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Fixed Asset Determination Rules in D365 for Finance and Operations or Fixed Asset capitalization
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Nov 29, 2024
Fixed Asset Determination Rules in D365 for Finance and Operations or Fixed Asset capitalization
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0:09
foreign
0:54
today uh we are going to discuss about pixel asset capitalization or
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determination rules in the 360 cells so uh actually the concept behind is
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that so for example uh if one of the set you have a set value
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is less than 5000 it's not supposed to create a fixed
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asset if the uh any purchases be exceeds 5000 or equals
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to 5000 uh then it's supposed to create the
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fixed asset in d365. so to do this what
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are the setups required in d365 to achieve this functionality or uh
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feature uh can we will proceed with each
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and every step by step uh procedure and will get the output from the system
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so uh actually uh we need some prerequisites uh before doing this uh
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setup so actually uh these are the prerequisites required procurement
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category is supposed to be there so I am proceeding with a usmf company and in
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the usmf company uh to see the uh what is the procurement category assigned to
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this particular legal entity uh you need to go to
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first of all whether the procurement category is set up down or we need to
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check so to check that procurement category procurement and resources
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the consignment
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under consignment procurement categories over there in the procurement categories
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actually this is the procurement category SN for contesso entertainment
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so to check uh which is the default uh procurement
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category I sent for this legal entity to check that
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um go to product information management
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um in this
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so here you can check procurement category for procurement category
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hierarchy what is the category hierarchy
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assigned for the usmf legal entity so this is one prerequisite required for
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before doing the uh capitalization concept so this is one
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prerequisites and all the uh all the fixed asset
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is supposed to be already uh it's
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we need already has already it's supposed to be set up
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value models in the sense books in day 365 these all the setups has to be set
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up in b365 this is previews results and
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even in the fixed asset parameters uh you need to enable these a particular
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purchase order Fields if you are purchasing from the fixed asset uh
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fix it asset from the purchase order so these three Fields supposed to be
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enabled this is another prerequisites
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then coming to the setup to get the capitalization
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go to the procurement and sourcing setup and the fixed asset uh you have
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organization wide identifier so
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where we need to go procurement and sourcing under procurement and sourcing
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and collapse it let's set up fixed asset
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oh come on
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actually
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yeah organization while fixed asset identifier so I have create I have
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already created uh one of the organization uh wired fixed asset
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identifier which is computer
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and I have a Zen the fixed asset Group which is applicable to the usmf company
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you can Define the fixed asset group for each legal entity whatever uh best run
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your requirement uh like this individual legal entity wise
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uh currently I am proceeding with usmf legal entity so I given compute I have
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created one identifier and for usmf I I
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have taken uh Co MP fixed asset group
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so this is another step
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so next setup is that uh you need to define the business rules for fixed
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asset uh determination uh to do this uh same path you need to go uh procurement
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and sourcing and under setup reset business rules for fixed asset
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once you click on that I have already created one of the uh
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business rule I'll give in the description uh I have
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selected the procurement category I have selected the procurement category office
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Machinery here so you can select any other as well if
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you want to select if you want to add the procurement different procurement
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category for the same same same rules for example vehicle
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expenses I'm adding these as well uh for this particular procurement categories
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these are the organizational wide rule for capitalization so this is another
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step you need to map the procurement category which is which uh this
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particular business rule needs to be applicable so this is another step and once this is
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done and you have the uh business rule
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how much amount uh how much amount you want to
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taking the USD only
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5000 USD currency if my condition is that my business
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requirement is that if I if my expense
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is more than or equal to 5000 of USD
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it's supposed to be capitalized that that means it will create the fixed
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asset so if my experiences for this particular office machinery
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is less than 5000 then it will be it
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will not create any fixed asset that means it will not capitalize the asset
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so this is one thing uh effective date also I have given and expiration never I
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have given organization wired fixed reset identifier which we have created
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pre in the previous step identify your computer I have added here and
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and here uh description I have given it's computer it's a computer and the uh
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the fixed asset group has qualified as if it is as and then it will become
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under the fixer asset group computer then if it is you can add another
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condition if it is no then it will be
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it it will be more go to another uh
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fixed asset group you can add here as well if you want
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but we have created only one identifier uh so one pixel asset group uh so
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then you can create new one here and map it map in the
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map in this place currently a
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okay so uh that is the another step we need to Define uh where uh actually this
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is the main shape where we uh mentioned that how much amount
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of expiration everything will be available
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and let's go uh so this is the setup for this particular uh
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functionality and we'll start testing or testing this
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activity after this whether it our requirement we achieved
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or is there any set of is looking as per our requirement or not
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Let's test it so let me go to accounts payable to create a fixed asset
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sorry to create purchase order
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it's a testing part uh we have done all our setups required for work fixed asset
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capitalization purpose and let's test this setup whatever we
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did till now so let's take the vendor account
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and click ok
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see here I'm selecting the procurement category
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office appliances under office appliances calculator or accessories I
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am giving and
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quantity I have given one
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Unit E so if I take four thousand nine ninety
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nine please look into this particular area
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the line section pixel asset if I select 4999
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see here see this part nothing is there okay
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provide additional information about your fixed asset
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okay additional information is what it's computer
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yes it's computer see automatically new fixed asset and
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fixed asset group
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so if I
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so identifier we selected only one so I'm taking computer automatically so
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once you give the 5000 amount it will ask for uh additional information about
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your fixed asset if I select 4999 and save it
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it's just refresh issue it's went let's select 4000 it is nothing is there
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and take four thousand nine ninety nine
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and save it no asset is creating here
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if I select 5000 and save it it will ask for
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just refreshesion
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let's just refresh issue let's see
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foreign
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let me close this form and reopen it
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it's just I believe it's it's just refreshing thing and my system
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uh it's a bit slow actually
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let me remove the line
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see it's just refresh issue if we give 5000 it will ask for additional
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information if actually that identifier is selected
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so if I select it's a computer automatically it will ask it will create
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new fixed asset and computer is enabled etcet group
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so if we uh let me create new purchase order and compare
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both the purchase orders so that you'll get better picture of the output is
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so now I am going to create one more purchase order with 4999
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for the same vendor
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will compare the output so that will get end to end
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about this particular functionality so I'll take the same things
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but only the amount
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look at the fixed reset tab just save it
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nothing is
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enabled now no fix it as a group nothing else let's
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so I'm just showing you uh both the scenarios when the amount
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is less than 5000 if the amount is less equal to or greater than 5000 how the
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functionality uh will work based on our setups
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so I'll go to another purchaser order as well and I'll confirm this one as
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so instead of waiting till confirmation
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I'm confirming both the purchase orders which is 5001 and 4991
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so it's processing
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so one is confirmed so both are confirmed now
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let's go to
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receive Tab and I'm going to book the product receipt
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say that nothing is there here in the fixed asset tab so let's take
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that amount as a product receipt number four thousand nine ninety nine
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and click same way I'm going to do the product
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receipt for that 5001 a thousand purchase order
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I'll give five thousand here
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so if I go to product receipt entry
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water
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okay uh maybe it will take a few seconds
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so meanwhile I'll post the invoice
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for both the purchase orders
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system bit slow actually
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please bear with me so it's a bit slow in doing uh
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simultaneously
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so this is 5001 hello
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my status so this is done
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post it
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so both I am doing at a time so purchase or the invoicing is happening
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for both the budget zoodles
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okay
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so one is done what is this 499 F4 triple line one is completed
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let's go and check the voucher
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so just not showing
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let me check the
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so watch us not posting right
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why it is not posting go to general journal
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um and uh periodicus is where it is let me
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collapse it
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thank you oh nothing here
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it's just a refreshing thing let's wait yeah see
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so this is uh five thousand invoice one see it went to uh
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what is that so two layers one is uh current and tax
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layer leave it leave the tax layer uh concentrate on the current layer it has
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been posted to the tangible fixed asset debit asset debit and vendor credit this
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is the entry which was posted for the uh five thousand one
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let's go and check for four thousand nine ninety nine
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see it has booked to miscellaneous expenditure so
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what if the amount is less than 5000 it's going to expense account we are not
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capitalizing that amount it's going to the expense and vendor is the credit
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this is our uh um invoice entry
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so if we want to see the product received
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you can see that as well it will be normal entry of
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expense Journal nothing much of the product receipt
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uh okay so I'll show one more thing for
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the uh 5000 purchase order
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so it's supposed to be capitalized so that's why it's created the fixed
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asset of comp so 0 8 is the fixed asset which is
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created after posting this particular purchase order so if I go to the fixed
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research and to the uh to this particular fixed asset I can check the
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books it has been acquired and the status will be uh open status and the
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acquisition value is 5000 so it will create basically if it is more than the
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5000 it will the create the fixed asset if it is less than 5000 it will directly
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go and sit in the expense
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so how uh if you have any other doubt like uh
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invoice so for example if if I go to invoice uh
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for the 5000 purchase order is went and sit in the uh
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fixed asset account uh
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let me show it so that it will be easy so it will post it to 180 one hundred
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two double zero one double double one zero is uh vendor account it will come from the
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vendor posting profiles and 180 100 uh
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it is a tangible fixed asset how uh why it's picked this particular account
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means uh it's it has it is an acquisition Journal
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right it is an acquisition Journal as well as
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the book is slsl and the fixed asset group is that
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um pixel asset group is uh
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come so if I go to uh fixed reset posting
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profiles um
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let's show you from where this particular account is
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faked asset um
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hosting profiles
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slsl 180 100 this is the account right
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so from here it's it has been so another for another voucher
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another entry like four thousand triple line one if I go to invoice it has been
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picked uh purchase expenditure for expense account from where it has been
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come picking uh means uh it is from the
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inventory posting set for the expense
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combination six one eight nine hundred from six one eight nine hundred
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remember it will be Inventory management
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and purchase expenditure for expense
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and six one eight nine hundred this is the
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contact inspecting the combination is all all so category yeah that particular
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category level we don't have any combinations so system is going for all
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all if there is a particular individual category table level uh relation and it
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will pick that particular account so this is the uh
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concept I want to explain in this video so I hope uh everyone understood uh some
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uh end-to-end setup and output and how
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it will work those type of stuff uh for this majorly
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setups or organization wildfix data set identifier and business rules in the business rule
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we will Define all the things like for which procurement category this rule has
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to be applicable and for which identifier and what is the
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amount for capitalization so these all the things are in
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the same form right
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you can test the scenario
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so that's about uh capitalization concept so okay uh we'll come up with a
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new topic in next uh episode or next
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video
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#Physical Asset Management