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Fixed Asset Determination Rules in D365 for Finance and Operations or Fixed Asset capitalization
Nov 29, 2024
Fixed Asset Determination Rules in D365 for Finance and Operations or Fixed Asset capitalization
View Video Transcript
0:09
foreign
0:54
today uh we are going to discuss about pixel asset capitalization or
1:00
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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