you can do some testing based on that to find out how to design the process for you.

If you need some additional help, examples how this works, etc. let us know.

Many thanks and best regards,

Ludwig

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Hi Ludwig,

Many thanks for your clarification and for the 3rd option info!

I have tested the new option, yet I couldn't make the system generate any posting to the bridging account when the product receipt is done. Here is the setup:

Did I miss something here?

"When doing that you have to ensure that your FA Parameters are setup in a way that you do not activate the FA more than once!". Thanks for this very important reminder. I had totally forgot about it :).

S.

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Dear Serene,

Have you got any solution in this regard? or did you become able to capitalize asset before invoice posting, any luck?

Please share.

Regards,

Faheem

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