Chapter 8. Fixed Asset Setup and Transactions

This book is almost over. We have covered the most important aspects of financial management with Dynamics NAV. But, in this chapter, you will learn about the complete life cycle of a Fixed Asset from acquisition to disposal. In this chapter, we will do the following:

  • Fixed Asset setup
  • Fixed Asset posting
  • Fixed Asset reporting

What are fixed assets?

The Fixed Asset functionality in Microsoft Dynamics NAV provides an overview of your fixed assets and ensures correct periodic depreciation. It also enable you to keep track of your maintenance costs, manage insurance policies related to fixed assets, post fixed asset transactions, and generate various reports and statistics.

The following is the fixed asset process flow:

  1. Fixed Assets setup: For each fixed asset, you must set up a card containing information about the asset, such as a depreciation book, depreciation method, fixed asset posting group, maintenance information, and so on.
  2. Depreciation: You can set up multiple depreciation books to accommodate various kinds of depreciation. You can calculate either manual or automatic depreciation.
  3. Posting transactions: All posting in the Fixed Assets application area is done from journals. There are four different journals:
    • The FA G/L journal
    • The FA journal
    • The FA reclassification journal
    • The insurance journal

  4. Maintenance: For each asset, you can record maintenance costs and the next service date. Keeping track of maintenance expenses can be important for budgeting purposes and for making decisions about whether to replace a fixed asset.
  5. Insurance: Each fixed asset can be attached to one or more insurance policies. You can, therefore, easily verify that insurance policy amounts are in accordance with the value of the assets that are linked to the policy. This also makes it easy to monitor annual insurance premiums.
  6. Statistics and reports: For each fixed asset depreciation book, there is a statistics window that provides a quick overview of the book value, depreciable basis, accumulated depreciation, and gains or losses on sales. Each main asset has its own statistics window.

There are several standard reports available and some of these can be tailored to meet specific needs.

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