Finance Demo Script Fixed Assets

MICROSOFT DYNAMICS AX 2012
R2:
FIXED ASSETS
December 2012
Version 1.0
Contents
Introduction......................................................................................... 3
Audience.............................................................................................. 3
Problems this Demo Addresses............................................................4
Key Benefits and Solutions...................................................................4
Overview.............................................................................................. 5
DEMO 1: Create Fixed Asset with Value Models..................................7
DEMO 2: Fixed Asset Acquisition.......................................................13
Fixed Assets Acqusition Using Proposal in the Fixed AssetS Journal.................................................13
Acquire Fixed Asset from Purchasing................................................................................................16
Record Acquisitions in the Inventory to Fixed Assets Journal...........................................................19
DEMO 3: Fixed Asset Depreciation....................................................19

Using Proposals in the Fixed Assets Journal to Record Depreciation................................................19
Using Proposals in the Depreciation Book Journal to Record Depreciation.......................................21
DEMO 4: Fixed Assets Disposal.........................................................22

Register Disposal Sales Using Free Text Invoice...............................................................................23
Provision for Reserve........................................................................................................................25
DEMO 5: Fixed Asset Reports............................................................26

OPTIONAL DEMO 6: Fixed Assets module Setup.............................30
Depreciation Profiles.........................................................................................................................30
Depreciation Books...........................................................................................................................32
Value Models.....................................................................................................................................34
Major Types.......................................................................................................................................37
Fixed Asset Group.............................................................................................................................37
Posting Profile...................................................................................................................................41
Setting up Disposal...........................................................................................................................43
Disclaimer.........................................................................................................................................46
Microsoft Dynamics AX 2012 R2: Fixed Assets
INTRODUCTION
This document examines The Microsoft Dynamics AX 2012 R2 fixed assets module, which enables
the ability to easily setup, maintain, and track the valuation of your fixed assets. You can track
multiple valuations for the same fixed asset by using different depreciation methods and
conventions.
Support has been provided to add fixed assets to the system in multiple ways. These include adding
the fixed asset when recording a vendor invoice and through journal entry in the fixed assets,
accounts payable and general ledger modules. Parameters around acquisitions, valuation, and other
business policy rules can be defined at the module level and for each value model.
Depreciation proposals can be run for each depreciation frequency, providing for fast and accurate
depreciation journal entry creation. Additionally, workflow and budget controls can be enabled to
guarantee accuracy and control of the processes.
Throughout the processes, a complete history is maintained. This includes an accurate,
comprehensive audit trail between the fixed assets transactions and their corresponding general
ledger entries. Reports, such as fixed asset transactions and fixed asset balances, can be
generated, and up-to-date inquiries can be performed to track your fixed assets activities.
AUDIENCE
The demonstration in this document should be used to show the value of Microsoft Dynamics AX
2012 R2 fixed assets to a business decision maker (BDM) and accounting personas. The following
role examples represent key decision makers, selection process personnel and influencers, and
evaluators:
Accounting Manager (Phyllis)
Phyllis manages the accounting department by processing general ledger transactions, reviewing
and approving transactions, and reviewing aging reports. She also makes sure that her team
accurately completes financial procedures on time.
Accountant (Cassie)
Cassie either does the books (for a small business), or audits the books (for any size company). In
an internal role as an employee, Cassie handles accounting duties in a complex finance
department.
Accounts Payable Coordinator (April)
April receives vendors invoices for company fixed assets and posts acquisition transactions from
purchasing.
PROBLEMS THIS DEMO ADDRESSES

This script focuses on the fixed assets accounting life cycle in a company. There is
demonstrated flexibility of fixed assets acquisition and maintaining value until their disposal.
This script focuses on the following processes:
Fixed
Fixed
Fixed
Fixed
Fixed
asset
asset
asset
asset
asset
setup
acquisition
depreciation
disposal
reporting
KEY BENEFITS AND SOLUTIONS

FLEXIBLE CONFIGURATION OPTIONS FOR SETUP AND MAINTENANCE OF FIXED ASSETS
Fixed assets can be set up to track non-transactional data about the asset. Flexible setup includes
the ability to define the following types of information:
Basic fixed asset details, such as location, type, major type, property type and property group,
and user-defined reference data and notes.
Technical information about the fixed asset, such as the make, model, and maintenance dates
and condition.
Insurance information for the fixed asset, such as the insurance vendor, policy number and
amount, the insured value, and the replacement cost.
You can group fixed assets to categorize information in a meaningful way.
Accounting information, such as default financial dimensions, can be assigned to fixed assets
value models.
MULTIPLE VALUATION TRACKING FOR THE SAME FIXED ASSET

Fixed assets enables the tracking of multiple valuations for the same fixed asset. This can be done
by setting up the fixed asset in one or more of the following ways:
Associating the fixed asset to multiple value models where the value model determines the
depreciation method, convention, and posting layer.
Associating the fixed asset to multiple depreciation books where the association determines the
depreciation method and convention, but does not integrate into the general ledger.
RECORDING FIXED ASSET ACQUISITIONS AND VALUATION ACTIVITY

Microsoft Dynamics AX 2012 R2 supports different ways to record acquisitions of fixed assets. You
can record the acquisition of a fixed asset when recording a vendor invoice, vendor invoice journal,
general journal, or in a fixed asset journal. Depreciation proposals can be generated for each
depreciation period in a fixed asset journal. Additional valuations, such as adjustments and
revaluations, can be recorded in the fixed asset journal.
Microsoft Dynamics AX 2012 R2 supports the following fixed assets business requirements for
acquisition and valuation activities:
Record fixed asset acquisition amounts through vendor invoices or vendor invoice journals.
Record fixed asset acquisition amounts through general journals or fixed asset journals.
Generate and edit depreciation proposals based on depreciation method, convention, and
frequency.
Record adjustments to the acquisition costs of the asset.
Record adjustments to the depreciation of an asset.
Record additional valuation adjustments to an asset, such as write ups, write downs and
revaluations.
Transfer an asset from one financial dimension to another, such as one department to another
department.
Split an asset to another asset.
Record additional activity to an asset that does not affect valuation or service life.
Record the disposal of an asset by sale or scrap. This includes any realized gain or loss from the
disposal of the asset.
REPORTING AND INQUIRIES

Various reports and inquiries are available to provide required information about your fixed assets.
Fixed asset transaction inquiries

Fixed asset movement reports which provide information around the various valuation
movement of an asset over time
Fixed asset balance reports
Fixed asset book compare report which provides a comparison between two books; or value
models and depreciation books
Fixed asset statement report
FLEXIBLE FORECASTING
You can record the forecast of your fixed asset acquisitions and depreciations in a fixed asset
budget journal entry. The fixed asset budget journal entry can also update the ledger budget
register. An inquiry and a report are available to view the fixed asset budget entries
DEMO PRESET CONFIGURATION:

This script was written to work with the Microsoft Dynamics AX 2012 R2 RTM Virtual Machine
(VM), released in December 2012. Make sure that the VM is up and running and that you
have logged on. The script addresses key pain points and challenges that different roles
might face. However the demo can be completed as the system administrator.
Domain: CONTOSO
User: Administrator
Password: pass@word1
OVERVIEW
This demo introduces the basic steps required to configure, maintain and retire Fixed Assets
in Microsoft Dynamics AX 2012 R2. The following diagram provides an overview of the major
concepts covered AX 2012 R2 fixed asset module functionality.
This Demo script introduces you to key features that are available to users of the Fixed Assets
module in AX 2012 R2.
DEMO 1: CREATE FIXED ASSET WITH VALUE MODELS

To set up a fixed asset, follow these
steps:
1. On the navigation pane, click

Fixed assets, Common, Fixed
assets, and then click Fixed
assets.
2. Click the Fixed asset button to

create a new fixed asset.
3. In the Fixed asset group field,

select the Fixed asset group:
FURN_FIX.
4. Type name of the Fixed Asset:

Documents Case
Depending on the setups completed in a company, various information can auto-populate
based on Fixed asset group setup as follows here:
Fixed asset number is assigned when Auto numbering is activated from either the Fixed
asset group or Parameters in Fixed assets. Type, Major type, Property type, Value
model, Depreciation books
5. Set up, if necessary, additional
attributes of the Fixed Asset in the
following FastTabs: Technical
Information, Insurance, Location
6. Click the Value Models button on
the Action Pane.
In the Status field on the asset's Value models form, the field at first uses a value of Not
yet acquired. The other statuses are assigned manually or automatically as follows:
Open - Set when an asset is acquired.
Suspended - Assigned manually. This status is used for periodic suspension of depreciation
calculation.
Closed - Assigned to depreciable assets when the net book value becomes zero.
Sold - Assigned to assets disposed of by sale.
Scrapped - Assigned to assets disposed of as scrap through a journal.
The selections made in definition of Fixed Asset Group resulted automatic assignment of
the Value models. Value models determine what financial information is recorded and
stored for a fixed asset.
In order to demonstrate the concept of Value models, close currently opened Value models,
relevant for newly being set up Fixed Asset, and move to a Fixed Asset FURN_FIX-000008
available in sample data and open its Value models.
7. On Fixed Asset number

FURN_FIX-000008 click button
Value Models, and after that,
Transactions. In the current form,
the transactions relevant for the
selected fixed asset in context with
the specified value model are
displayed.
8. On the transaction list, select the

first record (acquisition). Select the
Voucher button to show the journal
entries posted to General Ledger
related to the acquisition transaction
for the specific fixed asset.
9. Close Voucher transaction and
Fixed Asset transactions forms.
Demonstrate additional capabilities

of Value models. Present summary
amounts of transactions posted in
Value model.
10. In Value models form select first
Value model 150_SLLR. From
buttons menu select Inquiry and
Balances menu.
11. Present Fixed Asset transactions
balances in breakdown specific to
transaction type.
12. Close Fixed Asset Balances
and Value models forms
13. Move back to newly created

Fixed Asset Documents Case press
button Value models.
14. Select Value model 150_SLLR
15. In tab General fill information in
fields:
Acquisition date: 1/1/2013
Acquisition price: 165,000
Acquisition method: PURCHASE
Meaning of all fields on the General tab:
Acquisition date field, specify a date that will be used for the Acquisition proposal in the
Fixed asset journal and General journal. The default date will be the date when the fixed
asset record is entered in the Fixed assets form. Change the date, if it is necessary. When
an acquisition is posted, the acquisition date is updated with the date of the actual
acquisition.
Acquisition price field, specify an amount that will be used for Acquisition proposal in the
Fixed Assets journal and General journal. Only fixed assets that are set up with an
acquisition price are available in the acquisition proposal. The acquisition price is updated
every time that an acquisition or an acquisition adjustment is posted for the fixed asset/value
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model.
In the Acquisition method field, select how the fixed asset is acquired. Acquisition methods
define the ways assets are obtained, such as through purchases or donations, and can be
entered into the Fixed asset value models form or the Asset depreciation book form.
In the Issue field group, the following applies:
o The Disposal date field shows the date when the fixed asset is sold or scrapped.
o The Sales value field shows the selling price of the fixed asset. The field is updated
when the fixed asset is sold.
o In the Replacement date field, enter the date planned to replace the fixed asset. The
default date is the acquisition date plus the service life.
In the Provisions field group, in the Type field, click the arrow to make a selection. This
setup starts the functionality of reserves for profit on assets.
16. Review the Depreciation tab.

Majority of data in fields has been
defaulted from definition of Fixed
asset group (refer to optional demo
about setting up Fixed asset
module).
Explain the meaning of the fields on the Depreciation tab:

o
o
o
In the Depreciation field, the check box is selected based on the Value model setup. The
check box can be cleared or selected manually. Clearing the check box is useful if the asset
has not yet been put in service and a company wants to guarantee that depreciation is not
calculated.
In the Depreciation run date field, the field displays the expected starting date for the first
depreciation calculation. This date defaults based on the placedin-service date and selected
depreciation convention. No depreciation can be calculated and posted before the placed
in service date. Therefore, if the depreciation is set up to start before the placed in service
date, the first depreciation calculated after the placed in service date will also include the
depreciation before the placed in service date.
In the Service life field, the remaining life of the asset is displayed in years.
In the Expected scrap value field, enter the expected value below which Fixed Asset will
not be depreciated.
Selected option Create depreciation adjustments with basis adjustments means that if
there is an acquisition adjustment posted after depreciation run, deprecation adjustments will
be posted also.
Depreciation convention determines depreciation run date and is based on predefined

conventions (setup in Value model definition). These are as follows: Half year, Full month, Mid
quarter, Mid-month (1st of month), Mid-month (15th of month) Half year (start of year), Half
year (next year).
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Additional information
Purchase/Sale tab Displays
information about the purchase or
sale of the asset. The fields here are
system populated.
Vendor account The vendor
account number is updated
automatically when a fixed asset is
acquired by using Vendor invoices.
Purchase order The identification
number of the purchase order.
Invoice The identification number
of the vendor invoice.
Customer account The customer
account is updated automatically
when a fixed asset is disposed of
externally by using a free text
invoice.
Invoice Identification of the free
text invoice.
17. Open Financial Dimensions
tab, and then set Default financial
dimension BusinessUnit to 002
Auto.
The value models associated with the selected fixed asset, and also many of the fields of the
value model, are automatically populated based on the value models set up for the selected
Fixed asset group. These suggested value models can be used, or a user can select different
value models:
If a company only records asset transactions for accounting purposes; one value model will
typically be sufficient.
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If tax transactions are also recorded, an additional value model must be available; typically
one that uses the tax posting layer.
18. Click the Overview tab, and

then select second value model
T_150_SLLR. The reason for having
second value model is depreciation
calculation for tax purpose. On the
General tab, notice that Posting
layer is set to Tax.
19. Enter the information in the
following fields:
Acquisition date: 1/1/2013
Acquisition price: 165,000
Acquisition method: PURCHASE
Click the Depreciation tab, and
then review the information and
validate the defaulted data (like in
step 16).
20. Repeat step 17 and enter
dimensions for this Value model.
21. Close the Value model and
Fixed Asset forms.
End of Demo Scenario 1
DEMO 2: FIXED ASSET ACQUISITION

FIXED ASSETS ACQUSITION USING PROPOSAL IN THE FIXED ASSETS
JOURNAL
Fixed asset acquisitions can be created by using the Proposals functionality in the Fixed Assets
journal. To generate a Proposal, fixed assets must be set up with the expected acquisition price
already entered.
Before recording the acquisition, the fixed asset should be created (Ref Demo 1). To use Proposals
to record the acquisition of assets, perform the following steps.
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1. On the Navigation Pane, click Fixed

assets, click Journals, and then
click Fixed assets.
2. Click the New button to create a new
journal.
3. In the Name field, click the arrow to
select FACurr. Fixed Assets journal
for posting in current layer.
4. Click the Lines button.
5. Click the Proposals button, and
then click Acquisition proposal.
6. Click the Select button.
7. In the Criteria column, for the Fixed
asset number, select the new asset
Document Case.
8. Click OK twice.
9. Note the line suggested with the
item and
the price.
10.Click
the Post
button, and then click
Post in the asset journal.
11.On the Infolog form, click Close.
12.Close all the forms. Fixed Asset
FUNR_FIX-000010 has been
acquired.
14
13.Navigate to the Fixed Assets card,

select the newly acquired fixed asset
FUNR_FIX-000010, and then open
Value Models.
14.Select Value model T_150_SLLR,

and then click Transactions. Unless
Acquisition has been posted in the
journal for Value model 150_SLLR
Value model T_150_SLLR derived
acquisition transaction form it.
16.On the 150_SLLR Value model, click
View details.
17.In open Value models setup form
with selected value model
150_SLLR, expand the Derived
Value models FastTab.
18.Present the setup of the derived

transactions by related value models
to the 150_SLLR.
15
ACQUIRE FIXED ASSET FROM PURCHASING
You can present the following information about options to acquire fixed assets from the Accounts
Payable module.
As shown in the following screen shot, you can enable an option in Fixed Asset parameters that
allows fixed assets to be acquired from purchase orders.
Fixed assets can be acquired from the level of purchase order. An acquisition transaction is posted
after a vendor invoice is posted. After you select a purchase order/invoice option, you can create a
fixed asset in the Line details section of the Fixed Asset tab by selecting the New fixed asset?
check box, as shown in the following screen shot.
In following scenario, before recording the acquisition, the new fixed asset should be created
(prepare for this option executing Demo 1 and create a new fixed asset in the fixed asset group
COMP).
To record an asset acquisition by using the Vendor Invoice journal, perform the following steps.
16
19.On the Navigation Pane, click

Accounts payable, click Common,
click Vendor invoices, and then
click Open vendor invoices.
20.Click Invoice, and then click Vendor
Invoice. This initiates a new record
for a vendor invoice.
21.In the Invoice account box, click
US-104.
22.Under Invoice Identification, in the
Number box, type INV-1001, and in
the Invoice Description box, type
Purchase of Computer Desk
Fixed Asset.
23. Under Invoice Dates, in the
Posting date box, enter or select

24.Under Invoice Lines, click Add line.
25.In the Procurement category, under
Office Machines and Their
Supplies and Accessories, click
Computers (New category).
26.Under Quantity, enter 1.

27.Under Unit Price, center 4500 to
correspond with Acquisition price of
Fixed Asset.
17
28.In Line details, click the Fixed

Asset.
29.In the Fixed asset number dropdown list box, click the newly created
fixed asset computer (in this case,
COMP-000007).
30.Click the Post button twice. After

this, the invoice has been posted and
the fixed asset has been acquired.
31.In Fixed Assets, in the Fixed Asset
box, click Computer, and open its
Value models. Click the General
tab, and then notice that the
Acquisition date box and the
Acquisition price box are
populated with the values from the
posted vendor invoice.
32.Click the Purchase/Sale tab, and
then notice that there is information
regarding the posted vendor invoice
in the Vendor account box and the
Invoice box.
33.Close all forms.
18
RECORD ACQUISITIONS IN THE INVENTORY TO FIXED ASSETS JOURNAL

Another acquisition option available in Microsoft Dynamics AX is acquisition from inventory. The
Inventory to Fixed Assets journal is used to record acquisition of assets that are assembled by the
company, usually by using inventory items. This journal works like other inventory journals, with the
addition of the following fields:
Fixed asset number

Value model
Transaction type
When the Inventory to Fixed Assets journal is posted, one or more inventory items are taken from
inventory and transformed into a fixed asset.
Note: To set up the Inventory to Fixed Assets journal, click Inventory and warehouse
management > Setup > Journals > Journal names, inventory. In the Journal type field, enter
Fixed assets.
DEMO 3: FIXED ASSET DEPRECIATION

USING PROPOSALS IN THE FIXED ASSETS JOURNAL TO RECORD
DEPRECIATION
To use Proposals in the Fixed Assets journal
to record the depreciation of assets,
perform the following steps.

click Fixed assets.
journal.
19

then click Depreciation proposal.
5. In the To date field, enter the ending
date of the period for which you want
to create depreciation proposal lines;
in this case, enter 1/31/2013.
6. On the Asset Proposal and
Depreciation proposal forms, click
OK.
Note: To summarize monthly depreciations into one journal line, on the Depreciation
proposal form, you can select the Summarize depreciation check box. For example, if the
To date is December 31, 2013, and there is no depreciation posted since July 1, 2013, the
amounts for all depreciation from July through December are summarized on one journal
line, and the Date field on the proposed journal lines is then set to December 31, 2013.
7. Review the suggested entries of all

Fixed Assets depreciation proposal
for the first month of year 2013.
8. Click the Post button, and then click
Post.
9. On the Infolog form, click Close.
10.Close all the forms.
Note: These steps for Depreciation posting
should be performed for each Value model
and for all posting layers. This is not
recommended to derive depreciation
transactions from other Value models.
Note: Posting from the Fixed Assets Journal results in posting transactions to General Ledger
Accounts.
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USING PROPOSALS IN THE DEPRECIATION BOOK JOURNAL TO RECORD

DEPRECIATION
To use proposals in the Depreciation book
journal to record the depreciation of assets,

click Depreciation book journal.
journal.

then click Depreciation proposal.
5. In the To date field, enter the ending
date of the period for which you want
to create depreciation proposal lines;
in this case, enter 12/31/2013.
6. Click Summarize depreciation.
7. Click the Select button to specify
criteria. In the Criteria column, in
the row with Fixed asset group in
the Field column, select
BUILDINGS.
8. In the Criteria column, in the row
with Depreciation book in the
Field column, enter FED.
9. Click OK on the
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10.Review the suggested entry.

Summarized depreciation
from1/31/2013 has been calculated
for each Fixed Asset from filtering
criteria.
11.Click the Post button, and then click

Post.
12.On the Infolog form, click Close.
Note: Proposals are used to record depreciation. In addition to registering depreciation manually by
using the Fixed assets journal or Depreciation book journal, proposals can also be created within
these journals for depreciation, consumption depreciation, extraordinary depreciation, and bonus
depreciation (Depreciation book journal only).
Depreciation proposals consider only fixed assets that are depreciable with the status of Open.
Depreciation proposals calculate depreciation for depreciation periods in which the depreciation has
not yet posted.
Depreciations for assets that have not yet been acquired or for projected depreciations can be
created by using Proposals and specifying a Posting date in the future.
DEMO 4: FIXED ASSETS DISPOSAL

When an asset is sold, a company has to adjust their balance sheet to reflect the sale. You can do
this manually, or you can set up a posting profile to automatically reverse the transactions. If a
company selects to set up accounts for automatic reversal, accounts can be set up separately for
assets that are scrapped and those that are sold.
22
REGISTER DISPOSAL SALES USING FREE TEXT INVOICE

To register the disposal of assets by sales
using the free text invoice, perform the
following steps.
1. On the Navigation Pane, click
Accounts receivable, click
Common, click Free text invoices,
and then click All Free text
invoices.
2. Click the Free text invoice button
to create a new invoice.
3. In the Customer account field,
select the customer US-003 to
whom this asset is being sold. Set
Date to 12/31/2013, Sales Tax
group to NY, Item Sales Tax
group to ALL, Quantity to 1, and
Amount to 2100.
4.
In the Description field, enter a

description of Sales of Computer
for the asset or the disposal.
5. Click the Line details FastTab. On
Note: When recording a disposal, it is not required to indicate the ledger Main account number
when the Fixed Asset setup for disposal is completed in the Posting profile.
6. Click Post, and then click OK to post
the invoice.
23
7. Check the status of Value models in

Fixed Asset COMP-00004. The
status is Sold.
Note: As explained in Demo 2, step 16, due

to relation of derived Value models and
Disposal transaction, Status of the Value
model T_150_SLLR has also been set to
Sold.
8. On the Purchase/Sale tab, under
Sales account, check the values in
the Customer account and Invoice
fields.
9. On the Fixed asset balances form

for the selected fixed asset, review
Inquiry \ Balances with summary
of all transactions.
10. Close all forms.
Note: Disposal sales and disposal scrap can be posted using the Fixed Assets journal.
Disposal scrap is considered an internal transaction, only journals are used to post disposal scrap.
Free text invoicing cannot be used.
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PROVISION FOR RESERVE

After posting an asset disposal transaction, Microsoft Dynamics AX 2012 R2 determines whether the
asset is set up for provision functionality. If the asset is set up with provisional functionality,
Microsoft Dynamics AX 2012 R2 verifies whether the requirement setup for the Provision type is
met. This means the asset is owned by the company at least as long as the length of ownership
required.
If this requirement is met, the profit on the sale of this asset is posted on the account for
Provision for reserve according to the setup of the posting profile. Therefore, because of the
checks performed by the system, Provision for reserve is not to be posted manually. Refer to
the Setup Procedures content for more information.
Transfer from reserve is an asset transaction. This can be created by using the Proposals
functionality. This process is identical to the process described for using proposals for acquisitions,
except that the proposal type is Revenue recognition of reserves.
This transaction reverses the Provision for reserve transaction. Depending on the age of the
reserve, the Account field might have to be filled in manually. This is the case if the reserve can
still be used against an acquisition of a new asset. If the reserve is too old according to the setup of
the Provision type, the account for revenue recognition of reserves that are not transferred will be
suggested by the system.
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DEMO 5: FIXED ASSET REPORTS

Fixed assets transactions
To run this report, click Fixed assets > Reports > Transactions > Fixed asset transactions.
Select the parameters shown in the following screen shot.
As shown in the following screen shot, this report displays fixed assets transactions with a date,
voucher number, transaction types, and amounts. It also provides summary information about
acquisition amount and the current net book value of fixed assets.
26
Fixed asset movement

To run this report, click Fixed assets > Reports > Transactions > Fixed asset movements.
Select the parameters shown in the following screen shot.
As shown in the following screen shot, this report displays a list of fixed assets movements on
different transaction types during the selected time period.
27
Fixed asset balances

To run this report, click Fixed assets > Reports > Transactions > Periodic > Fixed
asset balances. Select the parameters shown in the following screen shot.
As shown in the following screen shot, the report displays fixed assets balances with amounts per
each transaction type.
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Fixed asset book compare

To run this report, click Fixed assets > Reports > Transactions > Periodic > Fixed asset book
compare. Select the parameters shown in the following screen shot.
As shown in the following screen shot, this report displays a comparison of selected depreciation
books with Cost basis, Year to date depreciation, accumulated depreciation, and net book value for
each asset.
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OPTIONAL DEMO 6: FIXED ASSETS MODULE SETUP

Most of the basic setup steps in this section
are accessed by clicking Fixed assets, and
then clicking Setup. The sequence of setup
steps used in this section, although
optional to follow, serves as a practical
suggestion for efficiency. The following
steps are standard:
1.
2.
3.
4.
5.
6.
Depreciation profiles
Fiscal calendar
Depreciation books
Value models
Fixed asset groups
Posting profiles
DEPRECIATION PROFILES
Depreciation profiles are used to define rules for calculating depreciation. Creating profiles is
required for depreciable assets. This usually refers to tangible assets, but intangible assets can also
use depreciation profiles. Financial assets, such as shares of stocks or bonds, are considered nondepreciable. Therefore, depreciation profiles are not required for these assets. The following
methods are available for depreciation calculation:
Straight line service life

Reducing balance
Manual
Factor
Consumption
Straight line life remaining
200% reducing balance
Note: The preceding list of depreciation methods does not include country-specific extensions.
30
For various assets with their specific

depreciation requirements, a separate
depreciation profile with specific
depreciation method can be created. For
the purpose of demonstration, there should
be at least two depreciation profiles
created. To set up a depreciation profile,
assets, click Setup, click
Depreciation, and then click
Depreciation profiles.
2. Click the New button to create a
new depreciation profile.
3. In the Depreciation profile field,
enter text to uniquely identify the
profile: 200%.
4. In the Name field, enter a name that
describes the profile: 200%
reducing balance.
5. In the Method field, select a
depreciation method: 200%
reducing balance.
6. In the Depreciation year field,
select: Calendar.
7. In Period frequency field, select:
Monthly.
8. Repeat the preceding steps to create
another depreciation profiles for
straight line life remaining
depreciation method identified as
31
DEPRECIATION BOOKS
To set up a Depreciation book, perform the
following steps.
assets, click Setup, click
Depreciation, and then click
Depreciation books.
new depreciation book.
3. In the Depreciation book field,

enter a code to identify the
depreciation book: FED.
4. In the Description field, enter text
that describes the depreciation book:
Federal tax.
5. In the Depreciation field, select the
check box to calculate depreciation.
select the depreciation profile for this
depreciation book: 200%.
7. In the Alternative depreciation
profile field, select a depreciation
profile, if it is necessary. The
alternative depreciation profile is
used when two depreciation methods
are combined (through statutory
regulations) and a company can post
the highest depreciation. For purpose
of this demo, select SL_REMAIN.
32
8. In the Calendar field, select the

calendar for this depreciation book.
The following advantages are gained
by linking the Depreciation book to
its own calendar:
Until the periods are closed for a

specific Depreciation book, the
depreciation can be rerun as many
times as necessary. This is useful if
the wrong depreciation convention is
applied to the assets.
The existing depreciation amounts
for the period being rerun are
deleted.
9. Select the Allow net book value

higher than the acquisition costs
check box so that the net book value
for an asset can exceed the
acquisition costs for the asset.
10.Select the Create depreciation

adjustments with basis
adjustments check box to
automatically generate depreciation
adjustments when the basis of the
asset is adjusted with another
adjustment type entry.
11.You can set up an additional
Depreciation book named STATE for
a state tax purpose, which can be
based on only the SL_REMAIN
depreciation profile.
33
VALUE MODELS
Value models are necessary for fixed assets. Value models have the following characteristics:
They contain and connect all financial information about fixed assets.
They achieve complete setup of depreciation for an asset.
Each value model assigns an additional life cycle to the asset.
Each asset can have an unlimited number of value models attached.
To set up a value model, perform the

following steps.
assets, click Setup, and then click
Value models.
2. Click the New button to add a new
line.
3. In the Value model field, enter a
name to identify the value model:
150%_SLLR.
that gives more information about
the value model: 150% RB switch
to SLLR.
5. Select the Depreciation check box
if assets with this value model are
depreciable.
select a Depreciation profile for the
value model: 150%.
7. In the Alternative depreciation
profile field, select an alternative
depreciation profile for the value
model. The alternative depreciation
profile is used when two depreciation
methods are combined (through
statutory regulations) and a
company can post the highest
depreciation. For the purpose of this
demo, select SL_REMAIN.
34
8. In the Posting layer field, click the

arrow to select the posting level. For
Fixed asset transactions: Current.
9. Select the Create depreciation
adjustments with basis
adjustments check box to
automatically generate depreciation
adjustments when the basis of the
asset is adjusted with another
adjustment type entry.
10.Repeat steps 210 for a similar setup
of a Value model identified as
T_150_SLLR being a combination of
150 percent and SLLR depreciation
profiles but with the Posting layer
set to Tax.
11. Return to the setup of the
150%_SLLR Value model.
35
14.Click the Derived value models

FastTab.
15.In the Value model field, select the
value model T_150_SLLR to copy
asset transactions from one value
model to a different value model.
This is useful when an asset is set up
with one value model for accounting
and a different one for tax purposes.
16.In the Transaction type field, select
a Transaction type for the derived
value model for instance:
Acquisition, Acquisition
adjustment, Disposal - sale, or
Disposal - scrap.
17.Click the Derived depreciation
books FastTab.
18.In the Depreciation book field,
select Depreciation books FED and
STATE to copy asset transactions
from one depreciation book to
another depreciation book. This is
useful when an asset is set up with
one depreciation book for accounting
and a different one for tax purposes.
19.In the Transaction type field, click
the arrow to select a Transaction
type for the depreciation book for
instance: Acquisition, Acquisition
adjustment, Disposal - sale, or
Disposal - scrap.
Note: It is not recommended to set
the derived transaction type for
depreciation because it is just a copy
of the amount and not a calculation.
36
MAJOR TYPES
Several fields are available on the General
FastTab of the Fixed asset groups form
that can be used to better classify the
asset, especially for reporting. The Major
type field requires some setup.
To create a Major type, perform the
following steps.
1. Click Fixed assets, click Setup, and
then click Major types.
new record.
3. Enter a unique identifier in the
Major type field: OFFICE.
4. In the Description field, enter a
short description for the Major type:
Office equipment.
FIXED ASSET GROUP

There are many reasons for setting up fixed asset groups, including:
To simplify the setup of assets.

To help inquiries, reporting, and setting up posting profiles.
To create a template with default information that is copied to a new asset when the
company acquires a similar asset.
37
To set up a fixed asset group, perform the

following steps.

Fixed asset groups.
2. Click the New button to add a line.
3. In the Fixed asset group field,
enter a code to identify the fixed
asset group: FURN_FIX.
4. In the Name field, enter a name for
the Fixed asset group: Furniture
and Fixtures.
5. In the Type field, click the arrow to
select a type to assign to the Fixed
asset group. The following choices
are available:
Tangible
Intangible
Financial
Land and buildings
Goodwill
Other
For the purpose of the demo
setup, click Tangible.
6. In the Major type field, select a toplevel asset classification for reporting
only; select: OFFICE.
7. In the Autonumber Fixed assets
field, select the check box to indicate
that Microsoft Dynamics AX 2012 R2
creates the numbers for the items.
8. In the Number sequence code
field, select the number sequence
code to use when assets are auto
numbered.
9. In the Autonumber bar codes and
Bar code number sequence fields,
make selections for bar codes the
same way as for numbers.
38
10.In the Property type field, select

the type for fixed assets with the
group:
Fixed asset Regular assets, to be
processed usually.
Continuing property Property
that exists for inventory purposes
only. For example, telephones,
radios, or mobile devices that fall
below the capitalization threshold.
Typically, enter a service life of zero
(0) for continuing property assets
from the valuation report that
reconciles with the general ledger.
Other Intangible assets that must
display separately on the balance
sheet. This field is used only for
reports or searches.
11.In the Location field, select a
location for fixed assets within the
group. The available locations are set
up in the Fixed asset location form
at Fixed assets > Setup > Fixed
assets locations.
12.In the GIS layer ID field, identify the
default Geographic Information
System (GIS) layer for fixed assets
within the group. A layer represents
the type of data being viewed, such
as street or water. A GIS database is
a third-party application.
39
13.In the Replacement cost factor

field, enter the percentage to
increase or decrease the
replacement cost of the fixed asset.
For example, if it costs 3.5 percent
more this year to replace assets in
this group, enter 3.5. The factor
entered is only used if the
replacement cost of a fixed asset is
updated by using the Update
replacement costs and insured
values form.
14.In the Insured value factor field,
enter the percentage to increase or
decrease the insured value of the
fixed asset. For example, enter 1.5
for 1.5 percent. The factor entered is
only used if the insured value of a
fixed asset is updated by using the
Update replacement costs and
insured values form.
40
POSTING PROFILE
Fixed asset posting profiles.
3. In the Posting profile field, enter a

brief code to identify the Posting
profile: ALL.
to better identify the Posting profile:
FA General Posting Profile.
5. The entries made on the right side of
this form work together with the
option button selected on the left
side of the form for the type of
transaction. Therefore, first select
each option button, and then click
the Add button to make entries on
the Value model line.
6. In the Value model field, click the
arrow to select the value model. In
the Groupings field, for general
demo purposes, type ALL to indicate
the setup is used for all assets,
unless defined in another line.
7. In the Fixed asset number field,
you may select the number to assign
to the line. Leave it blank for demo
purposes.
41
8. In the Main account field, click the

arrow to select the account from the
chart of accounts to use for entries.
The Main account is typically an
account in the balance sheet:
180100 in USMF demo data
company setup.
9. In the Offset account field, select
the account to use as the offset.
Typically, the Offset account is a
profit or loss account because the
second part of the transaction being
posted is income or expense:
300160 in USMF demo data
Note: company.
There can be exceptions. When you enter transactions, Microsoft Dynamics AX 2012 R2 uses
the combination of the Type of transaction, Value model, Groupings, and Account number
fields to determine the accounts to use for the Main account and Offset account. By using the
combination of these fields, Microsoft Dynamics AX 2012 R2 can meet a company's requirement for
financial reporting, whether it must be detailed or summarized. Additional information on how to set
up Posting profiles follows:
Ledger accounts must be set up for each value model that is used for posting. The same
ledger accounts can be used for several or even all value models.
The user can set up accounts as detailed as one account setup for each asset, and each
value model for each type of asset transaction.
Assets that belong to the same group are frequently posted to the same accounts, whereas
the option to set up accounts for each asset is rarely used.
42
SETTING UP DISPOSAL
The setup is the same whether
creating a setup for Sale or Scrap. To
set up the requirements for disposal,
assets, click Setup, click Fixed
asset Posting profiles, click the
Disposal button, and then click Sale
or scrap.
3. In the Value model field, select the

value model for this line.
4. In the Valid for field, click the arrow

to select from the following options:
Table to indicate the setup is
specific to a particular asset.
Group to indicate the setup is used
for a Fixed asset group.
All to indicate the setup is used for
all assets, unless defined in another
line.
43
5. In the Fixed asset relation field,

select the asset to assign to the line.
The lookup in this column depends
on the selection made in the Valid
for field as follows:
If Table is selected in the
Valid for field, the lookup
displays all fixed assets so
that posting accounts can be
assigned for individual assets.
If Group is selected in the
Valid for field, the lookup
shows all Fixed asset groups
so that accounts can be
assigned for Fixed asset
groups.
If All is selected in the Valid
for field, there is no lookup
option because the accounts
are automatically related to all
assets with this value model.
6. In the Post value field, select the
type of entry being reversed.
7. In the Main account field, select the
account from the chart of accounts
to use for entries. The Ledger
account is typically an account in the
balance sheet.
8. In the Offset account field, select

the account to use as the offset.
Typically, the Offset account is a
profit or loss account because the
second part of the transaction being
posted is either income or expense.
However, there can be exceptions.
9. Repeat these steps to define the

possible reversals for the same
Value model, Valid for, and Fixed
asset relation combination, then
44
Note 1: The default value of the Sales value type column is All because the same ledger
accounts are frequently used for the disposal, whether the fixed asset was disposed of with a profit
or loss. However, to set up ledger accounts for the same value model and the same fixed asset
differently for disposals with profit versus disposals with loss, select Gain and Loss in the Sales
value type field.
Note 2: To post asset disposals, the following setup is required:
For each Value model that is used in disposal of assets, define a Main account and Offset
account to use with the net book value transaction type in the Post value field.
For each Value model that is used in disposal of assets, define the Main account and Offset
account to use for Disposal - sale or Disposal - scrap (or both) in the Fixed asset
Posting profiles form.
End of Optional Demo Scenario 6
45
DISCLAIMER
2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista, Microsoft Dynamics and
other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other
countries. Other names and brands may be claimed as the property of others.
The information herein is for informational purposes only and represents the current view of Microsoft
Corporation as of the date of this presentation. Because Microsoft must respond to changing market
conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot
guarantee the accuracy of any information provided after the date of this presentation. Microsoft may make
changes to specifications and product descriptions at any time, without notice.
This content is provided as-is. Information and views expressed in this content, including URL and other
Internet Web site references, may change without notice. Some examples depicted herein are provided for
illustration only and are fictitious. No real association or connection is intended or should be inferred.
Sample code included in this presentation is made available AS IS. THE ENTIRE RISK OF THE USE OR THE
RESULTS FROM THE USE OF THIS CODE REMAINS WITH THE USER.
MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS
PRESENTATION. NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL
PROPERTY RIGHTS IS GRANTED BY THIS PRESENTATION. Microsoft products are not intended for use in
medical, lifesaving, or life sustaining applications.
Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and
your people to make business decisions with greater confidence. Microsoft Dynamics works like and with
familiar Microsoft software, automating and streamlining financial, customer relationship and supply chain
processes in a way that helps you drive business success.
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www.microsoft.com/dynamics
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Finance Demo Script Fixed Assets

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Finance Demo Script Fixed Assets

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MICROSOFT DYNAMICS AX 2012

DEMO 3: Fixed Asset Depreciation....................................................19

DEMO 4: Fixed Assets Disposal.........................................................22

DEMO 5: Fixed Asset Reports............................................................26

Microsoft Dynamics AX 2012 R2: Fixed Assets

Microsoft Dynamics AX 2012 R2: Fixed Assets

PROBLEMS THIS DEMO ADDRESSES

KEY BENEFITS AND SOLUTIONS

MULTIPLE VALUATION TRACKING FOR THE SAME FIXED ASSET

RECORDING FIXED ASSET ACQUISITIONS AND VALUATION ACTIVITY

acquisition and valuation activities:

REPORTING AND INQUIRIES

Fixed asset transaction inquiries

DEMO PRESET CONFIGURATION:

Microsoft Dynamics AX 2012 R2: Fixed Assets

Microsoft Dynamics AX 2012 R2: Fixed Assets

DEMO 1: CREATE FIXED ASSET WITH VALUE MODELS

1. On the navigation pane, click

2. Click the Fixed asset button to

3. In the Fixed asset group field,

4. Type name of the Fixed Asset:

Microsoft Dynamics AX 2012 R2: Fixed Assets

6. Click the Value Models button on

the Action Pane.

Microsoft Dynamics AX 2012 R2: Fixed Assets

7. On Fixed Asset number

8. On the transaction list, select the

Microsoft Dynamics AX 2012 R2: Fixed Assets

Demonstrate additional capabilities

13. Move back to newly created

Meaning of all fields on the General tab:

16. Review the Depreciation tab.

Explain the meaning of the fields on the Depreciation tab:

Depreciation convention determines depreciation run date and is based on predefined

18. Click the Overview tab, and

DEMO 2: FIXED ASSET ACQUISITION

Microsoft Dynamics AX 2012 R2: Fixed Assets

1. On the Navigation Pane, click Fixed

Microsoft Dynamics AX 2012 R2: Fixed Assets

13.Navigate to the Fixed Assets card,

14.Select Value model T_150_SLLR,

18.Present the setup of the derived

Microsoft Dynamics AX 2012 R2: Fixed Assets

ACQUIRE FIXED ASSET FROM PURCHASING

Microsoft Dynamics AX 2012 R2: Fixed Assets

19.On the Navigation Pane, click

Posting date box, enter or select

26.Under Quantity, enter 1.

Microsoft Dynamics AX 2012 R2: Fixed Assets

28.In Line details, click the Fixed

30.Click the Post button twice. After

Microsoft Dynamics AX 2012 R2: Fixed Assets

RECORD ACQUISITIONS IN THE INVENTORY TO FIXED ASSETS JOURNAL

Fixed asset number

DEMO 3: FIXED ASSET DEPRECIATION

1. On the Navigation Pane, click Fixed

Microsoft Dynamics AX 2012 R2: Fixed Assets

3. Click the Lines button.

7. Review the suggested entries of all

Microsoft Dynamics AX 2012 R2: Fixed Assets

USING PROPOSALS IN THE DEPRECIATION BOOK JOURNAL TO RECORD

1. On the Navigation Pane, click Fixed

3. Click the Lines button.

Microsoft Dynamics AX 2012 R2: Fixed Assets