Inventory to Fixed Assets

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Hi Everyone,

There are items in the inventory that are procured and received. The items should actually not appear in inventory and rather be created as fixed assets.I want to manually give the items fixed assets numbers and transfer these assets from inventory to fixed assets.

Can you be so kind as to guide me how can I achieve this?

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Verified answer

Ludwig Reinhard Microsoft Employee on at

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RE: Inventory to Fixed Assets

Hello Shoaib,

In the fixed asset module there is an "inventory to fixed asset" journal. If you select your item and the quantity that you want to have transferred from inventory to fixed asset and post the journal, the costs are transferred to your fixed asset with the posting type that you selected in the journal (e.g. acquisition).

If you are doing that please be Aware that this removes your items from your inventory as they get "consumed" for the fixed asset. So, please test in a test/demo environment first if this is what you want / need.

Hope this helps,

Ludwig

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Community Member on at

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RE: Inventory to Fixed Assets

Hello Ludwig,

Thank you for quick response.From Inventory to fixed assets Journal I selected my item and quantity.when I click post an error pops up,asking me to select value model.Remember I want to assign manual fixed asset numbers to these items.

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Sagar Suman 6,436 Super User 2025 Season 2 on at

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RE: Inventory to Fixed Assets

Hi Shoaib,

I believe what you are trying to achieve is that you want items in the inventory to now become assets.

Note as Ludwig rightly suggested to use inventory to fixed asset journal but this journal consumes the items and add the acquisition cost to an already created fixed asset.

You need to create the Fixed asset first in the fixed asset form then attach the value model to it and finally select this fixed asset on the inventory to fixed asset journal where you will be adding the items to be transferred from inventory to fixed asset.

E.G

A company placed a PO for an PINTER Slub Motor

the items on the PO lines were

Rotor

Frame

Main Bearing

Now you have the fixed asset purchased in parts and you want now to remove these parts from the inventory and create the fixed asset.

Create a fixed asset PINTER Slub Motor in fixed asset form and attach a value model to it.

now use the inventory to fixed asset journal to consume those three parts received against PO aganist this Fixed asset.

I hope this helps.

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Ludwig Reinhard Microsoft Employee on at

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RE: Inventory to Fixed Assets

Hello Shoaib,

The manual fixed asset number is not a problem for the inventory to fixed asset journal because the fixed asset already needs to be created (manually) before. This is different from e.g. the purchase order that allows you creating a fixed asset while recording the transactions. This is not possible with the journal.

Best regards,

Ludwig

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Community Member on at

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RE: Inventory to Fixed Assets

Hello Sagar Suman,

That is exactly what I was looking for.Thank you for a detailed reply with example.It solved my querry.Both you and Ludwig were very helpful.

Thanks

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Sagar Suman 6,436 Super User 2025 Season 2 on at

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RE: Inventory to Fixed Assets

HI Shoaib,

If the Fixed asset needs no assembling and the physical part and the description in the invoice matches then its best to create a PO with fixed asset check box Checked.

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Sagar Suman 6,436 Super User 2025 Season 2 on at

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RE: Inventory to Fixed Assets

Hi Shoaib,

Mark the reply as Verified so that it helps others in future.

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Community Member on at

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RE: Inventory to Fixed Assets

Hello Ludwig,

I followed the steps you proposed.The point I was missing was that I need to create a fixed assets with similar name manually and then post inventory to fixed asset journal, which was cleared to me after reading Sagar's reply.Thank you

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Community Member on at

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RE: Inventory to Fixed Assets

I marked it already Sagar

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subashini 858 on at

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RE: Inventory to Fixed Assets

Hi Reinhard,

Can you please provide me the navigation for the inventory to fixed assets journal.

Thanks in advance

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