With the release of Dynamics GP 2016 R2 comes a new feature built into the Fixed Assets company options to include Tax amounts in Capitalized items from Purchase Order Processing. This will be allow for flexibility in how companies and users track their Assets in Dynamics GP. The 'Include Tax in Acquisition Cost' checkbox can be accessed from the Fixed Assets Company Setup window, found on the Financial Navigation Page under setup or by going to Microsoft Dynamics GP | Tools | Setup | Fixed Assets | Company. Users will now see the new checkbox listed under the Purchasing options, as shown in the screenshot below. By default, the 'Include Tax in Acquisition Cost' checkbox will be unmarked, and the checkbox will not be available at all if the 'Post POP through to FA' options are not being utilized.
When utilizing the 'Include Tax in Acquisition Cost' option along with the 'by Receipt Line' option, a new record will be created in the Fixed Assets Purchasing Transactions for each Receipt Line from a POP Shipment/Invoice transaction that has been marked as a Capitalized Item. The acquisition cost will be calculated using the sum of the Extended Cost and the Calculated Tax for that particular Receipt line. One thing to note here is that taxes are not able to be entered by item in a Shipment only transaction from POP. If a Shipment is entered, and then matched to an Invoice in which the tax for a Capital Item is added on the Invoice, then this will create two separate entries in the Fixed Assets Purchasing Transactions window. Both entries can be selected from the window and brought into the same new Asset.
Once an item is marked as a Capital Item in the Receivings Item Detail Entry window, users will also see the 'Include Tax in Acquisition' checkbox in the FA PO Additional Informaiton window when clicking the expansion arrow next to the Capital Item checkbox, as shown in the screenshot below.
Users can also utilize the 'by Account' option in conjunction with the 'Include Tax in Acquisition Cost' checkbox, but this will require more setup to ensure that it works smoothly. First, users will need to ensure that both the Inventory Account and the Tax account are assigned under the Fixed Assets Purchasing Posting Accounts Setup window, which can be accessed by going to Microsoft Dynamics GP | Tools | Setup | Fixed Assets | Purchasing Posting Accounts. This will ensure that both the amounts for the item and the taxes are moved over to Fixed Assets when included in a POP entry. This setup will work best when using a Tax Schedule, Tax Detail, and Tax Account specifically set up to be utilized with Capital Items in POP. Just like when using separate Shipment and Invoice Transactions, you will see separate entries for the Item amount and the Tax amount in the Fixed Assets Purchasing Transactions window, but they can both be selected and combined into the same new asset just the same.
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