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Fixed Asset

Microsoft Dynamics NAV Forum

Rajat walia asked a question on 15 Dec 2017 11:36 PM

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Hi Experts,

I am new in navision, My doubt is how to post cashback entry after the purchase of fixed asset. 

I will wait for your suggestions. 

Thankyou.

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Robertas Rackauskas responded on 16 Dec 2017 3:07 AM
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Hi Rajat,

can you please expand on the scenario? Does the cashback affect FA book value? If it does, wouldn't FA value write-off be enough?

Robertas

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Rajat walia responded on 16 Dec 2017 3:51 AM

Hi Robertas,

yes it will affect FA Book value.

Purchase Invoice of FA = 50000 Now Book value is also 50000.

but after this i got cash back of 10000.

Now i would need to post the entry with custom 1 or write down ?

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Robertas Rackauskas responded on 16 Dec 2017 4:10 AM
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Then I would use Write-Down, as it's purpose is to reduce the book value of the fixed asset. You can post it in 2 different ways on the FA G/L Journal:

1. Fixed asset write-down balancing with the bank account. This way the vendor is not involved in the transaction. Can be used when you received the cash back straight after the purchase and there is no need to record that under vendor card.

2. Fixed asset write-down on the first line, and vendor on the second line (system won't allow you to put these two together on one line). This way system will reduce the value of FA and create Ledger Entry for the Vendor. Then you can post the actual cash movement (vendor balance with bank).

Hope that helps.

Robertas

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Rajat walia responded on 16 Dec 2017 4:25 AM

thanks.

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Alexander Ermakov responded on 16 Dec 2017 5:13 AM
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It also depends on your legislation requirements and the way how you had signed it in the contract, and also the time between the activation of fixed asset and the date of the cash back (which in practice might take a year). If your aim is to reduce initial book value, then go for the suggestion of Robertas. The other option is to book cash-back revenue (immediately or as a future expense that would be amortized slowly against the depreciation of FA).

Reply
Robertas Rackauskas responded on 16 Dec 2017 4:10 AM
My Badges
Verified Answer

Then I would use Write-Down, as it's purpose is to reduce the book value of the fixed asset. You can post it in 2 different ways on the FA G/L Journal:

1. Fixed asset write-down balancing with the bank account. This way the vendor is not involved in the transaction. Can be used when you received the cash back straight after the purchase and there is no need to record that under vendor card.

2. Fixed asset write-down on the first line, and vendor on the second line (system won't allow you to put these two together on one line). This way system will reduce the value of FA and create Ledger Entry for the Vendor. Then you can post the actual cash movement (vendor balance with bank).

Hope that helps.

Robertas

Reply
Alexander Ermakov responded on 16 Dec 2017 5:13 AM
My Badges
Verified Answer

It also depends on your legislation requirements and the way how you had signed it in the contract, and also the time between the activation of fixed asset and the date of the cash back (which in practice might take a year). If your aim is to reduce initial book value, then go for the suggestion of Robertas. The other option is to book cash-back revenue (immediately or as a future expense that would be amortized slowly against the depreciation of FA).

Reply
Robertas Rackauskas responded on 16 Dec 2017 3:07 AM
My Badges
Suggested Answer

Hi Rajat,

can you please expand on the scenario? Does the cashback affect FA book value? If it does, wouldn't FA value write-off be enough?

Robertas

Reply

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