Fixed Asset Determination Rules in D365 for Finance and Operations

Posted on: November 30, 2017 | By: Jarrod Kraemer | Microsoft Dynamics AX/365

Authored by: Chris Rusing

In my previous blogs, I have touched on the different module integrations with fixed assets.  However, I have not discussed a great feature called fixed asset determination rules.  These rules combine the functionality of procurement and sourcing, product information management and fixed assets to allow users to automatically create fixed assets from purchase orders when selecting a procurement category.  The determination rules take the guess work out of the users hands to ensure that these assets are properly recorded in your system.

I am using the Contoso demo data, but you may need to complete some setup prior to following these steps below.  You must have procurement categories and their hierarchy setup (in the procurement and sourcing module and the product information management module).  Obviously, you need the fixed asset module completely setup (groups, value models, posting, number sequences, etc.).  Specifically, in the fixed asset parameters section- purchase orders tab; change the setting to Yes for ‘Allow asset acquisition from Purchasing’, ‘Create asset during product receipt or invoice posting’, and ‘Check for fixed assets creation during line entry’.  Once that is complete, let’s get started with these steps below.

 

1.      First go to Procurement and sourcing> Setup> Fixed assets> Organization-wide fixed asset identifiers.  I’ve created two identifiers for the legal entity USMF, one for Computers and one for Machines.  I’ve tied these identifiers to the fixed asset groups COMP and MACH respectively.

 

2.      Next, we will go to Procurement and sourcing> Setup> Fixed assets> Business rules for fixed asset determination to setup how the procurement categories will be utilized to creating a new fixed asset.  As you can see below, I’ve created a new business rule for office machine purchases.  I’ve selected the procurement category ‘OFFICE MACHINES’ for my fixed asset determination.

 

3.      Let’s move to the next section: Organization-wide rule.  This section will create rules for the entire system.  If you want the rules to be legal entity specific, then go to the next section, Legal entity-specific rule, for a similar setup.  I’ve added a capitalization threshold of $1,000, USD currency, and an effective date of 1/1/15.  At the bottom of the form I have selected my previously created MACH organization-wide fixed asset identifier as the default.


 

4.      You may have noticed that I have selected Yes to the ‘Has qualifiers?’ setting.  This will allow me to prompt the user to determine if the asset will be part of the computers or machines fixed asset group.  If the user selects the Yes option then it will automatically be placed in the COMP fixed asset group.  If the user selects the No option then the asset will be placed in the MACH fixed asset group.

 

5.      Now, I’m going to create a purchase order and select a procurement category under the umbrella category ‘OFFICE MACHINES’.

 

6.      Once I enter the price of the photocopier (over the $1k capitalization threshold) the system has identified this as a fixed asset.  Also, please note that because I included a qualifier in my setup, I must provide additional information.  Under the Line details fast tab and the Fixed assets tab, there is a drop-down box for me to select from.

 

7.      Once, I determine that this is not a computer, the correct Fixed asset group is automatically applied and will create a new fixed asset record.  You can continue with your normal PO processing to eventually capitalize your fixed asset.

 

I hope that this blog has been beneficial for users looking to integrate their purchase order functionality with fixed assets.  As always, try this out in your test environment prior to moving to production!  For additional information please feel free to reach out to us at info@loganconsulting.com or (312) 345-8817. 

All the best!
Logan Consulting
www.loganconsulting.com



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