fixed assets in microsoft dynamics® nav 2013

COURSE 80434:

FIXED ASSETS IN

MICROSOFT DYNAMICS® NAV 2013

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

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Table of Contents

Introduction

Microsoft Dynamics Courseware Overview………………………………………………………………….....0-3

Student Objectives………………………………………………………………………………………………………….0-4

Module 1: FIXED ASSETS SETUP

Lesson 1: Fixed Assets Process Flow ........................................................................................................ 1-3

Lesson 2: Fixed Assets Setup ...................................................................................................................... 1-5

Lesson 3: Fixed Assets Posting Groups ................................................................................................... 1-7

Lesson 4: Depreciation Books .................................................................................................................... 1-9

Lesson 5: FA Journal Templates ............................................................................................................. 1-26

Lesson 6: Fixed Asset Card ....................................................................................................................... 1-27

Lab 1.1: Create a Fixed Asset Card ........................................................................................................ 1-42

Lesson 7: Fixed Asset Allocation Keys .................................................................................................. 1-45

Lesson 8: Main Assets and Asset Components ................................................................................ 1-50

Lesson 9: Record Open Transactions ................................................................................................... 1-56

Lesson 10: Make Duplicate Entries ....................................................................................................... 1-59

Lesson 11: Copy Fixed Assets and FA Ledger Entries .................................................................... 1-64

1

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Fixed Assets in Microsoft Dynamics® NAV 2013

Module 2: FIXED ASSET TRANSACTIONS

Lesson 1: Journals for Fixed Assets .......................................................................................................... 2-3

Lesson 2: Purchase Fixed Assets ............................................................................................................... 2-7

Lab 2.1: Purchase a Fixed Asset Using the Purchase Invoice ...................................................... 2-12

Lab 2.2: Increase the Cost of the Fixed Asset.................................................................................... 2-16

Lesson 3: Calculate and Post Depreciation ........................................................................................ 2-19

Lab 2.3: Calculate Depreciation ............................................................................................................. 2-29

Lesson 4: Write-down and Appreciation of Fixed Assets ............................................................. 2-32

Lab 2.4: Post Write-down ......................................................................................................................... 2-37

Lesson 5: Fixed Asset Disposals .............................................................................................................. 2-40

Lab 2.5: Dispose of a Fixed Asset with a Sales Invoice .................................................................. 2-48

Lesson 6: ........................................................................................................................................................ 2-51

Lesson 7: Correct an Entry ....................................................................................................................... 2-52

Lab 2.6: Cancel and Recalculate Depreciation ................................................................................. 2-67

Lab 2.7: Cancel Entries ............................................................................................................................... 2-72

Lesson 8: Document Fixed Asset Transactions ................................................................................. 2-75

Lesson 9: Fixed Asset Reports ................................................................................................................. 2-77

Lesson 10: Budget Fixed Asset Transactions ..................................................................................... 2-90

Lab 2.8: Budget a Fixed Asset ............................................................................................................... 2-103

Lesson 11: Cost Accounting Depreciation ....................................................................................... 2-111

Lesson 12: Indexation .............................................................................................................................. 2-118

Lesson 13: Minor Assets .......................................................................................................................... 2-123

Lab 2.9: Manage a Minor Asset ............................................................................................................ 2-128

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Table of Contents

Module 3: FIXED ASSET RECLASSIFICATIONS

Lesson 1: Asset Transfers ............................................................................................................................. 3-2

Lab 3.1: Splitting a Fixed Asset .................................................................................................................. 3-6

Lesson 2: Partial Disposal of an Asset .................................................................................................. 3-17

Lab 3.2: Disposing of a Part of an Asset ............................................................................................. 3-19

Lesson 3: Combining Assets .................................................................................................................... 3-33

Module 4: FIXED ASSETS MAINTENANCE

Lesson 1: Setting Up Maintenance Information ................................................................................. 4-2

Lesson 2: Maintenance Registration and Costs .................................................................................. 4-8

Lab 4.1: Posting Allocation Transactions ............................................................................................ 4-15

Lab 4.2: Posting Maintenance Transactions ...................................................................................... 4-19

Lesson 3: Maintenance Cost Reporting .............................................................................................. 4-26

Module 5: FIXED ASSET INSURANCE

Lesson 1: Setting Up Insurance Information ........................................................................................ 5-2

Lesson 2: Attaching Assets to Insurance Policies ............................................................................ 5-12

Lesson 3: Monitoring Insurance Coverage ........................................................................................ 5-18

Lesson 4: Updating Insurance Information ....................................................................................... 5-23

Lesson 5: Indexing Insurance .................................................................................................................. 5-27

3

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INTRODUCTION Training is an important component of maintaining the value of a Microsoft Dynamics® investment. Quality training from industry experts keeps you up-to-date and helps you develop the skills necessary for fully maximizing the value of your solution. Microsoft Dynamics provides different kinds of training to meet everyone’s needs, from online training, classroom training, or training materials. Select the training type that will best help you stay ahead of the competition.

Online Training Online training delivers convenient, detailed training in the comfort of your own home or office. Online training provides immediate access to training 24 hours a day. It is perfect for the customer who does not have the time or budget to travel. Online training options combine the efficiency of online training with the thorough product coverage of classroom training.

Classroom Training Classroom training provides, comprehensive learning through hands-on interaction. From demonstrations to presentations to classroom activities, you receive practical experience with instruction from our certified staff of experts.

Training Materials Training materials help you learn at your own pace, in your own time, with information-packed training manuals. The many training manuals features many tips, tricks, and insights that you can reference continuously.

Microsoft Dynamics Courseware The Microsoft Dynamics courseware consists of detailed training manuals that are designed from a training perspective. These manuals include advanced topics, in addition to training objectives, exercises, interactions, and quizzes. Look for a complete list of manuals that are available for purchase on CustomerSource or PartnerSource.

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Microsoft Dynamics Courseware Contents

Microsoft Dynamics courseware contains labs and quick interactions. These help

Lab Within the Microsoft Dynamics training materials, you will find labs. These labs are typically offered in two levels to accommodate each student’s variety of knowledge and expertise. We suggest that you try the High level steps first. If you need help completing the task, look to the information in the Detailed steps.

High level steps High levels steps are the most challenging. These steps are designed for the experienced student who requires little instruction to complete the required task.

Detailed steps Detailed steps are geared toward new users who require detailed instructions and explanations to complete the lab. Detailed steps guide you through the whole task. This includes navigation.

What’s New Icon This training material might include content for new features that is specific to this software version, and to any updated features. To assist in finding the content for the new features, an icon ( ) is placed next to the heading. The icon identifies areas that are new and, or changed from the earlier version. However, it is important to review all content to make sure there is a thorough understanding of this information.

0 - 2 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

Introduction

Student Objectives

What do you hope to learn by participating in this course? List three main objectives here. 1.

2.

3.


MODULE 1: FIXED ASSETS SETUP

Module Overview Microsoft Dynamics® NAV 2013 provides a fully integrated fixed asset management functionality which helps a company manage its assets effectively and efficiently.

With Microsoft Dynamics NAV 2013, a company can keep track of all information relevant to fixed assets, such as maintenance costs and schedules, acquisition costs, and related insurance information.

Fixed Assets in Microsoft Dynamics NAV 2013 has an unlimited number of depreciation books that track depreciation expenses reliably. You can have one book integrated with the general ledger to reconcile your fixed asset transactions with the general ledger, and another book, not integrated with the general ledger, for internal fixed asset calculations that you do not want to be reflected in the general ledger. Depreciation books define various depreciation rules. In addition to all the ordinary methods of depreciation, Fixed Assets can create custom depreciation methods. With the flexibility and real-time nature of the fixed assets functionality, the periodic income and expense figures are always accurate and up to date.

The process flow diagram shown in this module gives a visual overview of the typical life cycle of a fixed asset, starting from creating a fixed asset card and ending with the fixed asset disposal, which is typically the last transaction posted for a fixed asset.

Note: All the procedures in this course, including demonstrations and labs, should be performed in one of the RoleTailored clients of Microsoft Dynamics NAV 2013. We recommend that you use the client for Windows®. You can also use the SharePoint client or a web client that provides access to Microsoft Dynamics NAV features from a web browser. Be aware that in the web and SharePoint clients, you have limited access to Microsoft Dynamics NAV features and that their interfaces differ slightly from the interface of the client for Windows.

Before you work with Fixed Assets in Microsoft Dynamics NAV 2013, the following areas must be set up:

• Fixed Assets setup

• Fixed Assets posting group

• Depreciation books

• Depreciation tables

• Fixed Assets journals


Fixed Assets in Microsoft Dynamics® NAV 2013 Other Fixed Assets features discussed in this module are as follows:

• Main assets and asset components

• Recording opening transactions

• Using duplication lists with depreciation books

• Copying fixed assets and Fixed Assets ledger entries

Objectives

The objectives are:

• Give a visual overview of a typical fixed asset life cycle.

• Describe the fields on the Fixed Assets setup page.

• Describe fixed asset posting groups.

• Explain depreciation books for fixed assets.

• Explain depreciation tables.

• Set up fixed assets journal templates.

• Set up a fixed asset card.

• Set up main assets with asset components.

• Explain how to record opening transactions.

• Explain how to duplicate entries to depreciation books.

• Explain how to copy fixed assets and FA ledger entries.


Module 1: Fixed Assets Setup

Fixed Assets Process Flow A typical life cycle of a fixed asset in Microsoft Dynamics NAV 2013 begins with the creation of a fixed asset card to register the fixed asset in the program and ends with the disposal of the fixed asset. During this life cycle, you can perform various operations with the fixed asset, some of which may be omitted, depending on your business needs.

FA Flowchart

The FA Process Flow flowchart shows a common process flow with the most typical operations. These operations together with their variations and other fixed asset functionality are reflected throughout this course in demonstrations and labs.

The flowchart in this topic shows a typical life cycle of a fixed asset.



FIGURE 1.1: FIXED ASSET PROCESS FLOW



Fixed Assets Setup Use the Fixed Assets Setup page to select the default settings for Fixed Assets.

To open the Fixed Assets Setup page, in the navigation pane, click Departments > Financial Management > Fixed Assets > FA Setup.

FIGURE 1.2: FIXED ASSET SETUP

The page has the following two FastTabs:

• General

• Numbering

General FastTab

The General FastTab contains the basic and general information about fixed assets, for example, the default depreciation book, posting period, and number series which are used for the fixed assets and are relevant to correctly track maintenance costs, manage insurance policies related to fixed assets, post fixed asset transactions, and generate various reports and statistics.

The Default Depr. Book field contains the default depreciation book. You can enter one of the depreciation book codes in this field. Be aware that having a default depreciation book in the setup does not prevent you from creating multiple depreciation books.


Fixed Assets in Microsoft Dynamics® NAV 2013 If the asset is one main asset that consists of multiple component assets, you can select whether you want to be able to post only to the components or to the main asset as well. Select the Allow Posting to Main Assets option to post to a main asset.

Use the Allow FA Posting From and Allow FA Posting To fields if you want to restrict posting to the fixed assets from a certain date, to a certain date, or in a specific time interval, for example, to restrict posting to the fixed assets within the current year or any previous period. If you leave these fields empty, no time restriction is applied to posting to the fixed assets.

If your configuration includes insurance facilities, enter a code in the Insurance Depr. Book field to enable posting of insurance coverage ledger entries.

If the Automatic Insurance Posting field is selected, the program allows for the acquisition costs posted to fixed assets to automatically post to the insurance coverage ledger.

For more information about insurance of fixed assets, refer to the “Fixed Asset Insurance” module.

Numbering FastTab

The Numbering FastTab has two fields:

• Fixed Assets Nos.

• Insurance Nos.

Use both these fields to assign number series to fixed assets and the insurance policies that cover them.

To see the number series that are set up in the field, select the field.



Fixed Assets Posting Groups You must set up fixed assets posting groups to relate the fixed asset transactions to the correct G/L accounts.

The fixed assets posting groups are set up on the FA Posting Group page.

To open the FA Posting Groups page, in the navigation pane, click Departments > Financial Management > Administration > FA Posting Groups.

FIGURE 1.3: FA POSTING GROUPS

Select the accounts to which transactions are posted for fixed assets. You must select the following G/L accounts for different types of expenses and costs:

• Acquisition costs

• Accumulated depreciation amounts

• Acquisition costs on disposal

• Accumulated depreciation on disposal

• Gains on disposal

• Losses on disposal

• Maintenance expenses

• Depreciation expenses


Fixed Assets in Microsoft Dynamics® NAV 2013 Demonstration: Set Up a New FA Posting Group

The accounting manager has decided to start a new posting group in order to post the transactions involving the IT equipment. It was decided not to allocate any FA posting types and to start with specifying the accounts to post to.

Set up a new posting group, IT-EQUIP, for IT-equipment.

• Use the same G/L accounts as the MACHINERY posting group.

• Do not allocate depreciation expenses or other FA posting types.

Demonstration Steps

1. Open the FA Posting Groups window.

2. Set up an IT-EQUIP FA posting group by filling in the fields with the same G/L accounts as set up for the MACHINERY posting group. To set up a new posting group, follow these steps.

a. In the navigation pane, click Departments > Financial Management > Administration > FA Posting Groups.

b. In the FA Posting Groups window, create a new line, filling in the fields as shown in the following table.

Field Value

Code IT-EQUIP

Acquisition Cost Account 1220

Accum. Depreciation Account 1240

Acq. Cost Acc. on Disposal 1230

Accum. Depr. Acc. on Disposal 1240

Gains Acc. on Disposal 8840

Losses Acc. on Disposal 8840

Maintenance Expense Account 8640


Module 1: Fixed Assets Setup Field Value

Depreciation Expense Acc. 8820

c. Click OK.

Depreciation Books Fixed assets must have a depreciation book to record depreciations to the fixed assets.

Set up depreciation books on the depreciation book card.

To open the list of depreciation books in the navigation pane, click Departments > Financial Management > Fixed Assets > Depreciation Books. In the Depreciation Book List window, select the COMPANY depreciation book and then click Edit.

FIGURE 1.4: DEPRECIATION BOOK CARD – GENERAL FASTTAB


Fixed Assets in Microsoft Dynamics® NAV 2013 With Microsoft Dynamics NAV 2013, you can set up multiple depreciation books to accommodate your business needs (such as tax and financial statements).

After you have set up depreciation books, you can attach one or more depreciation books to an asset, and then set up additional information in the FA Depreciation Books window. For each depreciation book, you must define the terms and conditions, such as integration with general ledger. (If a depreciation book is integrated with the general ledger, all transactions posted to that depreciation book are also posted to specific general ledger accounts.)

General FastTab

The General FastTab contains the basic setup fields for the depreciation books.

Field Description

Code This field contains the code of the depreciation book that identifies it in the program.

Description This field contains the description of the depreciation book.

Default Final Rounding Amount

This field contains the final rounding amount to use if the Final Rounding Amount field in the FA Depreciation Books window is empty. If the remaining book value after the last calculated depreciation is less than the amount in this field, the remaining value is added to the last depreciation. This makes sure that the fixed asset is fully depreciated over its depreciable lifetime.

Default Ending Book Value This field specifies the ending book value to use if the Ending Book Value field in the FA Depreciation Books window is empty. This feature prevents the asset from being fully depreciated.

The ending book amount is subtracted from the last depreciation to prevent a book value of zero. If the book value is greater than zero after the last depreciation, for example, because of a rounding problem or because a salvage value exists, the ending book value is ignored.


Module 1: Fixed Assets Setup Field Description

Disposal Calculation Method This field defines the method of disposal calculation. Select the field to select one of the following two methods:

• Net: The program calculates the profit or loss and then posts this amount to the gains on disposal account or the losses on disposal account.

• Gross: The profit or loss is not posted to a single amount. Profit or loss is the difference between the opposite entries to the sales account on disposal (credit) or book value on disposal (debit).

Subtract Disc. in Purch. Inv. When this check box is selected, the line and invoice discounts are subtracted from the acquisition cost posted for the fixed asset. The line and invoice discounts are posted to the account contained in the Purch. FA Disc. Account field in the General Posting Setup window.

Allow Correction of Disposal Select this check box if you want to correct fixed ledger entries of the type Disposal or cancel entries connected with disposal.

Allow Changes in Depr. Fields When this check box is selected, the depreciation fields in the FA Depreciation Books window can be changed after you have posted entries.

VAT on Net Disposal Entries Select this check box when you sell a fixed asset with the net disposal method. In this case, the VAT fields in the general ledger entries will be filled in.

Allow Identical Document No. Select this check box if you want to allow identical document numbers in the depreciation book.


Fixed Assets in Microsoft Dynamics® NAV 2013 Field Description

Allow Indexation Select this check box if you want to allow indexation of FA ledger entries and maintenance ledger entries that are posted to this depreciation book. Afterward, the Index Fixed Assets batch job indexes the fixed assets, which are linked to a specific depreciation book. The batch job creates entries in a journal based on the conditions that you specify. You can then post the journal or adjust the entries before posting, if it is necessary.

Allow Depr. below Zero When this check box is selected, the program continues to calculate periodic depreciation when the Calculate Depreciation batch job is running even if the book value of the fixed asset is zero or negative.

Allow more than 360/365 Days When this check box is selected, the fiscal year can have more than 360 depreciation days. If you do not select this check box and the fiscal year has more than 360 days, the program displays an error message.



Use FA Ledger Check When this check box is selected, the program performs the following checks before posting a journal line:

• Acquisition cost is the first entry (when the FA posting date is used).

• Acquisition cost is entered as debit (when the FA posting date is used).

• Disposal, if any, is the last entry.

• Book value has a debit balance unless the Allow Depr. Below Zero check box is selected on the depreciation book card.

• Accumulated depreciation, salvage value, and accumulated sales price are all credit balances.

• Write-down, Appreciation, Custom 1, and Custom 2 entries match the setting in the Sign field in the FA Posting Type Setup window.

If you clear this check box, the program performs only the first two checks :

• Acquisition cost is the first entry (when the FA posting date is used).

• Acquisition cost is entered as debit (when the FA posting date is used).

Use Rounding in Periodic Depr.

When this check box is selected, the program rounds depreciations to whole numbers.

Use Same FA+G/L Posting Dates

When this check box is selected, the posting date and FA posting must be the same on a journal line before posting. If you do not select this check box, you must enter both dates separately.

Fiscal Year 365 Days If you select this check box, the Calculate Depreciation batch job uses the calendar year of 365 days instead of the standardized year of 360 days.



Note: In the Depreciation Book table, there is a Periodic Depr. Date Calc. field. You can use this field to define how the program calculates the number of depreciation days. Select the Last Entry option to have the program calculate the number of depreciation days as of the date of the last FA ledger entry. Select the Last Depr. Entry option to have the program calculate the number of depreciation days as of the date of the last depreciation FA ledger entry (the last entry with the Depreciation posting type).

If you select the Last Depr. Entry option, you can only use Straight-line as the depreciation method for FA Depreciation Books.

Be aware that you cannot access this field from a RoleTailored client. To change the value in this field, you have to run the Depreciation Book table from the Object Designer in Microsoft Dynamics NAV Development Environment.

Integration FastTab

The Integration FastTab specifies entries to integrate with the general ledger.

For each depreciation book, you can define what kind of transactions or posting types that you want to be integrated with or posted to the general ledger. You can also choose to integrate the different kinds of FA postings to G/L per depreciation book, because Microsoft Dynamics NAV 2013 lets you select which specific posting that you want to be integrated in a depreciation book. The company makes its own decision about how to set up depreciation books and whether using multiple depreciation books is suitable for the business.

However, we recommend that you have each FA posting integrated with G/L one time only, either in a single depreciation book or split between multiple depreciation books, for example, when one depreciation book is integrated with the general ledger and uses the FA G/L journal, and other depreciation books are not integrated with the general ledger and use the FA journal.


Module 1: Fixed Assets Setup Select the fields of the relevant posting type or types of FA transactions that should integrate with the general ledger.

FIGURE 1.5: DEPRECIATION BOOK CARD - INTEGRATION FASTTAB

If G/L integration is set, the specified transactions are posted by the FA G/L journal. If G/L integration is not set, the fixed asset transactions are posted by the FA journal.


Fixed Assets in Microsoft Dynamics® NAV 2013 Duplication FastTab

Use the Duplication FastTab to indicate duplicate entries in other depreciation books.

Duplication is useful when a company uses multiple depreciation books. When duplication is set up, Microsoft Dynamics NAV 2013 creates the same entries for all the books. This reduces data entry time.

FIGURE 1.6: DEPRECIATION BOOK CARD - DUPLICATION FASTTAB


Module 1: Fixed Assets Setup The Duplication FastTab contains the fields described in the following table.

Field Description

Part of Duplication List When this check box is selected, the depreciation book is a part of the duplication list.

Use FA Exch. Rate in Duplic. When this check box is selected, the exchange rate from the FA Exchange Rate field in the FA Depreciation Books window is used when you duplicate entries from one journal to another.

Default Exchange Rate In this field, you can specify the default exchange rate if the FA Exchange Rate field in the FA Depreciation Books window is empty.

Reporting FastTab

On the Reporting FastTab, you can set up whether an additional foreign currency rate is enabled for the transactions posted to this depreciation book.

FIGURE 1.7: DEPRECIATION BOOK CARD - REPORTING FASTTAB



Note: You do not have to select these options if, in the general ledger, you already use an additional reporting currency that has a fixed exchange rate, such as EUR. All entries from the FA module calculate in the correct additional currency in the associated general ledger entries.

FA Posting Type Setup

Set up the FA posting types to define how Microsoft Dynamics NAV 2013 manages the Write-down, Appreciation, Custom 1, and Custom 2 posting types that are used when you post to fixed assets.

Write-down is used to write down an asset when its value has decreased. An example is a machine that is damaged but can still be used. The book value of a fixed asset is reduced by posting a write-down entry.

Appreciation is an increase in the value of a fixed asset, typically land and buildings. It can also be used for a fixed asset such as an oil platform, for which value increases because of an increase in demand for the item.

For each depreciation book, you can set up how you want to handle various FA transactions for each FA posting type. For example, you can configure whether the posting should be a debit or credit and whether the posting types should be included in the depreciable basis or if it should be part of a gain or loss calculation.

When you create a depreciation book, Microsoft Dynamics NAV 2013 automatically creates a default setup of four lines (one for each FA posting type) in the window. You cannot add or delete lines on this page. However, the existing lines can be changed if it is necessary.

Note: We strongly recommend that you do not change the setup for depreciation books for which entries have already been posted. Changes do not affect the entries that are already posted, making the depreciation book statistics misleading.


Module 1: Fixed Assets Setup To open the FA Posting Type Setup page, in the Depreciation Book Card window, click the Navigate FastTab, and then click FA Posting Type Setup.

FIGURE 1.8: FA POSTING TYPE SETUP


Fixed Assets in Microsoft Dynamics® NAV 2013 The FA Posting Type Setup window contains the fields for each FA posting type described in the following table.

Field Description

Part of a Book Value Select this field to specify that entries posted with the type in the FA Posting Type field will be part of the book value.

Microsoft Dynamics NAV 2013 is set up so that typically: Book Value = (Acquisition-Cost Entries plus Appreciation Entries) minus (Write-down Entries plus Depreciation Entries plus Custom-1 Entries plus Custom-2 Entries) The book value is calculated in the Book Value field in the FA Depreciation Books window.

Part of Depreciable Basis Select this field to specify that entries posted with the type specified in the FA Posting Type field will be part of the depreciable basis. Microsoft Dynamics NAV 2013 is set up so that typically: Depreciable Basis = (Acquisition Cost plus Appreciation) minus (Write-downs plus Salvage Value)

The depreciable basis is calculated in the Depreciable Basis field in the FA Depreciation Books window.

Include in Depr. Calculation

Select this field to specify that entries posted with the type specified in the FA Posting Type field must be included in periodic depreciation calculations.

Include in Gain/Loss Calc. Select this field to specify that entries posted with the type specified in the FA Posting Type field must be included in the calculation of gain or loss for a sold asset. The gain or loss is calculated in the Gain/Loss field in the FA Depreciation Books window.



Reverse before Disposal Select this field to specify that entries posted with the type specified in the FA Posting Type field must be reversed (that is, set to zero) before disposal.

Acquisition Type Select this field to specify that entries posted with the type specified in the FA Posting Type field must be part of the total acquisition for the fixed asset in the Fixed Asset - Book Value 01 report.

Depreciation Type Select this field to specify that entries posted with the type specified in the FA Posting Type field must be regarded as part of the total depreciation for the fixed asset. Usually Depreciation, Write-Down, and Custom 1 are regarded as depreciation types.

The depreciation type is relevant in the following ways: • For calculating the depreciable basis

when the Depreciation Method is Declining-balance 1.

In this case the depreciable basis is calculated as Book value minus total depreciation for the current fiscal year.

The depreciation amount is calculated as Depreciable basis * declining balance % / 100 * depreciation days / days in the fiscal year.

• When the total depreciation amount is calculated in the Fixed Asset - Book Value 01 report.



Sign Select this field to specify whether the type in the FA Posting Type field (Write-down, Appreciation, Custom 1, or Custom 2) on this line should be a debit or a credit. Select the field and select one of the options Blank, Debit, and Credit. When posting elsewhere, Microsoft Dynamics NAV 2013 checks that the amount to be posted to the FA posting type is entered correctly, as either a debit or credit, according to what you have defined in this field. Value Blank means that no check is performed.

Note: For detailed information on how to fill in the fields in the FA Posting Type Setup window, refer to the contextual online Help within Microsoft Dynamics NAV 2013 by clicking F1 in the respective field.

FA Journal Setup

The FA Journal Setup page specifies the default setup of the FA general ledger journal, the FA journal, and the insurance journal templates and batches that you can use in Microsoft Dynamics NAV 2013 when you have to duplicate lines from one depreciation book to another, create journal lines by running a batch job such as the Calculate Depreciation or Index Fixed Assets batch jobs, and duplicate acquisition-cost entries in the insurance journal.


Module 1: Fixed Assets Setup To open the FA Journal Setup page, in the Depreciation Book Card window, click the Navigate FastTab, and then click FA Journal Setup.

FIGURE 1.9: FA JOURNAL SETUP

Depreciation Book Card Batch Jobs

On the depreciation book card, you can run the following four batch jobs:

• Create FA Depreciation Books – automatically creates the necessary depreciation for one or more fixed assets. You can create empty fixed asset depreciation books, for example, for all fixed assets, when you set up a new depreciation book. You can also use an existing fixed asset depreciation book as the basis for a new book.

• Copy Depreciation Book – copies entries as a batch job from one depreciation book to another. The entries are not posted to the new depreciation book—they are inserted as lines either in the FA G/L journal or in a FA journal, depending on whether the new depreciation book has activated G/L integration.

• Cancel FA Ledger Entries – cancels an incorrect depreciation entry if you posted incorrect fixed asset transactions. Later, you can post the correct amount of depreciation by running the Calculate Depreciation batch job again. You can also find this batch job in the FA Ledger Entry and the FA Register windows. Canceling incorrect FA ledger entries makes sure that the fixed asset amounts are shown correctly in statistics windows and reports.


Fixed Assets in Microsoft Dynamics® NAV 2013 • Copy FA Entries to G/L Budget – copies entries as a batch job from

the Fixed Assets to budget entries. If more information has to be included, you can select the additional fields that you want to include in the batch job on the Options tab or Fixed Asset tab.

To access the batch jobs, open the Actions FastTab in the Depreciation Book Card window, and then in the ribbon, in the Functions group, select the relevant batch job.

FIGURE 1.10: DEPRECIATION BOOK CARD BATCH JOBS

Demonstration: Create a Depreciation Book

The accounting manager has decided to use several depreciation books in order to use different depreciation methods and post some transactions for financial statements and some for income tax. The TAX depreciation book must be set up without G/L integration, because the accounting manager does not want to post all depreciation transactions to the corresponding G/L accounts. It is also decided that entries can be made in another depreciation book and should be duplicated to the TAX depreciation book.


Module 1: Fixed Assets Setup Set up a new depreciation book, and name it TAX. This book has the following parameters:

• No general ledger integration is necessary.

• The depreciation book must be a part of the duplication list.

FA Journal Setup must be complete in order to continue with this demonstration.

Demonstration Steps

To create a new depreciation book, follow these steps:

1. To open the list of depreciation books, in the navigation pane, click Departments > Financial Management > Fixed Assets > Depreciation Books.

2. In the Depreciation Book List window, click New.

3. In the Code field, type “TAX”. 4. In the Description field, type “Tax book”. 5. Fill in the other fields on the General FastTab as shown in the

following table.

Field Value

Default Final Rounding Amount 5

Default Ending Book Value 0

Disposal Calculation Method Gross

Subtract Disc. in Purch. Inv. No

Allow Changes in Depr. Fields No

Allow Depr. below Zero No

Allow Indexation No

Use FA Ledger Check Yes

Use Rounding in Periodic Depr. Yes

Use Same FA+GL Posting Dates Yes

6. On the Duplication FastTab, select the Part of Duplication List check box.

7. Click the Navigate FastTab, and then click FA Journal Setup.


Fixed Assets in Microsoft Dynamics® NAV 2013 8. Fill in the fields in the line as shown in the figure Edit – FA Journal

Setup – TAX Book.

FIGURE 1.11: EDIT – FA JOURNAL SETUP – TAX BOOK

9. In the FA Jnl. Template Name field type “ASSETS”. 10. In the FA Jnl. Batch Name field type “DEFAULT”. 11. In the Gen. Jnl. Template Name field type “ASSETS”. 12. In the Gen. Jnl. Batch Name type “DEFAULT”.

13. In the Insurance. Jnl. Template Name field type “INSURANCE”. 14. In the Insurance. Jnl. Batch Name field type “DEFAULT”. 15. Click OK to finish FA Journal Setup for the TAX Book. 16. Click OK to close the New - Depreciation Book Card-TAX.Tax book

window. 17. Click Close to close the View - Depreciation Book List window.

FA Journal Templates You can use FA journal templates to define layout for fixed asset journals. On journal templates, you can assign trace codes, reports, and number series.

There are four journal templates for fixed assets:

• FA G/L Journal

• FA Journal

• FA Reclass. Journal

• Insurance Journal


Module 1: Fixed Assets Setup To open the FA Journal Templates window, in the navigation pane, click Departments > Financial Management > Fixed Assets > FA Journal Templates.

FIGURE 1.12: FA JOURNAL TEMPLATES

The FA journal templates resemble other journal templates in Microsoft Dynamics NAV 2013. You can also set up recurring journals for fixed assets.

You can define particular batches for a journal by clicking the Navigate FastTab in the FA Journal Templates window, and then, in the Template group, clicking Batches.

Fixed Asset Card Each fixed asset has a fixed asset card, which contains all the information about the asset.

To open a fixed asset card, in the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets.

The list of all the existing fixed assets appears. Click New to set up a new fixed asset.


Fixed Assets in Microsoft Dynamics® NAV 2013 You can open the existing Fixed Asset Card by selecting the line to click View or Edit.

FIGURE 1.13: FIXED ASSET CARD

General FastTab

The General FastTab contains the basic setup fields for the fixed asset card.

Field Description

No. This is a code field. You can enter the number manually or link to the number series, and the program will automatically update the number.

Description Type a description of the asset.

Serial No. Enter the serial number in this field if the asset already has a serial number.

Main Asset/Component Select the field to specify whether this asset is a main asset or a component of a main asset.



Component of Main Asset This field specifies the number of the main asset if the fixed asset is a component of a main asset and if the value Component is selected in the field Main Asset/Component. The field is filled in automatically when you fill in the Main Asset/Component field.

Search Description Enter a search name for the asset.

Responsible Employee Enter the code of the person responsible for the asset.

Inactive Select this check box to make the fixed asset inactive. You cannot post to an inactive fixed asset. Inactive assets are not included in batch jobs or reports. Making a fixed asset inactive may be necessary, for example, when the fixed asset is obsolete or no longer in service.

Blocked Select this check box to block posting to this fixed asset. The blocked fixed asset is not included in batch job functions creating journal lines.

Last Date Modified The program automatically enters the system date in this field when you make changes on the fixed asset card. This tells the user when the last entry was posted.

Lines FastTab

On the Lines FastTab, you can select the following information about the fixed asset:

• Depreciation book code.

• FA posting group.

• Depreciation methods.

• Depreciation starting date.


Fixed Assets in Microsoft Dynamics® NAV 2013 • Depreciation ending date.

• Number of depreciation years.

• Whether the fixed asset is disposed of.

• Book value.

Posting FastTab

The Posting FastTab classifies the assets as financial, intangible, and tangible assets, and then classifies them into subclasses. These classifications are mainly used for grouping in reports.

Field Description

FA Class Code Select the code that categorizes the fixed asset class. Class codes are used to group fixed assets, for example, tangible and intangible assets. Click the field, and then select a code.

FA Subclass Code Select a subclass code for the fixed asset. Subclass codes are used to make subgroups for fixed assets, for example, cars and machinery. Click the field, and then select a code.

FA Location Code Set the location for each asset. Click the field, and then select a code.

Budgeted Asset Select this check box if you want to use the asset as a budgeted asset (this makes it possible to include any anticipated acquisitions and sales in reports). This option must be selected before you post the first entry.

Maintenance FastTab

Use the Maintenance FastTab to keep information on the maintenance of the asset.

Field Description

Vendor No. Select the number of the vendor who sold the asset.

Maintenance Vendor No. Select the number of the vendor who performs the maintenance for the asset.

Under Maintenance Select this check box if the asset is currently under maintenance.



Next Service Date Select the next scheduled service date. Click the field to enter a date.

Warranty Date Specify the warranty expiration date of the fixed asset. Click the field to enter a date.

Insured This field indicates whether the asset is linked to an insurance policy. This field is filled in automatically.

Additional Details about the Fixed Asset

In addition to the information that you specify on the fixed asset card, you can attach a picture to the fixed asset and enter comments about the fixed asset.

To add a picture, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets.

2. In the Fixed Assets window select a fixed asset from the list, click the Navigate FastTab, and, in the Fixed Asset group, click Picture.

3. Right-click the Picture field and then click Select Picture. The picture file must be in .bmp format.

To add a comment, follow these steps:


2. In the Fixed Asset window, select a fixed asset from the list, click the Navigate FastTab, and, in the Fixed Asset group, click Comments.

3. Type your comments in the Comments Sheet window that appears.

Note: The Fixed Asset table contains, among other fields, a field named FA Posting Group. This field is temporarily filled on running reports. It has no effect on postings or transactions. The FA Depreciation Book table also contains a field named FA Posting Group. This field is used for postings and transactions.


Fixed Assets in Microsoft Dynamics® NAV 2013 FA Depreciation Books

To select information about fixed asset depreciation in the FA Depreciation Book page that can be accessed from the Action Pane of the fixed asset card, click Depreciation Books on the Home tab. The FA Depreciation Book page can be also accessed from the Lines FastTab.

Before you set up the depreciation method for an asset, make sure that the necessary depreciation books and FA posting groups are set up.

To open the FA Depreciation Books window where detailed information about depreciation books is displayed, click Depreciation Books on the Home tab of the fixed asset card.

FIGURE 1.14: FA DEPRECIATION BOOKS

Note: You can use different depreciation methods for fixed assets and several depreciation methods for each asset. To have more than one depreciation method for a specific asset, you must set up multiple FA depreciation books for that asset. If you depreciate assets, each asset must have at least one depreciation book assigned to it.


Module 1: Fixed Assets Setup The FA Depreciation Books window includes the fields described in the following table.

Field Description

FA No. This field specifies the fixed asset for which you are setting up a depreciation book.

Depreciation Book Code This field specifies the code of the depreciation book that is assigned to the fixed asset that you entered in the FA No. field.

FA Posting Group This field specifies the FA posting group that is used when you post entries to the given depreciation book.

Depreciation Method This field specifies the method of calculating depreciation for the given fixed asset.

Depreciation Starting Date This is the date when the depreciation must start.

Depreciation Ending Date This is the date when the depreciation must end.

No. of Depreciation Years This field specifies the length of depreciation expressed in years.

No. of Depreciation Months This field specifies the length of depreciation expressed in months. By default, this field is hidden.

Straight-Line % This field specifies the percentage to use to depreciate the fixed asset by the Straight-line method but with a fixed yearly percentage. If you fill in this field, the No. of Depreciation Months, No. of Depreciation Years, and Depreciation Ending Date fields will be cleared.

Fixed Depr. Amount Enter the amount to depreciate the fixed asset by a fixed yearly amount.

Declining-Balance % Enter the percentage in this field to depreciate the fixed asset by the Straight-line method but also with a fixed yearly percentage.



Use Half-Year Convention Select this check box to use six months of depreciation in the first fiscal year of the life of the asset, regardless of the asset’s depreciation starting date. Be aware that the half-year convention is available only with the Straight-line, Declining-balance 1, and DB1/SL depreciation methods.

Use DB% First Fiscal Year Select this check box to indicate that the depreciation methods DB1/SL and DB2/SL use the declining balance depreciation amount in the first fiscal year. Starting from the second fiscal year, the regular DB/SL calculation method is used.

Note: If a field is not displayed on the page, use the Choose Columns function to select which columns are displayed on the page.

Multiple Depreciation Books for a Single Asset

A common reason to set up multiple depreciation books is to accommodate different methods of depreciation for fixed assets. Frequently, businesses find that the way that they depreciate assets is not always best from a tax perspective.

To allow for depreciation in different ways, Microsoft Dynamics NAV 2013 lets you use more than one depreciation book, for example, one for internal financial statement preparation and another for income tax calculations.

On the Lines FastTab of the fixed asset card, you can assign a depreciation book as follows:

• In the Depreciation Book Code field, the depreciation book is assigned to the asset.

• In the FA Posting Group field, the posting group is assigned to the asset.


Module 1: Fixed Assets Setup • In the Depreciation Method field, click the field to select one of the

available methods of depreciation:

o Straight-line

o Declining-balance 1

o Declining-balance 2

o DB1/SL

o DB2/SL

o User-defined

o Manual

Additionally, you can use a Half-Year Convention depreciation method which you set up differently from other depreciation methods. For information about this method, refer to the “Depreciation Method – Half-Year Convention” topic.

Depreciation Method – Straight-line

In the Straight-line depreciation method, the fixed asset depreciates by the same amount each year. The following information must be specified:

• A depreciation period (years or months) or a depreciation ending date. The program uses this formula to calculate the depreciation amount:

Depreciation Amount = (Book value - Salvage Value) * Number of Depreciation Days) / Remaining Depreciation Day

The program calculates the remaining depreciation days as the number of depreciation days minus the number of days between the depreciation starting date and the last FA entry date. The book value may be reduced by posted Write-down, Appreciation, Custom 1, or Custom 2 amounts, depending on whether the Part of Book Value check box is selected in the FA Posting Type Setup window. If you use this calculation, the fixed asset is fully depreciated at the depreciation ending date.

• A fixed yearly percentage. The program uses this formula to calculate the depreciation amount:

Depreciation Amount = (Straight line % * Depreciable Basis * Number of Depreciation Days) / (100 * 360)

• A fixed yearly amount. The program uses this formula to calculate the depreciation amount:

Depreciation Amount = (Fixed Depreciation Amount * Number of Depreciation Days) / 360


Fixed Assets in Microsoft Dynamics® NAV 2013 Depreciation Method – Declining-balance 1

The Declining-balance 1 method of depreciation is an accelerated method that allocates the largest part of the cost of an asset to the early years of its useful lifetime. To use this method, specify a fixed yearly percentage.

The program uses this formula for calculating depreciation amounts:

Depreciation Amount = (Declining-Bal. % * Number of Depreciation Days * Depr. Basis) / (100 * 360)

The depreciable basis is calculated as the book value less the posted depreciation since the starting date of the current fiscal year.

When you use this method, the posted depreciation amount can contain entries with various posting types (Write-down, Custom 1, and Custom 2) posted since the starting date of the current fiscal year. These posting types are included in the posted depreciation amount if the Depreciation Type and Part of Book Value check boxes are selected in the FA Posting Type Setup window.

Note: To calculate declining balance depreciation, it is very important to have the correct setup in accounting periods because the declining balance depreciation is based on the fiscal year end. Make sure that you have accounting periods set up already for future fiscal years.

Depreciation Method – Declining-balance 2

The Declining-balance 2 method of depreciation calculates the same total depreciation amount for each year as Declining-balance 1. However, if the Calculate Depreciation batch job is run one or more times a year, the Declining-balance 1 method results in equal depreciation amounts for each period. The Declining-balance 2 method, on the other hand, results in amounts that decline for each period.

Depreciation Method – DB1/SL

The DB1/SL method is a combination of Declining-balance 1 and Straight-line methods of depreciation. When you run the Calculate Depreciation batch job, the program calculates both a declining balance and a straight-line amount, and then uses the larger of the two amounts. When you select this method, enter data into both the Number of Depreciation Years and the Declining Balance % fields. The depreciation starts with the Declining-balance 1 method and ends with the Straight-line method.


Module 1: Fixed Assets Setup Depreciation Method – DB2/SL

The DB2/SL depreciation method is a combination of Declining-balance 2 and Straight-line methods. This method is the same as the DB1/SL method, except that it calculates depreciation according to the rules of the Declining-balance 2 method instead of the Declining-balance 1 method.

Depreciation Method – User-defined

The User-defined depreciation method gives you the option to create a customized depreciation method by using the depreciation tables.

You can create depreciation tables in the Depreciation Table List window.

To open the Depreciation Table List window, in the navigation pane, click Departments > Financial Management > Fixed Assets > Depreciation Tables.

In the Depreciation Table List window, click New to open the Depreciation Table Card window where you can set up a depreciation method if it is necessary.



FIGURE 1.15: DEPRECIATION TABLE CARD

Note: User-defined depreciation methods may be necessary, for example, when a machine with an established lifetime capacity has a depreciation method to depreciate the machine based on the number of units it produces for each period. You can set up the table for the period length and the total number of units that the machine can produce.

Either use a percentage for allocation or specify the number of units. When using the Period Depreciation % field, the number of units is entered automatically.

The program uses the following formula for calculating the depreciation in user-defined methods: Depreciation Amount = Depreciation % * Number of Depreciation Days * Depreciation Basis


Module 1: Fixed Assets Setup Depreciation Method – Manual Method

The Manual method of depreciation requires you to manually enter the depreciation expense in either the FA G/L journal or the FA journal. The Calculate Depreciation batch job does not calculate depreciation for any assets for which you have selected the Manual depreciation method. You can use this method for assets that are not subject to depreciation, such as land.

Depreciation Method – Half-Year Convention

When you apply the Half-Year Convention method of depreciation, a fixed asset has six months depreciation in the fiscal year regardless of the value in the Depreciation Starting Date field. If you want to apply this method, select the Use Half-Year Convention check box in the FA depreciation book.

This depreciation method can be used with the following depreciation methods:

• Straight-line

• Declining-balance 1

• DB1/SL

Demonstration: Create a Fixed Asset

An employee purchased a new car for the company on January 13, 2013. The accounting manager has decided to start the depreciation of the asset on January 1, 2013. Create a new fixed asset that contains the information that is shown in the following table.

Field Value

Description VW Speedster 1302

Serial No VW123

FA Class code Tangible

FA Subclass code CAR

FA Location code PROD

The employee bought the car from vendor number 30000. This vendor is also in charge of maintenance.


Fixed Assets in Microsoft Dynamics® NAV 2013 Create the depreciation book as shown in the following table.

Field Value

Depreciation book code COMPANY

FA Posting Group CAR

Depreciation Method Straight-line

Depreciation Starting Date 01/01/13

No. of Depreciation Years 5

The COMPANY book integrates with the general ledger. This is why a FA posting group is used. You enter the depreciation base by posting the acquisition costs.

Demonstration Steps

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets.

2. In the Fixed Assets window, click New. 3. On the General FastTab, fill in the fields as shown in the following

table.

Field Value

Description VW Speedster 1302

Serial No VW123

4. On the Lines FastTab, fill in the fields as shown in the following table.

Field Value






5. On the Posting FastTab, fill in the fields as shown in the following table.

Field Value

FA Class code Tangible

FA Subclass code CAR

FA Location code PROD


Module 1: Fixed Assets Setup 6. On the Maintenance FastTab, in the Vendor No. field, click the field,

and then select 30000.

FIGURE 1.16: NEW – FIXED ASSET CARD – FA000100 VW SPEEDSTER 1302

7. Click OK.



Lab 1.1: Create a Fixed Asset Card

Scenario

The company plans to purchase a new fixed asset, a new computer, for its Reception department. Cassie, the accountant, has to create a fixed asset card for this fixed asset to register it in the program. The fixed asset must be integrated with the general ledger.

Objectives

Create a fixed asset card.

Create a fixed asset card for the new fixed asset. Exercise Scenario

Cassie creates a fixed asset card and fills in the mandatory fields by using the information described in the following table.

Field Value

Description Reception Department Computer

Serial No. BTHC0260000D

FA Class Code TANGIBLE

FA Subclass Code EQUIPMENT

FA Location Code RECEPTION

Cassie also has to add the EQUIPMENT subclass.

The asset will be purchased from vendor 61000, Electronics Ltd. This vendor is also responsible for maintenance.

Use the information in the following table to link the fixed asset to a depreciation book.

Field Value

Depreciation Book Code COMPANY

FA Posting Group IT-EQUIP





Module 1: Fixed Assets Setup Task 1: Create a fixed asset card and link it to a depreciation book.

High Level Steps 1. Create a new fixed asset card. 2. Fill in the mandatory fields on the General FastTab.

3. On the Lines FastTab, link the fixed asset to the depreciation book integrated with the general ledger, and specify depreciation information.

4. Specify the posting information on the Posting FastTab.

5. On the Maintenance FastTab, enter the vendor number.

Detailed Steps 1. Create a new fixed asset card.

d. In the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets.

e. In the Fixed Assets window, click New.

2. Fill in the mandatory fields on the General FastTab. a. On the General FastTab, fill in the fields as shown in the following

table.

Field Value

Description Reception Department Computer

Serial No. BTHC0260000D

3. On the Lines FastTab, link the fixed asset to the depreciation book integrated with the general ledger, and specify depreciation information. a. On the Lines FastTab, fill in the fields as shown in the following

table.

Field Value


FA Posting Group IT-EQUIP




4. Specify the posting information on the Posting FastTab. a. On the Posting FastTab, fill in the fields as shown in the following

table.


Fixed Assets in Microsoft Dynamics® NAV 2013 Field Value



FA Location Code RECEPTION

Note: To create the EQUIPMENT subclass, select the FA Subclass Code field, and then click New. In the FA Subclasses window, fill in the Code and Name fields with Equipment.

5. On the Maintenance FastTab, enter the vendor number. a. On the Maintenance FastTab, in the Vendor No. field, select the

field and then select vendor 61000.

The filled-in fixed asset card should look as shown in the New Fixed Asset Card figure.

FIGURE 1.17: NEW FIXED ASSET CARD

b. Click OK.



Fixed Asset Allocation Keys The Allocations function on the FA Posting Groups page shows an overview of the allocated percentage on the types of expenses and costs for an asset. With allocations, you can specify how you want to allocate an amount on a general journal line to several different accounts. The allocation can be made by quantity, percentage, or amount. The allocation features can be used with recurring journals and in the Fixed Assets application area.

Allocation

To set up allocation keys, select a fixed asset posting group, click the Navigate FastTab on the Action Pane, click Allocations, and then select the type of expense to allocate to.

On the FA Allocations page, select the account number in the general ledger to post to, and then allocate the percentage for each particular asset.

Note: You can allocate any account number in the general ledger.

To use global dimensions, on the FA Allocations page, click the Navigate FastTab on the Action Pane, and then click Dimensions. Enter dimensions in the Dimension Set Entries window, and then click OK.

Note: When you use the allocation of posting types in posting groups, the program produces one G/L ledger entry for each allocation and for each asset.

All types of asset transactions are listed with the total allocation percentage amount.

To view the detailed allocations for each transaction type, click each type to view its capability on the FA Allocations page.


Fixed Assets in Microsoft Dynamics® NAV 2013 Demonstration: Set Up Fixed Asset Allocation Keys

Set up the allocation keys to allocate depreciation costs on vehicles with 35 percent to the Administration Department and 65 percent to the Sales Department.

Demonstration Steps

1. Open the FA Posting Groups window to allocate the depreciation for the CAR FA posting group.

2. Set up the FA allocation keys and dimensions to allocate 35% to the Administration Department and 65% to the Sales Department.

3. Open the Fixed Asset G/L Journal window, and use the Insert FA Bal. Account function to automatically insert the account(s) you have specified to post the depreciation amount of 500 for fixed asset FA000010. To set up fixed assets allocation keys, follow these steps:


b. In the Edit - FA Posting Groups window, select CAR posting group line, then click the Navigate FastTab, select Allocations, and then select posting type Depreciation.

c. In the Edit - FA Allocations – CAR window, create new lines, filling in the fields as shown in the following table.

Field Value

Account No. 8830

Allocation % 35

Account No. 8830

Allocation % 65



FIGURE 1.18: EDIT - FA ALLOCATIONS – CAR

d. Select the first line with Allocation % field value 35%, and then, in the Navigate FastTab, select Dimensions.

e. In the Edit – CAR Depreciation 10000 – Edit Dimension Set Entries window, create a new line, selecting the Dimension Code field value DEPARTMENT and the Dimension Value Code field value ADM.


Fixed Assets in Microsoft Dynamics® NAV 2013 f. The 35% of depreciation for vehicles is now allocated to the

Administration Department.

FIGURE 1.19: EDIT - CAR DEPRECIATION 10000 – EDIT DIMENSION SET ENTRIES

g. Click OK.

h. Select the second line with Allocation % field value 65%, and then, in the Navigate FastTab, select Dimensions.

i. In the Edit – CAR Depreciation 10000 – Edit Dimension Set Entries window, create a new line, selecting the Dimension Code field value DEPARTMENT and Dimension Value Code field value SALES.

j. The 65% of depreciation for vehicles is now allocated to the Sales Department.

k. Click OK. l. Click OK to close the Edit - FA Allocations – CAR window. m. Click OK to close the Edit - FA Posting Groups window.

n. Click Departments > Financial Management > Fixed Assets > FA G/L Journals.

o. In the Edit – Fixed Asset G/L Journal – DEFAULT Default-Journal Batch window, create a new line, filling in the fields as shown in the following table.

Field Value

Account Type Fixed Asset

Account No. FA000010



FA Posting Type Depreciation

Amount 500

p. In the Home tab, in the Process group, click Insert FA Bal. Account.

q. Two new lines were automatically created with the corresponding allocated depreciation amounts.

FIGURE 1.20: USING INSERT FA BAL. ACCOUNT FUNCTION

r. Click Post. s. When you receive the message “Do you want to post the journal

lines?”, click Yes. t. When you receive the message “The journal lines were

successfully posted.”, click OK.



Main Assets and Asset Components A main asset consists of other assets called components. For example, a conveyor is a main asset because it consists of other assets that include the conveyor belt, the computer, and the lift.

Note: A component asset of a main asset cannot be used as a main asset for other components.

Main Asset – Fixed Asset Card

To view an example of a main asset on a fixed asset card, in the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets.

In the Fixed Assets window, select the line with main asset FA000040, and then click View to view the main asset on a fixed asset card.

FIGURE 1.21: MAIN ASSET - FIXED ASSET CARD


Module 1: Fixed Assets Setup Main Asset Components Card

To see the components of a main asset, click the Navigate FastTab on the card of the main asset, and then, in the Main Asset group, click Main Asset Components.

The Main Asset Components window appears. This window lists the components that make up the asset.

FIGURE 1.22: MAIN ASSET COMPONENTS

If an asset is a component of another asset, the program automatically enters information about the main asset on the General FastTab of the fixed asset card as follows:

• The Main Asset/Component field is set to Component.

• The Component of Main Asset field contains the number of the main fixed asset. This number is a link that you can click to view the list of assets and open the card of the main asset.

Note: It is good practice to use numbering to group component assets with their main asset for better presentation.



For example, if the main asset is numbered FA000050, then components should be numbered FA000051, FA000052, and so on.

Main Asset Statistics

Use the Main Asset Statistics page to obtain an overview of the number of fixed asset components for a main asset and the total acquisition cost, depreciation, and book value for the main asset.

To open the Main Asset Statistics page from the Fixed Asset Card for a main asset, click the Navigate FastTab, and then, in the Main Asset group, click Main Asset Statistics.

FIGURE 1.23: MAIN ASSET STATISTICS


Module 1: Fixed Assets Setup The Main Asset Statistics page shows the combined total acquisition cost, depreciation, and book value of all the components of the main asset. It also shows the total number of components that are included in the asset and whether any components were disposed of.

If any components were disposed of, the combined gain or loss and book value on disposal are displayed. The Acquisition Date field shows the earliest date of acquisition for a component. Similarly, the Disposal Date field shows the date of the disposal of a component.

Demonstration: Add a Component Asset to a Main Asset

The user of the VW Speedster has decided to add a component to the existing asset. The user purchased a new stereo system.

Demonstration Steps

To add a component to the existing fixed asset, first you have to create a fixed asset card for the component.

To create a new fixed asset card for the stereo fixed asset, follow these steps:


2. In the Fixed Assets window, click New.

3. On the General FastTab, fill in the fields as shown in the following table.

Field Value

Description Stereo

Serial No. S1250

4. On the Lines FastTab, fill in the fields as shown in the following table.

Field Value


FA posting group CAR





Fixed Assets in Microsoft Dynamics® NAV 2013 5. On the Posting FastTab, fill in the fields as shown in the following

table.

Field Value



FA Location Code BUILD 2

6. Click OK.

Now you can change the fixed asset card of the VW Speedster and add the Stereo as a component. To add a component to the VW Speedster fixed asset, follow these steps:


2. In the Fixed Assets window, select the line with the VW Speedster 1302 fixed asset, and then click Edit.

3. In the Edit – Fixed Asset Card window, click the Navigate FastTab, and then, in the Main Asset group, click Main Asset Components.

4. In the Edit – Main Asset Components window, in the FA No. field, select the field, and then click the number of the Stereo fixed asset from the list.

5. Click OK.

The Main Asset/Component field on the General FastTab is automatically filled in with Main Asset.

6. Close the fixed asset card for the VW Speedster fixed asset and double-click the line with the stereo fixed asset to open the fixed asset card.


Module 1: Fixed Assets Setup The Main Asset/Component field on the General FastTab is automatically filled in with Component, and the Component of Main Asset field displays the number of the main asset.

FIGURE 1.24: FIXED ASSET AS A COMPONENT



Record Open Transactions In Microsoft Dynamics NAV 2013, you can use the posting of open transactions to enter information from an old system. This may be necessary when you start to work with fixed assets that were acquired in the past and are partly depreciated, and for which you now must register this data in Microsoft Dynamics NAV and have the program calculate depreciation correctly.

Post Fixed Asset Transactions to G/L

When Microsoft Dynamics NAV 2013 is installed for the first time, it sets up the General Ledger area. Make sure that all the basic setup procedures for the fixed assets are completed (FA setup, FA Posting Group, Depreciation Books, Depreciation Tables, FA Journals).

To post fixed asset transactions to the general ledger and record them as opening entries, follow these steps:

1. Create a fixed asset card for each existing asset. To do this, in the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets.

2. In the Fixed Assets window, click New. 3. On the General, Posting, Lines, and Maintenance FastTabs, fill in

the corresponding fields.

4. Set up depreciation books for the fixed assets. In the navigation pane, click Departments > Financial Management > Fixed Assets > Depreciation Books.

5. In the Depreciation Book List window, click New.

6. In the Depreciation Book Card window, click the Integration FastTab, and then clear all the fields to deactivate G/L integration.


Module 1: Fixed Assets Setup To open the Depreciation Book Card window, in the navigation pane, click Departments > Financial Management > Fixed Assets > Depreciation Books. In the Depreciation Book List window, select a line with a depreciation book, and then click Edit.

FIGURE 1.25: DEPRECIATION BOOK CARD - INTEGRATION FASTTAB

Repeat this procedure for each depreciation book. Because these assets are already accounted for in the general ledger, you must temporarily turn off integration. If the fixed assets do not integrate with the general ledger, omit this step.


Fixed Assets in Microsoft Dynamics® NAV 2013 Fixed Asset Journal

In the Fixed Asset Journal window, enter two lines for each asset:

• The acquisition cost – This line represents the acquisition of the fixed asset.

• The accumulated depreciation – This line represents a cumulative amount of depreciation. You have to post the cumulative amount of depreciation to the end of the previous (business) year.

If other opening balances exist, such as write-down, appreciation, or salvage value, enter lines for them.

To open the Fixed Asset Journal window, in the navigation pane, click Departments > Financial Management > Fixed Assets > FA Journals.

If you use the Declining-balance depreciation method and post the opening entries for assets acquired in a previous fiscal year, you must enter three lines for each asset to provide the correct depreciable basis for the assets:

• Line 1 – Must contain the acquisition cost and a posting date of the last date of the previous fiscal year.

• Line 2 – Must contain the accumulated depreciation to the end of the previous fiscal year and a posting date of the last date of the previous fiscal year.

• Line 3 – Must contain the accumulated depreciation to the last depreciation date in the current fiscal year and a posting date of the last depreciation date in the current fiscal year.

You must post the monthly depreciation to bring it up to date after the new Microsoft Dynamics NAV installation.

After you enter and post all journal lines for all the assets, enable general ledger integration for depreciation books again. If the fixed assets do not integrate with the general ledger, omit this step.



Make Duplicate Entries When journal lines must post to a depreciation book, the program can duplicate the lines in a separate journal from which they can then post to a different depreciation book. This can be useful if, for example, one depreciation book is integrated with the general ledger and uses the FA G/L journal, and other depreciation books are not integrated with the general ledger and use the FA journal.

In the Depreciation Book Card window, you can specify that the depreciation book is a part of a duplication list so that when you select the Use Duplication List check box on a journal line, the program will duplicate the journal line to a separate journal from which it will be posted for each depreciation book that is a part of a duplication list.

Another way to duplicate an entry in a separate book is to enter a depreciation book code in the Duplicate in Depreciation Book field on a journal line.

Set Up a Duplication List

To include a depreciation book in the duplication list, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Depreciation Books.

2. In the Depreciation Books window, select a line with the depreciation book that you want to set up as a part of the duplicate list, and then click Edit.

3. In the Depreciation Book Card window, click the Duplication FastTab, and then select the Part of Duplication List check box.

4. Click OK. 5. Repeat steps 2 through 4 for other depreciation books that you want

to set up as a part of the duplication list.


Fixed Assets in Microsoft Dynamics® NAV 2013 The Depreciation Book Card – Duplication FastTab figure shows the Duplication FastTab on the depreciation book card.

FIGURE 1.26: DEPRECIATION BOOK CARD - DUPLICATION FASTTAB

Demonstration: Duplicate Entries

To see how duplication works, try the following example. The principle is the same whether you use the FA G/L journal or the FA journal.

In an earlier demonstration, you set up the TAX depreciation book without G/L integration. Specify that it is a part of the duplication list. The accounting manager has decided to use several depreciation books in order to use different depreciation methods to post certain depreciation transactions. The accounting manager now wants to post an invoice for the acquisition cost for fixed asset FA000030 and duplicate the entry made in the FA G/L journal to the FA journal.

Before you complete this demonstration, make sure that the FA Journal Setup page is set up correctly for the TAX depreciation book. To open the FA Journal Setup page, in the depreciation book list, on the Navigation tab, click FA Journal Setup.


Module 1: Fixed Assets Setup Demonstration Steps

To duplicate entries, follow these steps:


2. In the View – Depreciation Book List window, select the line with the TAX depreciation book, and then click Edit.

3. In the Edit – Depreciation Book Card-TAX.Tax book window, click the Duplication FastTab, and then verify the Part of Duplication List check box is selected.

4. Click OK.

To create a FA depreciation book for the fixed asset FA000030, use the TAX depreciation book. Fixed asset FA000030 should already be using the COMPANY depreciation book.

Note: The date formatting is restricted by the DEMO license for the Cronus International Ltd. Company.

For demonstration purposes, change the depreciation starting and ending dates for the fixed asset FA000030 in the COMPANY depreciation book as described below:

5. In the Depreciation Book List window, select the line with the COMPANY depreciation book, and then click Edit.

6. On the General FastTab, select the field Allow Changes in Depr. Fields.

7. Click OK. 8. Switch to Microsoft Dynamics NAV window. In the navigation pane,

click Departments > Financial Management > Fixed Assets. In the right pane, click Fixed Assets.

9. Select the line with a fixed asset FA000030 and then, on the Process FastTab, click Depreciation Books.

10. In the line for the fixed asset using the COMPANY depreciation book code, change the Depreciation Starting Date to “1/1/2013“, and the Depreciation Ending Date to “12/31/2017“.

11. Create a new line for the fixed asset FA000030, using the TAX depreciation book and enter the same data as for the COMPANY depreciation book.

12. Click OK. 13. Switch to the Depreciation Book List window, select the line with

COMPANY depreciation book, and then click Edit.


Fixed Assets in Microsoft Dynamics® NAV 2013 14. On the General FastTab, clear the Allow Changes in Depr. Fields

check box.

15. Click Close to close the Edit – Depreciation Book Card-COMPANY.company book window.

FIGURE 1.27: USING TAX FA DEPRECIATION BOOK FOR THE FIXED ASSET FA000030

16. In the navigation pane, click Departments > Financial Management > Fixed Assets > FA G/L Journals.

17. In the Edit – Fixed Asset G/L Journal-DEFAULT.default Journal Batch window, right-click the column header, select Choose Column, and then add the Use Duplication List field.

18. Create a journal line filling in the fields as shown in the following table.

Field Value

Posting Date 1/25/13

Document Type Invoice

Document No. generated automatically




FA Posting Type Acquisition Cost

Description Additional equipment

Gen. Posting Type Purchase

Gen. Bus. Posting Group NATIONAL

Gen. Prod. Posting Group MISC



Amount 800

Bal. Account Type G/L Account

Bal. Account No. 2910

Use Duplication List Yes

19. Click Post on the Process FastTab. 20. When you receive the message “Do you want to post the journal

lines?”, click Yes. 21. When you receive the message “The journal lines were successfully

posted.”, click OK. 22. Click OK to close the Fixed Asset G/L Journal window. 23. Because G/L integration is not enabled for the TAX depreciation

book, the entry will be in the FA journal. In the navigation pane, click Departments > Financial Management > Fixed Assets > FA Journals to open the Fixed Asset Journal window. The journal contains the duplicated line.

Note: When you enter the general posting groups for the journal, default VAT posting groups are used to calculate the VAT and subtract it from the amount (800). Therefore, the amount in the FA journal is now 640.

Because the document number copies from the FA G/L journal, you cannot use automatic document numbering in this journal batch. If you have set up automatic numbering in the journal, in the Batch Name field, click the field, and then delete the contents of the No. Series field.

24. Change the automatically generated Document No. field to F00001 to start a new number series and post the journal line.

25. Click Post on the Process FastTab. 26. When you receive the message “Do you want to post the journal


posted.”, click OK. 28. Click OK to close the Fixed Asset Journal window. 29. To see the posted entries, in the navigation pane, click Departments

> Financial Management > Fixed Assets > Fixed Assets, and then double-click the line with the fixed asset FA000030 to open the fixed asset card.

30. On the Lines FastTab, on the line for the TAX depreciation book, in the Book Value field, you can see the FA ledger entry for the acquisition.



Copy Fixed Assets and FA Ledger Entries With Microsoft Dynamics NAV 2013, you can copy fixed assets and fixed assets ledger entries.

Create Fixed Assets by Copying Existing Assets

To create several fixed assets that resemble an existing fixed asset, use the Copy Fixed Asset batch job. For example, a company has bought 30 chairs that are the same make and model and have the same depreciation terms. Instead of entering the same information 30 times, create the first asset and use the batch job to create 29 new assets, and then copy the information to them. To copy an existing fixed asset, follow these steps:


2. Select a line with a fixed asset to copy from, and, on the Home tab of the Action Pane, click Copy Fixed Asset.

The Copy Fixed Asset window appears.

FIGURE 1.28: COPY FIXED ASSET


Module 1: Fixed Assets Setup The Option FastTab on the Copy Fixed Asset request page contains the fields described in the following table.

Field Description

Copy from FA No. Select the number of the fixed asset to copy.

No. of Copies Enter the number of new fixed assets that you want to create.

First FA No. Enter the number of the first fixed asset. If the value in the No. of Copies field is greater than 1, the First FA No. field must include a number, for example, FA045.

Use FA No. Series Select this check box if the new fixed asset(s) must have a number from the number series specified in the Fixed Asset Nos. field in the Fixed Asset Setup window. When this check box is not selected, a value in the First FA No. field is used for the number series.

When you run the batch job, the program creates new fixed asset cards and copies the depreciation book information from the existing asset. The batch job does not copy the entries that are posted on the existing asset.

Copy FA Ledger Entries from Existing Depreciation Books to New Depreciation Books

You can copy entries from one depreciation book to another with the Copy Depreciation Book batch job. The batch job creates journal lines in the journal batch specified in the FA Journal Setup page for the depreciation book to copy to. This function is useful when you start FA accounting with the standard depreciation book first, create an additional tax depreciation book, and then copy the acquisition costs to the new depreciation book.

Note: Do not integrate this depreciation book to the general ledger.


Fixed Assets in Microsoft Dynamics® NAV 2013 To copy FA ledger entries from existing depreciation books to new depreciation books, follow these steps:


2. In the Depreciation Book List window, select a depreciation book from which you want to copy FA ledger entries, and then click Edit.

3. In the Depreciation Book Card window, click Actions, and then click Copy Depreciation Book.

The Copy Depreciation Book batch job request page appears.

FIGURE 1.29: COPY DEPRECIATION BOOK BATCH JOB REQUEST PAGE


Module 1: Fixed Assets Setup 4. On the Fixed Asset FastTab, set a filter to select the assets from

which to copy entries. If you do not set a filter, entries for all assets are copied.

5. On the Options FastTab, enter information into the fields according to the guidelines in the following table.

Field Description

Copy from Book Enter the name of the depreciation book from which the entries have to be copied.

Copy to Book Enter the name of the depreciation book to which the entries have to be copied.

Starting Date Enter the first day to copy FA postings. Only entries with an FA posting date on or after this date are copied.

Ending Date Enter the last day to copy FA postings. Only entries with an FA posting date on or before this date are copied.

Document No. Enter a document number or leave this field blank. If the field is blank, you must set up a number series for the journal batch.

Posting Description Enter the text to appear in the ledger.

Insert Bal. Account Use this field only if you copy to a depreciation book that has G/L integration. When this check box is selected, the program enters balancing accounts on the copied lines in the FA G/L journal automatically.

Copy Select the posting type or types to copy.

6. Click OK to run the batch job.

Microsoft Dynamics NAV 2013 creates the copied lines in either the G/L journal or the FA journal, depending on whether you have activated G/L integration for the depreciation book to which you are copying. You must post the journal to copy entries.


Fixed Assets in Microsoft Dynamics® NAV 2013 Demonstration: Copy Depreciation Books

After you have set up a TAX depreciation book for FA00030 and made one duplication entry, copy all the other posted acquisition cost entries for the asset from the COMPANY depreciation book. Then the correct acquisition of the asset will display in the TAX depreciation book.

Demonstration Steps

To copy the depreciation book, follow these steps:


2. In the Depreciation Book List window, select the TAX depreciation book, and then click Edit.

3. In the Depreciation Book Card window, click Actions, and then click Copy Depreciation Book.

4. In the Copy from Book field, select COMPANY.

5. In the Copy to Book field, select TAX. 6. In the Starting Date field, select 1/24/2013. 7. In the Document No. field, enter the number of the document from

the acquisition entry that will be copied. For this example, leave this field blank to copy all documents in the journal batch to which the entries are copied.

8. In the Copy field group, select the Acquisition Cost check box. 9. On the Fixed Asset FastTab, In the No. filter, select FA000030.

10. Click OK to run the batch job. 11. Switch to the Microsoft Dynamics NAV window. In the navigation

pane, click Departments > Financial Management > Fixed Assets > FA Journals to open the Fixed Asset Journal page and post the journal line.

Note: The automatic document numbering is not used for the fixed assets journal in this demonstration; you should manually number the lines F00002 and F00003 correspondingly.

12. Click Post on the Process FastTab.

13. When you receive the message “Do you want to post the journal lines?”, click Yes.


Module 1: Fixed Assets Setup 14. When you receive the message “The journal lines were successfully

posted.”, click OK.

15. Click OK to close the Fixed Asset Journal window. 16. In the navigation pane, click Departments > Financial Management

> Fixed Assets > Fixed Assets to see the result. 17. Double-click the FA000030 fixed asset.

18. Look for the book value of the TAX FA depreciation book. The book value in the TAX book is greater than the book value in the COMPANY book because you have not copied the depreciation entries. On the Lines FastTab, select the line with the TAX depreciation book, and then click Depr. Book > Ledger Entries. In the FA Ledger Entries window, the two acquisition entries appear.



Module Review Microsoft Dynamics NAV 2013 Fixed Assets Setup helps a company to manage all information relevant to fixed assets.

The Fixed Assets setup is the basis of working with Fixed Assets in Microsoft Dynamics NAV 2013. For this area to work correctly, you must perform the following:

• Configure the general fixed assets setup.

• Set up allocation groups, posting groups, depreciation books, depreciation tables if they are necessary, and fixed assets journal templates.

• Create fixed asset cards and associate them with depreciation books.

Creating a fixed asset card is the first step in the life cycle of a fixed asset in Microsoft Dynamics NAV 2013. On the fixed asset card, you link the fixed asset to a depreciation book, which may be integrated with the general ledger. There are multiple fixed asset depreciation methods in Microsoft Dynamics NAV 2013 that suit different business needs. The basic features of the Fixed Assets area that are covered in this module include recording open transactions, making duplicate entries, and copying fixed assets and fixed asset ledger entries.


MODULE 2: FIXED ASSET TRANSACTIONS

Module Overview This module, "Fixed Asset Transactions," describes the transaction types available in Microsoft Dynamics® NAV 2013 Fixed Assets.

All Fixed Asset (FA) transactions must be posted in a fixed assets journal. If a fixed asset is connected to a depreciation book integrated with the general ledger, the FA G/L journal is used. For frequent transactions, you can use recurring journals for fixed assets.

The basic transactions for fixed assets are depreciations, acquisition costs, write-downs, and disposals. This module describes all four types of transactions and the processes connected to these transactions.

In Microsoft Dynamics NAV 2013 Fixed Assets, you can correct entries that have already been posted if an amount changes for some reason, or if errors exist in posted transactions. You can also create reports, budgets, cost-accounting, and indexation for Fixed Assets.

Microsoft Dynamics NAV 2013 Fixed Assets can also handle minor assets.

Objectives

The objectives are:

• Set up journals for fixed assets.

• Post a fixed asset acquisition through a purchase invoice.

• Increase the cost of a fixed asset by using the FA journal.

• Explain the manual and automatic depreciation posting methods.

• Set up write-down and appreciation of fixed assets.

• Set up disposals of fixed assets.

• Cancel and recalculate an incorrectly posted depreciation entry.

• Cancel an incorrect entry that is already posted.


Fixed Assets in Microsoft Dynamics® NAV 2013 • Reverse an incorrectly posted transaction.

• Explain how to document fixed asset transactions.

• Explain how to view the FA registers.

• Demonstrate the reports for fixed assets.

• Set up budgeting for fixed asset transactions.

• Set up cost accounting depreciations.

• Set up indexation.

• Set up and depreciate minor assets.


Module 2: Fixed Asset Transactions

Journals for Fixed Assets All fixed asset transactions can be posted through the following four journals:

• FA G/L journal

• FA journal

• FA reclassification journal

• Insurance journal

FA G/L Journals

All entries in the FA G/L journal will be posted to both the fixed asset ledger and the general ledger.

To post to the general ledger, select the relevant fields on the Integration FastTab of the depreciation book card to which a fixed asset is linked.

FA Journals

Entries posted in the FA journal are posted only to the fixed asset ledger.

FA Reclassification Journals

The FA reclassification journal is used to transfer, split, or combine fixed assets. It is also used to transfer posted entries from one asset to another. The entries are calculated in this journal and then inserted in either the FA G/L journal or the FA journal.

Insurance Journals

Use the Insurance journal to post insurance coverage ledger entries.

Features of Recurring Transactions

You can use the recurring journals in Microsoft Dynamics NAV 2013 for frequently posted transactions with few or no changes.

The recurring general journals and the recurring fixed asset journals can manage posting for both fixed amounts and variable amounts, and can also manage the allocation keys with the recurring entries.


Fixed Assets in Microsoft Dynamics® NAV 2013 Demonstration: Create a Recurring General Journal

Annie, the bookkeeper for CRONUS International Ltd., wants to set up a recurring general journal for monthly depreciation of the Toyota Supra 3.0 and the VW Transporter fixed assets. Annie calculates the monthly depreciation amount for each fixed asset by dividing the acquisition cost amount by the number of depreciation months. The monthly depreciation of the Toyota Supra 3.0 is 700, and the monthly depreciation of the VW Transporter is 250.

Demonstration Steps

To set up the recurring transaction, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Recurring General Journals.

2. In the Recurring General Journal window, in the Recurring Method field, select the field, and then click F Fixed.

3. In the Recurring Frequency field, enter 1M.

4. In the Posting Date field, enter 11/30/2013. 5. In the Document No. field, enter 1001. 6. In the Account Type field, select the field, and then click Fixed Asset. 7. In the Account No. field, select the field, and then click FA000020.

8. In the Amount field enter -700.00. 9. In the FA Posting Type field, select the field and then click

Depreciation. Use the Choose Columns function to add the field if it is missing.

10. Go to the next line. 11. Make sure that the Recurring Method field is set to F Fixed. 12. In the Recurring Frequency field, enter 1M.

13. Make sure that the Posting Date field is set to 11/30/2013. 14. Make sure that the Document No. field is set to 1001. 15. Make sure that the Account Type field is set to Fixed Asset. 16. In the Account No. field, select the field, and then click FA000030.

17. In the Amount field, enter -250.00. 18. In the FA Posting Type field, select the field, and then click

Depreciation.


Module 2: Fixed Asset Transactions 19. Go to the next line. 20. Make sure that the Recurring Method field is set to F Fixed.

21. In the Recurring Frequency field, enter 1M. 22. Make sure that the Posting Date field is set to 11/30/2013. 23. Make sure that the Document No. field is set to 1001. 24. In the Account Type, select the field, and then click G/L Account. 25. In the Account No., enter 8830. 26. In the Amount field, enter 950.00.

FIGURE 2.1: EDIT – RECURRING GENERAL JOURNAL

27. On the Home FastTab, click Post to post the recurring journal. 28. When you receive the message “Do you want to post the journal

lines?”, click Yes.

29. When you receive the message “The journal lines were successfully posted.”, click OK.

30. Notice that the Posting Date field value now has changed by one month—to 12/30/2013.

FIGURE 2.2: EDIT – RECURRING GENERAL JOURNAL. THE VALUES CHANGED BY ONE MONTH

31. Click OK to close the Recurring General Journal window.



Note: When you post a journal, the lines are posted one by one. For each account in the Account No. and Bal. Account No. fields, a general ledger entry is created in addition to a customer, vendor, or bank account ledger entry for each account of these types.

FA Flowchart

The FA Process Flow flowchart shows a common process flow with the most typical operations. These operations together with their variations and other fixed asset functionality are reflected throughout this module in demonstrations and labs.

The flowchart in this topic shows a typical life cycle of a fixed asset.

FIGURE 2.3: FIXED ASSET PROCESS FLOW


Module 2: Fixed Asset Transactions First, you register a new fixed asset in the program by creating a fixed asset card. Then, you link the fixed asset to the COMPANY depreciation book. At this point, you must decide whether you want your fixed asset to be integrated with the general ledger. If you do want the fixed asset to be integrated with the general ledger, link the fixed asset to the depreciation book that has G/L integration. Typically, you want fixed assets to be integrated with the general ledger. However, you do not want a fixed asset to be integrated with the G/L, for example, when you want to perform internal fixed asset calculations or for a third-party entity that must not be reflected in your general ledger. In addition, with Microsoft Dynamics NAV 2013, you can select specific FA postings to be integrated with the G/L for each depreciation book.

Then, you post the acquisition cost for the fixed asset and link the fixed asset to one of the company’s insurance policies. Depending on whether you decided to integrate the fixed asset with the general ledger, you post the acquisition cost either through a purchase invoice or the FA G/L journal (when integrated), or through the FA journal (when not integrated). When a fixed asset has integration with the general ledger, the entries posted for this fixed asset are also automatically posted to the general ledger.

During the life cycle, you may have to revalue the fixed asset (for example, posting appreciation or a write-off). You may also have to post additional acquisition costs. As a periodic activity, you calculate and post depreciation for the fixed asset according to the depreciation method that is defined on the fixed asset card. There may be maintenance expenses for the fixed asset which you can also post for the fixed asset.

Finally, you dispose of the whole or a part of the fixed asset. Fixed asset disposal must always be the last transaction posted for a fixed asset.

The fixed asset process flow steps are reflected in the demonstrations and labs throughout this module. Also, you will perform other tasks that can be performed with fixed assets in Microsoft Dynamics NAV 2013.

Purchase Fixed Assets When you post acquisition cost through the purchase invoice, it is integrated with the general ledger. Before the purchase invoice can be posted, the G/L integration for acquisition cost must be selected on the depreciation book card associated with the fixed asset.

It is common practice to enter the salvage value together with the purchase. You can only fill in the Salvage Value field if you have selected the Acquisition Cost option in the FA Posting Type field. In this case, enter the salvage value for the fixed asset in the field.


Fixed Assets in Microsoft Dynamics® NAV 2013 Typically, the salvage value must be entered as a negative amount.

Entering a salvage value at the same time as the acquisition cost is especially important if you also select the Depr. Acquisition Cost check box. In this case, the depreciation basis will be acquisition cost minus salvage value.

This field is used internally and can be accessed from the Object Designer in Microsoft Dynamics NAV Development Environment.

Demonstration: Purchase Fixed Asset

Before purchasing a fixed asset, you must set up a fixed asset by using the fixed asset card.

Demonstration Steps

To purchase a fixed asset and post the acquisition costs, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Payables > Purchase Invoices.

2. Click New.

3. Press ENTER to create a new purchase invoice with number 1001. 4. In the Buy-from Vendor No. field, click the field and select vendor

44127904. 5. In the Vendor Invoice No. field, enter 2013-E-101.

6. On the Lines FastTab, right-click the header and use the Choose Columns function to add the FA Posting Type field.

7. In the Type field, select Fixed Asset. 8. In the No. field, select FA000010.

9. In the Quantity field, enter 1. 10. In the Direct Unit Cost Excl. VAT field, enter 11,000.00. 11. In the FA Posting Type field, select Acquisition Cost.



FIGURE 2.4: EDIT – PURCHASE INVOICE – 1001 WOODMART SUPPLY CO.

12. Click Post to post the purchase of the Fixed Asset. 13. When you receive the message “Do you want to post the Invoice?”,

click Yes.

Additional Acquisition Costs

You may have to post additional acquisition costs for an already acquired fixed asset when, for example, you have invested additional costs into the fixed asset.

You post additional acquisition costs exactly as you post the original acquisition cost: from a purchase invoice, the FA G/L journal, or the FA journal.

If you already calculated depreciation for the fixed asset and you want the depreciation period to remain the same, you should select the Depr. Acquisition Cost check box on the purchase line. This guarantees that when you post the line, the program depreciates the acquisition cost less the salvage value in proportion to the amount by which the previously acquired fixed asset is already depreciated. In this case, the depreciation percentage is calculated according to the following formula:


Fixed Assets in Microsoft Dynamics® NAV 2013 Depreciation percentage = (total depreciation*100) / depreciable basis

The depreciation amount is calculated according to the following formula:

Depreciation amount = (Depreciation percentage/100)*(additional acquisition cost – salvage value).

For example, a fixed asset has an acquisition cost of 1,000 and the total depreciation is -220. Post a line where acquisition cost is 150 and salvage value is -25. If you select the Depr. Acquisition Cost field before posting, then the following depreciation is calculated and posted:

(150 - 25)* - 220 / 1000 = -27.50

If you enter a negative acquisition cost, for example if you receive a credit memo, then the calculated depreciation is a positive amount.

Note: Only the new acquisition cost is depreciated when you select the Depr. Acquisition Cost field. The previously posted acquisition cost will not be affected.

You can have both the new and the old acquisition costs depreciated up to the current FA Posting Date, if you select the Depr. Until FA Posting Date field.

To have the program automatically calculate depreciation for the period from the FA posting date of the previously acquired fixed asset to the posting date of the additional acquisition cost, select the FA Posting Date check box on the invoice, FA G/L journal, or FA journal lines. Otherwise, only the previously posted acquisition cost will be depreciated.

Note: Companies frequently want depreciation calculated and posted monthly.

Regardless of how the acquisitions are posted, it is important to find the depreciation posted at month end (to consider every change since the last depreciation calculation, for example, additional acquisitions).

In Microsoft Dynamics NAV 2013 you must calculate the depreciation for the existing book value before you post the additional acquisition, even if the calculation period for the depreciation is shorter than a month.

You can calculate the depreciation by using the Calculate Depreciation batch job or you can enable the Depr. until FA Posting Date field when you post the additional acquisition costs through a FA (G/L) journal or a purchase order or purchase invoice.


Module 2: Fixed Asset Transactions To automatically calculate depreciation for the period from the FA posting date of the last FA ledger entry of the previously acquired fixed asset to the posting date of the current additional acquisition cost, select the Depr. until FA Posting Date check box on the invoice, FA G/L journal, or FA journal lines. This makes sure that the total depreciation of the previously acquired fixed asset is correct before the program uses it to calculate the Depr. Acquisition Cost of the new acquisition.



Lab 2.1: Purchase a Fixed Asset Using the Purchase Invoice

Cassie, the accountant, previously created a fixed asset card for the new fixed asset and associated this fixed asset with the COMPANY depreciation book that is integrated with the general ledger. Now, she wants to post the acquisition cost for this asset. Cassie posts the acquisition cost through the purchase invoice.

Note: You must have already created the fixed asset card for the fixed asset in question. In order to complete this task, the integration with the general ledger should be activated for the COMPANY depreciation book.

Objectives

Post the acquisition cost.

Post the Acquisition Cost through Purchase Invoice Exercise Scenario

To post the acquisition cost for the Reception Department Computer fixed asset, create and post the purchase invoice by using the information in the following table.

Field Value

Buy-from Vendor No. 61000



Quantity 1

Vendor Invoice No. 1005

Direct Unit Cost Excl. VAT 1,500.00

Task 1: Post the Acquisition Cost through the Purchase Invoice

High Level Steps 1. Create a new purchase invoice. 2. Fill in the fields on the General FastTab of the invoice. 3. On the Lines FastTab, add a line with the acquisition cost. 4. Post the invoice.

5. Verify the book value on the fixed asset card.


Module 2: Fixed Asset Transactions Detailed Steps

1. Create a new purchase invoice.

a. In the navigation pane, click Departments > Financial Management > Payables > Purchase Invoices.

b. Click New.

2. Fill in the fields on the General FastTab of the invoice. a. Press ENTER to create a new purchase invoice number. b. In the Buy-from Vendor No. field, click the field and select

vendor 61000. c. In the Vendor Invoice No. field, enter 1005. d. In the Posting Date field, type “2/01/2013”.

3. On the Lines FastTab, add a line with the acquisition cost. a. On the Lines FastTab, in the Type field, select the field, and then

click Fixed Asset. b. In the No., field, select the field and then click the Reception

Department Computer fixed asset. c. In the FA Posting Type field, select Acquisition Cost. d. In the Quantity field, enter 1.

e. In the Direct Unit Cost Excl. VAT field, enter 1,500.00.



FIGURE 2.5: PURCHASE INVOICE WITH ACQUISITION COST

4. Post the invoice. a. Click Post to post the invoice. b. When you receive the message “Do you want to post the

Invoice?”, click Yes.

5. Verify the book value on the fixed asset card.

a. In the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets, and then double-click the fixed asset card for the Reception Department Computer fixed asset.


Module 2: Fixed Asset Transactions Verify that the current book value in the Book Value field on the Lines FastTab corresponds to the posted acquisition cost.

FIGURE 2.6: FIXED ASSET BOOK VALUE



Lab 2.2: Increase the Cost of the Fixed Asset Cassie previously created a fixed asset card for the Reception Department Computer fixed asset and posted the acquisition cost through the purchase invoice. Cassie learns that the company has invested additional costs into this fixed asset to upgrade the acquired computer and make it more powerful. Now, Cassie has to post the additional acquisition cost in the amount of 1000 (including VAT).

Note: Before you complete this lab, make sure that you have already created the fixed asset card for the fixed asset in question and that the initial acquisition cost is posted.

Objectives

Increase the cost of an acquired fixed asset.

Post Additional Acquisition Cost Exercise Scenario

To increase the cost of the asset, post the additional acquisition cost for the asset. Because the given fixed asset is associated with the COMPANY depreciation book that has integration with the general ledger, use the FA G/L journal to post additional acquisition cost.

For the acquisition journal line, use the information in the following table.

Field Value


FA Posting Date 2/24/2013


Amount 1,000.00



Because you have not yet posted any depreciation for this fixed asset, leave the Depr. until FA Posting Date and Depr. Acquisition Cost fields empty.


Module 2: Fixed Asset Transactions Task 1: Post Additional Acquisition Cost

High Level Steps 1. Create a new FA G/L journal line. 2. Fill in additional acquisition cost information.

3. Create a balancing line. 4. Post the FA G/L journal. 5. Verify the book value on the fixed asset card.

Detailed Steps 1. Create a new FA G/L journal line.

a. In the navigation pane, click Departments > Financial Management > Fixed Assets > FA G/L Journal.

b. In the Posting Date field, type “2/24/2013”. c. In the Account Type field, select the field, and then select Fixed

Asset. d. In the Account No., field, select the field, and then select the

Reception Department Computer fixed asset.

2. Fill in additional acquisition cost information. a. In the FA Posting Type field, select the field, and then select

Acquisition Cost. b. In the Gen. Posting Type field, select the field, and then select

Purchase. c. In the Description field, type “Add. Acq. Cost”.

d. In the Amount field, enter 1,000.00.

3. Create a balancing line.

a. Create a new line. b. On the new line, in the Posting Date field, type “2/24/2013”. c. In the Account Type field, select the field, and then select G/L

Account. d. In the Account No., field, select the field, and then select account

2910. e. In the Amount field, enter -1,000.00.



FIGURE 2.7: FA G/L JOURNAL WITH ADDITIONAL ACQUISITION COST

4. Post the FA G/L journal. a. Click Post to post the journal line.

b. When you receive the message “Do you want to post the journal lines?”, click Yes.

c. When you receive the message “The journal lines were successfully posted.”, click OK.

5. Verify the book value on the fixed asset card. a. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Fixed Assets, and then click the fixed asset card for the Reception Department Computer fixed asset.


Module 2: Fixed Asset Transactions Verify that the current book value in the Book Value field on the Lines FastTab has increased according to the posted additional acquisition cost.

FIGURE 2.8: INCREASED FIXED ASSET BOOK VALUE

Note: The book value is increased by 800 because the value in the Amount field on the journal line included the VAT amount, which is 25%.

You can click the link in the Book Value field to view the posted FA ledger entries.

Calculate and Post Depreciation Depreciation is used to allocate fixed assets over their depreciable life. Fixed asset depreciation can be calculated and posted by using two methods:

• Manual

• Automatic

For the manual method, use the FA G/L journal or the FA journal. For the automatic method, run the Calculate Depreciation batch job.


Fixed Assets in Microsoft Dynamics® NAV 2013 Manual Depreciation with the FA G/L Journal

To manually post depreciation for a fixed asset that has integration with the general ledger, use the FA G/L journal.


2. In the FA G/L Journal window, in the Posting Date field, enter the relevant posting date.

3. In the Account Type field, click the field, and then select Fixed Asset. 4. In the Account No. field, click the field, and then select the fixed

asset for which you want to post depreciation. 5. In the Depreciation Book Code field, click the field, and then select

the depreciation book associated with the selected fixed asset and integrated with the general ledger, for example, COMPANY.

6. In the FA Posting Type field, click the field, and then select Depreciation.

7. Make sure that an allocation key is set up in the FA Posting Group, and then click Insert FA Bal. Account. on the Home FastTab. Balancing lines with different department codes are now created automatically. You can use the Choose Columns function to add the Department Code field.

8. Click Post to post the depreciation. 9. When you receive the message “Do you want to post the journal



To view the posted depreciation, follow these steps:


2. Open the fixed asset card for the fixed asset whose posted depreciation you want to view.

3. On the Lines FastTab, click the Book Value field value to view the FA ledger entries.

4. In the FA Ledger Entries window, select the line with the relevant depreciation entry, and then on the Actions FastTab, click Navigate.

5. In the Navigate page, select G/L entry line, and then click Show on the Home FastTab. The General Ledger Entries window appears. This displays the G/L entries.

6. Close the General Ledger Entries window.


Module 2: Fixed Asset Transactions In the Navigate page, select the FA Ledger Entry line, and then click Show on the Home FastTab. The FA Ledger Entries window appears. This shows the FA ledger entries.

Demonstration: Post a Manual Depreciation with the FA G/L Journal

Annie, the bookkeeper for CRONUS International Ltd., has to post a manual depreciation in February 2013 for the Switchboard fixed asset. The monthly depreciation amount for the Switchboard fixed asset is 85.

Demonstration Steps

To post the depreciation for the Switchboard fixed asset, follow these steps:


2. In the Posting Date field, enter 02/28/2013. 3. In the Account Type field, click the field, and then select Fixed Asset. 4. In the Account No. field, click the field, and then select FA000090.

5. In the Depreciation Book Code field, click the field, and then select COMPANY.

6. In the FA Posting Type field, click the field, and then select Depreciation.

7. In the Amount field, enter -85.00. 8. In the Description field, type Depreciation February 2013. 9. On the Home FastTab, in the Process group, click Insert FA Bal.

Account.

FIGURE 2.9: THREE BALANCING LINES CREATED AUTOMATICALLY

Three balancing lines with different department codes are now created automatically, because the allocation key was already set up.


Fixed Assets in Microsoft Dynamics® NAV 2013 10. Click Post to post the depreciation. 11. When you receive the message “Do you want to post the journal



To view the posted depreciation, follow these steps:


2. In the Fixed Assets window, double-click the line with fixed asset FA000090 to open the fixed asset card.

3. In the Fixed Asset Card window, on the Lines FastTab, click the Book Value field value to view the FA ledger entries.

4. Select the line with the relevant depreciation entry (the document number should start with G), and then on the Actions FastTab in the General group, click Navigate.

5. In the Navigate window, select the G/L Entry line, and then click Show.

The General Ledger Entries window displays the depreciation posted for fixed asset number FA000090 to the COMPANY depreciation book.

6. In the Navigate window, select the FA Ledger Entry line, and then click Show.

The FA Ledger Entries window displays the depreciation posted for fixed asset number FA000090 to the COMPANY depreciation book.

Demonstration: FA Journal

You can post the same depreciation transaction in a depreciation book that does not have general ledger integration. The following example shows how to post the same information from the FA G/L Journal example to an FA journal.

Demonstration Steps

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > FA Journals.

2. Enter the same values that you used in the FA G/L journal as shown in the following table.

Field Value


FA No. FA000030

Depreciation Book Code TAX


Module 2: Fixed Asset Transactions Field Value

FA Posting Type Depreciation

Description Depreciation February 2013

Amount -85

3. Click Post. 4. When you receive the message “Do you want to post the journal



Calculate Depreciation Automatically

Calculate Depreciation is a batch job that automatically calculates depreciation based on the conditions that you set up on the batch job request page. Sold, blocked, or inactive assets, and assets that use the manual depreciation method, are excluded from the automatic depreciation calculation. The batch job automatically creates journal lines, and you only have to check and post the created journal lines.

Fixed Asset Statistics

Use the Fixed Asset Statistics window to view the last postings to a fixed asset.

To access the Fixed Asset Statistics window, in the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets, select a fixed asset, and then, on the Navigate FastTab, click Statistics.



FIGURE 2.10: FIXED ASSET STATISTICS

Demonstration: Calculate Depreciation

The following demonstration explains how to calculate depreciation for fixed asset FA000080 by using the Calculate Depreciation batch job.

Demonstration Steps

To calculate depreciation, follow these steps:


2. In the Fixed Assets window, select the line with fixed asset FA000080, and then, on the Navigate FastTab, click Ledger Entries. The last depreciation happened on December 31, 2013. So, the new depreciation must be calculated for January 2014.

3. Close the FA Ledger Entries window.


Module 2: Fixed Asset Transactions 4. Double-click FA00080, then on the Actions FastTab, in the General

group, click Calculate Depreciation. The Calculate Depreciation batch job request page appears.

5. On the Options FastTab, in the Depreciation Book field, select COMPANY.

6. In the FA Posting Date field, type “1/31/2014”.

7. Select the Insert Bal. Account check box. 8. On the Fixed Asset FastTab, set the filter for the No. field to

FA000080.

FIGURE 2.11: CALCULATE DEPRECIATION BATCH JOB REQUEST PAGE


Fixed Assets in Microsoft Dynamics® NAV 2013 9. Click OK to calculate the depreciation on January 31, 2014. The batch

job calculates depreciation for fixed asset number FA000080 and creates the lines in the Fixed Asset G/L journal.

10. Close the fixed assets card. 11. Click Departments > Financial Management > Fixed Assets > FA

G/L Journals.

The Fixed Asset G/L Journal window contains the lines created by the Calculate Depreciation batch job.

FIGURE 2.12: FIXED ASSET G/L JOURNAL

12. View the lines, and then click Post to post the depreciation. 13. When you receive the message “Do you want to post the journal



15. Click OK to close the Fixed Asset G/L Journal window.

G/L Journal for Automatic Depreciations

The FA G/L journal is automatically created by the Calculate Depreciation batch job. The No. of Depreciation Days field value in the FA G/L journal is automatically updated after it runs the batch job.

The balancing line in the FA G/L journal is also created automatically when the Insert Bal. Account field on the Options FastTab of the Calculate Depreciation batch job request page is selected.


Module 2: Fixed Asset Transactions Document Number

The following rules apply to the Document No. field on the Options FastTab on the Calculate Depreciation batch job request page:

• If the journal batch used by the batch job has a number series in the No. Series field, leave the Document No. field blank. All journal lines are automatically assigned the same number—the next available number from the number series. When you use this method, the journal must be empty.

• If the journal batch used by the batch job does not have a number series in the No. Series field, enter a number in the Document No. field. This number is assigned automatically to all the journal lines.

Select the journal that the batch job uses in the FA Journal Setup window.

Number of Depreciation Days

The standards for depreciation in Microsoft Dynamics NAV 2013 are 360 days for a year and 30 days for a month.

The depreciation starting date for each fixed asset is the last entry date (from the FA Posting Date field). If only the acquisition cost and salvage value are posted for a fixed asset, the date from the Depreciation Starting Date field in the FA depreciation book is used to calculate depreciation.

If the last entry is anything other than a depreciation entry, the FA posting date is included automatically in the calculation of the number of depreciation days. This means that both the starting date and the ending date are included.

For example, the program calculates 01/01/13 – 01/10/13 as 10 days if the entry posted on 01/01/13 is not a depreciation entry, but as 9 days if the entry on 01/01/13 is a depreciation entry.

Microsoft Dynamics NAV 2013 calculates depreciation up to and including the date in the FA Posting Date field on the Options FastTab on the Calculate Depreciation batch job request page.

Force Number of Days

The program can calculate a full month’s depreciation for an entry that is posted at the beginning of a month. On the Calculate Depreciation batch job request page, on the Option FastTab, enter, for example, 30 days in the Force No. of Days field and select the Use Force No. of Days check box. If these fields are filled in, the system always uses the number of days entered in the Force No. of Days field.


Fixed Assets in Microsoft Dynamics® NAV 2013 The following table displays examples of how the program calculates the number of depreciation days. In these examples, the last entry was a depreciation entry. Therefore, only the last date of the interval is included in the calculations.

Date Interval Number of Depreciation Days

01/31/14 – 02/28/14 30

03/31/14 – 04/30/14 30

12/31/13 – 12/31/14 360

02/27/14 – 03/01/14 4

02/08/14 – 03/01/14 1

03/30/14 – 04/01/14 1

03/31/14 – 04/01/14 1

03/30/14 – 03/31/14 0

03/30/14 – 03/31/15 360

When you select the Straight-line depreciation method and fill in the No. of Depreciation Years field in the FA depreciation book, the program calculates the number of remaining days based on the ending date. The depreciable basis is divided by the remaining number of days and then multiplied by the number of days in the depreciation period. This means that the final depreciation amount may have to be rounded off to the final numbers of days. Also, the program does not post depreciation amounts of zero. Therefore, nothing occurs if you run the Calculate Depreciation batch job multiple times.

When you use the Straight-line method and enter a number in the No. of Depreciation Years field, you can adjust the amount that is depreciated by changing the date in the Depreciation Ending Date field.



Lab 2.3: Calculate Depreciation Cassie, the accountant, previously created a fixed asset card for the Reception Department Computer fixed asset and posted the acquisition cost. This includes the additional acquisition cost. After one month, she has to calculate and post depreciation for February 2013. Cassie uses the Calculate Depreciation batch job to calculate the depreciation automatically.

Note: Before you complete this lab, make sure that the acquisition cost for the Reception Department Computer fixed asset is already posted.

Objectives

Calculate and post depreciation for February 2013.

Calculate and Post Depreciation Exercise Scenario

To calculate and post the depreciation for the Reception Department Computer fixed asset, run the Calculate Depreciation batch job from the fixed asset card by using the values that are shown in the following table.

Field Value

Depreciation Book COMPANY


Posting Description Depreciation February 2013

Insert Bal. Account Yes

If you set up the number series for the fixed asset journal batch, you can leave the Document No. field empty.

Note: The program defines February 28th or 29th (depending on whether the year is a leap year), and the 30th and the 31st for the other months in the year, as the last day of the month. For example, if any of these dates were used in the last depreciation entry, and you enter the first date of the next month in the FA Posting Date field in the batch job, the program will calculate depreciation for one day.

After the batch job creates depreciation lines in the FA G/L journal, review and post the journal.


Fixed Assets in Microsoft Dynamics® NAV 2013 Task 1: Calculate and Post Depreciation

High Level Steps 1. Open the fixed asset card for the fixed asset for which you want to

calculate and post depreciation.

2. Run the Calculate Depreciation batch job. 3. Review the created journal lines. 4. Post the FA G/L journal. 5. Review the changed book value and posted ledger entries.

Detailed Steps 1. Open the fixed asset card for the fixed asset for which you want to

calculate and post depreciation.

a. In the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets.

b. Open the fixed asset card for the Reception Department Computer fixed asset.

2. Run the Calculate Depreciation batch job. a. On the Home FastTab, click Calculate Depreciation. b. In the Calculate Depreciation batch job request window, on the

Options FastTab, make sure that the Depreciation Book field is set to COMPANY.

c. In the FA Posting Date field, type “2/28/2013”. This date is used as the ending date in the depreciation calculation.

d. In the Posting Description field, type “Depreciation Asset February 2013”.

e. Select the Insert Bal. Account check box.

f. Click OK to run the batch job

Do not close the Fixed Asset Card window

3. Review the created journal lines. a. In the navigation pane, click Departments > Financial

Management > Fixed Assets > FA G/L Journals. b. In the Fixed Asset G/L Journal window, review the created

journal lines.



FIGURE 2.13: FIXED ASSET G/L JOURNAL WITH DEPRECIATION LINES

4. Post the FA G/L journal. a. Click Post to post the journal lines. b. When you receive the message “Do you want to post the journal



5. Review the changed book value and posted ledger entries.

a. In the Fixed Asset Card window for the Reception Department Computer fixed asset, on the Lines FastTab, review the value in the Book Value field.


Fixed Assets in Microsoft Dynamics® NAV 2013 The value has decreased, because of the posted depreciation.

FIGURE 2.14: DECREASED BOOK VALUE AFTER POSTED DEPRECIATION

You can click the link in the Book Value field to review the posted FA ledger entries.

Write-down and Appreciation of Fixed Assets

Write-down of a Fixed Asset

A write-down is a decrease in the value of a fixed asset. A decrease may be the result of the asset becoming out of date or damaged.

You can use write-down entries as a correction to decrease an asset’s depreciable base when the depreciation of the asset was too low in the past. The asset’s value decrease is posted as a loss in the financial statement.

Note: The handling of write-down (Appreciation) transactions on posting and reporting in Microsoft Dynamics NAV is controlled by the FA Posting Type Setup table settings. For more information, please refer to Module 1: Fixed Assets Setup.


Module 2: Fixed Asset Transactions Demonstration: Integrate a Write–down with a G/L Journal

To post a write-down entry to a depreciation book for which write-down has G/L integration, you must use an FA G/L journal. To set up the FA posting group to which you have to post write-down, follow these steps:

Demonstration Steps

1. In the navigation pane, click Departments > Administration > Application Setup > Financial Management > Posting Groups > FA Posting Groups.

2. Right-click the column header, select Choose Columns, add the Write-Down Account and the Write-Down Expense Acc. fields, and then click OK.

3. On the line with the TELEPHONE posting group, in the Write-Down Account field, enter 1230.

4. In the Write-Down Expense Acc. field, enter 8640.

5. Click OK.

Demonstration: Post a Write-down

The Switchboard fixed asset decreased in value over time, and you must post a write-down for this fixed asset.

Demonstration Steps

To post a write-down entry, follow these steps.


2. In the Fixed Asset G/L Journal window, enter the information in the following table.

Field Value Posting Date 01/31/14

Document Type <Blank>



FA Posting Type Write-down

Amount -300

3. On the Home FastTab, click Insert FA Bal. Account.


Fixed Assets in Microsoft Dynamics® NAV 2013 The program creates a second line with a balancing entry.

FIGURE 2.15: WRITE-DOWN JOURNAL ENTRIES




Note: If the entries do not have to be integrated with the general ledger, you can also post write-down from the FA journal.

Appreciation of Fixed Assets

Appreciation is an increase in the value of a fixed asset (typically land and buildings). It can also be used for a fixed asset that increases in value because of increased demand for the item.

You can use an appreciation entry as a correction to increase an asset’s depreciable base when the depreciation of the asset was too high in the past. This value is posted as a gain in the financial statement.


Module 2: Fixed Asset Transactions Demonstration: Integrate an Appreciation with the FA G/L Journal

Use an FA G/L journal to post an appreciation transaction to a depreciation book in which appreciation has a G/L integration. Before posting appreciation in the FA G/L journal, you must set up FA posting groups for appreciation. To set up FA posting groups for posting appreciation, follow these steps:

Demonstration Steps


2. Right-click the column header, select Choose Columns, add the Appreciation Account and the Appreciation Bal. Account fields, and then click OK.

3. On the line with the TELEPHONE posting group, in the Appreciation Account field, enter 1220.

4. In the Appreciation Bal. Account field, enter 8640. 5. Click OK.

Demonstration: Post an Appreciation

The Switchboard fixed asset increased in value, and you must post an appreciation for this fixed asset.

Demonstration Steps

To post an appreciation entry, follow these steps:

1. In the navigation pane, click Financial Management > Fixed Assets > FA G/L Journals.

2. In the Fixed Asset G/L Journal window, enter the information in the following table.

Field Value Posting Date 01/31/14

Document Type <Blank>



FA Posting Type Appreciation

Amount 150

3. Click Insert FA Bal. Account.


Fixed Assets in Microsoft Dynamics® NAV 2013 The program creates a second line with a balancing entry.

FIGURE 2.16: APPRECIATION JOURNAL ENTRIES




Note: If the entries do not have to be integrated with the general ledger, you can also post appreciation from the FA journal.



Lab 2.4: Post Write-down The Reception Department Computer fixed asset was damaged while in service. This decreased the value of the fixed asset by 200. Cassie has to post a write-down to reflect the decreased value.

Note: Before completing this lab, make sure that in the FA Posting Groups window, for the IT-EQUIP posting group, you set up write-down accounts to which write-down will be posted. To open the FA Posting Groups window, in the navigation pane, click Departments > Financial Management > Administration > Setup > Posting Groups > FA Posting Groups. For the IT-EQUIP posting group, in the Write-Down Account field enter 1230 and in the Write-Down Expense Acc. enter 8640.

Objectives

Post a write-down.

Post a Write-down Exercise Scenario

Post a write-down for the Reception Department Computer fixed asset. Use the FA G/L journal, because this value is associated with the depreciation book that is integrated with the general ledger.

Use information from the following table.

Field Value


FA Posting Type Write-down

Amount -200.00

Task 1: Post a Write-down

High Level Steps 1. Open the Fixed Asset G/L journal.

2. Create a write-down line by filling in the mandatory fields. 3. Create a balancing line. 4. Post the journal. 5. Review the revalued book value on the fixed asset card.


Fixed Assets in Microsoft Dynamics® NAV 2013 Detailed Steps

1. Open the Fixed Asset G/L journal.

a. In the navigation pane, click Departments > Financial Management > Fixed Assets > FA G/L Journals.

2. Create a write-down line by filling in the mandatory fields. a. In the Fixed Asset G/L Journal window, in the Posting Date

field, type “11/1/2013”. b. In the Account Type field, click the field, and then select Fixed

Asset. c. In the Account No. field, click the field, and then select the

number of the Reception Department Computer fixed asset. d. In the FA Posting Type field, click the field, and then select

Write-Down. e. In the Description field, type Write-down. f. In the Amount field, type “-200.00”.

3. Create a balancing line. a. On the Home FastTab, click Insert FA Bal. Account to add a

balancing line.

Note: To insert a balancing account by using the Insert FA Bal. Account function, you must have the appropriate accounts set up in the FA Posting Groups window.

FIGURE 2.17: FIXED ASSET G/L JOURNAL WITH WRITE-DOWN


Module 2: Fixed Asset Transactions 4. Post the journal.

a. Click Post to post the journal.

b. When you receive the message “Do you want to post the journal lines?”, click Yes.


5. Review the revalued book value on the fixed asset card. a. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Fixed Assets. b. Select the line with fixed asset FA000110 and click Edit to open

the fixed asset card for the Reception Department Computer fixed asset.

On the Lines FastTab, in the Book Value field, you can see the decreased book value because of the posted write-down.

FIGURE 2.18: FIXED ASSET CARD WITH DECREASED BOOK VALUE



Fixed Asset Disposals When you sell or otherwise dispose of a fixed asset, the disposal value must be posted. Disposal of the whole or a part of a fixed asset is the last step in the typical life cycle of a fixed asset. For partially disposed of fixed assets, you can post several disposal entries. Before you can dispose of parts of an asset, you must split the asset into two separate assets. Then you must completely dispose of one part, and the other part remains in the current fixed asset.

Use the FA G/L journal to post a disposal transaction to a depreciation book for which disposal has general ledger integration.

Use the FA journal to post a disposal transaction to a depreciation book for which disposal does not have general ledger integration.

Salvage Value

Salvage value represents the residual value of a fixed asset when it can no longer be used. Post the salvage value of an asset from a purchase invoice or from the FA journal when you post the acquisition cost.

To post salvage value from a purchase invoice, add the Salvage Value field to the purchase lines by using the Choose Column function. Enter the salvage value in the field as a positive or negative number, and then post the invoice as usual. Typically, the salvage value is posted with a negative sign.

The salvage value reduces the depreciation base and therefore reduces all depreciation amounts. The final rounding amount reduces only the last depreciation amount. For example, a fixed asset costs 4800 today. After 4 years of usage, its salvage value is defined as 800. When you use the Straight-line depreciation method for calculating depreciation, this asset is depreciated at 1000 each year. If no salvage value existed, the depreciation would be 1,200 for each year, and not 1,000. Therefore, the salvage value has caused a reduction in the yearly depreciation of 200 each year.

Note: You can post the salvage value either when you post acquisition cost or later. Entering a salvage value at the same time as the acquisition cost is important if you also select the Depr. Acquisition Cost check box on the purchase line. In this case, the program calculates the depreciation basis as follows: acquisition cost minus salvage value.

You can calculate depreciation below the book value of zero. Therefore, you must select the Allow Depr. below Zero check box in the depreciation book.

This enables the Calculate Depreciation batch job to continue calculating depreciation even if the book value of the fixed asset is zero or below zero.


Module 2: Fixed Asset Transactions In order to calculate depreciation below zero, you must set the values for the specific fields in the individual FA depreciation books, such as Depr. below Zero % or Fixed Depr. Amount below Zero.

When you reach the period where book value is just above zero and you want to calculate the depreciation for the period, so that the system can depreciate below zero, please be aware that Microsoft Dynamics NAV 2013 cannot calculate the depreciation from book value above zero to book value below zero in one step. Instead you must run the Calculate Deprecation batch job two times. The system can calculate depreciation only from above zero to zero, or from zero to below zero.

For example, an asset has a book value of 800 and you want to calculate depreciation below zero:

1. In the FA depreciation book for the asset, in the Fixed Depr. Amount below Zero field, enter 1,000.

2. Run the Calculate Depreciation batch job for the asset. The program calculates the depreciation as 800. This makes the book value 0.

3. Run the Calculate Depreciation batch job for the asset for the next period. The program calculates the depreciation as 1.000. This makes the book value -1.000.

Scenario – Using Salvage Value

Salvage value is used to determine depreciation amounts.

For example, an asset has a book value of 4800. After a usage of 4 years, its salvage value is defined as 800. When you use the Straight-line depreciation method for calculating depreciation, the asset is depreciated at 1000 each year. If no salvage value is defined after 4 years, the same asset is depreciated at 1200 each year.

Depreciation profile With the specified salvage value

Without a salvage value

Purchase today 4800 4800

Depreciation Year 1 -1000 -1200




Salvage value Year 4 -800 0

This example shows that specifying the salvage value of 800 reduces the depreciation amount of 200 per year.



Note: A salvage value is not posted as an alternative to a final rounding amount. Set up the final rounding amount in the FA depreciation book. This amount reduces the last depreciation amount. The program does not post the final rounding amount.

Final Ending Book Value

The final ending book value is frequently used to represent a fully depreciated asset that is still active. When you use a salvage value, a reduction in depreciation over the life of the asset is allowed. However, some local laws give only the reduction of the last depreciation amount. You can reduce the last depreciation amount by inserting an ending book value on the fixed asset card. When you use this feature on most of the fixed assets, you can set up a default ending book value in the relevant depreciation book.

Disposal of Fixed Assets

When you sell or otherwise dispose of a fixed asset, you must post the disposal value together with any related gain or loss.

A disposal entry must be the last entry posted for an asset so that you can record related disposal costs for an asset. You must record related disposal costs in the FA G/L journal before the actual disposal entry. You must also post all disposal entries through the FA G/L journal, the FA journal, or a sales invoice.

Set up the disposal method for each depreciation book in the Disposal Calculation Method field. The program can handle disposals by using one of the following methods:

• Net method: Post to either a disposal loss or gain account. This is the most common disposal method.

• Gross method: Post to a book value gain or loss account and to a sales gain or loss account. When you enter the sales price in a journal, the program calculates the gain or loss on the disposal and calculates all other relevant entries. The gain or loss amount is calculated automatically from the difference between the sales price and the book value.

Note: For information about both methods, please refer to the Help within Microsoft Dynamics NAV 2013 on the Depreciation Book Card window on the Disposal Calculation Method field by clicking F1.


Module 2: Fixed Asset Transactions Scenario – Disposing of a Fixed Asset

The fixed asset Warehouse was purchased for 100,000. The depreciation on the fixed asset was 70,000. A new highway is built near the warehouse. This results in appreciation of the fixed asset of 40,000. The resulting book value is 70,000 (Acquisition Cost – Account Depreciation + Appreciation). The warehouse is finally sold for 20,000, and the losses on the fixed asset are 50,000.

The following table shows the amounts used in the following examples, by using both Net and Gross methods of disposal.

Field Value

Acquisition Cost 100,000

Acc. Depreciation 70,000

Appreciation 40,000

Book Value 70,000 (Acq. Cost - Acc. Deprec. + Apprec.)

Sales Price 20,000

Loss 50,000 (Sales Price - Book Value)

When you post the disposal of a fixed asset by using a journal or sales invoice, the system calculates the gain or loss on disposal and creates the other entries. The following examples show which amounts are posted to the accounts when you post the disposal of a fixed asset. In the end, the result of both methods is the same in the financial statement. However, depending on the method, a different G/L account is used, and other amounts are registered on the different accounts.

Disposal of Fixed Assets – Example A

In the example of disposal in the following table, appreciation is included in the book value and is a part of the calculation of gain or loss. You select this in the FA Posting Type Setup window, by selecting the Include in the Gain/Loss Calc. check box. When you use the Net method, the disposal amount of 50,000 is allocated to the Losses Acc. on Disp. account.

Field Net Method

Gross Method

G/L Account Debit Credit Debit Credit

Cash 20,000 20,000

Acq. Cost Acc. on Disposal

100,000 100,000


Fixed Assets in Microsoft Dynamics® NAV 2013 Field Net

Method Gross

Method

Accum. Depr. Acc. on Disposal

70,000 70,000

Appreciation Acc. on Disposal

40,000 40,000

Losses Acc. on Disposal 50,000

Apprec. Bal. Acc. on Disp.

Book Value Acc. on Disposal

70,000

Sales Acc. on Disposal 20,000

Disposal of Fixed Assets – Example B

In the example of disposal in the following table, appreciation is included in the book value, but not included in the gain or loss calculation. This results in a smaller loss than the loss that results from the Net disposal calculation method.

When you use the Net method, the disposal amount is allocated to the Losses Acc. on Disp. and Apprec. Bal. Acc. on Disposal accounts. The Gross method posts the sale amount of 20,000 to the credit of the Sales Acc. on Disposal account and the fixed asset book value of 70,000 to the Book Value Acc. on Disposal account. In both cases, the Cash account is debited for the sales price of 20,000.

Field Net Method

Gross Method

G/L Account Debit Credit Debit Credit

Cash 20,000 20,000

Acq. Cost Acc. on Disposal

100,000 100,000

Accum. Depr. Acc. on Disposal

70,000 70,000

Appreciation Acc. on Disposal

40,000 40,000

Losses Acc. on Disposal 10,000

Apprec. Bal. Acc. on Disp.

40,000


Module 2: Fixed Asset Transactions Field Net

Method Gross

Method

Book Value Acc. on Disposal

70,000

Sales Acc. on Disposal 20,000

Post the Disposal through the FA G/L Journal

Another way to post disposals is through the FA G/L journal.

To post disposals through the FA G/L journal, follow these steps:

1. In the navigation pane, click Financial Management > Fixed Assets > FA G/L Journals.

2. In the Fixed Asset G/L Journal window, enter the appropriate information on the line.

3. In the Amount field, enter the disposal amount as a credit or negative number.

4. On the Actions FastTab, click Post. 5. When you receive the message “Do you want to post the journal



You can also post the FA disposal in combination with a VAT posting group. The program automatically creates the sales VAT amount. If the program has to post the sales VAT automatically, enter the gross amount in the Amount field.

To view the results of the journal entry, follow these steps:

1. In the Fixed Assets window, select the asset that you want to view.

2. In the Navigate FastTab, in the Fixed Asset group, click Depreciation Books.

3. In the FA Depreciation Books window, on the Navigate FastTab, in the Depr. Book group, click Ledger Entries.

4. In the FA Posting Category field, select the line with Disposal, and then, on the Actions FastTab, click Navigate.

5. In the Navigate window, select the general ledger entry line. On the Actions FastTab, click Show. The General Ledger Entries window appears. It displays the entries created by the disposal transaction.

If you record a disposal for an asset without integration to the general ledger, you must record it in an FA Journal. The same information that is in the FA G/L journal is recorded automatically.


Fixed Assets in Microsoft Dynamics® NAV 2013 When you trade in an asset, you must record both the sale of the old asset (the disposal) and the purchase of the new one (the acquisition). You cannot record this type of transaction as a single transaction.

Note: Avoid using the Inactive check box on the fixed asset card until two years after the last transaction on the asset. If an asset is sold in the current fiscal year and the asset is recorded as inactive, the asset will not appear in the Fixed Asset - Book Value 01 report for the current fiscal year.

Partial Disposal

You can also dispose of a part of a fixed asset instead of the whole fixed asset. When you sell or otherwise dispose of a part of an asset, you must split the asset into two or more assets before you record the disposal transaction.

For more information about how to dispose of a part of a fixed asset, refer to the “Fixed Asset Reclassifications” module in this course.

Disposal from a Sales Invoice or a Sales Order

You can create a sales invoice by selecting the type of the fixed asset on the line. This lets you invoice an asset to a customer. The disposal of a fixed asset through a sales invoice or sales order works in the same manner as the disposal through a FA G/L journal.

Demonstration: Dispose of a Whole Fixed Asset from a Sales Invoice

The following demonstration shows how to create a sales invoice to dispose of an asset.

Note: You can also use a sales order to dispose of a fixed asset. The procedure for disposing of a fixed asset by using a sales order is the same as that using a sales invoice.

Demonstration Steps

To dispose of a whole fixed asset by using a sales invoice, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Receivables > Sales Invoices.

2. Click New to create a new sales invoice. 3. Press ENTER to have the program fill in the invoice number

automatically.

4. In the Sell-to-Customer No. field, enter 30000.


Module 2: Fixed Asset Transactions 5. In the Posting Date and Document Date fields, enter 01/31/14. 6. When you receive a warning about a Credit Limit check, click Yes.

7. On the Lines FastTab, click the Type field, and then select Fixed Asset.

8. Select the No. field, and then select the asset FA000030 VW Transporter.

9. Type “1” in the Quantity field. No more than one asset for each sales line can be sold.

10. In the Unit Price Excl. VAT field, enter the net sales price. For example, enter 15,000.00.

11. Right-click the column header, select Choose Column, add the Depr. until FA Posting Date field, and then click OK.

12. Select the Depr. until FA Posting Date check box. 13. On the Home FastTab, click Statistic to view the sales statistics for

this invoice.

The program calculated the sales VAT.

14. Click OK to close the Sales Invoice Statistics window. 15. Click Post, to post the invoice.

16. When you receive the message “Do you want to post the Invoice?”, click Yes.

An error message about the combination of the Project and Customer Group dimensions appears.

17. On the Lines FastTab, click Line > Dimensions. 18. In the Edit Dimension Set Entries window, select the VW Project

dimension line, and then click Delete.

19. Click Yes. 20. Click OK to close the Edit Dimension Set Entries window. 21. Click Post to post the invoice. 22. Click OK to close the Sales Invoice window.



Lab 2.5: Dispose of a Fixed Asset with a Sales Invoice The company decided to dispose of the Reception Department Computer fixed asset in the middle of its depreciation period by selling it to a customer. Cassie must depreciate the fixed asset up to the posting date and post a sales invoice to register the disposal in the program.

Note: Before completing this lab, make sure that in the FA Posting Groups window, for the IT-EQUIP posting group, you set up write-down accounts on disposal to which write-down will be posted during disposal. To open the FA Posting Groups window, in the navigation pane, click Departments > Financial Management > Setup > Posting Groups. For the IT-EQUIP posting group, fill in the Write-Down Acc. on Disposal field with 1230 and the Write-Down Bal. Acc. on Disposal with 8640.

Objectives

Post a disposal of a whole fixed asset with sales invoice.

Dispose of a Whole Fixed Asset Exercise Scenario

Create a sales invoice for the Reception Department Computer fixed asset by using the information from the following table.

Field Value

Sell-to Customer 50000


Shipment Date 01/31/2014

Quantity 1

Unit Price Excl. VAT 700

On the sales line, select the Depr. until FA Posting Date check box to have the program depreciate the fixed asset up to the posting date.


Module 2: Fixed Asset Transactions Task 1: Dispose of a Whole Fixed Asset

High Level Steps 1. Create a sales invoice. 2. Fill in the mandatory fields.

3. Post the sales invoice. 4. On the fixed asset card, verify the book value and make sure that the

fixed asset is marked as disposed of.

Detailed Steps 1. Create a sales invoice.

a. In the navigation pane, click Departments > Financial Management > Receivables > Sales Invoices.

b. Click New to create a new sales invoice.

2. Fill in the mandatory fields. a. Press ENTER to have the program fill in the invoice number

automatically. b. In the Sell-to-Customer No. field, enter 50000. c. In the Posting Date and Document Date fields, enter 01/31/14. d. On the Shipping FastTab, in the Shipment Date field, enter

01/31/14. e. On the Lines FastTab, in the Type field, click the field and select

Fixed Asset. f. Select the No. field, and select the asset Reception Department

Computer. In this case, its number is FA000120. g. Type “1” in the Quantity field. No more than one asset for each

sales line can be sold.

h. In the Unit Price Excl. VAT field, type “700.00”. i. Select the Depr. until FA Posting Date check box to have the

program calculate the depreciation up to the FA posting date.



FIGURE 2.19: SALES INVOICE

3. Post the sales invoice. a. Click Post, to post the invoice. b. When you receive the message “Do you want to post the

Invoice?”, click Yes. c. Click OK to close the Sales Invoice window.

4. On the fixed asset card, verify the book value and make sure that the fixed asset is marked as disposed of.

a. In the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets, and open the fixed asset card for the Reception Department Computer fixed asset.


Module 2: Fixed Asset Transactions The current book value is now zero, and when the Disposed of check box is selected, it indicates that the fixed asset was disposed of. To view the FA ledger entries, click the link in the Book Value field.

FIGURE 2.20: FIXED ASSET CARD OF A DISPOSED ASSET



Correct an Entry In Microsoft Dynamics NAV 2013, there are two methods of correcting an incorrectly posted entry:

• Cancel an entry: You can cancel an incorrectly posted FA entry for one or more fixed assets by using the Cancel FA entries batch job, which can be run on the FA Ledger Entries window from the Actions FastTab. To cancel entries for various assets at the same time, run the Cancel FA Ledger Entries batch job that can be accessed from a depreciation book. When you cancel an entry, the batch job creates a correcting journal entry that you can review and post. If the assets are integrated with the general ledger, the batch job creates lines in the FA G/L journal. Otherwise, the batch job creates lines in the FA journal. The program marks the entry from the journal line and the entry from the FA ledger entry as error ledger entries. This can be possible only if the two entries have the same FA posting dates, the same FA posting types, and the same amounts with opposite signs, debit and credit. When you post the journal, the program removes the fixed asset ledger entries from the FA Ledger Entries window and posts them to the FA error ledger. You can view the error ledger entries in the FA Error Ledger Entries window.

• Reverse an entry: Using the Reverse Transactions function, you can reverse (undo) entries. When you reverse an entry, the program automatically posts an entry with a negative amount. This is a general method of correcting all general ledger postings and can be used only with entries generated from a general journal line. You can reverse entries from the G/L registers, fixed asset ledger entries, and other ledger entries windows. You cannot reverse fixed asset ledger entries associated with sold fixed assets and fixed assets ledger entries if reversing an entry results in a negative book value for the fixed asset.

Note: The important difference between the two methods is that when you reverse an entry, the program posts an entry with the opposite sign in the same table. When you cancel entries, the program moves the incorrect entries to the FA error ledger. Therefore, we recommend that you do not use the Reverse Transactions function to correct an incorrect acquisition cost entry, because in this case the Calculate Depreciation batch job cannot calculate the depreciation correctly. We recommend that you use the Cancel FA Entries batch job to correct FA entries.

Because the program uses the FA posting date in many calculations, you should correct entries with incorrect FA posting dates.


Module 2: Fixed Asset Transactions Be aware that the Cancel FA Entries batch job usually creates entries with the original FA Posting Date unless you select otherwise in the batch job request window. This may result in posting to a closed fiscal year. If an FA entry occurred in a closed fiscal year, you must cancel it. If the posting period is restricted in the Allow FA Posting From and Allow FA Posting To fields in the FA setup page, the program cannot post the cancellation. However, you can make a correction entry for an asset in the current fiscal year.

You can cancel entries in previous fiscal years by selecting the entries to be canceled and running the Cancel FA Ledger Entries batch job as usual.

Cancel Depreciation

Use the Cancel FA Ledger Entries or Cancel FA Entries batch job to cancel incorrect depreciation entries. Both batch jobs work similarly. The Cancel FA Entries batch job cancels incorrect entries for a specific fixed asset, whereas the Cancel FA Ledger Entries batch job cancels entries for various fixed assets.

You can run the Cancel FA Entries batch job from the fixed asset card of the asset for which you want to cancel entries.

To run the Cancel FA Entries batch job, on the fixed asset card, on the Navigate FastTab, click Ledger Entries, select the ledger entry or entries to cancel, and then, on the Actions FastTab of the FA Ledger Entries window, click Cancel Entries.

FIGURE 2.21: CANCEL FA ENTRIES BATCH JOB REQUEST PAGE


Fixed Assets in Microsoft Dynamics® NAV 2013 To run the Cancel FA Ledger Entries batch job, on the depreciation book card, on the Actions FastTab, click Cancel FA Ledger Entries.

In the batch job request window, you can set filters for fixed assets, select the period of fixed asset entries to be included in the journal, select the fixed asset transaction types, and select whether you want the batch job to include a balancing account.

FIGURE 2.22: CANCEL FA LEDGER ENTRIES BATCH JOB REQUEST PAGE



Note: When you cancel entries with the Cancel Entries function, the Cancel FA Ledger Entries batch job suggests all depreciation entries in the selected period for the cancellation. If any manual postings were made with this posting type in the selected period, the program also includes these entries in the cancellation suggestion.

After you cancel the entries, run the Calculate Depreciation batch job again to calculate and create the correct entries. When you cancel an FA entry, both the original entry and the cancellation entry are excluded from the depreciation calculation.

Demonstration: Cancel and Recalculate Depreciation

In this demonstration, you cancel an incorrectly posted depreciation for fixed asset FA000060 and then post the correct entry. The depreciation entry for December 31, 2013 should be -50.00 instead of -47.00.

Demonstration Steps

To cancel an FA entry, follow these steps:


2. Open the fixed asset card number FA000060. 3. On the Lines FastTab, select the line with the COMPANY depreciation

book, and then click Depr. Book > Ledger Entries.


Fixed Assets in Microsoft Dynamics® NAV 2013 The FA Ledger Entries window appears.

FIGURE 2.23: FA LEDGER ENTRIES

The page displays all the depreciation entries. In this example, the entry on December 31, 2013 should have been -50.00 instead of -47.00.

4. Select the entry with the posting date 12/31/2013 and on the Home FastTab, click Cancel Entries from the Functions group.

5. In the Cancel FA Entries batch job request window, click OK to run the batch job.

6. When you receive the message “The ledger entries have been transferred to the journal.”, click OK.

Note: You can select the Use New Posting Date check box and enter a new posting date in the New Posting Date field when you want to apply a new posting date to the journal entries created by the batch job. If these fields are cleared, the program copies the posting date of the fixed asset ledger entries to be canceled to the journal entries. You can also use these options when, for example, you must correct only the posting date of an incorrect entry.


Module 2: Fixed Asset Transactions 7. Close the FA Ledger Entries page. 8. Switch to the Microsoft Dynamics NAV window. In the navigation

pane, click Departments > Financial Management > Fixed Assets > FA G/L Journals.

The program automatically creates the necessary entries in a journal.

FIGURE 2.24: FIXED ASSET G/L JOURNAL WITH ERROR ENTRY

Note: The program automatically filled in the FA Error Entry No. field.

9. On the Home FastTab, click Insert FA Bal. Account No. Make sure that G/L account 8820 is inserted.

10. Click Post to post the cancellation journal. 11. When you receive the message “Do you want to post the journal


posted.”, click OK. 13. In the navigation pane, click Departments > Financial Management

> Fixed Assets > Fixed Assets. 14. Open the fixed asset card number FA000060.

15. On the Lines FastTab, select the line with the COMPANY depreciation book, and then click Depr. Book > Ledger Entries.


Fixed Assets in Microsoft Dynamics® NAV 2013 The incorrect entry with posted depreciation for December 2013 is removed from the FA ledger entries.

16. Close the FA Ledger Entries window. 17. On the Lines FastTab, select the line with the COMPANY depreciation

book, and then click Depr. Book > Error Ledger Entries.

In the FA Error Ledger Entries window, you can see error ledger entries that the program moved from the FA ledger entries after you canceled them.

FIGURE 2.25: FA ERROR LEDGER ENTRIES

After the entry is canceled, you must post the correct entry.

To post the correct entry, follow these steps:

1. In the Fixed Asset Card window for fixed asset FA000060, on the Home FastTab, click Calculate Depreciation.

2. In the Calculate Depreciation batch job request window, set the FA Posting Date window to 1/2/2014 to include two days from January 2014.

3. In the Posting Description field, type “Depreciation Dec 2013 – Jan 2014”.

4. Select the Insert Bal. Account No. check box. 5. Click OK.

6. Switch to the Microsoft Dynamics NAV window. In the navigation pane, click Departments > Financial Management > Fixed Assets > FA G/L Journals.

7. Review the created depreciation line and a balancing line.


Module 2: Fixed Asset Transactions Make sure that the depreciation amount is -50.

FIGURE 2.26: FIXED ASSET G/L JOURNAL DEPRECIATION ENTRIES

8. Click Post to post the journal. 9. When you receive the message “Do you want to post the journal


posted.”, click OK. 11. In the Fixed Asset Card window for fixed asset FA000060, on the

Lines FastTab, click Depr. Book > Ledger Entries.


Fixed Assets in Microsoft Dynamics® NAV 2013 In the FA Ledger Entries window, the correct entry is displayed.


Cancel a Fixed Asset Sale

If you accidentally disposed of a fixed asset by selling it through a sales invoice and you must cancel the sale, use the Cancel Entries function in the FA Ledger Entries window.

Note: You cannot use the Reverse Transaction function for entries that have sold fixed assets or for transactions that were not created in a general journal, for example, a sold fixed asset created through a sales invoice.

When you sell a fixed asset, the program creates multiple ledger entries that may include Disposal entries, Gain/Loss entries, Depreciation, and other entries, for example, Customer Ledger entries and VAT entries. To cancel a fixed asset sale, you must run the Cancel Entries function only for the FA ledger entry that has the FA Posting Type field set to Proceeds on Disposal. The program will create a FA G/L journal line which you should post with a balancing account.

The balancing account can be a G/L Account or a Customer Account. When VAT is registered on posting the sale of the fixed asset, you must make sure that the VAT is also considered when you cancel the sale.


Module 2: Fixed Asset Transactions Therefore, you should add the VAT amount to the suggested amount and fill in the General Posting Type and the Posting Group fields.

After you post the FA G/L journal line, the program automatically cancels all entries related to the fixed asset disposal, removes them from the FA ledger entries, and creates corresponding FA error ledger entries.

Demonstration: Cancel a Fixed Asset Sale

In this demonstration, you cancel the transaction where you disposed of the Reception Department Computer fixed asset by selling it through the sales invoice.

To perform this demonstration, you should have completed the “Disposing of a Fixed Asset” lab in the “Fixed Asset Disposals” lesson of this module.

Demonstration Steps

To cancel the fixed asset sale, follow these steps:


2. Open the fixed asset card for the Reception Department Computer fixed asset.

Note: On the Lines FastTab, the Disposed Of check box is selected which indicates that you disposed of this fixed asset.

3. On the Navigate FastTab, click Ledger Entries.


Fixed Assets in Microsoft Dynamics® NAV 2013 The FA Ledger Entries window shows the ledger entries created by the sales invoice.


4. Select the ledger entry with the FA Posting Type field set to Proceeds on Disposal, and then, on the Home FastTab, click Cancel Entries.

5. In the Cancel FA Entries batch job request window, click OK to create a journal entry.

6. When you receive the message “The ledger entries have been transferred to the journal.”, click OK.

7. Do not close the Fixed Asset Card window. 8. In the navigation pane, click Departments > Financial Management

> Fixed Assets > FA G/L Journals.

The batch job created an error entry and filled in the FA Error Entry No. field.

9. Add a balancing line, selecting G/L journal 2910 as the balancing account. To do this, select the next line, then in the Account Type field select G/L Account. In the Account No. field select 2910. In the Amount field enter -700.00.



FIGURE 2.29: FA G/L JOURNAL

Note: Or, if you set up the balancing accounts in the FA Posting Groups window for the IT-EQUIP posting group, you can select the Insert Bal. Account check box to have the program insert the balancing account automatically.





Fixed Assets in Microsoft Dynamics® NAV 2013 In the Fixed Asset Card window for the Reception Department Computer fixed asset, the program cleared the Disposed Of check box.

FIGURE 2.30: FIXED ASSET CARD AFTER CANCELED SALE

13. To view the FA ledger entries, on the Navigate FastTab, click FA Ledger Entries.


Module 2: Fixed Asset Transactions The program removed the ledger entries that were generated by the sales invoice.

FIGURE 2.31: FA LEDGER ENTRIES AFTER CANCELED SALE

Note: In the given example, there is a depreciation ledger entry that was not canceled. This entry was created because, when the fixed asset was disposed of, you selected the Depr. until FA Posting Date check box to depreciate the asset up to the FA posting date. If you want to cancel this entry also, run the Cancel Entries function for this entry exactly as for any other depreciation entry that you want to cancel. If a fixed asset is fully depreciated when you dispose of it through a sales invoice, and then you cancel the sale, the program cancels all entries created by the sales invoice.

14. To view the created FA error ledger entries, on the Navigate FastTab of the fixed asset card, click Error Ledger Entries.

Note: When you must correct all entries, including VAT Ledger Entries and Customer Ledger Entries, you should manually change the amount and fill in the Gen. Posting Type, Gen. Bus. Posting Group, and Gen. Prod. Posting Group fields before you add a balancing line with a corresponding balancing account.


Fixed Assets in Microsoft Dynamics® NAV 2013 Reverse Journal Postings

To reverse postings made in the general journal, use the Reverse Transaction function.

Reversing a transaction, in contrast to canceling a transaction, does not remove the entries from the FA ledger, but automatically creates the same entry with the opposite sign. Use this function with caution. To make sure that the program correctly calculates depreciation, we recommend that you use the Cancel Entries function for fixed asset entries.

To reverse a transaction posted from the general journal, follow these steps:

1. Open the relevant window (such as G/L registers or fixed asset ledger entries).

2. Select the entry that you want to reverse. 3. On the Actions FastTab, in the Functions group, click Reverse

Transaction. 4. In the G/L Registers window, select the register that you want to

reverse. 5. On the Actions FastTab, in the Functions group, click Reverse

Register. 6. Change the description in the Description field if it is necessary.

7. On the Actions FastTab, in the Reversing group, click Reverse. 8. Click OK.

The program automatically creates the same entry with the opposite sign.



Lab 2.6: Cancel and Recalculate Depreciation Cassie notices that the depreciation posted for the Lift of Furniture fixed asset for January 2014 has a missing posting description. Cassie decides to cancel the depreciation and post the depreciation again with the corrected information.

Note: Before you complete this lab, make sure that you completed the previous demonstration in this module where you posted depreciation for fixed asset FA000080 for January 2014 without a posting description.

Objectives

Cancel and recalculate depreciation.

Cancel and Recalculate Depreciation Exercise Scenario

Cassie has to cancel the depreciation for fixed asset FA000080 for January 2014 by using the Cancel FA Ledger Entries batch job, recalculate the depreciation by running the Calculate Depreciation batch job, and then post the correct depreciation in the FA G/L journal.

In the corrected entry, change the document number to D2014010001 and add a posting description, "Depreciation January 2014."

Task 1: Cancel and Recalculate Depreciation

High Level Steps 1. Open the fixed asset card for fixed asset FA000080 Lift for Furniture. 2. Open the FA Ledger Entries window from the fixed asset card. 3. Select the ledger entry with FA posting date 1/31/2014, and run the

Cancel Entries function.

4. In the created journal entry, add a balancing line. 5. Post the canceled entries. 6. Review the FA error ledger entries. 7. Run the Calculate Depreciation batch job.

8. In the created journal entry, add a description and change the document number.

9. Post the correct depreciation in the FA G/L journal. 10. Review the corrected FA ledger entries.



1. Open the fixed asset card for fixed asset FA000080 Lift for Furniture.


b. Open the fixed asset card for fixed asset FA000080.

2. Open the FA Ledger Entries window from the fixed asset card. a. On the Lines FastTab, click Depr. Book > Ledger Entries.

FIGURE 2.32: FA LEDGER ENTRIES FOR FA000080

3. Select the ledger entry with FA posting date 1/31/2014, and run the Cancel Entries function. a. Select the line with the incorrect depreciation entry where the

posting description is missing and the FA Posting Date field is set to 1/31/2014.

b. On the Home FastTab, click Cancel Entries. c. In the Edit – Cancel FA Entries batch job request window, click

OK to transfer the postings to the FA G/L journal. d. When you receive the message “The ledger entries have been

transferred to the journal.”, click OK.


Module 2: Fixed Asset Transactions 4. In the created journal entry, add a balancing line.


b. On the Home FastTab, click Insert FA Bal. Account No.

5. Post the canceled entries.

a. Click Post to post the canceled entries. b. When you receive the message “Do you want to post the journal

lines?”, click Yes. c. When you receive the message “The journal lines were


6. Review the FA error ledger entries. a. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Fixed Assets. b. Open the fixed asset card number FA000080. c. On the Lines FastTab, select the line with the COMPANY

depreciation book and then click Depr. Book > Ledger Entries.

d. The incorrect entry with posted depreciation for January 2014 is removed from the FA ledger entries.

e. Close the FA Ledger Entries window.

f. On the Lines FastTab, select the line with the COMPANY depreciation book and then click Depr. Book > Error Ledger Entries.

Error ledger entries now show the posted canceled entries.

FIGURE 2.33: FA ERROR LEDGER ENTRIES


Fixed Assets in Microsoft Dynamics® NAV 2013 7. Run the Calculate Depreciation batch job.


b. Open the fixed asset card for fixed asset FA000080. c. On the Home FastTab, click Calculate Depreciation. d. In the Calculate Depreciation batch job request window, make

sure that the Depreciation Book field is set to COMPANY. e. In the FA Posting Date field, type “1/31/2014”. f. In the Posting Description field, type “Depreciation January

2014”.

g. Select the Insert Bal. Account check box. h. Click OK to run the batch job.

8. In the created journal entry, add a description and change the

document number. a. In the navigation pane, click Departments > Financial

Management > Fixed Assets > FA G/L Journals. b. Make sure that the Description field is filled in with

Depreciation January 2014 on both depreciation and balancing lines.

9. Post the correct depreciation in the FA G/L journal. a. Click Post to post the journal. b. When you receive the message “Do you want to post the journal



10. Review the corrected FA ledger entries.

a. In the navigation pane, click Departments > Financial Management> Fixed Assets > Fixed Assets.

b. Open the fixed asset card number FA000080. c. On the Lines FastTab, select the line with the COMPANY

depreciation book, and then click Depr. Book > Ledger Entries.


Module 2: Fixed Asset Transactions The FA Ledger Entries window shows the corrected entry with posted depreciation for January 2014 where a posting description is present. The error ledger is removed from the FA ledger entries.




Lab 2.7: Cancel Entries Cassie looks through the FA ledger entries for fixed asset FA000020 and sees that the depreciation for November 2013 is posted two times. Cassie has to cancel one of the entries.

Note: Before you complete this lab, make sure that you completed the previous demonstration in this module where you posted depreciation for fixed asset FA000020 for November 2013 in the recurring journal.

Objectives

Cancel a ledger entry.

Cancel an Entry Exercise Scenario

To cancel the incorrect entry, Cassie uses the Cancel FA Ledger Entries batch job that she runs from the FA Ledger Entries window. Then, she has to post the created journal entries and verify that the entry is canceled.

Cancel the depreciation entry for November 2013 for fixed asset FA000020.

Task 1: Cancel a Ledger Entry

High Level Steps 1. Open the fixed asset card for fixed asset FA000020, the Toyota Supra

3.0.

2. Open the FA Ledger Entries window from the fixed asset card. 3. Select one of the ledger entries with FA posting date 11/30/2013, and

run the Cancel Entries function. 4. In the created journal entry, add a balancing line.

5. Post the canceled entries. 6. Review the FA error ledger entries.

Detailed Steps 1. Open the fixed asset card for fixed asset FA000020, the Toyota Supra

3.0. a. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Fixed Assets.

b. Open the fixed asset card for fixed asset FA000020.


Module 2: Fixed Asset Transactions 2. Open the FA Ledger Entries window from the fixed asset card.

a. On the Lines FastTab, click Depr. Book > Ledger Entries.

FIGURE 2.35: FA LEDGER ENTRIES FOR FA000020

3. Select one of the ledger entries with FA posting date 11/30/2013, and run the Cancel Entries function. a. Select the line with the incorrect depreciation entry (the

document number should start with G) where the FA Posting Date field is set to 11/30/2013.

b. On the Home FastTab, click Cancel Entries. c. In the Cancel FA Ledger Entries batch job request window, click

OK to transfer the postings to the FA G/L journal.

d. When you receive the message “The ledger entries have been transferred to the journal.”, click OK.

4. In the created journal entry, add a balancing line.


b. On the Home FastTab, click Insert FA Bal. Account No.



Note: On the created journal entry, the FA Entry No. field is filled in automatically. The value in this field indicates that this is an error entry and it will be posted to the FA error ledger.

5. Post the canceled entries.

a. Click Post to post the canceled entries. b. When you receive the message “Do you want to post the journal



6. Review the FA error ledger entries.


b. Open the fixed asset card number FA000020. c. On the Lines FastTab, select the line with the COMPANY

depreciation book, and then click Depr. Book > Ledger Entries.

The incorrect entry with posted depreciation for November 2013 is removed from the FA ledger entries.

FIGURE 2.36: FA LEDGER ENTRIES FOR FA000020 AFTER CANCELING THE ENTRY


Module 2: Fixed Asset Transactions d. Close the FA Ledger Entries window. e. On the Lines FastTab, select the line with the COMPANY

depreciation book, and then click Depr. Book > Error Ledger Entries.

The FA Error Ledger Entries window now shows the posted error entries.

FIGURE 2.37: FA ERROR LEDGER ENTRIES FOR FA000020

Document Fixed Asset Transactions The program automatically assigns consecutive entry numbers to all entries that you post to depreciation books. In the FA registers, the entries are sorted in entry number order regardless of FA numbers or depreciation book numbers.

FA Registers

A register is created automatically with each posting, either directly from a fixed asset journal or indirectly from purchase invoices or sales invoices. The individual registers are also numbered (one is the first number).

To view a report of the existing register numbers, follow these steps:

1. In the navigation pane, click the Departments > Financial Management > Fixed Assets > FA Register.

2. In the Fixed Asset Register report request window, set the filters for the relevant fixed asset. If you do not set any filters, the report shows the register for all fixed assets.


Fixed Assets in Microsoft Dynamics® NAV 2013 3. Click Print or Preview to see the register.

FIGURE 2.38: FIXED ASSET REGISTER REPORT PRINT LAYOUT

The Fixed Asset Register report shows posted fixed asset ledger entries that are sorted and divided by register number.

Trace Transactions

The program automatically assigns a source code to all posted entries so that transactions can be traced to their origin. This code is shown in the Source Code field in the FA Ledger Entries window that is accessed from a fixed asset card.

In the Reason Code field, you can also assign a reason code to the transactions.

Note: By default, the Source Code and Reason Code fields are not displayed in the FA Ledger Entries window. To add the fields, use the Choose Column function.



Fixed Asset Reports When you prepare a balance sheet and income statement, you may have to print reports to analyze the depreciation, acquisition, disposal, and gain or loss values for the accounting period. You may also need reports about accumulated depreciation and book value at the end of the period.

You may need a list of all the fixed assets for inventory, insurance, and other management purposes.

To access fixed asset reports, in the navigation pane, click Departments > Financial Management > Fixed Assets, and then, under Reports, select the report that you want to run. Or, you can run reports from the Action Pane in the windows where they are available, such as the Fixed Asset Card or Fixed Assets window.

This section describes the most frequently used reports in the Fixed Assets application area.

Note: For information about other reports that are not covered in this module, refer to the Help within Microsoft Dynamics NAV 2013 on the request page of the respective report by clicking F1.

Fixed Assets List Report

The Fixed Asset List is used for inventory, insurance, and other management purposes and shows information about each fixed asset without transaction data. This information is retrieved from the fixed asset cards and fixed asset depreciation books.

To print a list of all fixed assets, follow these steps:


2. In the Fixed Assets window, on the Report tab, click Fixed Asset List.


Fixed Assets in Microsoft Dynamics® NAV 2013 The Fixed Asset – List report request window appears.

FIGURE 2.39: FIXED ASSET – LIST REPORT REQUEST PAGE

3. On the Options FastTab, select which depreciation book to print from and indicate whether each fixed asset must be printed on a separate page.

4. On the Fixed Asset FastTab, set a filter to select the assets to include in the report. If the field is blank, all assets will be included. You can also set other filters, such as by FA class code, FA subclass code, and budgeted asset.


Module 2: Fixed Asset Transactions 5. Click Preview to preview the report.

FIGURE 2.40: FIXED ASSET – LIST REPORT PRINT LAYOUT

Fixed Asset – Book Value Reports

To print or preview a report about depreciation, acquisitions, and disposals for a selected period, and also the book value at the end of the period, you can use the following two reports:

• Book Value 01

• Book Value 02

The reports include similar information. However, the Book Value 01 report displays one line for each asset and must be printed in landscape orientation. The Book Value 02 report displays the information on several lines for each asset.

To obtain information on Write-downs, Appreciation, Custom 1, and Custom 2 posting types included in the Book Value 02 report, select either the Acquisition Type or the Depreciation Type field in the FA Posting Type Setup window.


Fixed Assets in Microsoft Dynamics® NAV 2013 You can include reclassified entries in the Book Value 02 report. To print one of these reports, follow these steps:


2. Under Reports, select FA Book Value 01 or FA Book Value 02.

Note: You can set options and filters in the report request window for both Book Value 01 and Book Value 02 reports by using the same method.

FIGURE 2.41: FIXED ASSET - BOOK VALUE 02 REPORT REQUEST PAGE


Module 2: Fixed Asset Transactions 3. On the Options FastTab of the Book Value 02 report request

window, select the depreciation book of the period for which you want to view the report.

4. Select the starting and ending dates of the period from which to include data.

5. You can group totals by FA class, subclass, location, main asset, global dimensions, and FA posting group by using the Group Totals field.

6. If you want to print the report for each fixed asset, select the Fixed Asset check box.

7. Select the Include Reclassification check box to include reclassified entries on the report.

8. Select the Budget Report check box to calculate depreciation from the last FA posting date up to the specified ending date.

Note: Please be aware that when you use the Budget Report option, the system only calculates deprivation for the Straight-line depreciation method.

If you want to run the Budget report for all assets with the Declining-balance depreciation method, you will receive a message that states that the budget calculation has not been done on fixed assets with the Declining-balance, DB1/SL, or DB2/SL depreciation methods.

The assets with the declining balance are included in the report, but no depreciation is calculated.

The Use Custom 1 Depreciation must also be disabled in the Depreciation Book table when you want to run the book value reports as budget reports.

Or, you can use the Projected Value report instead of the book value reports.


Fixed Assets in Microsoft Dynamics® NAV 2013 9. On the Fixed Asset FastTab, you can set a filter to select the assets to

include in the report. If the field is blank, the report contains information on all active assets.

10. Click Print or Preview.

FIGURE 2.42: FIXED ASSET – BOOK VALUE 02 PRINT LAYOUT PREVIEW

Fixed Asset – Analysis Report

The Fixed Asset – Analysis report is a combined report that has the option to print most of the posting information related to fixed assets.

To print or preview the Fixed Asset – Analysis report, follow these steps:


2. In the Fixed Assets window, on the Report tab, click Analysis.



FIGURE 2.43: FIXED ASSET – ANALYSIS REPORT REQUEST PAGE


Fixed Assets in Microsoft Dynamics® NAV 2013 3. On the Options FastTab, enter information in the fields as described

in the following table.

Field Description

Depreciation Book Select the code of the depreciation book to be included in the report.

Starting Date Enter the starting date (FA posting date) of the period that the report should include.

Ending Date Enter the ending date (FA posting date) of the period that the report should include.

Date Field 1 Date Field 2

Select the fields to specify which types of date to show in two columns of the report.

Amount Field 1 Amount Field 2 Amount Field 3

Select the types of amounts the report shows in three columns. Select the fields to choose 1 of the 11 available types.

Period 1 Period 2 Period 3

Select how the amounts that you selected are calculated. The following options are available: Before Starting Date: Only amounts before the starting date are included. Net Change: Amounts with an FA posting date between the dates specified in the Starting Date and Ending Date fields are included. Amounts on the starting date and on the ending date are also included in Net Change. At Ending Date: Amounts posted on or before the date entered in the Ending Date field are included.

Group Totals If you want the report to group the fixed assets and print group totals, click the field to select a group type.

Print per Fixed Asset Select this check box if you want the report to print a line for each fixed asset.

Only Sold Assets Select this check box if you want the report to include information only for sold assets.


Module 2: Fixed Asset Transactions Field Description

Budget Report Select this check box if you want the report to calculate future depreciation and book value.

4. On the Fixed Asset FastTab, select the assets to include in the report. If the field is blank, the report includes all the fixed assets.

5. Click Print to print the report or click Preview to view it on screen.

FIGURE 2.44: FIXED ASSET - ANALYSIS REPORT PRINT LAYOUT PREVIEW

G/L Analysis Report

If G/L integration is activated for a depreciation book, this report shows amounts posted to the general ledger coming from the FA application area. The report is based on the posting date in the FA ledger, whereas all other reports use the FA posting date.

To run the G/L Analysis report, follow these steps:


2. In the Fixed Assets window, on the Report tab, click G/L Analysis.



FIGURE 2.45: FIXED ASSET - G/L ANALYSIS REPORT REQUEST PAGE


Module 2: Fixed Asset Transactions 3. On the Options FastTab, fill in the fields as described in the following

table.

Field Description

Depreciation Book Select the code of the depreciation book to be included in the report.

Starting Date Enter the starting date (FA posting date) of the period that the report should include.

Ending Date Enter the ending date (FA posting date) of the period that the report should include.

Date Field 1 Date Field 2

Select the fields to specify which types of date to show in two columns of the report.

Amount Field 1 Amount Field 2 Amount Field 3

Select the types of amounts the report shows in three columns. Select the fields to choose 1 of the 9 available types.


Select how the amounts that you selected are calculated. The following options are available:

<Blank>: Amounts posted to the FA ledger that correspond to the posting type selected in the Amount Field 1 field. If you select the Acquisition option, the report will include acquisition costs. Disposal: Amounts posted to disposal accounts. Only disposed assets will have values in this column. If you select the Acquisition option, the report will include acquisition costs. Bal. Disposal: Amounts posted to the balance disposal accounts. This option can only be used together with Write-down, Appreciation, Custom 1, and Custom 2 FA posting types. The balance disposal accounts are used only if the posting types are not included in the calculation of gain and loss and the disposal calculation method is Net. The Bal. Disposal accounts are not used if the disposal calculation method is Gross.



Group Totals Select the field to select a group type if you want the report to group the fixed assets and print group totals.

Print per Fixed Asset Select this check box if you want the report to print a line for each fixed asset.

Only Sold Assets Select this check box if you want the report to include information only for sold assets.

4. On the Fixed Asset FastTab you can select which assets to include in the report. If you leave the fields blank, you will receive information on all assets (except inactive assets).

5. Click Print to print the report or Preview to view it on screen.

FIGURE 2.46: FIXED ASSET - G/L ANALYSIS REPORT PRINT LAYOUT PREVIEW

FA Posting Group - Net Change Report

The FA Posting Group - Net Change report shows the net change posted in the fixed asset ledger entries for each FA posting group. If G/L integration is activated for a depreciation book, the amounts in the report are the same as the net change in the G/L accounts assigned to the FA posting groups. You can use the report when you reconcile the fixed asset ledger and general ledger.

The report contains two sections. The first section shows the net change for each G/L account for each FA posting group. The second section shows the total change in each G/L account for all FA posting groups.


Module 2: Fixed Asset Transactions You can use the FA Depreciation Book FastTab to set filters if the report should include only certain depreciation books, fixed assets, or FA posting groups. You can select the information to view in the report by using the Options FastTab.

To run the FA Posting Group - Net Change report, follow these steps:


2. Under Reports, click FA Posting Group - Net Change.

FIGURE 2.47: FA POSTING GROUP - NET CHANGE REPORT REQUEST PAGE

3. On the Options FastTab, in the Starting Date field, enter the starting date of the period that the report should include.

4. In the Ending Date field, enter the ending date of the period that the report should include.

5. Select the Only Totals per G/L Account check box if you want the report to show only the total change in each G/L account for all fixed asset posting groups. This option is for the second section of the report.

6. On the FA Depreciation Book FastTab, you can set filters if the report should include only certain depreciation books, fixed assets, or FA posting groups.


Fixed Assets in Microsoft Dynamics® NAV 2013 7. Click Print or Preview.

FIGURE 2.48: FA POSTING GROUP - NET CHANGE REPORT PRINT LAYOUT PREVIEW

Budget Fixed Asset Transactions To prepare the budgeted income statement, balance sheet, and cash flow, you may need information about future investments, disposals, and depreciation of fixed assets. When you set up a budgeted asset, you can plan for the addition of assets. After an asset is bought, you must create the new asset and post it with the actual acquisition cost through the FA journal, a purchase invoice, or the FA G/L journal. You can then compare the budgeted cost to the actual cost. A budgeted asset is not integrated to the general ledger. This information is available from the FA Projected Value report.


Module 2: Fixed Asset Transactions You can indicate that the asset was created for budgeting by selecting the Budgeted Asset check box on the fixed asset card, on the Posting FastTab.

FIGURE 2.49: FIXED ASSET CARD - POSTING FASTTAB

Demonstration: Budget Future Acquisition Costs

In this demonstration, you prepare a budget for future acquisition costs, by setting up a fixed asset card for fixed assets that the company intends to buy in the future.

Demonstration Steps

To budget for future acquisition costs, follow these steps:

1. Click Departments > Financial Management > Fixed Assets > Fixed Assets.

2. Click New to create a new fixed asset. 3. Press ENTER to automatically assign number to the asset. 4. In the Description field, type “Ferrari”. 5. In the Serial No. field, type “ZM 21 241”.

6. On the Lines FastTab, in the Depreciation Book Code field, click the field and then select COMPANY.

7. In the FA Posting Group field, click the field and select CAR. 8. In the Depreciation Method field, click the field and select Straight-

line.


Fixed Assets in Microsoft Dynamics® NAV 2013 9. In the Depreciation Starting Date field, type “1/1/2013”. 10. In the Depreciation Ending Date field, type “1/31/2021”.

11. On the Posting FastTab, in the FA Class Code field, click the field and select TANGIBLE.

12. In the FA Subclass Code field, click the field and select CAR. 13. In the FA Location Code field, click the field and select SALES.

14. Select the Budgeted Asset check box to prevent posting to the general ledger.

FIGURE 2.50: FIXED ASSET CARD FOR A BUDGETED ASSET

Now you can post the acquisition cost for the budgeted fixed asset by using the FA journal.

15. Close the Fixed Asset Card window. 16. Click Departments > Financial Management > Fixed Assets > FA

Journals to open the Fixed Asset Journal window. 17. Enter and post the budgeted acquisition cost as shown in the image,

Fixed Asset Journal.



FIGURE 2.51: FIXED ASSET JOURNAL

18. Post the journal line.

The budgeted acquisition cost now appears in the Fixed Asset Statistics window. You can open the Fixed Asset Statistics window from the FA depreciation book for the budgeted asset by clicking Statistics on the Home FastTab.




Follow Up on Budgeted Acquisition Costs

When you actually buy a budgeted fixed asset, you must set up a new fixed asset card. Follow the Budget Future Acquisition Costs procedure, but when you post the actual acquisition cost (in either the FA G/L journal or the FA journal), enter the number of the budgeted asset in the Budgeted FA No. field. The system posts an acquisition cost with an opposite sign for the budgeted asset. This means that the total acquisition cost on the budgeted asset is the difference between the budgeted and the actual acquisition cost.


Module 2: Fixed Asset Transactions Demonstration: Budget Future Disposal of Fixed Assets

When your company plans to sell assets within the budget period, you can enter information about the expected sales price and sales date on the FA depreciation book.

The Projected Disposal Date field specifies the date on which you plan to dispose of the fixed asset. This date is shown in the Fixed Asset - Projected Value report.

The Projected Proceeds on Disposal field specifies the expected proceeds from disposal of the fixed asset. The amount from this field is shown in the Fixed Asset - Projected Value report.

Demonstration Steps

To budget future disposal of a fixed asset, follow these steps:


2. Open the fixed asset card for fixed asset FA000090. 3. In the Fixed Asset Card window, on the Home FastTab, click

Depreciation Books. 4. In the FA Depreciation Book window, right-click the column header

and select Choose Column, add the Projected Disposal Date and Projected Proceeds on Disposal fields, and then click OK.

5. Enter the information that is shown in the FA Depreciation Books figure.

FIGURE 2.53: FA DEPRECIATION BOOKS


Fixed Assets in Microsoft Dynamics® NAV 2013 6. Click OK.

Calculate Budgeted Future Disposal

To view the projected disposal values and have the program calculate the gain or loss, use the Fixed Asset - Projected Value report. For example, run the report for fixed asset FA000090 for which you set up projected disposal.

To run the Fixed Asset - Projected Value report, follow these steps:

1. In the Fixed Asset Card window, on the Report tab, click Projected Value.

2. In the FA Projected Value report request window, on the Options FastTab, in the First Depreciation Date field, enter 1/1/2013.

3. In the Last Depreciation Date field, enter 1/1/2020.

4. Select the Projected Disposal check box. 5. Select the Print per Fixed Asset check box. 6. On the Fixed Asset FastTab, set the filter in the No. field to

FA000090.



FIGURE 2.54: FIXED ASSET - PROJECTED VALUE REPORT REQUEST PAGE


Fixed Assets in Microsoft Dynamics® NAV 2013 7. Click Preview to view the report on screen or Print to print it.

FIGURE 2.55: FIXED ASSET - PROJECTED VALUE REPORT PRINT LAYOUT

Calculate Budgeted Depreciation

You can also use the Fixed Asset - FA Projected Value report to calculate future depreciation.

To view the calculated future depreciation in the Fixed Asset - FA Projected Value report, follow these steps:

1. In the Fixed Asset Card window, on the Report tab, click Projected Value.

2. In the FA Projected Value report request window, on the Options FastTab, in the First Depreciation Date field, enter 1/1/2013.

3. In the Last Depreciation Date field, select 1/1/2020.

4. Select the Print per Fixed Asset check box. 5. On the Fixed Asset FastTab, in the No. field, select FA000130. 6. In the Budgeted Asset field, select Yes to see budgeted assets only.



FIGURE 2.56: FIXED ASSET - PROJECTED VALUE REPORT REQUEST PAGE


Fixed Assets in Microsoft Dynamics® NAV 2013 7. Click Preview to view the report on screen or Print to print it.

FIGURE 2.57: FIXED ASSET – PROJECTED VALUE REPORT PRINT LAYOUT

The report shows the following budgeted depreciation information:

• The book value and accumulated depreciation at the beginning of the selected period.

• Changes during the period.

• The book value and accumulated depreciation at the end of the selected period.

To see total values for all assets, in the report request window, on the Options FastTab, clear the Print per Fixed Asset field, and, on the Fixed Asset FastTab, click Delete to clear the filter in the No. field.

Copy Fixed Asset Transactions to the G/L Budget

In Microsoft Dynamics NAV 2013, you can use the Copy FA Entries to G/L Budget batch job to copy posted or projected fixed asset transactions to the G/L budget.

To copy posted FA ledger entries that include FA ledger entries posted to budgeted assets, follow these steps:


2. Open the depreciation book card from which you want to copy entries.


Module 2: Fixed Asset Transactions 3. On the Actions FastTab, click Copy FA Entries to G/L Budget.

FIGURE 2.58: COPY FA ENTRIES TO G/L BUDGET


Fixed Assets in Microsoft Dynamics® NAV 2013 On the Options FastTab, you can select options as described in the following table.

Field Description

Copy Depr. Book Enter the depreciation book from which to copy entries.

Copy to G/L Budget Name Enter the name of the budget to which you want to copy. Select the field to select the budget.

Starting Date Enter the starting date from which you want to copy entries. The program uses the FA posting date of entries.

Ending Date Enter the ending date until which you want to copy entries. The program uses the FA posting date of entries.

Posting Description Enter a description if one is necessary.

Insert Bal. Account Select this check box to copy the balancing entry to the G/L budget.

Copy Select the type(s) of entries to copy.

On the Fixed Asset FastTab, you can set filters for the assets from which to copy the FA ledger entries.

When you run the batch job, any entries that are posted for the selected assets are copied automatically to the G/L budget. The date of the G/L budget entries and dimensions for the budget entries are the same as the FA posting date and the dimensions posted to the FA ledger entry.

You can copy projected fixed asset transactions to the G/L budget by selecting the budget to copy to in the Copy to G/L Budget Name field in the FA - Projected Value Report.

When you preview or print the report, both posted and projected transactions are copied to the selected G/L budget. Each budget entry is automatically assigned a description of the fixed asset number and transaction type that was copied to the budget.



Lab 2.8: Budget a Fixed Asset

Scenario

The company plans to purchase a new fixed asset soon, an Audi A5 car, for internal transportation purposes. Cassie has to register the budgeted fixed asset in the program, post the budgeted acquisition cost and depreciation, and then copy the projected transactions to the G/L budget.

Objectives

Budget a fixed asset.

Budget a Fixed Asset Exercise Scenario

To register the budgeted fixed asset, post budgeted acquisition cost and depreciation, and then copy the projected transactions to the G/L budget, use information from the following table.

Field Value

Description Audi A5

Serial No. AU 14101 E




Depreciation Ending Date 12/31/2018

Vendor No. 62000

Maintenance Vendor No. 62000

Amount 50,000.00

Copy to G/L Budget Name 2014

Task 1: Create a Budgeted Fixed Asset


Fixed Assets in Microsoft Dynamics® NAV 2013 High Level Steps

1. Create a fixed asset card and select the Budgeted Asset check box to indicate that this is a budgeted fixed asset.

Detailed Steps 1. Create a fixed asset card and select the Budgeted Asset check box to

indicate that this is a budgeted fixed asset.

To create a budgeted fixed asset card, follow these steps:


b. Click New. c. Press ENTER to automatically assign the number to the asset. d. In the Description field, type “Audi A5”.

e. In the Serial No. field, type “AU 14101 E”. f. On the Posting FastTab, select the Budgeted Asset check box to

prevent posting to the general ledger. g. On the Lines FastTab, in the Depreciation Book Code field, click

the field, and then select COMPANY. h. In the FA Posting Group field, click the field and select CAR. i. In the Depreciation Method field, click the field and select

Straight-line.

j. In the Depreciation Starting Date field, type “1/1/2014”. k. In the Depreciation Ending Date field, type “12/31/2018”. l. On the Maintenance FastTab, fill in the Vendor No. and

Maintenance Vendor No. fields with 62000.



FIGURE 2.59: FIXED ASSET CARD FOR BUDGETED ASSET

m. Click OK.

Task 2: Post the Projected Acquisition Cost and Depreciation

High Level Steps 1. Open the FA journal and create a line with acquisition cost. 2. Post the FA journal line. 3. Open the fixed asset card for the Audi A5 fixed asset. 4. Use the Fixed Asset - FA Projected Value report to calculate future

depreciation. 5. Post the projected depreciation for January 2014 by using the

Calculate Depreciation batch job and the FA journal.



1. Open the FA journal and create a line with acquisition cost.

a. In the navigation pane, click Departments > Financial Management > Fixed Assets > FA Journals.

b. In the FA Posting Date field, type “1/1/2014”.

c. In the FA No. field, click the field, and select the number of the Audi A5 budgeted asset.

d. In the FA Posting Type field, click the field and select Acquisition Cost.

e. In the Description field, type “Projected Acquisition Cost”. f. In the Amount field, type “50,000.00”.

FIGURE 2.60: FA JOURNAL WITH PROJECTED ACQUISITION COST

2. Post the FA journal line. a. Click Post to post the journal. b. When you receive the message “Do you want to post the journal



3. Open the fixed asset card for the Audi A5 fixed asset. a. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Fixed Assets. b. Open the fixed asset card for the Audi A5 fixed asset.


Module 2: Fixed Asset Transactions 4. Use the Fixed Asset - FA Projected Value report to calculate future

depreciation.

a. On the Report tab, click Projected Value. b. In the Fixed Asset - Projected Value report request window,

make sure that the Depreciation Book field is set to COMPANY. c. In the First Depreciation Date field, type “1/1/2014”.

d. In the Last Depreciation Date field, type “12/31/2018”. e. Select the Print per Fixed Asset check box. f. On the Fixed Asset FastTab, set the filter to the Audi A5 fixed

asset.

g. Click Preview to view the projected depreciation for the fixed asset.

FIGURE 2.61: FIXED ASSET - PROJECTED VALUE REPORT PREVIEW

h. Close the report print preview.

i. In the Fixed Asset Card window, on the Home FastTab, click Calculate Depreciation.

j. In the Calculate Depreciation batch job request window, make sure that the Depreciation Book field is set to COMPANY.

k. In the FA Posting Date, type “1/31/2014”. l. In the Posting Description field, type “Projected Depreciation

January 2014”.

m. Click OK to generate the FA journal line. n. In the navigation pane, click Departments > Financial

Management > Fixed Assets > FA Journals.


Fixed Assets in Microsoft Dynamics® NAV 2013 The program generated a line with projected depreciation for January 2014.

FIGURE 2.62: FA JOURNAL WITH PROJECTED DEPRECIATION

5. Post the projected depreciation for January 2014 by using the Calculate Depreciation batch job and the FA journal. a. Click Post to post the journal. b. When you receive the message “Do you want to post the journal



To view the posted projected entries, on the fixed asset card, click the link in the Book Value field on the Lines FastTab.

Task 3: Copy the Projected Transactions to the G/L Budget

High Level Steps 1. Open the COMPANY depreciation book card. 2. Run the Copy FA Entries to G/L Budget function. 3. In the Copy FA Entries to G/L Budget batch job request form, select

the options to copy the acquisition cost and depreciation entries for the budgeted asset.



1. Open the COMPANY depreciation book card.

a. In order to complete this task, you should setup the Acquisition Cost Bal. Acc. field for the CAR FA posting group.

b. Click Departments > Administration > FA Posting Groups

c. Right-click on the columns header and select the Choose Columns function to add the Acquisition Cost Bal. Acc. field.

d. Select the line with the CAR FA posting group. e. In the Acquisition Cost Bal. Acc. field type 8640.

f. Click OK to close the Edit - FA Posting Groups window. g. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Depreciation Books. h. Select the COMPANY depreciation book and then click Edit.

2. Run the Copy FA Entries to G/L Budget function.

a. In the Depreciation Book Card window, on the Actions FastTab, click Copy FA Entries to G/L Budget.

3. In the Copy FA Entries to G/L Budget batch job request form, select the options to copy the acquisition cost and depreciation entries for the budgeted asset. a. In the Copy FA Entries to G/L Budget batch job request form,

on the Options FastTab, in the Copy to G/L Budget Name field, click the field, and select 2014.

b. In the Starting Date field, type “1/1/2014”. c. In the Ending Date field, type “12/31/2014”. d. In the Posting Description field, type “Budgeted Asset Audi A5”.

Note: If you set up the balancing account in the FA Posting Groups window for the CAR posting group, you can select the Insert Bal. Account check box to have the program insert the balancing account automatically.

e. Select the Insert Bal. Account check box. f. Under the Copy field group, select the Acquisition Cost and

Depreciation check boxes.


Fixed Assets in Microsoft Dynamics® NAV 2013 g. On the Fixed Asset FastTab, in the No. field, type FA000140 to

set the filter to the number of the budgeted asset Audi A5.

FIGURE 2.63: COPY FA ENTRIES TO G/L BUDGET BATCH JOB REQUEST WINDOW

h. Click OK to run the batch job. i. To view the copied entries in the budget, click Departments >

Financial Management > General Ledger > G/L Budgets, and then double-click the line with budget 2014.


Module 2: Fixed Asset Transactions Scroll down to locate the copied entries.

FIGURE 2.64: G/L BUDGET 2014

Cost Accounting Depreciation Some companies conduct a part of their cost accounting from the Fixed Asset application area. Microsoft Dynamics NAV 2013 handles the cost accounting depreciation for the cost accounting.

Demonstration: Cost Accounting Depreciation Book

Demonstration Steps

To set up a depreciation book for cost accounting called COST, follow these steps:

1. In the navigation pane, click Departments > Administration > Application Setup > Financial Management > Fixed Assets > Depreciation Books.

2. Click New.

3. In the Code field, type “COST”. 4. In the Description field, type “Cost Accounting Depreciation Book”.


Fixed Assets in Microsoft Dynamics® NAV 2013 5. In the Disposal Calculation Method, click the field and select Gross. 6. Select the Allow Correction of Disposal, Allow Depr. below Zero,

and Allow Indexation check boxes. 7. Clear the Use FA Ledger Check check box to force the program to

check if an acquisition cost is the first entry and a disposal (if any) is the last entry. For example, you can post accumulated depreciation as a debit when acquisition cost is posted as a credit.

8. Clear the Use Same FA+G/L Posting Dates check box. 9. On the Integration FastTab, select the Depreciation field to make

sure that only the depreciation is integrated with the general ledger. The program posts depreciation by using a posting group for cost-accounting depreciation.

FIGURE 2.65: DEPRECIATION BOOK CARD - COST

10. Click OK.


Module 2: Fixed Asset Transactions Demonstration: Cost Accounting Posting Groups

You must set up a COST posting group so that the program posts the cost accounting depreciation correctly to the general ledger. You must set up a COST posting group so that the program posts the cost accounting depreciation correctly to the general ledger. Before setting up the posting group, two income statement accounts must be set up, so that entries do not affect the gain or loss in the financial statement, even though they are posted to the financial statement.

Demonstration Steps

1. In the navigation pane, click Departments > Financial Management > General Ledger > Chart of Accounts.

2. Click New. 3. In the No. field, type “8920”.

4. In the Name field, enter Cost Accounting Accumulated Depreciation.

5. Click OK > OK & New. 6. In the No. field, type “8930”.

7. In the Name field, enter Cost Accounting Depreciation. 8. Click OK. 9. Click Indent Chart of Accounts. 10. Click Yes.

To set up a FA posting group, follow these steps:


2. Create a new line and fill in the fields as shown in the FA Posting Groups figure.




3. Click OK.

Cost Accounting Booked Value of Zero

If the asset must be depreciated to the book value of zero, set up the annual depreciation percentage or the annual depreciation value in the related fields in the FA depreciation book as if the asset had a booked value.

When the book value is zero, select the Allow Depr. Below Zero check box on the COST depreciation book card for additional postings.

When you run the Calculate Depreciation batch job for the COST depreciation book, be aware that the batch job creates entries in the FA G/L journal because depreciation postings were integrated to the general ledger automatically. The program requires a balancing account for this. On the Options FastTab of the Calculate Depreciation batch job, you can select the Insert Bal. Account check box to have the program insert the expense account from the FA posting group COST automatically.

Cost accounting is not bound by any law. Therefore, you can change the depreciable base of assets that have a COST depreciation book. You can do this by using indexation.


Module 2: Fixed Asset Transactions Demonstration: Cost Accounting on the Fixed Asset Card

On the fixed asset card, for each asset in the FA depreciation books for which the program will calculate cost accounting depreciation, you must set up a new line with the cost-accounting depreciation book and the relevant FA posting group.

Demonstration Steps

To set up the cost-accounting depreciation book and the relevant FA posting group for fixed asset FA000090, follow the steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets and open the fixed asset card for fixed asset FA000090.

2. On the Lines FastTab, create a new line and fill in the fields as shown in the following table.

Field Value

Depreciation Book Code TAX

FA Posting Group COST

Depreciation Method Straight-Line





FIGURE 2.67: FIXED ASSET CARD

Make sure that you select the new cost-accounting FA posting group so that the program posts to the correct accounts. When you have set up all the FA depreciation books for the relevant assets, you can start to create the acquisition costs for them all.

If the depreciation books are identical to the acquisition costs of other FA deprecation books, use the Copy Depreciation Book batch job to copy the existing amounts from the standard depreciation book.

In order to complete this demonstration, you should perform a FA Journal Setup for the COST depreciation book:


4. On the View-Depreciation Book List window, select the line for the COST depreciation book and on the Navigate FastTab, select FA Journal Setup.


Module 2: Fixed Asset Transactions 5. Create a new line and fill in the fields as shown in the following table.

Field Value

FA Jnl. Template Name ASSETS

FA Jnl. Batch Name DEFAULT

Gen. Jnl. Template Name ASSETS

Gen. Jnl. Batch Name DEFAULT

Insurance Jnl. Template Name INSURANCE

Insurance Jnl. Batch Name DEFAULT

6. Click OK to close the window.

Copy the COMPANY depreciation book to the new depreciation book COST:


8. Select the line with the COMPANY depreciation book and on the Home FastTab in the Manage group, click Edit.

9. On the Depreciation Book Card for the COMPANY depreciation book, on the Actions FastTab, select Copy Depreciation Book.

10. On the Options FastTab, in the Copy from Book field, select COMPANY.

11. On the Options FastTab, in the Copy to Book field, select COST.

12. In the Starting Date field, type 1/24/2013. 13. On the Fixed Asset FastTab, set the filter to fixed asset FA000090. 14. Click OK to run the batch job. 15. Click OK to close the Edit – Depreciation Book Card – COMPANY

Company Book window.


Fixed Assets in Microsoft Dynamics® NAV 2013 Post the copied lines in the FA journal. The program is set up so that the acquisition costs of these assets are never posted to the general ledger. This is why you must post FA journals.

1. In the Navigation pane click Departments > Financial Management > Fixed Assets > FA Journal.

2. Select the FA Journal line for the FA000090 fixed asset.

3. On the Home FastTab, click Post to post the journal line. 4. When you receive the message “Do you want to post the journal



When you calculate the depreciation, the program uses the acquisition cost as a baseline.

Indexation When you receive a maintenance invoice, you can record it in one of the following ways:

• If you have activated G/L integration for the depreciation book to which you are posting, use a purchase invoice or an FA G/L journal.

• If you have not activated G/L integration for the depreciation book to which you are posting, you can use only an FA journal.

In Microsoft Dynamics NAV 2013, you can index fixed assets to adjust values for general price-level changes by using the Index Fixed Assets batch job.

Index Fixed Assets Batch Job

You can use the Index Fixed Assets batch job to index various types of fixed asset transactions, such as acquisition cost, depreciation, appreciation, and maintenance. With the help of this batch job, you can index fixed assets that are linked to a depreciation book. When you run the batch job, the program creates journal lines based on conditions that you select. Then, you can review and post the journal lines.

To use the Index Fixed Assets batch job, you must select all the Allow Indexation check boxes on the depreciation book.



Note: In the "Index Fixed Assets" demonstration in this lesson, you will use the COST depreciation book because this book is prepared for indexing fixed assets. You can use the indexation with the COST depreciation book but not the default depreciation book (in this case, the COMPANY book). This is because the COMPANY depreciation book is used for the balance sheet and the financial statement. You must not change the depreciation base of this COMPANY book by indexation.

To open the Index Fixed Assets batch job request window, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Index Fixed Assets.

FIGURE 2.68: INDEX FIXED ASSETS BATCH JOB REQUEST PAGE


Fixed Assets in Microsoft Dynamics® NAV 2013 2. On the Options FastTab, you can select options as described in the

following table.

Field Description

Depreciation Book Select the field to select the depreciation book for which you want to index fixed assets.

Index Figure Type an index figure. The batch job uses this figure to calculate the index amounts entered in the journal. For example, to index by 4%, type “104” in this field. To index by -2%, type “98” in this field.

FA Posting Date Enter the FA posting date to display in the FA Posting Date field in the resulting journal lines. The batch job includes ledger entries up to the date specified in this field. If the Use Same FA Posting Dates field for the depreciation book is selected, this date must be the same as the posting date entered in the Posting Date field.

Posting Date Enter a posting date so that it appears in the Posting Date field in the resulting FA G/L journal lines for assets that are integrated with the general ledger. If the Use Same FA+G/L Posting Dates check box is selected in the depreciation book that is used by the batch job, this date must be the same as the fixed asset posting date entered in the FA Posting Date field.

Document No. Leave this field blank when you set up a numbering series for the fixed asset journal batch in the No. Series table. The fixed asset journal batch currently has no journal lines entered in it. The batch job automatically assigns the next available number in the series to the journal lines that are copied to the fixed asset journal batch.


Module 2: Fixed Asset Transactions Field Description

Posting Description Enter a posting description to appear on the resulting journal lines.

Insert Bal. Account Select this check box if you want the batch job to insert balancing account(s) in the resulting journal. The batch job uses the accounts that you set up in the FA Posting Groups window.

Index Under the Index field group, you can select the fixed asset transaction types to be indexed for the fixed assets included in the batch job.

3. On the Fixed Asset FastTab, you can set filters to select the fixed assets to index.

Demonstration: Index Fixed Assets

In this demonstration, you index fixed assets that are associated with the COST depreciation book by 2 percent.

Note: Before you complete this procedure, make sure that you have copied acquisition cost entries from the COMPANY to the COST depreciation books. To copy the entries, use the Copy Depreciation Book batch job.

Demonstration Steps

To index fixed assets, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Index Fixed Assets.

2. On the Options FastTab, in the Depreciation Book field, click the field and select COST.

3. In the Index Figure field, type “102.00”. 4. In the FA Posting Date field, type “1/31/2013”.

5. Select the Insert Bal. Account check box.


Fixed Assets in Microsoft Dynamics® NAV 2013 6. Under the Index field group, select the Acquisition Cost check box. 7. On the Fixed Asset FastTab, set the filter to fixed asset FA000090.

FIGURE 2.69: INDEX FIXED ASSETS EXAMPLE


Module 2: Fixed Asset Transactions 8. Click OK to create the indexation entries. The FA journal line is now

automatically created in the journal.

9. Check the entry that you created, and post it to the ledger.

If the index figures are for simulation purposes only, you can create a special depreciation book in which to store them. These entries do not affect any of the other depreciation books. You can also index manually by entering a journal line. Click the Index Entry field to mark the entries. This makes the index entries identifiable.

Reverse Indexation

You can correct an indexing error by using the Cancel FA Ledger Entries batch job and then running the Index Fixed Assets batch job again. For detailed information about how to correct FA entries, refer to the “Fixed Assets Reclassifications” module in this course.

Minor Assets Minor assets are assets that are fully depreciated in the same fiscal year as they are purchased. Whether an asset is classified as a minor asset depends on local legislation.

The FA depreciation book for minor assets has two significant settings:

• The depreciation method is usually Straight-line.

• The depreciation starting date and the depreciating ending date are the same. The effect of this is that the program always calculates 100 percent depreciation, even when other acquisitions and depreciation have already been posted to this asset.

Set Up a Minor Asset

For this example, you create a fixed asset card called Minor Asset 2000 filling in the fields as shown in the following table.

Field Value


FA Posting Group MACHINERY



Typically, you set up a separate G/L account and FA posting group for minor asset depreciation. However, for this example, you can use the existing MACHINERY posting group.


Fixed Assets in Microsoft Dynamics® NAV 2013 Using the FA G/L journal, add acquisition costs as shown in the following table.

Date Acquisition

01/07/13 600

01/09/13 800

01/12/13 500

Use G/L account 2910 as the balancing account number for each acquisition.

Note: According to the default setup in the FA journal templates, the program should fill in the document number for each line automatically. If an error message appears that indicates that the document line already exists, post each journal line one by one.

After you post the journal, the fixed asset card for Minor Asset 2000 should appear as shown in the Fixed Asset Card – Minor Asset 2000 figure.

FIGURE 2.70: FIXED ASSET CARD - MINOR ASSET 2000

Most companies set up one minor asset fixed asset card each year because legislation for minor assets sometimes changes from one fiscal year to the next.


Module 2: Fixed Asset Transactions Calculate Depreciation on a Minor Asset

Every time that you purchase an asset that is classified as a minor asset, post the acquisition cost and depreciation to the same minor asset card. The program collects acquisition costs of all minor assets and then depreciates them by 100 percent when you calculate the next periodic depreciation.

To calculate depreciation on a minor asset, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets, and then open the fixed asset card for Minor Asset 2000.

2. On the Actions FastTab, click Calculate Depreciation. 3. On the Options FastTab, enter information as shown in the following

table.

Field Value




Posting Description Depreciation Minor Assets Year 2014

4. Select the Insert Bal. Account check box. 5. Click OK to run the batch job. 6. Close the Fixed Asset Card window. 7. In the navigation pane, click Departments > Financial Management

> Fixed Assets > FA G/L Journals to review the journal lines created by the batch job.


Fixed Assets in Microsoft Dynamics® NAV 2013 If the program did not insert a balancing account automatically, click Insert FA Bal. Account.

FIGURE 2.71: FIXED ASSET G/L JOURNAL – DEFAULT JOURNAL BATCH




11. Open the fixed asset card for Minor Asset 2000. On the Lines FastTab, in the Book Value field, the book value for the minor asset is 0.

12. Click the link in the Book Value field to display the journal entries.


Module 2: Fixed Asset Transactions The ledger entries for the minor asset should look as shown in the FA Ledger Entries for Minor Asset 2000 figure.

FIGURE 2.72: FA LEDGER ENTRIES FOR MINOR ASSET 2000



Lab 2.9: Manage a Minor Asset

Scenario

The company acquired stationery products for the staff—pens and notebooks—in the course of the year. Cassie, the accountant, has to register the stationery assets in the program. Because these assets have a short life span, Cassie registers them as a minor asset. Then, she posts the acquisition cost, and when the asset life span is over, she posts the full depreciation for the minor asset.

Objectives • Register an asset, classified as minor asset.

• Post the acquisition cost.

• Post depreciation.

Manage a Minor Asset Exercise Scenario

To register assets classified as minor assets, Cassie creates a fixed asset card with the same starting and ending depreciation dates. Then, she posts the acquisition cost in the FA G/L journal. At the end of the year, she posts the full depreciation for all minor assets that were posted to the minor asset card.

Note: Typically, one fixed asset card is used for all minor assets. Even though a fixed asset card was already created for minor assets, in this lab you create a new card for demonstration purposes.

Task 1: Manage a Minor Asset

High Level Steps 1. Create a fixed asset card with the same starting and ending

depreciation dates. 2. Use the FA G/L journal to post acquisition cost. 3. Use the Calculate Depreciation batch job and FA G/L journal to post

depreciation.



1. Create a fixed asset card with the same starting and ending depreciation dates.

To create a fixed asset card for a minor asset, follow these steps:


b. Click New. c. Press ENTER to have the program assign a number to the fixed

asset.

d. In the Description field, type “Minor Asset”. e. On the Lines FastTab, in the Depreciation Book Code field, click

the field and select COMPANY. f. In the FA Posting Group field, click the field and select

MACHINERY. g. In the Depreciation Method field, click the field and select

Straight-line. h. In the Depreciation Starting Date field, type “1/1/2014”.

i. In the Depreciation Ending Date field, type “1/1/2014”.

FIGURE 2.73: FIXED ASSET CARD FOR MINOR ASSETS


Fixed Assets in Microsoft Dynamics® NAV 2013 j. Click OK.

2. Use the FA G/L journal to post acquisition cost.

To post the acquisition cost for the new minor asset, follow these steps:


b. In the Fixed Asset G/L Journal window, in the Posting Date field, create two acquisition lines by using information in the following tables.

Line 1.

Field Value



Description Minor Asset Pens

Amount 100

Line 2.

Field Value



Description Minor Asset Notebooks

Amount 150

c. Add two balancing lines with G/L account 2910 as a balancing account.

d. Select the next line and enter the date 1/15/2014. In the Account No. field select 2910. In the Amount field enter -100.

e. Select the next line and enter the date 2/1/2014. In the Account No. field select 2910. In the Amount field enter -150.

Note: The Document No. field values should be different for each FA G/L Journal line. However, the balancing lines should have the Document No. field values corresponding to that of the FA G/L Journal lines they balance.



FIGURE 2.74: FA G/L JOURNAL WITH ACQUISITION COST

f. Click Post to post the journal. g. When you receive the message “Do you want to post the journal

lines?”, click Yes. h. When you receive the message “The journal lines were

successfully posted.”, click OK. i. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Fixed Assets, and open the fixed asset card for minor assets.

On the Lines FastTab, you can see the changed book value in the Book Value field. To see the posted acquisition cost entries, click the link in the field.

3. Use the Calculate Depreciation batch job and FA G/L journal to post depreciation.

To fully depreciate the minor assets, follow these steps:

a. On the fixed asset card for minor assets, on the Home FastTab, click Calculate Depreciation.

b. On the Options FastTab, enter information as shown in the following table.

Field Value




Posting Description Depreciation Minor Assets Year 2014


Fixed Assets in Microsoft Dynamics® NAV 2013 c. Select the Insert Bal. Account check box. d. Click OK to run the batch job.

e. Close the Fixed Asset Card window. f. On the navigation pane, click Departments > Financial

Management > Fixed Assets > FA G/L Journals to review the journal lines created by the batch job.

FIGURE 2.75: FA G/L JOURNAL WITH DEPRECIATION FOR MINOR ASSETS

g. Click Post to post the journal. h. When you receive the message “Do you want to post the journal


i. When you receive the message “The journal lines were successfully posted.”, click OK.

j. In the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets, and open the fixed asset card for minor assets.

On the Lines FastTab, in the Book Value field, the book value is 0 which indicates that the minor assets were fully depreciated.



Module Review Module Review and Takeaways

Primary transactions that you can perform with fixed assets in Microsoft Dynamics NAV 2013 include but are not limited to acquisitions, depreciations, write-downs, appreciations, and disposals. You can handle all these transactions in the Fixed Assets application area of Microsoft Dynamics NAV 2013.

Four types of journals are available for posting transactions with fixed assets:

• FA G/L journal

• FA journal

• FA Reclassification journal


The primary difference between the FA G/L journal and the FA journal is that you use the FA G/L journal for fixed assets that are integrated to the general ledger. If you do not want your transactions to be reflected in the general ledger, use the FA journal.

Additionally, you can calculate budgets, cost-accounting, and indexation for fixed assets.

Microsoft Dynamics NAV 2013 provides two ways to correct entries: by reversing entries, or by canceling entries through the Cancel FA Entries batch job or through the Cancel FA Ledger Entries batch job. Reversing entries automatically posts the same entry with a negative amount and can be used only with entries posted from a journal. The Cancel FA Entries/Cancel FA Ledger Entries batch jobs are designed specifically for FA ledger entries. This method removes the incorrectly posted ledger entry from the ledger entries and moves it to the error ledger entries. To have the program calculate depreciation correctly, we recommend that you cancel FA entries instead of reversing them.

The extensive list of reports designed for fixed assets enables you to track and analyze ledger entries, review net change for each G/L account for fixed assets posting groups, review detailed information about fixed asset transactions and the book value for each asset, and collect other important information for reporting purposes.

In Microsoft Dynamics NAV 2013, you can also handle minor assets that are typically depreciated in a year. To set up correct depreciation for minor assets, you enter the same starting and ending depreciation dates.


MODULE 3: FIXED ASSET RECLASSIFICATIONS

Module Overview With Microsoft Dynamics® NAV 2013, you can reclassify fixed assets. Reclassifying fixed assets can be useful when you have to do one of the following:

• Transfer an asset to another location or from one dimension value to another.

• Split an asset.

• Dispose of only a part of the asset.

• Combine two assets.

Objectives

The objectives are:

• Transfer a fixed asset.

• Split a fixed asset.

• Dispose of a part of a fixed asset.

• Combine assets.



Asset Transfers You can use asset transfers when you want to transfer, split, or combine assets. Use the reclassification journal for all postings from asset transfers.

Some companies frequently transfer assets from one location to another. For example, assume that, while an asset is being assembled, a worker puts it in the warehouse. When the assembling process is complete, someone has to move the asset to another location in the administration.

A company always has to have an exact overview of the current location of all its assets. Therefore, you should register this process in Microsoft Dynamics NAV 2013.

Transferring Assets

When you transfer a fixed asset, the program moves the fixed asset entries (acquisition cost and depreciation) from one fixed asset account to another fixed asset account.

To transfer an asset from one location to another in Microsoft Dynamics NAV 2013, follow these steps:

1. Set up a new fixed asset card to which the fixed asset will be transferred.

Note: You can use the Copy Fixed Asset batch job from the Process FastTab to copy the information from the old fixed asset and then change the corresponding fields.

2. In the Fixed Asset Card window for the new asset, on the Lines FastTab, enter a new location in the FA Location Code field.

3. Assign a depreciation book to the new asset.


Module 3: Fixed Asset Reclassification 4. In the navigation pane, click Departments > Financial Management

> Fixed Assets > FA Reclass. Journals.

FIGURE 3.1: FA RECLASS. JOURNAL

5. Move 100 percent of the asset’s acquisition cost and depreciation by filling in the fields in the FA reclassification journal as described in the following table.

Field Description

FA Posting Date The date of the reclassification.

Document No. The document number for the transaction.

FA No. The number of the asset that you are transferring from.

New FA No. The number of the asset that you are transferring to.

Description A text description for the transaction.

Depreciation Book Code The code of the book to which the line will be posted.



Reclassify Acq. Cost Amount

The amount of the asset acquisition cost to be transferred. By default, this field is hidden. Or, you can enter the percentage of the acquisition cost to transfer by filling in the Reclassify Acq. Cost % field.

Reclassify Acq. Cost % The percentage of the asset acquisition cost to be transferred. The program uses the following formula: Reclassified amount = Reclassify Acq. Cost % / 100 * Accumulated Amount of the posting type (depreciation, write-down, appreciation, custom 1, custom 2, and salvage value). Or, you can enter the amount of the acquisition cost to transfer by filling in the Reclassify Acq. Cost Amount field.

Reclassify Acq. Cost Amount

The amount of the asset acquisition cost to be transferred. By default, this field is hidden. If you enter an amount in this field, the program internally calculates the value in the Reclassify Acq. Cost % field as Reclassify Acq. Cost Amount / Accum. Acquisition Cost * 100. Or, you can enter the percentage of the acquisition cost to transfer by filling in the Reclassify Acq. Cost % field.

Reclassify Acquisition Cost

Select this check box to transfer the selected acquisition cost.

Reclassify Depreciation Select this check box to transfer the depreciation.

Insert Bal. Account If you set up balancing accounts in the FA Posting Groups window, select this option so that the program automatically inserts the balancing account in the FA G/L journal. If you did not set up the default balancing accounts, do not fill in this field.

6. After you have filled in the FA reclassification journal line(s), click Reclassify.


Module 3: Fixed Asset Reclassification Microsoft Dynamics NAV 2013 automatically creates lines in the FA G/L journal by using the specified template and batch. If the fixed asset is not integrated with the general ledger, the program creates lines in the FA journal, and in this case, you do not have to create balancing lines.

7. In the navigation pane, click Departments > Financial Management > Fixed Assets > FA G/L Journal.

Note: You can post these lines to complete the fixed asset transfer. If the balancing accounts were not set up in the FA Posting Group table, you must enter the balancing accounts before posting the lines.

8. If the entries must be adjusted, adjust them, and then post the journal lines.

When you post the FA G/L journal, the program moves both the fixed assets entries and the G/L entries from one asset account to another.

The Fixed Asset - Book Value 02 report which provides an overview of the total of all assets or each asset can help you decide which asset you have to reclassify.

Splitting Fixed Assets

With Microsoft Dynamics NAV 2013, you can also split an asset by transferring portions of its acquisition cost to several assets. To split an asset, you use the reclassification journal in exactly the same way as you transfer an asset. The only difference is that you transfer acquisition cost and depreciation to multiple assets. You can use the reclassification journal to split one asset into two assets and still keep a part of it as the original asset.

For example, you can move 40 percent of the acquisition cost and depreciation for an asset to a different asset, whereas 35 percent moves to a third asset, and 25 percent remains for the original asset.

If the precise percentage is unknown, then use a reclassification amount. This amount refers to the original acquisition amount. In the current version of Dynamics NAV 2013, you cannot enter a quantity. You have to calculate the amount to be transferred.

Before you transfer acquisition and depreciation to new assets, you must first set up the new asset.



Lab 3.1: Splitting a Fixed Asset

Scenario

Cassie is managing fixed assets in the company. She decides to reclassify fixed asset FA000050 Conveyor Belt so that 50% of its acquisition cost and depreciation is split between fixed asset FA000060 Conveyor Lift and fixed asset FA000070 Conveyor Computer, 30% for FA000060 and 20% for FA000070.

Objectives

Split a fixed asset.

Splitting a Fixed Asset Exercise Scenario

To split the posted acquisition cost and depreciation, Cassie uses the FA reclassification journal where she enters the percentage of acquisition costs and depreciation to transfer. Cassie uses December 31, 2013 as the FA posting date to include the FA ledger entries posted until this date.

Note: Before completing this lab, make sure that you set up the balancing accounts in the FA Posting Groups window for the MACHINERY posting group. To open the FA Posting Groups window, in the navigation pane, click Departments > Financial Management > Setup > Posting Groups > FA Posting Groups. For demonstration purposes, use account 8640 as an acquisition cost balancing account (the Acquisition Cost Bal. Acc. field). If you do not set the default accounts, you have to select them manually on the FA G/L journal lines.

Task 1: Split a Fixed Asset

High Level Steps 1. View the current book value, posted acquisition cost, and

depreciation for the fixed asset that you plan to split and for the assets among which the acquisition cost percentage will be split.

2. Create two FA reclassification journal lines: one where you transfer 30% of the acquisition cost and depreciation of fixed asset FA000050 to FA000060, and another where you transfer 20% of the acquisition cost and depreciation of fixed asset FA000050 to FA000070.

3. Reclassify fixed asset FA000050. 4. Review the generated FA G/L journal lines and make sure that you

select balancing accounts for each reclassification journal line.


Module 3: Fixed Asset Reclassification 5. Post the journal lines. 6. Review the book value and posted FA ledger entries for all three fixed

assets to make sure that the program split up fixed asset FA000050 correctly.

Detailed Steps 1. View the current book value, posted acquisition cost, and

depreciation for the fixed asset that you plan to split and for the assets among which the acquisition cost percentage will be split. a. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Fixed Assets. b. Select the line with fixed asset FA000050 and then click View.

On the Lines FastTab, in the Book Value field, you can see the current book value of the fixed asset. In the given example, it is 5,940.00.

FIGURE 3.2: FIXED ASSET CARD FOR FIXED ASSET FA000050

c. Click the link in the book value field to view the FA ledger entries.


Fixed Assets in Microsoft Dynamics® NAV 2013 In the FA Ledger Entries window, you can see the posted acquisition cost and depreciation ledger entries.

FIGURE 3.3: FA LEDGER ENTRIES FOR FIXED ASSET FA000050

d. Close the FA Ledger Entries and Fixed Asset Card windows. e. Repeat steps 2 through 4 for fixed assets FA000060 and

FA000070 to view their current book value and ledger entries. In this example, FA000060 has a book value of 3,992.00, and the book value of FA000070 is 2,394.00.

2. Create two FA reclassification journal lines: one where you transfer 30% of the acquisition cost and depreciation of fixed asset FA000050 to FA000060, and another where you transfer 20% of the acquisition cost and depreciation of fixed asset FA000050 to FA000070. a. In the navigation pane, click Departments > Financial

Management > Fixed Assets > FA Reclass. Journals. b. Create a line to transfer 30% of acquisition cost and depreciation

from fixed asset FA000050 to fixed asset FA000060 by filling in the fields as shown in the following table.


Module 3: Fixed Asset Reclassification Field Value


Document No. G05025

FA No. FA000050

New FA No. FA000060

Reclassify Acq. Cost % 30

Reclassify Acquisition Cost Yes

Reclassify Depreciation Yes


c. Create another line to transfer 20% of acquisition cost and depreciation from fixed asset FA000050 to fixed asset FA000070 by filling in the fields as shown in the following table.

Field Value


Document No. G05026

FA No. FA000050

New FA No. FA000070







FIGURE 3.4: FA RECLASSIFICATION JOURNAL

Note: If you did not set up balancing accounts in the FA posting groups, do not select the Insert Bal. Account check box, as balancing accounts will not be inserted automatically in the FA G/L journal. You will have to create balancing lines in the FA G/L journal manually. The value that you should type in the Document No. field depends on how you set up number series on the journal batch. You may have to adjust the Document No. field manually on the journal lines.

3. Reclassify fixed asset FA000050. a. On the Home FastTab, click Reclassify to have the program

create FA G/L journal lines. b. When you receive the message “Do you want to reclassify the

journal lines?”, click Yes. c. When you receive the message “The journal lines were

successfully reclassified.”, click OK.


Module 3: Fixed Asset Reclassification 4. Review the generated FA G/L journal lines and make sure that you

select balancing accounts for each reclassification journal line.


b. In the Fixed Asset G/L Journal window, make sure that the Document No. field contains the unique document numbers on each line. This depends on how you set up number series in the journal batch. If the document numbers have to be adjusted, adjust them manually.

FIGURE 3.5: FA G/L JOURNAL WITH RECLASSIFICATION LINES

5. Post the journal lines.

a. Click Post to post the journal. b. When you receive the message “Do you want to post the journal




Fixed Assets in Microsoft Dynamics® NAV 2013 6. Review the book value and posted FA ledger entries for all three fixed

assets to make sure that the program split up fixed asset FA000050 correctly. a. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Fixed Assets. b. Select the line with fixed asset FA000050, and then click View.

Because you have split the fixed asset, the book value, shown in the Book Value field on the Lines FastTab, decreased by 50%.

FIGURE 3.6: FIXED ASSET CARD FOR FIXED ASSET FA000050 AFTER RECLASSIFICATION

c. Click the link in the Book Value field to view the FA ledger entries.


Module 3: Fixed Asset Reclassification In the FA Ledger Entries window, you can see the new reclassification entries with the Reclassification Entry check box selected.

FIGURE 3.7: FA LEDGER ENTRIES AFTER RECLASSIFICATION

d. Close the FA Ledger Entries and Fixed Asset Card windows. e. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Fixed Assets. f. Select the line with fixed asset FA000060, and then click View to

open the Fixed Asset Card window for fixed asset FA000060.


Fixed Assets in Microsoft Dynamics® NAV 2013 The book value increased because of the transferred 30% of acquisition cost and depreciation from fixed asset FA000050.


g. Click the link in the Book Value field to view the fixed asset ledger entries.


Module 3: Fixed Asset Reclassification You can see the reclassification entries created from splitting fixed asset FA000050.


h. In the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets.

i. Select the line with fixed asset FA000070, and then click View to open the Fixed Asset Card window for fixed asset FA000070.


Fixed Assets in Microsoft Dynamics® NAV 2013 The book value increased because of the transferred 20% of acquisition cost and depreciation from fixed asset FA000050.


j. Click the link in the Book Value field to view the fixed asset ledger entries.


Module 3: Fixed Asset Reclassification You can see the reclassification entries created from splitting fixed asset FA000050.


Partial Disposal of an Asset Sometimes you have to partially dispose of an asset instead of disposing of the whole asset. To dispose of a part of an asset, split the asset through the FA reclassification journal and then dispose of one of the assets that you gained from the split.

Best Practice: To make sure both assets are seen together in reports, you can make them a main asset and a component asset.

To dispose of a part of an asset, follow these steps:

1. Set up a new asset for the partial disposal amount. 2. Post a reclassification of the part to sell. 3. Post the disposal to the new asset.


Fixed Assets in Microsoft Dynamics® NAV 2013 Microsoft Dynamics NAV 2013 automatically calculates the gain or loss of the partial disposal.

Note: When you post a partial disposal, the sales goes to the original asset. The program handles the disposed-of asset as if it is completely sold. You cannot post additional entries to the asset after you post an entry with the FA posting type Disposal. For example, you must dispose of a motherboard which is a part of a computer, a fixed asset. You first have to reclassify the fixed asset into two assets with corresponding acquisition costs and depreciation amounts. Next, you dispose of the new asset (the motherboard). Therefore, the acquisition cost and depreciation amount of the original fixed asset (the computer) will be reduced correspondingly.


Module 3: Fixed Asset Reclassification

Lab 3.2: Disposing of a Part of an Asset

Scenario

The company decided to sell a segment of the Lift for Furniture fixed asset. This fixed asset is registered as a single asset in the program. Cassie has to dispose of the part of the asset that will be sold.

Objectives

To dispose of a part of an asset.

Disposing of a part of an asset. Exercise Scenario

To dispose of a part of the Lift for Furniture asset, Cassie has to create a new asset for the part to be sold, use the reclassification journal to reclassify the Lift for Furniture fixed asset into two assets, and then dispose of the resulting part. The estimated acquisition cost of the part to be sold is 1/4 of the total acquisition cost and depreciation amount. This part of the fixed asset will be sold to customer 10000 for unit price 1000 excluding VAT.

Task 1: Dispose of a Part of the Lift for Furniture Fixed Asset

High Level Steps 1. Create a fixed asset card for the segment of the fixed asset to be

disposed of.

2. On the new fixed asset card, assign a depreciation book to this fixed asset.

3. In the reclassification journal, split the Lift for Furniture fixed asset to move 25% of its book value (acquisition cost and depreciation) to the new fixed asset.

4. Post the generated FA G/L journal lines. 5. Create and post a sales invoice to dispose of the new fixed asset that

represents the segment of the Lift for Furniture fixed asset.



1. Create a fixed asset card for the segment of the fixed asset to be disposed of. a. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Fixed Assets, and then click New.

b. In the Fixed Asset Card window, press ENTER to have the program assign the number to the fixed asset.

c. On the General FastTab, fill in the fields as shown in the following table.

Field Value

Description Lift for Furniture Segment

Serial No. AKW23587

Responsible Employee MH

d. On the Lines FastTab, fill in the fields as shown in the following table.

Field Table


FA Posting Group MACHINERY





Module 3: Fixed Asset Reclassification e. On the Posting FastTab, fill in the fields as shown in the following

table.

Field Table


FA Subclass Code MACHINERY

FA Location Code PROD

FIGURE 3.12: FIXED ASSET CARD FOR THE NEW FIXED ASSET

f. Click OK. 2. On the new fixed asset card, assign a depreciation book to this fixed

asset.

a. In the Fixed Assets window, select the line with fixed asset FA000080, and then click Edit.


Fixed Assets in Microsoft Dynamics® NAV 2013 On the Lines FastTab, in the Book Value field, review the current book value of the fixed asset before you split it to move 25% of its value to the newly created fixed asset.


Note: If you did not finish the Calculating Depreciation demonstration in the Fixed Asset Transactions module of this course, the book value for fixed asset FA000080 will differ because in that demonstration you calculate and post depreciation for January 2014 for this fixed asset.


Module 3: Fixed Asset Reclassification b. Click the link in the Book Value field to view the posted

acquisition cost and depreciation ledger entries.


c. Close the FA Ledger Entries and Fixed Asset Card windows. 3. In the reclassification journal, split the Lift for Furniture fixed asset to

move 25% of its book value (acquisition cost and depreciation) to the new fixed asset. a. In the navigation pane, click Departments > Financial

Management > Fixed Assets > FA Reclass. Journals.

b. In the FA Reclass. Journal window, create a reclassification line to transfer 25% of the Lift for Furniture fixed asset value (acquisition cost and depreciation) to the new fixed asset by filling in the lines as shown in the following table.




FA No. FA000080


Description Splitting Lift for Furniture





Note: To include all the acquisition cost and depreciation entries in the reclassification, the date in the FA Posting Date field should be equal to or later than the date of the last posted depreciation for the asset that you selected in the FA No. field.


Module 3: Fixed Asset Reclassification c. In the New FA No. field, enter the number of the new asset that

you created. In this example, it is the Lift for Furniture Segment asset. This number may be different in your case, depending on how many assets you created before you created a new asset in this lab. Click the field and select the Lift for Furniture Segment fixed asset.

FIGURE 3.15: FA RECLASS. JOURNAL

d. Click Reclassify to create FA G/L journal lines on the basis of the reclassification journal line.

e. When you receive the message “Do you want to reclassify the journal lines?”, click Yes.

f. When you receive the message “The journal lines were successfully reclassified.”, click OK.

4. Post the generated FA G/L journal lines.



Fixed Assets in Microsoft Dynamics® NAV 2013 In the FA G/L Journal window, the program created the journal lines.

FIGURE 3.16: FA G/L JOURNAL

b. Review the lines and make adjustments if they are necessary. c. On the Home FastTab, click Post to post the journal lines. d. When you receive the message “Do you want to post the journal

lines?”, click Yes. e. When you receive the message “The journal lines were

successfully posted.”, click OK. f. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Fixed Assets. g. Select the line with fixed asset FA000080, and then click View to

open the Fixed Asset Card window for fixed asset FA000080.


Module 3: Fixed Asset Reclassification The book value decreased by 25% because you reclassified the fixed asset and moved 25% of its value to the new fixed asset.

FIGURE 3.17: FIXED ASSET CARD FOR FIXED ASSET FA000080 AFTER RECLASSIFICATION


Fixed Assets in Microsoft Dynamics® NAV 2013 h. Click the link in the Book Value field to view the posted

reclassification entries.

FIGURE 3.18: FA LEDGER ENTRIES WITH RECLASSIFICATION ENTRIES

i. In the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets.

j. Select the line with the Lift for Furniture Segment fixed asset, and then click View to open the Fixed Asset Card window for the fixed asset. The Book Value field shows a transferred value equal to 25% of the original fixed asset value.



FIGURE 3.19: FIXED ASSET CARD AFTER RECLASSIFICATION

k. Click the link in the Book Value field to view the reclassification entries.

FIGURE 3.20: FA LEDGER ENTRIES FOR THE NEW FIXED ASSET

Now you are ready to dispose of the Lift for Furniture Segment fixed asset that represents a part of the Lift for Furniture fixed asset.


Fixed Assets in Microsoft Dynamics® NAV 2013 5. Create and post a sales invoice to dispose of the new fixed asset that

represents the segment of the Lift for Furniture fixed asset.

a. In the navigation pane, click Departments > Financial Management > Receivables > Sales Invoices.

b. Click New. c. To have the program assign a new sales invoice number, in the

Sales Invoice window, press ENTER. d. On the General FastTab, fill in the fields as shown in the following

table.

Field Value

Sell-to Customer No. 10000


Document Date 1/31/2014

e. On the Lines FastTab, set the Type field to Fixed Asset. f. In the No. field select the Lift for Furniture Segment fixed asset. g. In the Quantity field, enter 1. h. In the Unit Price Excl. VAT, enter 1,000.00.



Note: The number of the Lift for Furniture Segment fixed asset may be different in your case. In the No. field, click the field and select the number of the Lift for Furniture Segment fixed asset.

i. On the Shipping FastTab, set the Shipment Date to 1/31/2014.

FIGURE 3.21: SALES INVOICE

j. On the Home FastTab, click Post to post the sales invoice. k. When you receive a message regarding the modified shipment

date, click Yes. l. When you receive the message “Do you want to post the

Invoice?”, click Yes. m. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Fixed Assets, select the line with the Lift for Furniture Segment fixed asset, and then click View to open the Fixed Asset Card window for the fixed asset.


Fixed Assets in Microsoft Dynamics® NAV 2013 On the Lines FastTab, you can see in the Book Value field that the book value is zero and the Disposed Of check box is automatically selected. That tells you that the fixed asset is disposed of.

FIGURE 3.22: FIXED ASSET CARD OF THE DISPOSED-OF FIXED ASSET

n. Click the link in the Book Value field to view the disposal entries.

FIGURE 3.23: FA LEDGER ENTRIES FOR THE DISPOSED-OF FIXED ASSET


Module 3: Fixed Asset Reclassification o. To view the detailed ledger entries that include the gain/loss

amount, in the Fixed Asset Card window, on the Navigate FastTab, in the History action group, click Ledger Entries.

FIGURE 3.24: DETAILED FA LEDGER ENTRIES

Combining Assets In Microsoft Dynamics NAV 2013, you can combine several assets into one. This may be necessary, for example, when you post acquisition costs for several fixed assets and you want to unify the asset amounts in one asset.

Combining a Fixed Asset

You can combine assets in the same manner as you split an asset. The difference is that when you want to combine assets, you typically transfer 100 percent of the asset amount (acquisition cost and depreciation) to the new asset.

When you create a reclassification journal entry to combine assets, in the FA Reclass. Journal window, in the FA No. field, you enter the number of the original asset that will be combined with another asset and, in the New FA No. field, you enter the number of the target asset with which the original asset will be combined.




Fixed Assets Reclassifications is the functionality of the Fixed Assets application area in Microsoft Dynamics NAV 2013 that lets you perform various operations with fixed assets, such as transferring fixed assets to different locations, splitting fixed assets, and combining assets.

To dispose of a part of an asset, you split the asset, which transfers the part of the amount that you want to dispose of to a new asset, and then you dispose of the resulting asset that represents the split amount.

You reclassify assets by using the FA reclassification journal where you enter the amount to transfer, split, or combine. You can enter either the amount or percentage of the acquisition cost or depreciation to reclassify. Because of reclassification, the program creates the FA journal lines that you post to complete the reclassification procedure.


MODULE 4: FIXED ASSETS MAINTENANCE

Module Overview All companies have to keep track of the maintenance on their fixed assets. Microsoft Dynamics® NAV 2013 helps a company to keep maintenance information up to date.

This module, Microsoft Dynamics NAV 2013 Fixed Assets Maintenance, explains how to set up maintenance information for fixed assets and describes the functionality and processes of registering maintenance on fixed assets.

In Microsoft Dynamics NAV 2013, you can also view statistics, analyze them, and print reports for the maintenance of fixed assets.

Objectives

The objectives are:

• Set up maintenance information.

• Register maintenance costs.

• Review fixed asset maintenance by using the maintenance cost reports.



Setting Up Maintenance Information Maintenance expenses are routine periodic costs charged to preserve the value of fixed assets. Unlike capital improvements, maintenance expenses do not increase the value of the assets.

To use the fixed asset maintenance functionality in Microsoft Dynamics NAV 2013, you should set up the following:

• Maintenance information on the fixed asset card.

• Fixed asset posting groups to allow posting of the maintenance costs to the general ledger.

• Allocation keys to maintain costs allocated to departments and projects.

• Maintenance codes so that you can select the type of maintenance when you post maintenance costs.

Fixed Asset Card

On the fixed asset card, on the Maintenance FastTab, you can set up maintenance information for the fixed asset as described in the following table.

Field Value

Vendor No. The number of the vendor who supplied the fixed asset.

Maintenance Vendor No. The number of the vendor who usually performs the maintenance for the asset.

Under Maintenance Select this check box if you want to indicate that the fixed asset is under maintenance. You can use this information as a filter in reports.

Next Service Date The date of the next scheduled service. This information can be used as a filter in reports.

Warranty Date The date on which the warranty expires.


Module 4: Fixed Assets Maintenance Field Value

Insured This field is set to Yes for the insured fixed assets (for which the insurance entries were created and posted to an insurance account from a purchase invoice, credit memo, or journal line). You can click the link in the field to view the insurance ledger entries. For more information about insuring fixed assets, refer to the Fixed Asset Insurance module in this course.

FIGURE 4.1: MAINTENANCE FASTTAB ON FIXED ASSET CARD

Setting Up FA Posting Groups

In Microsoft Dynamics NAV 2013, all maintenance costs can be recorded to the fixed asset. In addition to entering maintenance information on the fixed asset card, you should select a maintenance expense account number in the FA Posting Groups window to allow posting of the maintenance costs to the general ledger.

To set up an FA posting group for the maintenance costs, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Administration > FA Posting Groups.

2. In the FA Posting Groups window, for each posting group, select the Maintenance Expense Account field, and then select the relevant G/L account.




For demonstration purposes, do not change the default account in the Maintenance Expense Account field.

Setting Up Allocation Keys

You can use allocation keys to allocate maintenance costs to several accounts, departments, or projects. For example, you could set up an allocation key to allocate depreciation costs on cars with 35 percent to the administration department and 65 percent to the sales department. If you set up allocations, the program allocates the amount on the fixed asset general journal or the recurring journal to one or more balancing accounts. When you use the Reclassify function from the fixed asset reclassification journal or the Insert FA Bal. Account function from the fixed asset G/L journal, the program will insert the account(s) that you set up. You can allocate keys such as acquisition cost, depreciation, and maintenance.

To set up an allocation key, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Administration > FA Posting Groups.

2. In the FA Posting Groups window, select a line with the posting group for which you want to set up allocation keys, and then, on the Navigate FastTab, click Allocations and select the allocation key.


Module 4: Fixed Assets Maintenance The FA Allocations window appears where you can set up allocation keys.

FIGURE 4.3: FA ALLOCATIONS WINDOW

3. In the FA Allocations window, fill in the fields according to the guidelines in the following table.

Field Description

Account No. Enter the G/L account number to allocate the amount on a journal line to. Select the field to view the list of accounts.

Account Name This field contains the name of the account selected in the Account No. field. The program fills in this field automatically.

Allocation % Enter the percentage of the amount to allocate to the account on this line.

Note: You can allocate dimensions to those other than the default global dimensions by selecting a line, clicking Dimensions on the Navigate FastTab, and then selecting the required dimension code and values in the Edit Dimension Set Entries window.


Fixed Assets in Microsoft Dynamics® NAV 2013 Allocating Dimensions

To allocate a dimension, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Administration >FA Posting Groups.

2. In the FA Posting Groups window, select a line with the posting group, and then, on the Navigate FastTab, click Allocations > Maintenance.

3. In the FA Allocations window, select a line with the account for which you want to allocate dimensions, and then click Dimensions on the Navigate FastTab.

4. In the Edit Dimension Set Entries window, select the required dimension code and values.

FIGURE 4.4: CAR MAINTENANCE WINDOW

5. Click OK.


Module 4: Fixed Assets Maintenance Setting Up Maintenance Codes

The Maintenance Code field is used to describe the kind of maintenance performed on a fixed asset. For example, routine service or repair.

Use the Maintenance window to set up the codes that you can enter in the Maintenance Code field. To open the Maintenance window, in the navigation pane, click Department > Financial Management > Fixed Assets, and then, under Setup, click Maintenance.

FIGURE 4.5: MAINTENANCE WINDOW

To create a new maintenance code, click New on the Home FastTab, and then, in the Code field, type the code for the maintenance. In the Description field, type a description of the maintenance.



Maintenance Registration and Costs Every time that a fixed asset is sent for service, you have to record the relevant information, such as date of service, vendor number, service agent name, and phone number. Microsoft Dynamics NAV 2013 lets you register and easily track this information.

When the service is completed, and you receive a maintenance invoice, you register the maintenance costs through an FA G/L journal, purchase invoice, or FA journal, depending on whether the associated depreciation book is integrated with the general ledger.

Keeping Track of Service Visits

Every time someone performs maintenance on a fixed asset, you can register this in the Maintenance Registration window.

To track a service visit, follow these steps:


2. Select the line with the fixed asset for which you want to register a service visit.

3. On the Home FastTab, click Maintenance Registration.

The Maintenance Registration figure shows an example of a registered maintenance for fixed asset FA000030.

FIGURE 4.6: MAINTENANCE REGISTRATION WINDOW


Module 4: Fixed Assets Maintenance 4. To register a maintenance visit, fill in the fields as described in the

following table.

Field Description

Service Date Enter the date the fixed asset is being serviced.

Maintenance Vendor No. Enter the number of the vendor who is performing the maintenance.

Comment Enter a description of the maintenance being performed.

Service Agent Name Enter the name of the person who is performing the service or repair.

Service Agent Phone No. Enter the telephone number of the service agent.

5. You can now schedule the next maintenance for the fixed asset by setting the Next Service Date field on the Maintenance FastTab of the fixed asset card.

6. Click OK.

Following Up on Service Visits

To see which assets are scheduled for service visits, you can print the Maintenance - Next Service report. The report can also be used to update the Next Service Date field on the fixed asset cards.

To run the report, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Maintenance Next Service.


Fixed Assets in Microsoft Dynamics® NAV 2013 The Maintenance - Next Service report request window appears.

FIGURE 4.7: MAINTENANCE - NEXT SERVICE REPORT REQUEST WINDOW

2. On the Options FastTab, define the period that the report should show by filling in the Starting Date and Ending Date fields. Fixed assets that have a next service date that is before the date in the Starting Date field or after the date in the Ending Date field will not be included in the report.

3. On the Fixed Asset FastTab, you can set any filters that you want so that the report includes a specific fixed asset or an asset with specific class and subclass codes.


Module 4: Fixed Assets Maintenance 4. Click Print to print the report or Preview to preview the report on

screen.

FIGURE 4.8: MAINTENANCE WINDOW - NEXT SERVICE REPORT PRINT PREVIEW

Recording Maintenance Costs

When you receive the maintenance invoice, you can record the maintenance costs in Microsoft Dynamics NAV 2013 in one of the following ways:

• If G/L integration is activated for the depreciation book, use a purchase invoice or an FA G/L journal.

• If G/L integration is not activated for the depreciation book, use only an FA journal.

Recording Maintenance Costs Using the Purchase Invoice

To record maintenance costs using the purchase invoice, follow these steps:


2. Click New.

3. Press ENTER to have the program assign the number to the invoice.


Fixed Assets in Microsoft Dynamics® NAV 2013 4. Fill in the invoice as shown in the Purchase Invoice figure.

FIGURE 4.9: PURCHASE INVOICE WINDOW

Make sure that on the Lines FastTab, you set the Type field to Fixed Asset and the FA Posting Type field to Maintenance.

Note: The FA Posting Type is not included in the standard layout. However, you can insert it with the Choose Column function.

5. On the Home FastTab, click Post to post the invoice. 6. When you receive the message “Do you want to post the Invoice?”,

click Yes.


Module 4: Fixed Assets Maintenance

Note: You can also set the type of maintenance. The Maintenance Type is not included in the standard layout. However, you can insert it by using the Page Designer.

Recording Maintenance Costs Using the FA Journal

When you post to a depreciation book in which the G/L integration is deactivated for maintenance costs, you must use a fixed asset journal. This may be useful when, for example, you want to record maintenance for a third-party fixed asset that must not be reflected in the general ledger, for example leased warehouse premises. The way that you post maintenance costs in an FA G/L journal resembles the way that you post in an FA journal. In an FA journal, you do not have to specify the balancing account.

In this example, you will post maintenance costs for FA000050 though an FA journal. Because the G/L integration is activated for maintenance costs for this fixed asset, you will deactivate it temporarily for demonstration purposes, post the maintenance costs, and then reactivate the G/L integration.

To post maintenance costs, follow these steps:


2. Double-click the COMPANY depreciation book. 3. On the Integration FastTab, clear the Maintenance field.

4. Click OK. 5. In the navigation pane, click Departments > Financial Management

> Fixed Assets > FA Journals. 6. In the Fixed Asset Journal window, fill in the fields as shown in the

following table.

Field Value



FA No. FA000050

FA Posting Type Maintenance

Amount 951.20

Maintenance Code SERVICE



Note: The Maintenance Code field is not included in the standard layout. Use the Choose Column function to insert it.

FIGURE 4.10: FIXED ASSET JOURNAL WINDOW



posted.”, click OK. 10. After you post the journal, activate the G/L integration of

maintenance in the COMPANY depreciation book again. On the Integration FastTab, select the Maintenance field.



Lab 4.1: Posting Allocation Transactions

Scenario

Fixed Asset FA000070 Conveyor Computer stopped working and underwent maintenance repairs. On November 12, 2014, Cassie, the accountant, receives a maintenance invoice and has to post maintenance costs in Microsoft Dynamics NAV 2013. The amount of the maintenance costs is 200.00. The maintenance balancing G/L account for the fixed asset posting group that fixed asset FA000070 belongs to is 8640. Cassie also receives instructions that she should allocate 25% of the maintenance costs for this fixed asset to G/L account 8330.

Objectives

Set up allocation and post maintenance costs so that the amount is allocated.

Posting an Allocation Transaction Exercise Scenario

To post the maintenance costs with the allocated amount, Cassie sets up allocation keys for the MACHINERY fixed asset posting group and then posts the maintenance costs in the fixed asset G/L journal.

Task 1: Posting an Allocation Transaction

High Level Steps 1. Open the FA Posting Groups window.

2. For the MACHINERY posting group, set up G/L account 8640 to use it as a maintenance balancing account.

3. For the MACHINERY posting group, set up maintenance allocation keys so that 25% of amount is allocation to G/L account 8330.

4. Create a maintenance line in the Fixed Asset G/L Journal window. 5. Use the Insert FA Bal. Account function. 6. Make sure that the program inserted two balancing lines, one with

75% of the balancing amount to post to account 8640 and one with 25% of the balancing amount to post to account 8330.

7. Post the fixed asset G/L journal. 8. Review the posted maintenance ledger entries.



1. Open the FA Posting Groups window.


2. For the MACHINERY posting group, set up G/L account 8640 to use it as a maintenance balancing account. a. In the FA Posting Groups window, right-click the column header

and use the Choose Column function to add the Maintenance Bal. Acc. field.

b. For the MACHINERY posting group, fill in the Maintenance Bal. Acc. field with “8640”.

3. For the MACHINERY posting group, set up maintenance allocation keys so that 25% of amount is allocation to G/L account 8330. a. With the MACHINERY posting group line selected, on the

Navigate FastTab, click Allocations > Maintenance.

b. In the FA Allocations window, set the Account No. field to 8330.

c. In the Allocation % field, type “25.0”.

FIGURE 4.11: FA ALLOCATIONS WINDOW


Module 4: Fixed Assets Maintenance d. Click OK. e. Close the FA Posting Groups window.

4. Create a maintenance line in the Fixed Asset G/L Journal window.


b. In the FA G/L Journal window, right-click the column header and use the Choose Column function to add the Maintenance Code field.

c. Create a line filling in the fields as shown in the following table.

Field Value







Description Maintenance costs


Amount 200.00

5. Use the Insert FA Bal. Account function. a. On the Home FastTab, click Insert Bal. Account.


Fixed Assets in Microsoft Dynamics® NAV 2013 6. Make sure that the program inserted two balancing lines, one with

75% of the balancing amount to post to account 8640 and one with 25% of the balancing amount to post to account 8330. a. Make sure that the program inserted two balancing lines:

FIGURE 4.12: FIXED ASSET G/L JOURNAL WINDOW

7. Post the fixed asset G/L journal.

a. Click Post to post the journal. b. When you receive the message “Do you want to post the journal



8. Review the posted maintenance ledger entries. a. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Fixed Assets. b. Select the line with fixed asset FA000070 and then, on the Home

FastTab, click Maintenance Ledger Entries. c. To view detailed posted G/L, VAT, and maintenance ledger

entries, select the posted maintenance ledger entry with the FA Posting Date of 11/12/2014 and, on the Home FastTab, click Navigate.

d. In the Navigate window, select an entry type and then click Show.



Lab 4.2: Posting Maintenance Transactions Two fixed assets are under maintenance in the company: FA000010 Mercedes 300 and FA000090 Switchboard. Cassie has to post maintenance costs for both fixed assets. Fixed asset FA000010 is serviced by the maintenance vendor set up on the fixed asset card. The maintenance costs for this fixed asset should be reflected in the general ledger. Fixed asset FA000090 is serviced by a third party, and Cassie receives instructions that the maintenance for this fixed asset should not be reflected in the general ledger.

To post maintenance costs for FA000010, Cassie uses the purchase invoice. To post maintenance costs for FA000090, Cassie uses the COST depreciation book that is associated with this fixed asset and has no integration with the general ledger.

Note: To complete this lab, you should complete the demonstration procedures in the Cost-Accounting Depreciation and Indexation lessons of the Fixed Assets Transactions module of this course where you create the COST depreciation book and assign it to FA000090 by using the Copy Depreciation Book batch job. To run the batch job, click Copy Depreciation Book on the Actions FastTab of the depreciation book card. Make sure that you add a line for the COST depreciation book in the FA Journal Setup window and post the corresponding FA Journal lines.

Objectives

Post maintenance costs in the purchase invoice and in the fixed asset journal.

Posting Maintenance Costs Exercise Scenario

Use the data in the following table when you post maintenance costs for fixed asset FA000010.

Field Value




Quantity 1

Direct Unit Cost excl. VAT 3000.00




Fixed Assets in Microsoft Dynamics® NAV 2013 Make sure that the maintenance balancing account is set up for the CAR fixed asset posting group. Use G/L account 8640 as a maintenance balancing account.

Use the data in the following table when you post maintenance costs for fixed asset FA000090.

Field Value






Task 1: Posting Maintenance Costs in the Purchase Invoice

High Level Steps 1. Make sure that the maintenance balancing account is set up for the

CAR fixed asset posting group in the FA Posting Groups window.

2. Create a new purchase invoice. 3. Fill in the fields on the General FastTab. 4. Create a maintenance line on the Lines FastTab. 5. Post the purchase invoice.

6. Review the posted maintenance ledger entries.

Detailed Steps 1. Make sure that the maintenance balancing account is set up for the

CAR fixed asset posting group in the FA Posting Groups window. a. In the navigation pane, click Departments > Financial

Management > Administration > Posting Groups > FA Posting Groups.

b. In the FA Posting Groups window, right-click the column header and use the Choose Column function to add the Maintenance Bal. Acc. field if it is not already visible.

c. For the CAR posting group, fill in the Maintenance Bal. Acc. field with “8640”.

d. Click OK.


Module 4: Fixed Assets Maintenance 2. Create a new purchase invoice.

a. In the navigation pane, click Departments > Financial Management > Payables > Purchase Invoices.

b. Click New. c. Press ENTER to have the program assign the number to the

invoice.

3. Fill in the fields on the General FastTab. a. On the General FastTab, fill in the fields as shown in the following

table.

Field Value





4. Create a maintenance line on the Lines FastTab.

a. On the Lines FastTab, fill in the fields as shown in the following table.

Field Value

Type Fixed Asset

No. FA000010


Quantity 1




FIGURE 4.13: PURCHASE INVOICE WINDOW

5. Post the purchase invoice. a. Click Post to post the invoice.

b. When you receive the message “Do you want to post the Invoice?”, click Yes.

6. Review the posted maintenance ledger entries.


b. Select the line with fixed asset FA000010 and then, on the Home FastTab, click Maintenance Ledger Entries.


Module 4: Fixed Assets Maintenance In the Maintenance Ledger Entries window, for the created ledger entry, the G/L Entry No. field shows the number of the posted G/L entry because this transaction was posted to the COMPANY depreciation book which has integration with the general ledger for maintenance transactions.

FIGURE 4.14: MAINTENANCE LEDGER ENTRIES WINDOW FOR FIXED ASSET FA000010

c. Click Close.

Task 2: Posting Maintenance Costs in the Fixed Asset journal

High Level Steps 1. Open the Fixed Asset Journal window. 2. Create a maintenance journal line. Make sure that you use the COST

depreciation book. 3. Post the fixed asset journal. 4. Review the posted maintenance ledger entries

Detailed Steps 1. Open the Fixed Asset Journal window.

a. In the navigation pane, click Departments > Financial Management > Fixed Assets > FA Journals.


Fixed Assets in Microsoft Dynamics® NAV 2013 2. Create a maintenance journal line. Make sure that you use the COST

depreciation book.

a. Right-click the column header and use the Choose Column function to add the Maintenance Code field if it is not visible.

b. Create a line, filling in the fields as shown in the following table.

Field Value



FA No. FA000090

Depreciation Book Code COST


Description Switchboard Maintenance

Amount 200.00




FIGURE 4.15: FIXED ASSET JOURNAL

3. Post the fixed asset journal. a. Click Post to post the journal. b. When you receive the message “Do you want to post the journal



4. Review the posted maintenance ledger entries a. In the navigation pane, click Departments > Financial

Management > Fixed Assets > Fixed Assets. b. Select the line with fixed asset FA000090 and then, on the Home

FastTab, click Maintenance Ledger Entries.

In the Maintenance Ledger Entries window, for the created ledger entry, the G/L Entry No. field is empty because this transaction was posted to the COST depreciation book which has no integration with the general ledger for maintenance transactions.



FIGURE 4.16: MAINTENANCE LEDGER ENTRIES FOR FIXED ASSET FA000090

c. Click Close.

Maintenance Cost Reporting In Microsoft Dynamics NAV 2013, you can view and analyze posted maintenance costs in the following locations:

• The Fixed Asset Statistics window shows the maintenance amount. You can access the Fixed Asset Statistics window from the fixed asset card.

• The Maintenance Ledger Entries window shows posted maintenance entries. You can access the Maintenance Ledger Entries window from the fixed asset card or from the Fixed Assets view.

• The Maintenance - Details report shows detailed information on maintenance ledger entries.

• The Maintenance - Analysis report shows maintenance expenses for fixed assets for different time periods broken down by fixed asset categories.

• The Maintenance Register report shows posted maintenance entries that are sorted and divided by register number.

• The Maintenance – Next Service report shows the next date on which service is planned for each fixed asset.


Module 4: Fixed Assets Maintenance Statistics and Maintenance Ledger Entries

To view the maintenance statistics and corresponding posted maintenance ledger entries, follow these steps:


2. Select a line with the fixed asset for which you want to view the maintenance statistics. For example, select the line for fixed asset FA000050.

3. On the Home FastTab, click Statistics.



Fixed Assets in Microsoft Dynamics® NAV 2013 4. Click the amount in the Maintenance field to open the Maintenance

Ledger Entries window where you can view the maintenance ledger entries that make up the amount in the Fixed Asset Statistics window.

FIGURE 4.18: MAINTENANCE LEDGER ENTRIES

Or, you can view the maintenance ledger entries by selecting a fixed asset in the Fixed Assets view, and then clicking Maintenance Ledger Entries on the Home FastTab, or by clicking Maintenance Ledger Entries on the Home FastTab of the fixed asset card.


Module 4: Fixed Assets Maintenance Maintenance - Details Report

The Maintenance - Details report shows detailed information on maintenance ledger entries posted to each fixed asset for the depreciation book that you select in the report request window.

To run the Maintenance - Details report, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Maintenance Details.

FIGURE 4.19: MAINTENANCE – DETAILS REPORT REQUEST WINDOW

2. On the Options FastTab, select which depreciation book to print from, whether to view a new page for each asset, and whether you want to include reversed entries.

3. On the Fixed Asset FastTab, you can set a filter to select the asset(s) to include in the report.


Fixed Assets in Microsoft Dynamics® NAV 2013 4. Click Preview to view the report on the screen or Print to print it.

FIGURE 4.20: MAINTENANCE – DETAILS REPORT PRINT LAYOUT



Maintenance - Analysis Report

In the Maintenance - Analysis report, you can view maintenance expenses for fixed assets for different time periods broken down by fixed asset categories. You can also select the total of all the selected assets or a total for each asset.

To run the Maintenance - Analysis report, follow the steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Maintenance Analysis.

FIGURE 4.21: MAINTENANCE - ANALYSIS REPORT REQUEST WINDOW


Fixed Assets in Microsoft Dynamics® NAV 2013 2. On the Options FastTab, fill in the fields as described in the following

table.

Field Description

Depreciation Book Select the code of the depreciation book that the report will include.

Date Selection Select whether you want to use the posting date or the FA posting date in the report.

Starting Date Enter the starting date to be included in the report.

Ending Date Enter the ending date to be included in the report.

Amount Field 1 Amount Field 2 Amount Field3

Use the three amount fields to have the report show maintenance amounts for different maintenance types. If you do not fill in the Amount Field 1, Amount Field 2, and Amount Field 3 fields, the report will include all maintenance costs regardless of their maintenance code.


Select how the program will calculate the maintenance amounts shown in the report by selecting Before Starting Date, Net Change, or at Ending Date. Net Change is the period between the starting and ending date.

Group Totals Select a category that the report will use to group fixed assets and show totals. For example, maintenance expenses for fixed assets can be shown for each fixed asset class.

Print per Fixed Asset Select this check box if you want the report to show amounts for each fixed asset.


Module 4: Fixed Assets Maintenance 3. Click Preview to view the report on the screen or Print to print it.

FIGURE 4.22: MAINTENANCE - ANALYSIS PRINT LAYOUT


Fixed Assets in Microsoft Dynamics® NAV 2013 Maintenance - Register Report

Use the Maintenance Register report to view all posted maintenance entries that are sorted and divided by register number. We recommend that you set a filter. Otherwise, the report may show a large amount of information.

Note: You can print this report at the same time that you post a journal. To print the report as part of a posting process, on the Actions FastTab of the journal, in the Posting group, click Post and Print.

To run the Maintenance Register report, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Maintenance Register.

FIGURE 4.23: MAINTENANCE REGISTER REPORT REQUEST WINDOW


Module 4: Fixed Assets Maintenance 2. On the FA Register FastTab, set the filters that you want to use. 3. Click Preview to view the report on the screen or Print to print it.

FIGURE 4.24: MAINTENANCE REGISTER


Fixed Assets in Microsoft Dynamics® NAV 2013 Maintenance - Next Service Report

Use the Maintenance - Next Service report to view the date of the next service for each fixed asset.

To run the Maintenance - Next Service report, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Maintenance Next Service.

FIGURE 4.25: MAINTENANCE - NEXT SERVICE REPORT REQUEST WINDOW


Module 4: Fixed Assets Maintenance 2. On the Options FastTab, you can fill in the Starting Date and Ending

Date fields to set a period to include in the report.

3. On the Fixed Asset FastTab, you can set a filter to only include specific fixed assets in the report.

4. Click Preview to view the report on the screen or Print to print it.

FIGURE 4.26: MAINTENANCE - NEXT SERVICE PRINT LAYOUT




To register and track fixed asset maintenance in Microsoft Dynamics NAV 2013, you must set up maintenance information on the fixed asset card. You must also set up fixed asset posting groups and fixed asset maintenance codes. You can use fixed asset allocation keys, to allocate maintenance costs to several accounts, departments, or projects.

You register maintenance not only to help the company keep track of all cost allocated to maintenance, but also to keep track of and follow up on service visits. Similar to other fixed asset transactions, you post maintenance costs in two ways, depending on whether the depreciation book assigned to the fixed asset has G/L integration for maintenance. If the G/L integration is activated, you use the purchase invoice or fixed asset G/L journal to post maintenance costs. If the G/L integration is not activated, you use the fixed asset journal to post maintenance costs.

You can view and analyze the posted maintenance costs in the Fixed Asset Statistics window or in the Maintenance Ledger Entries window. The Maintenance - Details, Maintenance - Analysis, Maintenance - Register, and Maintenance - Next Service reports provide the company with a detailed and complete overview of fixed asset maintenance information.


MODULE 5: FIXED ASSET INSURANCE

Module Overview Fixed Assets Insurance in Microsoft Dynamics® NAV 2013 describes how to insure fixed assets in a company.

Managing insurance in Microsoft Dynamics NAV 2013 includes setting up insurance information, assigning assets to insurance policies, monitoring insurance coverage, updating insurance information, and indexing fixed asset insurance.

Objectives

The objectives are:

• Set up insurance information.

• Assign an asset to an insurance policy.

• Monitor insurance coverage.

• Update, correct, and delete insurance information.

• Set up insurance indexing.



Setting Up Insurance Information Set up general information about an insurance policy on the insurance card. In Microsoft Dynamics NAV 2013, you create one insurance card for each insurance policy.

Fixed Asset Setup Page

In the Fixed Assets Setup window, you set up general information about fixed asset insurance.

To set up general information about fixed asset insurance, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > FA Setup.

FIGURE 5.1: FIXED ASSET SETUP


Module 5: Fixed Asset Insurance 2. On the General FastTab, enter information in the insurance fields as

described in the following table.

Field Value

Insurance Depr. Book The value in this field specifies a depreciation book code. If you use the insurance facilities, you must enter a code to post insurance coverage ledger entries. For example, to post an acquisition entry with an insurance number or a disposal of an insured asset, you have to select a book in this field. This restriction exists because the disposal of an asset automatically stops the insurance coverage. To disconnect sold assets from insurance policies, select a depreciation book code that is assigned to all fixed assets. You should set up the default depreciation book before you set up the insurance depreciation book. The code in this field is also used when you sell a fixed asset and the values from insurance policies change. Click the field, and then select a code.

Automatic Insurance Posting

If you want to post insurance coverage ledger entries automatically when you post acquisition cost entries with the Insurance No. field filled in, select this check box. If this check box is cleared, the program creates entries in the insurance journal instead of posting to the insurance coverage ledger entries.

3. On the Numbering FastTab, select the Insurance Nos. field, and then select the code for the number series that the program uses to assign numbers to insurance policies.

4. Click OK.


Fixed Assets in Microsoft Dynamics® NAV 2013 Insurance Types

In Microsoft Dynamics NAV 2013, you can group insurance policies into insurance types, for example, insurance against theft or fire insurance.

To set up the insurance types, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Insurance Types.

FIGURE 5.2: INSURANCE TYPES

2. To create a new insurance type, click New. 3. In the Code field, enter the code of the insurance type.

4. In the Description field, enter a description of the insurance type. 5. Click OK.


Module 5: Fixed Asset Insurance Insurance Card

You create an insurance card for each insurance policy related to fixed assets. On the insurance card, you specify general information about the insurance policy.

To set up a new insurance policy, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Insurance.

2. Select a line with the insurance policy for which you want to create an insurance card.

3. On the Home FastTab, click View.

FIGURE 5.3: INSURANCE CARD

4. On the General FastTab, fill in the fields as described in the following table.

Field Description

No. The number or code for the insurance policy that the program uses. This field is filled in by the program automatically.

Description The description of the insurance policy.

Insurance Vendor No.

The number of the vendor from whom the insurance policy was purchased.



Effective Date The date from which the insurance policy is valid.

Expiration Date The date until which the insurance policy is valid.

Insurance Type The type of insurance that is covered by the given insurance policy. Click the field to select a type. You set the insurance types in the Insurance Types window.

Policy No. The policy number recorded on the insurance policy.

Annual Premium

The amount of the annual insurance premium. When you register this information for all the insurance policies, an overview of the insurance costs and other insurance information appears in different insurance reports.

Policy Coverage The amount of coverage this insurance policy provides. When registering this information for all the insurance policies, you can see whether the company is over- or underinsured in the Insurance Statistics window.

Blocked Select this check box if you want to block the insurance account. You cannot post to a blocked insurance account. For example, a fixed asset is assigned to several insurance policies that overlap one another. In this case the fixed asset is over-insured, and one of the overlapping insurance accounts is blocked.

Last Date Modified

The field shows the date when the insurance card was last modified. When you change the information on the insurance card, the program automatically updates this field to show the current system date.


Module 5: Fixed Asset Insurance 5. On the Posting FastTab, fill in the fields as described in the following

table.

Field Description

FA Class Code A fixed asset class code to assign to the insurance policy. If you select a class code in this field, the program uses this class by default every time that you post to this insurance policy.

FA Subclass Code

A fixed asset subclass code to assign to the insurance policy. If you select a subclass code in this field, the program uses this subclass by default every time that you post to this insurance policy.

FA Location Code

A fixed asset location code to assign to the insurance policy. If you select a location code in this field, the program uses this location by default every time that you post to this insurance policy.

6. Click OK.

Demonstration: Setting Up an Insurance Card

Demonstration Steps

To set up a new insurance card, follow these steps:


2. Click New to create a new insurance card. 3. On the General FastTab, fill in the fields as shown in the following

table. In the No. field, press ENTER.

Field Value No.

Description Fire Insurance

Effective Date 01/01/14

Insurance Type FIRE

Policy No. 157-254-5678

Annual Premium 15,000.00



Policy Coverage 2,500,000.00

FIGURE 5.4: INSURANCE CARD FOR FIRE INSURANCE

4. Click OK.


Module 5: Fixed Asset Insurance Setting Up Insurance Journal Templates

The program automatically creates an FA journal template when you open the Fixed Asset Journal window. To set up additional journal templates, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Insurance Journal Templates.

2. Click New to set up a new insurance journal template.

FIGURE 5.5: INSURANCE JOURNAL TEMPLATES

3. Fill in the fields as described in the following table.

Field Description

Name Type the name of the template.

Description Type a description of the journal template.

No. Series Click the field and select a number series from the list.

Posting No. Series Click the field and select a posting number series from the list.

Source Code This field is filled in by the program automatically.

Reason Code Click the field and select a reason code from the list.


Fixed Assets in Microsoft Dynamics® NAV 2013 4. Click OK.

Setting Up Insurance Journal Batches

To set up batches under an insurance journal template, follow these steps:

1. In the Insurance Journal Templates window, select a line with the insurance journal template for which you want to set up journal batches.

2. On the Navigate FastTab, click Batches.

FIGURE 5.6: INSURANCE JOURNAL BATCHES

3. Click New to create a new journal batch or select one of the empty lines.

4. Fill in the fields as described in the following table.

Field Description

Name Type a code that identifies the batch.

Description Type a description of the batch.

No. Series Select the field to select a number series other than the default number series that is entered automatically. Select the number series, and then click OK to copy it to the field.


Module 5: Fixed Asset Insurance Field Description

Posting No. Series Select the field to select a posting number series other than the default number series that is entered automatically. Select the posting number series, and then click OK to copy it to the field.

Reason Code The value in this field specifies a reason code used to indicate why an entry was created. Click the field to open the Reason Code window, and then select an appropriate reason code to assign to the insurance journal batch. In this case the same reason code is used for all entries posted from this journal batch.

Note: The journal batch supplies default values if you do not fill in the corresponding fields on the journal lines.

5. Click OK.

Default Journal Templates and Batches for Each User

In Microsoft Dynamics NAV 2013, in the FA Journal Setup window, you can set up a default set of insurance journal templates and batches for each depreciation book and specify a default set for each user.

These default journal templates and batches are used when you duplicate entries from one depreciation book to another, create journal lines by running a batch job (the Calculate Depreciation or Index Fixed Assets batch jobs), duplicate acquisition-cost entries in the insurance journal, or when the program automatically posts to the insurance coverage ledger.

To set up default insurance journal templates and batches, follow these steps:


2. Select a line with the relevant depreciation book, and then, on the Navigate FastTab, click FA Journal Setup.

3. Select a line with the relevant user ID, click the Insurance Jnl. Template Name field, and then select a template to be used by default for the given user and depreciation book.


Fixed Assets in Microsoft Dynamics® NAV 2013 4. Select the Insurance Jnl. Batch Name field, and then select a batch

to be used by default for the given user and depreciation book.

FIGURE 5.7: FA JOURNAL SETUP

5. Click OK.

Attaching Assets to Insurance Policies In Microsoft Dynamics NAV 2013, you can attach any asset to an insurance policy. Attaching fixed assets to insurance policies gives you an easy way to find the relevant insurance policy for an asset when you want it.

Linking Fixed Assets to Insurance Policies

After you complete the setup of the insurance information, the fixed assets can be linked to the insurance policies.

You can link one or more assets to a single insurance policy. You can also link one asset to the same insurance policy with different amounts.

A fixed asset can be attached to the insurance policy in one of the following two ways:

• Post an acquisition cost with the Insurance No. field filled in on the FA journal or FA G/L journal line or on the purchase invoice.

• Post an acquisition cost without filling in the Insurance No. field on the journal line, and then use the insurance journal to post the acquisition cost to the insurance coverage ledger.


Module 5: Fixed Asset Insurance You can post acquisition cost to the insurance coverage ledger from any of the following:

• Purchase invoice

• FA G/L journal

• FA journal


When the Insurance No. field has a value, the Insured field on the Maintenance FastTab in the Fixed Asset Card window is automatically set to Yes.

After you sell a fixed asset, the program automatically sets the Insured field on the fixed asset card to No.

Demonstration: Linking a Fixed Asset to an Insurance Policy When Posting Acquisition Cost Through a Purchase Invoice

In this demonstration, you create a new fixed asset, and then, when you post the acquisition cost through a purchase invoice, you link the fixed asset to an insurance policy.

Demonstration Steps

To set up a new fixed asset, follow these steps:


2. Click New. 3. On the General FastTab, in the No. field, press ENTER. 4. In the Description field, type “Warehouse Lift”. 5. On the Lines FastTab, set the Depreciation Book field to COMPANY.

6. In the FA Posting Group field, click the drop-down list, and select MACHINERY.

7. In the Depreciation Starting Date field, set the date to 1/1/14.


Fixed Assets in Microsoft Dynamics® NAV 2013 8. In the No. of Depreciation Years field, type “10”.


9. Click OK, to close the Fixed Asset Card window.

Make sure that G/L integration is activated for the acquisition cost in the COMPANY depreciation book, by clicking Departments > Financial Management > Fixed Assets > Depreciation Books, opening the depreciation book card for the COMPANY depreciation book, and then verifying that on the Integration FastTab, the Acquisition Cost check box is selected.

To post an acquisition cost for the fixed asset and link it to an insurance policy from a purchase invoice, follow these steps:


2. Click New. 3. Press ENTER to have the program fill in the next number for the

purchase invoice

4. In the Buy-from Vendor No. field, type “30000”. 5. In the Posting Date field, type “1/31/14”. 6. In the Document Date field, type “1/31/14”.


Module 5: Fixed Asset Insurance 7. In the Vendor Invoice No. field, type “4256”. 8. On the Lines FastTab, in the Type field, click the field and select

Fixed Asset. 9. In the No. field, click the field and select Warehouse Lift Fixed

Assets. 10. In the FA Posting Type field, make sure that Acquisition Cost is

selected. 11. In the Quantity field, type “1”. 12. In the Direct Unit Cost Excl. VAT field, type “17,350.00”. 13. Right-click the header on the Lines FastTab, click Choose Column,

add the Insurance No. field, and then click OK. 14. In the Insurance No. field, click the field, and select INS000050.

FIGURE 5.9: PURCHASE INVOICE

15. Click Post. 16. When you receive the message “Do you want to post the Invoice?”,

click Yes.


Fixed Assets in Microsoft Dynamics® NAV 2013 Linking a Fixed Asset to an Insurance Policy When Posting Acquisition Cost in an FA Journal or FA G/L Journal

When you post acquisition cost for a fixed asset through an FA journal or FA G/L journal, you link the fixed asset to an insurance policy by selecting the required policy in the Insurance No. field on the journal line.

Linking a Fixed Asset to an Insurance Policy Through an Insurance Journal

If you posted the acquisition cost of a fixed asset without linking it to an insurance policy, either from the purchase invoice or from one of the FA journals, you can link the fixed asset to an insurance policy by posting the acquisition cost from an insurance journal.

For example, if you did not enter insurance number INS000040 in the Insurance No. field on the purchase invoice for fixed asset FA1500, you can still attach the insurance policy to the asset’s acquisition cost from an insurance journal.

To post an insurance journal, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Insurance Journals.

2. In the Posting Date, type “1/31/2014”. 3. In the Insurance No. field, enter INS000040.

4. In the FA No. field, enter FA1500. 5. In the Amount field, type “17,350.00”. 6. In the Amount field in the journal line, enter the acquisition cost of

the asset. For this example, use the previous example’s information for FA1500. Enter FA1500 in the FA No. field, enter INS000040 in the Insurance No. field, and enter the acquisition cost of 17,350 in the Amount field.


Module 5: Fixed Asset Insurance

FIGURE 5.10: INSURANCE JOURNAL




10. In the navigation pane, click Departments > Financial Management > Fixed Assets > Fixed Assets, and then double-click the line with the fixed asset FA1500 to open the fixed asset card.

11. To verify the total value insured for the fixed asset, on the Navigate FastTab, click Total Value Insured.



FIGURE 5.11: TOTAL VALUE INSURED

Monitoring Insurance Coverage Microsoft Dynamics NAV 2013 provides multiple ways to monitor and analyze the insurance coverage of the fixed assets that include but are not limited to the following:

• View the Total Value Insured per FA matrix, which shows the amount of insurance registered with each insurance policy.

• View statistics for fixed assets where you can see an overview of the annual premium, the policy’s coverage, and the fixed asset value that has to be insured for the insurance policy.

• Run the Insurance - List report to obtain the list of insurance policies and primary information about each policy.


Module 5: Fixed Asset Insurance • Run the Insurance - Uninsured FAs report to obtain the list of fixed

assets for which amounts were not posted to an insurance policy.

Total Value per FA Matrix

The Total Value Insured per FA matrix lists all the fixed assets by each policy and the insured amount.

To view the matrix, follow these steps:


2. In the Insurance window, on the Home FastTab, click Total Value Insured per FA.

3. In the Total Value Insured per FA window, on the Options FastTab, in the Rounding Factor field, you can select a rounding factor for the amounts in the columns.

4. On the Matrix Options FastTab, you can set filters if it is necessary.

FIGURE 5.12: TOTAL VALUE INSURED PER FA


Fixed Assets in Microsoft Dynamics® NAV 2013 5. On the Home FastTab, click Show Matrix.

FIGURE 5.13: T. VALUE INSURED PER FA MATRIX

Statistics

The Insurance Statistic window provides an overview of a selected insurance. You can view the annual premium, the policy’s coverage, and the total insured value.

You can also use the statistics to analyze the insurance policies and to determine whether assets are over or under insured. The program compares the policy coverage amount to the value of fixed assets actually covered by the policy and shows the resulting amount in the Over/Under Insured field.

To view the insurance statistics, follow these steps:


2. Select a line with the relevant insurance. For example, select insurance INS000050.

3. On the Home FastTab, click Statistics.



FIGURE 5.14: INSURANCE STATISTIC

4. To view the values that make up the total value insured, click the amount in the Total Value Insured field to open the Ins. Coverage Ledger Entries window.

FIGURE 5.15: INS. COVERAGE LEDGER ENTRIES


Fixed Assets in Microsoft Dynamics® NAV 2013 List of All Insurance Policies

To obtain an overview of all the insurance policies, you can print or preview the Insurance - List report that displays all the policies and the most important fields from the insurance cards.

To print the report, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Insurance List.

2. In the Insurance - List report request window, on the Insurance FastTab, you can set the filters that you want.

3. Click Preview to view the report on screen or Print to print it.

FIGURE 5.16: INSURANCE - LIST REPORT PRINT PREVIEW

Uninsured Fixed Assets

To verify that all fixed assets are assigned to an insurance policy, print or preview the Insurance – Uninsured FAs report. This report displays the individual fixed assets for amounts that are not posted to an insurance policy.

To print the report, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Uninsured FAs.

2. In the Insurance – Uninsured FAs report request window, on the Fixed Asset FastTab, you can set the filters that you want.

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3. Click Preview to view the report on the screen, or Print to print it.



FIGURE 5.17: INSURANCE – UNINSURED FAS REPORT PRINT PREVIEW

Updating Insurance Information Insurance details change occasionally: the annual premium is adjusted, coverage can change, and insurance can expire.

In Microsoft Dynamics NAV 2013, you can update insurance information.

Modifying and Deleting Insurance Cards

Each year when you receive your annual renewal notice, if the rates change, you have to manually update the value in the Annual Premium field in the Insurance Card window.

If the information about the coverage amount also changes, you have to update the Policy Coverage field value to make sure that you analyze the insurance policy coverage correctly.


Fixed Assets in Microsoft Dynamics® NAV 2013 Terminating Fixed Asset Coverage from an Insurance Policy

A fixed asset’s insurance coverage automatically terminates when you post a disposal entry to the depreciation book that is selected in the Insurance Depr. Book field in the Fixed Asset Setup window.

For example, if the Insurance Depr. Book field is set to COMPANY, posting to the disposal in the TAX depreciation book does not affect the insurance coverage ledger.

The termination occurs regardless of whether you selected the Automatic Insurance Posting check box in the Fixed Asset Setup page.

In the following example, fixed asset FA000020 is sold on 01/31/14 for the amount of 40,000. To terminate the coverage from an insurance policy for this asset, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets, and then click FA G/L Journals or FA Journals, depending on whether the G/L integration for disposal is activated in the COMPANY depreciation book.

In this example, the FA G/L journal is used, because the G/L integration for disposal is activated in the COMPANY depreciation book.

2. In the Fixed Asset G/L Journal window, create a disposal line filling in the fields as shown in the following table.

Field Value





FA Posting Type Disposal

Description Toyota Supra 3.0 Disposal

Amount -40,000.00





FIGURE 5.18: FIXED ASSET G/L JOURNAL

3. Click Post. 4. When you receive the message “Do you want the journal lines?”, click

Yes.


6. Close the Fixed Asset G/L Journal window. 7. Click Departments > Financial Management > Fixed Assets >

Fixed Assets, and then double-click the line with the fixed asset FA000020 to open the fixed asset card.


Fixed Assets in Microsoft Dynamics® NAV 2013 The program automatically sets the Insured field on the Maintenance FastTab to No.


8. Click OK to close the window. 9. In the navigation pane, click Departments > Financial Management

> Fixed Assets > Insurance. 10. On the Home FastTab, click Total Value Insured per FA. 11. Click Show Matrix to open the T. Value Insured per FA Matrix

window.

Note: The insurance value for the Toyota Supra 3.0 fixed asset no longer exists.


Module 5: Fixed Asset Insurance 12. Close the T. Value Insured per FA Matrix and Total Value Insured

per FA windows.

13. In the Insurance window, select the line with the insurance number INS000020, and then, on the Navigate FastTab, click Coverage Ledger Entries.

14. Verify that the entry for fixed asset number FA000020 is marked as disposed.

Correcting Insurance Entries

If an incorrect entry is posted to the insurance coverage ledger, you can correct it by creating a reclassifying entry in the insurance journal.

To correct an insurance coverage ledger entry, follow these steps:


2. If a fixed asset was linked to an incorrect insurance number, correct it by creating two lines in the insurance journal: one line with a plus amount and another line with a minus amount.

3. Click Post to post the journal. 4. When you receive the message “Do you want the journal lines?”, click

Yes.


The program detaches the fixed asset from the incorrect insurance policy and attaches it to the correct insurance policy.

Indexing Insurance When the value of fixed assets is decreased or increased, you have to update the insurance coverage ledger entries to reflect the actual value of fixed assets. You can run the Index Insurance batch job to index the value for insurance that is necessary for fixed assets.

Index Insurances Batch Job

The Index Insurances batch job creates entries in the insurance journal that you can adjust and post.

In the batch job request window, in the Index Figure field, you specify the index. For example, enter a decrease of 10% as 90, and enter an increase of 3% as 103.


Fixed Assets in Microsoft Dynamics® NAV 2013 Demonstration: Indexing Insurance

The value of the company’s cars decreased by 5%. In this demonstration you run the Index Insurance batch job to index the fixed assets with the CAR subclass code.

The Index Insurance batch job is used to update the value of the covered fixed assets.

Demonstration Steps

To index fixed assets, follow these steps:

1. In the navigation pane, click Departments > Financial Management > Fixed Assets > Index Insurance.

2. On the Options FastTab, in the Index Figure field, type “95”. 3. In the Posting Date field, type “01/31/2014”. 4. Do not fill in the Document No. field so that the program uses the

No. Series field of the Insurance Journal batch job when it creates the indexation journal entries.

5. In the Posting Description field, type “Car Value 2014”. 6. On the Fixed Asset FastTab, set a filter to select the fixed assets to be

indexed. Set the FA Subclass Code field to CAR.


Module 5: Fixed Asset Insurance All fixed assets with the FA Subclass Code field on the fixed asset card set to CAR are selected automatically.

FIGURE 5.20: INDEX INSURANCE BATCH JOB REQUEST WINDOW

7. Click OK to run the batch job.


Fixed Assets in Microsoft Dynamics® NAV 2013 The batch job calculates this amount as five percent of the total value insured from the Insurance Statistics window and creates a line in the insurance journal.


FIGURE 5.21: INSURANCE JOURNAL

9. Verify that the batch job created entries correctly, and then click Post to post the insurance coverage ledger changes.

10. When you receive the message “Do you want to post the journal lines?”, click Yes.





In Microsoft Dynamics NAV 2013, you can create insurance policies on the insurance cards, link fixed assets to these insurance policies, and monitor insurance coverage for all insurance policies.

You can link a fixed asset to an insurance policy by posting an acquisition cost with the Insurance No. field filled in on the FA journal, FA G/L journal line, or purchase invoice, depending on whether the depreciation book attached to the fixed asset has integration with the general ledger. Or, you can post an acquisition cost without filling in the Insurance No. field on the journal or purchase line, and then use the insurance journal to post the acquisition cost to the insurance coverage ledger and link the fixed asset to an insurance policy.

You can monitor the insurance coverage by using the Total Value Insured per FA matrix, insurance statistics, and different insurance reports. You should make sure that the company always keeps all information on insurance updated either manually or by using the indexation functionality.


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