Microsoft Dynamics® NAV 2009 Fixed Assets

MICROSOFT DYNAMICS ® NAV 2009

FIXED ASSETS

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

Last Revision: February 2009 The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. 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 presented after the date of publication. This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation. Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property.

© 2009 Microsoft Corporation. All rights reserved. Microsoft Dynamics®, Microsoft® PowerPoint® Microsoft® SQL Server® and Microsoft Dynamics® NAV MorphX® are trademarks or registered trademarks of Microsoft Corporation. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. This course content is designed for Microsoft Dynamics® NAV 2009.

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

Table of Contents Introduction

0-1

Welcome ............................................................................................................ 0-1 Microsoft Dynamics Courseware Contents ........................................................ 0-2 Documentation Conventions .............................................................................. 0-3 Student Objectives ............................................................................................. 0-4

Chapter 1: Fixed Assets Setup

1-1

Objectives ........................................................................................................... 1-1 Introduction ......................................................................................................... 1-1 Fixed Assets Setup ............................................................................................ 1-2 Fixed Assets Posting Groups ............................................................................. 1-3 Depreciations Books .......................................................................................... 1-5 Depreciation Tables ......................................................................................... 1-13 FA Journals Templates .................................................................................... 1-14 Fixed Asset Card .............................................................................................. 1-15 Main Assets and Asset Components................................................................ 1-22 Record Open Transactions .............................................................................. 1-25 Making Duplicate Entries .................................................................................. 1-26 Copying Fixed Assets and FA Ledger Entries .................................................. 1-28 Summary .......................................................................................................... 1-31 Quick Interaction: Lessons Learned ................................................................. 1-32

Chapter 2: Fixed Asset Transactions

2-1

Objectives ........................................................................................................... 2-1 Introduction ......................................................................................................... 2-1 Journals for Fixed Assets ................................................................................... 2-2 Purchasing Fixed Assets .................................................................................... 2-3 Calculation and Posting Depreciation................................................................. 2-4 Write-Down and Appreciation of Fixed Assets ................................................. 2-12 Fixed Asset Disposals ...................................................................................... 2-14 Correction of Entries ......................................................................................... 2-19 Documenting Fixed Asset Transactions ........................................................... 2-20 Fixed Asset Reports ......................................................................................... 2-21 Budgeting Fixed Asset Transactions ................................................................ 2-28 Cost-Accounting Depreciation .......................................................................... 2-36 Indexation ......................................................................................................... 2-40 Minor Assets ..................................................................................................... 2-44 Summary .......................................................................................................... 2-46 Quick Interaction: Lessons Learned ................................................................. 2-47

Chapter 3: Fixed Asset Reclassifications

3-1

Objectives ........................................................................................................... 3-1 Introduction ......................................................................................................... 3-1 Asset Transfers .................................................................................................. 3-2 Partial Disposal of an Asset................................................................................ 3-4 Combining Assets .............................................................................................. 3-4 Summary ............................................................................................................ 3-4 Quick Interaction: Lessons Learned ................................................................... 3-5

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

i

Fixed Assets in Microsoft Dynamics® NAV 2009 Chapter 4: Fixed Assets Maintenance

4-1

Objectives ........................................................................................................... 4-1 Introduction ......................................................................................................... 4-1 Setting up Maintenance Information ................................................................... 4-2 Maintenance Registration and Costs ................................................................. 4-5 Maintenance Cost Reporting ............................................................................ 4-10 Summary .......................................................................................................... 4-13 Quick Interaction: Lessons Learned ................................................................. 4-14

Chapter 5: Fixed Asset Insurance

5-1

Objectives ........................................................................................................... 5-1 Introduction ......................................................................................................... 5-1 Setting up Insurance Information........................................................................ 5-2 Assigning Assets to Insurance Policies .............................................................. 5-8 Monitoring Insurance Coverage ....................................................................... 5-12 Updating Insurance Information ....................................................................... 5-13 Indexing Insurances ......................................................................................... 5-15 Summary .......................................................................................................... 5-17 Quick Interaction: Lessons Learned ................................................................. 5-18

ii

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

Introduction

INTRODUCTION Welcome We know training is a vital component of retaining the value of your Microsoft Dynamics® NAV 2009 investment. Our quality training from industry experts keeps you up-to-date on your solution and helps you develop the skills necessary for fully maximizing the value of your solution. Whether you choose Online Training, Classroom Training, or Training Materials; there is a type of training to meet everyone's needs. Choose the training type that best suits you so you can stay ahead of the competition.

Online Training Online Training delivers convenient, in-depth training to you in the comfort of your own home or office. Online training provides immediate access to training 24 hours-a-day. It is perfect for the customer who does not have the time or budget to travel. Our newest online training option, eCourses, combine the efficiency of online training with the in-depth product coverage of classroom training, with at least two weeks to complete each course.

Classroom Training Classroom Training provides serious, in-depth learning through hands-on interaction. From demonstrations to presentations to classroom activities, you receive hands-on experience with instruction from our certified staff of experts. Regularly scheduled throughout North America, you can be sure you will find a class convenient for you.

Training Materials Training Materials enable you to learn at your own pace, on your own time with information-packed training manuals. Our wide variety of training manuals feature an abundance of tips, tricks, and insights you can refer to again and again:

Microsoft Dynamics Courseware The Microsoft Dynamics Courseware consists of detailed training manuals, designed from a training perspective. These manuals include advanced topics as well as training objectives, exercises, interactions and quizzes. Look for a complete list of manuals available for purchase on the Microsoft Dynamics website: www.microsoft.com/Dynamics.

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

0-1

Fixed Assets in Microsoft Dynamics® NAV 2009

Microsoft Dynamics Courseware Contents Test Your Skills Within the Microsoft Dynamics Training Materials you find a variety of different exercises. These exercises are offered in three levels to accommodate the variety of knowledge and expertise of each student. We suggest you try the level three exercises first, if you need help completing the task look to the information in the level two exercises. If you need further assistance each step of the task is outlined in the level one exercise.

Challenge Yourself! Level 3 exercises are the most challenging. These exercises are designed for the experienced student who requires little instruction to complete the required task.

Need a Little Help? Level 2 exercises are designed to challenge students, while providing some assistance. These exercises do not provide step by step instructions, however, do provide you with helpful hints and more information to complete the exercise.

Step by Step Level 1 exercises are geared towards new users who require detailed instructions and explanations to complete the exercise. Level 1 exercises guide you through the task, step by step, including navigation.

Quick Interaction: Lessons Learned At the end of each chapter within the Microsoft Dynamics Training Material, you find a Quick Interaction: Lessons Learned page. This interaction is designed to provide the student with a moment to reflect on the material they have learned. By outlining three key points from the chapter, the student is maximizing knowledge retention, and providing themselves with an excellent resource for reviewing key points after class.

0-2

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

Introduction

Documentation Conventions The following conventions and icons are used throughout this documentation to help you quickly and effectively navigate through the information. CAUTION: Cautions are found throughout the training manual and are preceded by the word CAUTION in bold. Cautions are used to remind you of a specific result of a specific action which may be undesirable. HINT: Hints are found throughout the training manual and are preceded by the word HINT in bold. Hints are used to suggest time-saving features or alternative methods for accomplishing a specific task. NOTE: Notes are found throughout the training manual and are preceded by the word NOTE in bold. Notes are used to provide information which, while not critical, may be valuable to an end user. BEYOND THE BASICS: Advanced information found throughout the training manual is preceded by the words BEYOND THE BASICS in bold. Beyond the Basics provides additional detail, outside of standard functionality, that may help you to more optimally use the application. EXAMPLE: Examples are found throughout the training manual and are preceded by the word EXAMPLE in bold. Examples bring to light business scenarios that may better explain how an application can be used to address a business problem.

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

0-3

Fixed Assets in Microsoft Dynamics® NAV 2009

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

2.

3.

0-4

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

Chapter 1: Fixed Assets Setup

CHAPTER 1: FIXED ASSETS SETUP Objectives The objectives are: •

Describe the fields on the Fixed Assets Setup page.

•

Describe Fixed Assets Posting Groups.

•

Explain Depreciations Books for Fixed Assets.

•

Explain Depreciation Tables.

•

Set up FA Journals Templates.

•

Set up Fixed Asset Card.

•

Set up Main Assets with Asset Components.

•

Explain recording for opening transactions.

•

Explain duplicate entries to the Depreciations Books.

•

Explain copying for fixed assets and FA ledger entries.

Introduction Microsoft Dynamics® NAV 2009 Fixed Assets provides a fully integrated Fixed Asset management functionality. This functionality helps a company effectively and efficiently manage its assets. Microsoft Dynamics NAV 2009 Fixed Assets helps a company to keep track of all information relevant to Fixed Assets, such as maintenance costs and schedules, acquisition costs, and related insurance information. Fixed Asset has unlimited depreciation books that track the depreciation expense reliably. In addition, all the ordinary methods of depreciation are available, plus the ability to create custom depreciation methods. With the flexibility and realtime nature of a fixed assets, this means the periodic income and expense figures are always accurate and up-to-date. Before processing with Fixed Assets, in Microsoft Dynamics NAV 2009, the following areas must be set up •

Fixed Assets Card

•

Fixed Assets Posting Group

•

Depreciations Books

•

Depreciation Tables

•

Fixed Assets Journals

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

1-1

Fixed Assets in Microsoft Dynamics® NAV 2009 Other features are possible in Fixed Assets: •

Main Assets with Asset Components

•

Recording opening transactions

•

Duplicate entries to the Depreciations Books

•

Copying for fixed assets and Fixed Assets ledger entries

Fixed Assets Setup Use the Fixed Assets Setup page to specify the default settings for the Fixed Assets. The page has two FastTabs: •

General

•

Numbering

To access the Fixed Assets Setup page, on the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets, and then select FA Setup.

FIGURE 1.1 FIXED ASSET SETUP

General FastTab The General FastTab contains the basic setup fields for Fixed Assets. The Default Depr. Book field contains the default depreciation book. Notice that having a default does not prevent the existence of multiple depreciation books. If the asset is split into main assets and components, you can keep track of the components by posting directly to a main asset. Select the Allow Posting to Main Assets option to post to a main asset.

1-2

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

Chapter 1: Fixed Assets Setup In this field, you can enter one of the depreciation book codes. If you use the , you must enter a code in order to be able to post insurance coverage ledger entries. The program uses the code in this field when it automatically disconnects sold fixed assets from insurance policies. Click the AssistButton in the field, and then select a code. To ensure full disconnection of sold assets, select a depreciation book code that has been assigned to all fixed assets. If the configuration includes insurance facilities, enter a code in the Insurance Depr. Book field to enable the posting of insurance coverage ledger entries. This code is the default depreciation book. The Default Depreciation Book must be set up before the Insurance Depreciation Book. The code in this field is also used when a fixed asset is sold and the values from insurance policies changes. If the Automatic Insurance Posting field is selected, the program allows for the acquisition costs posted to fixed assets to automatically post to the insurance coverage ledger.

Numbering FastTab The Numbering FastTab has two fields: •

Fixed Assets Nos.

•

Insurance Nos.

Both fields is used to assign a number series for the fixed assets and the insurance policies that cover them. To see the number series that are set up in the field click the drop-down list.

Fixed Assets Posting Groups Fixed Assets Posting Groups must be set up to relate transactions to the fixed assets. The Fixed Assets Posting Groups is set up in the FA Posting Group page.

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

1-3

Fixed Assets in Microsoft Dynamics® NAV 2009 To open the FA Posting Groups page, in the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Posting Groups, and then select FA Posting Groups.

FIGURE 1.2 FA POSTING GROUPS

Enter a code for each group of assets and specify the following G/L accounts for different types of expenses and costs: •

Acquisition costs

•

Accumulated depreciation amounts

•

Acquisition costs on disposal

•

Accumulated depreciation on disposal

•

Gains on disposal

•

Losses on disposal

•

Maintenance expenses

•

Depreciation expenses

Allocation The Allocation option shows an overview of the allocated percentage on the different types of expenses and costs with an asset. To set up allocation keys, select Related Information, point to Posting Gr., click Allocations, and select the type of expense to allocate to. Select an allocation type to open the FA Allocations page. Use the FA Allocations page to specify the account number in the general ledger to post to and allocate the percentage for that particular asset. To use global dimensions, select Related Information, point to Line and then select Dimensions. Set up the Dimension Code in the fields in the lines.

1-4

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

Chapter 1: Fixed Assets Setup NOTE: When you use the allocation of posting types in posting groups, the program produces one G/L ledger entry for each allocation and for each asset. This depends on how many assets that you have linked to it. All types of asset transactions are listed with the total allocation percentage amount. To view the detailed allocations for each transaction type, click each type to view its capability in the FA Allocations page.

Demonstration – Set up a new FA Posting Group Set up a new posting group, IT-EQUIP, for IT-equipment. •

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

•

Do not allocate depreciation expenses or other FA posting types.

Steps - Set up a new FA Posting Group In the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Posting Groups and then select FA Posting Groups. •

In the Code field enter IT-EQUIP.

•

In the Acquisition Cost Account enter 1220.

•

In the Accum. Depreciation Account enter 1240.

•

In the Acq. Cost Acc. on Disposal enter 1230.

•

In the Accum. Depr. Acc. on Disposal enter 1240.

•

In the Gains Acc. on Disposal enter 8840.

•

In the Losses Acc. on Disposal enter 8840.

•

In the Maintenance Expense Account enter 8640.

•

In the Depreciation Expense Acc. enter 8820.

•

Click OK.

Depreciations Books The Fixed Assets must have a Depreciation Book, to record depreciations to teh fixed assets. The depreciations books must be set up on the Depreciation Book Card.

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

1-5

Fixed Assets in Microsoft Dynamics® NAV 2009 To open the Depreciation Book Card, in the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets, and then select Depreciation Books.

FIGURE 1.4 DEPRECIATION BOOK CARD

Microsoft Dynamics NAV 2009 allows for multiple depreciation books and to set up to additional books on the card. After the Depreciation Book is set up, one or more depreciation books are attached to an asset, to define how depreciation will be handled for the assets.

General FastTab The General FastTab contains the basic setup fields for the depreciations books:

1-6

•

Default Final Rounding Amount - makes sure that the fixed asset is fully depreciated over the depreciable lifetime.

•

Default Ending Book Value - prevents the asset from being fully depreciated.

•

Disposal Calculation Method - specifies Net or Gross as the method.

•

Subtract Disc. In Purch. Inv. - displays the line and invoice discount that will post to the account contained in the Purch. FA Disc. Account field in the General Posting Setup window.

•

Allow Changes in Depr. - indicates that the depreciation fields in the FA Depreciation Books are changeable after you have posted entries.

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

Chapter 1: Fixed Assets Setup •

Allow Depr. Below Zero - indicates that the system will continue calculating periodic depreciation when the Calculate Depreciation batch job continues, even if the book value of the fixed asset is zero or negative.

•

Allow Correction of Disposal - corrects fixed ledger entries of the type Disposal.

•

Allow Indexation - adjusts the asset values for general price-level changes. Use this option to calculate the value of fixed assets at replacement costs. Do not finish indexation with FA ledger entries that are posted to the general ledger.

•

Use FA Ledger Check - requires a confirmation that: o o o

Acquisition cost is the first cost booked as a debit and that the disposal cost is the last cost booked. Depreciable basis has a debit balance, and that the book value is a debit. Accumulated depreciation, salvage value, and accumulated sales price are all credit balances.

•

Use Rounding in Periodic Depr. - indicates that the system will round depreciations to whole numbers.

•

Use Same FA and G/L Posting Dates - indicates that both dates must differ if these options are cleared. Enter both dates separately.

•

Allow more than 360 Depr. - gives the possibility for the fiscal year to consist of more than 360 depreciations days.

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

1-7

Fixed Assets in Microsoft Dynamics® NAV 2009 Integration FastTab The Integration FastTab specifies entries to integrate with the general ledger. Enter only one depreciation book to the general ledger so that it does not post two times.

FIGURE 1.5 DEPRECIATION BOOK CARD - INTEGRATION FASTTAB

Select the fields of the relevant posting type or types of FA transactions that must integrate with the general ledger. If a company wants to the general ledger integration, use the FA G/L Journal to record the information. If a company do not want to use the general ledger integration, use the FA Journal.

1-8

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

Chapter 1: Fixed Assets Setup Duplication FastTab Use the Duplication FastTab to indicate duplicate entries in other depreciation books. Duplication is useful when a company use multiple depreciation books. When duplication is set up, Microsoft Dynamics NAV 2009 creates the same entries for all the books. This reduces data entry time.

FIGURE 1.6 DEPRECIATION BOOK CARD - DUPLICATION FASTTAB

The Duplication FastTab contains the following fields. •

Part of Duplication List - indicates that the depreciation book will be a part of the duplication list.

•

Use FA Exch. Rate in Duplic - indicates whether to use exchange rates when you duplicate entries from one journal to another.

•

Default Exchange Rate - specifies the default exchange rate.

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

1-9

Fixed Assets in Microsoft Dynamics® NAV 2009 Reporting FastTab On the Reporting FastTab a additional foreign currency rate can be allowed for the posted transactions.

FIGURE 1.7 DEPRECIATION BOOK CARD - REPORTING FASTTAB

NOTE: You do not have to type an additional reporting currency or select these options if you are already using an additional reporting currency in the general ledger that has a fixed exchange rate, such as EUR. All entries from the FA module calculate in the correct additional currency in the associated general ledger entries. You only need this additional reporting currency if the additional currency is variable (with a changing exchange rate). If it is variable, there is a risk that the FA book values will never balance if the additional currency was adjusted. This is the reason to fix the exchange rate of the additional variable currency in the FA module for each fixed asset.

FA Posting Type Setup Use the FA Posting Type to define how the Microsoft Dynamics NAV 2009 manages posting types as Write-Downs and Appreciation, and then posts to fixed assets.

1-10

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

Chapter 1: Fixed Assets Setup To open the FA Posting Type Setup page in the Depreciation Book Card, click Related Information, point to Depr. Book and then FA Posting Type Setup.

FIGURE 1.8 FA POSTING TYPE SETUP

Microsoft Dynamics NAV 2009 contains a default setup. It is not possible to add or delete lines in this page. However, the existing lines can be changed.

FA Journal Setup The FA Journal Setup page specifies the default setup of templates and batches that the Microsoft Dynamics NAV 2009 uses to duplicates lines from one journal to another, when the Calculate Depreciation or Index Fixed Assets batch jobs create journal lines, or when acquisition costs duplicate in the Insurance Journal.

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

1-11

Fixed Assets in Microsoft Dynamics® NAV 2009 To open the FA Journal Setup page in the Depreciation Book Card, click Related Information, point to Depr. Book and then select FA Journal Setup.

FIGURE 1.9 FA JOURNAL SETUP

Depreciation Book Card batch jobs The Depreciation Book Card have four available batch jobs: •

Create FA Depreciation Books - automatically creates the necessary depreciation for one or more fixed assets.

•

Copy Depreciation Book - copies entries as a batch job from one Depreciation Book to another.

•

Cancel FA Ledger Entries - cancels an incorrect depreciation entry. Afterward, you can post the correct amount of depreciation by running the Calculate Depreciation batch job again. You can also find this batch job in the FA Ledger Entry and the FA Register windows.

•

Copy FA Entries to G/L Budget - copies entries as a batch job from the Fixed Assets to a budget.

To access the batch jobs from the Depreciation Book Card, click Actions, point to Functions and select the relevant batch job.

Demonstration – Create a Depreciation Book Set up a new depreciation book and name it TAX. This book has the following features: No general ledger integration is necessary. Select the Part of Duplication List field, and ignore the Reporting FastTab for now.

1-12

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

Chapter 1: Fixed Assets Setup Select the related FA journals in the FA Journal Setup page, and then you can use the new depreciation book. Description

Value

Default Final Rounding Amount

5

Default Ending Book Value

0

Disposal Calculation Method

Gross

Subtract Disc. in Purchase Invoice

No

Allow Changes in Depreciation Book

No

Allow Depreciation below Zero

No

Allow Indexation

No

Use FA Ledger Check

Yes

Use Rounding in Periodic Depreciation

Yes

Use Same FA + GL Posting Dates

Yes

Depreciation Tables The Depreciation Tables is used to set up user-defined depreciation methods. To open the Depreciation Table card, click Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets, and then select Depreciation Tables.

FIGURE 1.10 DEPRECIATION TABLE CARD

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

1-13

Fixed Assets in Microsoft Dynamics® NAV 2009 User defined depreciation methods is for example used when a machine with an established lifetime capacity have a depreciation method to depreciate the machine based on the number of units it produces for each period. You can set up the table to the period length and the total number of units that it can produce. Then the Microsoft Dynamics NAV 2009 will build a table for each period and be able to predict the depreciation expense. Use either a percentage for allocation or specify the number of units. When using the Percentage field, the number of units will automatacally be entered. The formula for calculating the depreciation in the user-defined methods is: Depreciation Amount = Depreciation % * Number of Depreciation Days * Depr. Basis

FA Journals Templates There are four journal templates for Fixed Assets:

1-14

•

FA G/L Journal

•

FA Journal

•

FA Reclass. Journal

•

Insurance Journal

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

Chapter 1: Fixed Assets Setup To open the FA Journals Templates, select Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets, and then select FA Journal Templates.

FIGURE 1.11 FA JOURNAL TEMPLATES

The journal templates are similar to other journal templates in the Microsoft Dynamics NAV 2009. And it is also possible to set up recurring journals for fixed assets. It is possible to define particular batches for a journal by clicking Related Information, point to Template and then click Batches.

Fixed Asset Card A fixed asset card, contains all the information about the asset. There is a fixed asset card for each fixed asset. To open the fixed asset card, click Departments, click Financial Management, click Fixed Assets and then select Fixed Assets.

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

1-15

Fixed Assets in Microsoft Dynamics® NAV 2009 The list of all the existing Fixed Assets appears. Click New to set up a new fixed asset.

FIGURE 1.12 FIXED ASSET CARD

General FastTab The General FastTab contains the basic setup fields for the Fixed Asset Card.

1-16

Field

Description

No.

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

Description

Enter the name of the asset.

Serial No.

Enter the serial number in this field if the asset already has a serial number.

Main Asset/Comp onent

Select to indicate whether this asset is a main asset or a component.

Component of Main Asset

Select this field if the asset is the main asset or a component.

Search Description

Enter a search name for the asset.

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

Chapter 1: Fixed Assets Setup Field

Description

Responsible Employee

Enter the code of the person responsible for the asset.

Inactive

Select to block the asset against postings. Selecting will also block against inclusion in reports and batch job functions.

Last Date Modified

The system automatically enters the system date in this field when you change the fixed asset card., this will help the user know when the last entry was posted.

Lines FastTab On the Lines FastTab specify the information for: •

Depreciation Book Code

•

FA Posting Group

•

Depreciation Methods

•

Depreciation Strating Date

•

Depreciation Ending Date

•

No. of Depreciation Years

•

Disposed Of

•

Book Value

Posting FastTab The Posting FastTab classifies the assets as Financial, Intangible, and Tangible assets, and then classifies them into subclasses. Field

Description

FA Class Code

Categorize the fixed asset class codes.

FA Subclass Code

Create subclass codes to group the fixed assets in more detail.

FA Location Code

Set the location for each asset.

Budgeted Asset

Select to use the asset as a budgeted asset. Select this field before you post the first entry.

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

1-17

Fixed Assets in Microsoft Dynamics® NAV 2009 Maintenance FastTab Use the Maintenance FastTab to keep information on the maintenance of the asset. Field

Description

Vendor No.

Review the number of the vendor who sold the asset.

Maintenance Vendor No.

Verify the accuracy of the number of the vendor who is maintaining the asset.

Under Maintenance

Select if the asset is under maintenance.

Next Service Date

Enter the next scheduled service date.

Warranty Date

Use to record maintenance charges and other maintenance information.

Insured

Select if insurance posts to the asset.

Additional Details to the Fixed Asset Card In addition to the four FatsTabs the following information can be added to the Fixed Asset Card by clicking Related Information, point to Fixed Asset and select to the relevant option: •

Comment - enter additional FA information in the Comment Sheet.

•

Picture - if it is necessary, attach a picture of the asset

FA Depreciation Books From the Action Pane of the Fixed Asset Card page, the FA Depreciation Book page can be accessed. Here information on the depreciation for the asset are entered. Before setting up the depreciation method for an asset, make sure that the necessary depreciation books and FA posting groups are set up. NOTE: You can use different depreciation methods for the fixed assets and several depreciation methods for each asset. To have more than one depreciation method for a specific asset, you must set up multiple FA Depreciation Books for that asset. If you depreciate assets, each asset must have at least one depreciation book assigned to it.

1-18

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

Chapter 1: Fixed Assets Setup Multiple Depreciation Books for a Single Asset A common reason to set up multiple depreciation books is to accommodate different methods of depreciation for the fixed assets. Frequently, businesses find that the way that they depreciate assets is not always best from a tax perspective. To allow for depreciation in different ways, more than one depreciation book can be used in Microsoft Dynamics NAV 2009, for exampel one for internal financial statement preparation and another for income tax calculations. On the Lines FastTab you can specify the depreciation book: •

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

•

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

•

Click the drop-down list in the Depreciation Method field to view the seven methods of depreciation: o o o o o o o

Straight Line Declining Balance 1 Declining Balance 2 DB1/SL DB2/SL User-Defined Manual.

Depreciation Methods – Straight–Line In the straight line depreciation method, the fixed asset depreciates the same amount each year. The following have to be specified: •

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

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

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

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

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

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

1-19

Fixed Assets in Microsoft Dynamics® NAV 2009 Depreciation Amount =(Fixed Depreciation Amount * Number of Depreciation Days) / 360

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

Depreciation Methods – Declining Balance 2 The Declining Balance 2 method of depreciation calculates the same total depreciation amount for each year as Declining Balance 1. However, if the Calculate Depreciation batch job is one or more times a year, the DB1 method will result in equal depreciation amounts for each period. The DB2 method, on the other hand, will result in amounts that decline for each period.

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

Depreciation Methods – DB2/SL The DB2/SL depreciation method works in the same way as the previous method except that it calculates according to the rules in Declining Balance 2 instead of Declining Balance 1.

Depreciation Methods – User-Defined The User-Defined depreciation method gives users the option to create a customized depreciation method by using the depreciation tables.

Depreciation Methods – Manual Method The Manual Method of depreciation requires the user to manually enter the depreciation expense in either the FA G/L Journal or the FA Journal. The Calculate Depreciation batch job eliminates any assets that have the depreciation method that is defined as Manual.

1-20

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

Chapter 1: Fixed Assets Setup FA Depreciation Book Table In the Fixed Assets Depreciation Book table, you will find the following fields: •

Depreciation Starting Date - enter the date when the depreciation must start.

•

Straight-Line % - enter the percentage in this field to depreciate the fixed asset by the straight-line method but also with a fixed yearly percentage.

•

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

•

Declining-Balance % - enter the percentage to depreciate the fixed asset by the declining-balance method.

•

Use Half-Year Convention - select to use six months of depreciation in the first fiscal year of the life of the asset, regardless of the asset's depreciation start date. Notice that the half-year convention is available only with the Straight Line, DB1, and DB1/SL depreciation methods.

•

Use DB% First Fiscal Year - select to indicate that the depreciation methods DB1/SL and DB2/SL use the declining balance depreciation amount in the first fiscal year.

Demonstration – Create a Fixed Asset An employee purchased a new car for the business on January 13, 2010. The Accounting Manager has decided to start the depreciation of the asset on January 01, 2010. Create a new fixed asset that contains the following information: Field

Value

Description

VW Speedster 1302

Serial No

VW123

FA Class code

Tangible

FA Subclass code

CAR

FA Location code

PROD

The employee bought the car from vendor number 30000. This vendor is also in charge of maintenance. Create the depreciation book as follows: Field

Value

Depreciation book code

COMPANY

FA Posting Group

CAR

Depreciation Method

Straight-Line

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

1-21

Fixed Assets in Microsoft Dynamics® NAV 2009 Field

Value

Depreciation Starting Date

01/01/10

No. of Depreciation Years

5

The COMPANY book integrates with the General Ledger. This is why a FA Posting Group is used with this. You enter the depreciation base by posting the acquisition costs.

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

Main Asset – Fixed Asset Card To see an example of a main asset on a Fixed Asset Card, Click Departments, click Financial Management, click Fixed Assets, and then click Fixed Assets. Select the Fixed Asset Card for the main asset FA000040.

FIGURE 1.13 MAIN ASSET - FIXED ASSET CARD

1-22

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

Chapter 1: Fixed Assets Setup Main Asset Components Card To see the components of a main asset, click Related Information, point to Fixed Asset, and then click Main Asset Components. The Main Asset Components page appears and contains a list of the components that make up the asset.

FIGURE 1.14 MAIN ASSET COMPONENTS

If an asset is a component of another asset, the program enters information into the fields on the Fixed Asset card (for the component asset) with the following: •

The Main Asset/Component field contains the component.

•

The Component of Main Asset field contains the number of the main fixed asset.

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

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

1-23

Fixed Assets in Microsoft Dynamics® NAV 2009 To open Main Assets Statistics page from the Fixed Asset Card for a Main Asset, click Related Information, point to Fixed Asset and then select Main Asset Statistics.

FIGURE 1.15 MAIN ASSET STATISTICS CARD

The Main Assets Statistics page shows the combined total acquisition cost, depreciation, and book value of all the components of the main asset. It also shows the total number of components that are included in the asset and whether any components are disposed. If any components are disposed, the combined gain or loss and book value on disposal is displayed. The Acquisition Date field shows the earliest date of acquisition for a component. Similarly, the Disposal Date field shows the date of the disposal of a component.

Demonstration – Add a Component Asset to a Main Asset The user of the VW Speedster has decided to add a component to the existing asset. The user purchased a new stereo system on. Use the following information for the depreciation book to set up a new Fixed Asset card for the stereo exactly like the previous demonstration:

1-24

Field

Value

Depreciation book code

COMPANY

FA posting group

CAR

Depreciation Method

Straight-Line

Depreciation Starting Date

01/01/10

No. of Depreciation Years

5

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

Chapter 1: Fixed Assets Setup Now change the Fixed Asset Card of the VW Speedster and add the stereo as a component, exactly like the previous demonstrations.

Record Open Transactions In Microsoft Dynamics NAV 2009 it is possible to use the posting of open transactions to enter information from an old system.

Post Fixed Asset Transactions to G/L When a company install the Microsoft Dynamics NAV 2009 for the first time, set up the General Ledger area. Make sure that all the basic setup procedures for the fixed assets is completed. Follow these steps to post fixed asset transactions to the General Ledger and record them as opening entries. 1. 2. 3. 4.

Create a Fixed Asset Card for each existing asset. Set up Depreciation Books for the fixed assets. On the Depreciation Book Card, open the Integration FastTab. Remove check marks from all the fields to deactivate G/L integration.

FIGURE 1.16 DEPRECIATION BOOK CARD - INTEGRATION FASTTAB

Repeat this procedure for each Depreciation Book. Because these assets are already accounted for in the General Ledger, you must temporarily turn off integration. If Fixed Assets does not integrate with the General Ledger, omit this step.

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

1-25

Fixed Assets in Microsoft Dynamics® NAV 2009 Fixed Asset Journal In the Fixed Asset Journal page, enter two lines for each asset: •

The acquisition cost

•

The accumulated depreciation

If other opening balances exist, such as write-down, appreciation, or salvage value, enter lines for them. NOTE: If you use the Declining Balance depreciation method and post the opening entries for assets acquired in a previous fiscal year, you must enter three lines for each asset to make sure the correct depreciable basis for the assets: Line 1 - must contain the acquisition cost and a posting date of the last date of the previous fiscal year. Line 2 - must contain the accumulated depreciation to the end of the previous fiscal year and a posting date of the last date of the previous fiscal year. Line 3 - must contain the accumulated depreciation to the last depreciation date in the current fiscal year and a posting date of the last depreciation date in the current fiscal year. After you enter and post all journal lines for all the assets, start General Ledger integration again. If Fixed Assets does not integrate with General Ledger, omit this step.

Making Duplicate Entries When journal lines must post to a depreciation book, the system can duplicate the lines in a separate journal from which they can then post to a different Depreciation Book. Use the Depreciation Book Card page by specifying that the Depreciation Book or Books to duplicate are part of a Duplication List, and then click the Use Duplication List field on the journal lines. Another way to duplicate an entry in a separate book is to enter a Depreciation Book Code in the Duplicate in Depreciation Book field in a journal line.

Setting Up a Duplication List Follow these steps to include a Depreciation Book in the duplication list. 1. Open Financial Management then click Fixed Assets, select Setup and then select Depreciation Books.

1-26

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

Chapter 1: Fixed Assets Setup 2. In the Depreciation Book Card page, select the relevant book and select the Duplication FastTab. 3. Select the Part of Duplication List field.

FIGURE 1.17 DEPRECIATION BOOK CARD - DUPLICATION FASTTAB

Demonstration – Duplication To see how duplication works, try the following example. The principle is the same whether you use the FA G/L journal or the FA journal. 1. In an earlier demonstration, you set up the TAX depreciation book without G/L integration. Specify that it is part of the duplication list. 2. Make sure that the FA Journal Setup page is set up correctly. 3. Create an FA depreciation book for the fixed asset FA000030 by using the TAX depreciation book. FA000030 should already be using the COMPANY depreciation book. 4. In the Navigation Pane, click Departments, click Financial Management, select Fixed Assets and the select FA G/L Journals. 5. Right click the general ledger and select the Choose Column feature 6. Add the Use Duplication List field. 7. Enter the following information on the journal line: Field

Value

Posting Date

1/25/10

Document Type

Invoice

Document No.

*Automatically generates

Account Type

Fixed Asset

Account No.

FA000030

Depreciation Book Code

COMPANY

FA Posting Type

Acquisition Cost

Description

Additional equipment

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

1-27

Fixed Assets in Microsoft Dynamics® NAV 2009 Field

Value

Gen. Posting Type

Purchase

Gen. Bus. Posting

National

Group

MISC

Gen. Prod. Posting

800

Group

G/L Account

Amount

2910

Bal. Account Type

Yes

Bal. Account No.

Use Duplication List

8. Post the line. 9. Because G/L integration is not started for the TAX depreciation book, click Departments, click Financial Management, click Fixed Assets, and then select FA Journals. When you enter the general posting groups for the journal, default VAT posting groups are used to calculate the VAT and subtract it from the Amount (800). Therefore, the Amount in the FA Journal is now 640. Because the document number copies from the FA G/L journal, you cannot use automatic document numbering in this journal batch. If you have set up automatic numbering in the journal, click the drop-down list in the Batch Name field and delete the contents of the No. Series field. 10. Post the line. 11. To see the posted entries, click Departments, click Financial Management, select Fixed Assets, and then select the Fixed Asset card for FA000030. 12. Select the TAX depreciation book and then click the drop-down list to the right side of the Book Value field to see the FA ledger entry for the acquisition.

Copying Fixed Assets and FA Ledger Entries Creating Fixed Assets by Copying Existing Assets To create several fixed assets that resemble an existing fixed asset, use the Copy Fixed Asset batch job. For example, a company has bought 30 chairs that are the same make and model and have the same depreciation terms. Instead of entering the same information 30 times, create the first asset and use the batch job to create 29 new assets, and then copy the information to them. Follow these steps to copy an existing fixed asset. 1. In the Navigation Pane, click Departments, click Financial Management, and then select Fixed Assets. 1-28

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

Chapter 1: Fixed Assets Setup 2. Browse to the Fixed Asset Card of the asset to copy from, click Related Information, point to Fixed Asset, and then click Copy Fixed Asset. The Copy Fixed Asset page appears.

FIGURE 1.18 COPY FIXED ASSET

The Option FastTab on the copy fixed asset card contains the following fields. •

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

•

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

•

First FA No. - enter the number of the first fixed asset. If No. of Copies is greater than one, the First FA No. field must include a number, for example FA045.

•

Use FA No. Series - click to insert a check mark if the new fixed asset(s) must have a number from the number series specified in Fixed Asset Nos. field in the Fixed Asset Setup window. When you use a value in the First FA No. field, a check mark in the Use FA No. Series field cannot be used.

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

Copying FA Ledger Entries from Existing Depreciation Books to New Depreciation Books You can copy entries from one depreciation book to another with the Copy Depreciation Book batch job. The batch job creates journal lines in the journal batch specified in the FA Journal Setup page for the depreciation book to copy to. This function is useful when you start FA accounting with the standard depreciation book first and then create an additional tax depreciation book and copy the acquisition costs to the new depreciation book. NOTE: do not integrate this depreciation book to the general ledger. Follow these steps to run the batch job.

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

1-29

Fixed Assets in Microsoft Dynamics® NAV 2009 1. In the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets, and then select Depreciation Books and browse to the relevant card. 2. On the Depreciation Book Card, click Actions, click Functions, and select Copy Depreciation Book. The Copy Depreciation Book batch job appears. 3. On the Fixed Asset FastTab, set a filter to select the assets from which to copy entries from. If you do not set a filter, entries for all assets will copy. 4. On the Options FastTab, enter information into the fields according to these guidelines.

FIGURE 1.19 COPY DEPRECIATION BOOK

o o o

1-30

Copy from Book - enter the name of the depreciation book from which the entries copies. Copy to Book - enter the name of the depreciation book to which the entries have to be copied. Starting Date - enter the first day to copy FA postings. Only entries with an FA posting date on or after this date will copy.

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

Chapter 1: Fixed Assets Setup o o

o o

o

Ending Date - enter the last day to copy FA Postings. Only entries with an FA posting date on or before this date will copy. Document No. - enter a document number or leave this field blank. If the field is blank, you must leave the journal batch to copy empty and set up a number series for the journal batch. Posting Description - enter the text to appear in the ledger. Insert Bal. Account -only use this field if you copy to a depreciation book that has G/L integration. A check mark in the field indicates that the program will enter balancing accounts on the copied lines in the FA G/L journal automatically. Copy - select the posting type or types to copy.

5. Click OK to start the batch job. Microsoft Dynamics NAV 2009 creates the copied lines in either the G/L journal or the FA journal, depending on whether you have activated G/L integration for the depreciation book you are copying to. You must post the journal to copy entries.

Demonstration – Copying Depreciation Books After you have set up a TAX depreciation book for FA00030 and made one duplication entry, copy all the other posted acquisition cost entries for the asset from the COMPANY depreciation book. Then the correct acquisition of the asset will display in the TAX depreciation book. Use the Copy Depreciation Book batch job to copy the acquisition costs for FA000030 until January 24, 2010. Copy from the COMPANY book to the TAX book. Open the Fixed Asset Journal page and post the journal line. See the result by opening the FA Card and looking for the book value of the TAX FA depreciation book. The book value in the TAX book will be greater than the COMPANY book because you have not copied the depreciation entries. In the TAX depreciation book, click the drop-down list the FA Ledger Entries page. The two acquisition entries will display.

Summary Microsoft Dynamics NAV 2009 Fixed Assets Setup discuss the basis of the Fixed Assets application area setup. Fixed Assets Setup define the process of using the Fixed Assets in Microsoft NAV 2009. This course perform the process of setting up the Fixed Asset functionality and define of all the features, fields and options available. Microsoft Dynamics NAV 2009 Fixed Assets Setup helps a company manage all information relevant to Fixed Assets, on the Fixed Asset Card, in the Depreciation Book, the Posting Groups and the different methods of depreciation.

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

1-31

Fixed Assets in Microsoft Dynamics® NAV 2009

Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.

2.

3.

1-32

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

Chapter 2: Fixed Asset Transactions

CHAPTER 2: FIXED ASSET TRANSACTIONS Objectives The objectives are: •

Set up Journals for Fixed Assets.

•

Define the Purchase Invoice process for fixed assets.

•

Explain the manual and the automatic depreciation posting methods.

•

Explain and set up write-down and appreciation of fixed assets.

•

Explain and set up disposals of fixed assets.

•

Cancel an already-posted incorrect entry.

•

Documenting Fixed Asset Transactions and how to view the FA Registers.

•

Reports for Fixed Assets.

•

Explain and set up for budgeting for Fixed Asset transactions.

•

Explain and set up Cost-Accounting Depreciations.

•

Explain and set up Indexation.

•

Explain and Set Up Minor Assets.

Introduction Fixed Assets Transactions describes the transaction types available in Microsoft Dynamics® NAV 2009 Fixed Assets. All Fixed Assets (FA) transactions must be posted in a Fixed Assets Journal. For frequent transactions it is possible to use recurring journals for Fixed Assets. The basic transactions for Fixed Assets are depreciations, write-down and disposals, all three types of transactions and processes connected to these transactions are described in this course. Microsoft Dynamics NAV 2009 Fixed Asset also makes it possible to correct already posted entries, if for some reason an amount has changes or are posted wrongly. You can also create reports, budget, cost-accounting, and indexation for Fixed Assets. Microsoft Dynamics NAV 2009 Fixed Assets can also handle Minor Assets.

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

2-1

Fixed Assets in Microsoft Dynamics® NAV 2009

Journals for Fixed Assets All fixed asset transactions can be entered in four journals: •

FA G/L Journals

•

FA Journals

•

FA Reclassification Journals

•

Insurance Journals

FA G/L Journals All entries in the FA G/L Journal will be posted to the Fixed Asset ledger and the General Ledger. To post to the general ledger, select the relevant fields on the Integration FastTab in the Depreciation Book Card.

FA Journals Entries posted in the FA Journal will only be posted to the Fixed Asset ledger.

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

Insurance Journals The Insurance Journal is used for posting of insurance coverage ledger entries.

Features of Recurring Transactions Frequently posted transactions with a few or no changes can use the recurring journals the Microsoft Dynamics NAV 2009. The Recurring General Journals and the Recurring Fixed Asset Journals can manage posting for both fixed amounts and variable amounts, and can also manage the allocation keys with the recurring entries.

Demonstration: Create a Recurring General Journal Scenario: Annie the bookkeeper for CRONUS International Ltd. want to set up a Recurring General Journal for the monthly depreciations for the Toyota Supra 3.0 and the VW Transporter. Each vehicle have to be depreciated with the amount of 250 every month.

2-2

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

Chapter 2: Fixed Asset Transactions The follow these steps to set up the recurring transaction: 1. In the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then select Recurring General Journals. 2. In the Recurring Method field, click the drop-down list at select F Fixed. 3. In the Recurring Frequency field, enter 1M. 4. In the Posting Date field enter 01/31/2010. 5. In the Document No., enter 1001. 6. In the Account Type, click the drop-down list and select Fixed Asset. 7. In the Account No., click the drop-down list and select FA000020. 8. In the Amount field enter -250.00. 9. Go the next line. 10. In the Recurring Method field, make sure F Fixed is selected. 11. In the Recurring Frequency field, enter 1M. 12. In the Posting Date field make sure 01/31/2010 is selected. 13. In the Document No., make sure 1001 is selected. 14. In the Account Type, make sure Fixed Asset is selected. 15. In the Account No., click the drop-down list and select FA000030. 16. In the Amount field enter -250.00. 17. Go the next line. 18. In the Recurring Method field, make sure F Fixed is selected. 19. In the Posting Date field make sure 01/31/2010 is selected. 20. In the Document No., make sure 1001 is selected. 21. In the Account Type, click the drop-down list and select G/L Account. 22. In the Account No., enter 8830. 23. In the Amount field enter 500.00. 24. Click Post to post the recurring journal. 25. Click Yes to post the journal lines. 26. Notice that the Posting Date now has changed by one month to 02/28/10.

Purchasing Fixed Assets A fixed asset can be set up by using the Fixed Asset Card. But you can also create a fixed asset directly from the purchase document. This is done by using the Purchase Invoice and set up the fixed asset in the purchase invoice line.

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

2-3

Fixed Assets in Microsoft Dynamics® NAV 2009 Follow these steps to purchase a fixed asset. 1. In the Navigation Pane, click Departments, click Financial Management, select Payables, and then Purchase Invoices. 2. Click New and press ENTER to create a new purchase invoice with the No. 1001. 3. In the Buy-from Vendor No., click the drop-down list and select 44127904. 4. In the Vendor Invoice No. field enter 2010-E-101 5. Right-Click the header in the Lines and add the FA Posting Type field to with the Choose Column feature. 6. In the Type field, click the drop-down list and select Fixed Asset. 7. In the No., field click the drop-down list and select FA000010. 8. In the Quantity field, enter 1. 9. In the Direct Unit Cost Excl. VAT field, enter 11,000.00. 10. In the FA Posting Type field, select Acquisition Cost. 11. Click Post to post the purchase of the Fixed Asset. NOTE: Before the purchase invoice can be posted the G/L Integration for Acquisition Cost have to be selected in the Depreciation Book Card.

Calculation and Posting Depreciation Depreciations can be allocated over a fixed assets depreciable live. Fixed asset depreciations can be calculated and posted with two methods: •

Manually

•

Automatically

For the Manually Method use the FA G/L Journal or the FA Journal, and for the Automatically Method run the Calculate Depreciation batch job.

Manual Depreciation with the FA G/L Journal To post a depreciation for a fixed asset with the manual method and with integration to the general ledger, use the FA G/L Journal. 1. In the Navigation Pane, click Depreciation, click Financial Management, click Fixed Assets, and select FA G/L Journals. 2. In the Posting Date field, enter the relevant date. 3. In the Account Type, click the drop-down list and select Fixed Asset. 4. In the Account No., field, click the drop-down list and select the relevant fixed asset. 5. In the Depreciation Book Code field, click the drop-down list and select COMPANY.

2-4

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

Chapter 2: Fixed Asset Transactions 6. In the FA Posting Type filed, click the drop-down list and select Depreciation. 7. Make sure that a allocation key is set up and the click Insert FA Bal. Account. Balancing lines with different department codes are now created automatically. 8. Click Post to post the depreciation. 9. Click Yes to post the journal lines. To view the posted depreciation follow these steps: 1. On the Navigation Pane, click Fixed Assets, and the click Fixed Asset, and select to the relevant Fixed Asset Card. 2. In the Lines FastTab click the Book Value field to view the FA entries. 3. Select the line with the relevant depreciation entry, and then click Navigate. 4. In the Navigate page, select G/L entry, and then click Show. The General Ledger Entries page appears. 5. In the Navigate page, select the FA Ledger Entry line, and then click Show. The FA Ledger Entries page appears.

Demonstration Post a Manual Depreciation with the FA G/L Journal Scenario: Annie the bookkeeper in CRONUS International Ltd have to post a manual depreciation in January 2010 for the companies Switchboard. The monthly depreciation on the Switchboard is in the amount of 100. Follow these steps to post the depreciation for the Switchboard 1. In the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and select FA G/L Journals. 2. In the Posting Date field, enter the 01/31/2010. 3. In the Account Type, click the drop-down list and select Fixed Asset. 4. In the Account No., field, click the drop-down list and select FA000090. 5. In the Depreciation Book Code field, click the drop-down list and select COMPANY. 6. In the FA Posting Type field, click the drop-down list and select Depreciation. 7. In the Description field, enter Depreciation January 2010. 8. Click Insert FA Bal. Account. Three balancing lines with different department codes are now created automatically, because the allocation key was already set up.

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

2-5

Fixed Assets in Microsoft Dynamics® NAV 2009 9. Click Post to post the depreciation. 10. Click Yes to post the journal lines. 11. Click OK. To view the posted depreciation follow these steps: 1. On the Navigation Pane, click Fixed Assets, and the click Fixed Asset, and browse to the Fixed Asset Card for FA000090 and double-click. 2. In the Lines FastTab click the Book Value field to view the FA entries. 3. Select the line with the relevant depreciation entry, and then click Navigate. 4. In the Navigate page, select G/L entry, and then click Show. The General Ledger Entries page displays the depreciation posted for fixed asset number FA000090 to the COMPANY depreciation book. 5. In the Navigate page, select the FA Ledger Entry line, and then click Show. The FA Ledger Entries page displays the depreciation posted for fixed asset number FA000090 to the COMPANY depreciation book.

FA Journal You can post the same depreciation transaction in a depreciation book that does not have general ledger integration. The following example shows how to post the same information from the FA G/L Journal example into a FA journal. 1. On the Navigation Pane, click the Departments button, click Financial Management, click Fixed Assets, and select FA Journals. 2. Enter the same values as used in the FA G/L Journal: Field

Value

FA Posting Date

01/31/10

FA No.

FA000090

Depreciation Book Code

COMPANY

FA Posting Type

Depreciation

Description

Depreciation January 2010

Amount

-100.00

3. Click Post.

2-6

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

Chapter 2: Fixed Asset Transactions Automatic Depreciation Calculation The Automatic Depreciation Calculation is a batch job that automatically calculate the depreciations one time each month or any time that it is required. Sold, blocked, or inactive assets and assets that use the manual depreciation method are excluded from the calculation automatically.

Fixed Asset Statistics The Fixed Asset Statistics is used to view the last postings on a fixed asset. To access the Fixed Asset Statistics page, on the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, select the relevant Fixed Assets, and the click Statistics.

FIGURE 2.1 FIXED ASSET STATISTICS

Demonstration: Calculate Depreciations The following demonstration explains how the system calculates automatic depreciations for fixed asset FA000080. 1. On the Navigation Pane, click the Departments button, click Financial Management, click Fixed Assets and then click Fixed Assets. 2. Select the Fixed Asset Card for FA000080. 3. Click Related Information, point to Fixed Assets and then click Ledger Entries to view that the last depreciation happened December 31, 2009. So, the new depreciation must be calculated for January 2010. 4. Close the FA Ledger Entries page. 5. To set up automatic depreciation calculation, double-click FA000080 to open the Fixed Asset Card.

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

2-7

Fixed Assets in Microsoft Dynamics® NAV 2009 6. Click Calculate Depreciation. The Calculate Depreciation page appears. 7. On the Options FastTab, enter the information that is shown in the following image:

FIGURE 2.2 CALCULATE DEPRECIATION

8. On the Fixed Asset FastTab, select the filter for the asset to depreciate (FA000080). 9. Click OK to calculate the depreciation on January 31, 2010. The batch job will calculate depreciation for fixed asset number FA000080 and create the lines in the Fixed Asset G/L Journal. 10. Close the Fixed Assets Card. 11. In the Navigation Pane, click Fixed Assets and the click FA G/L Journal. 12. View the lines and then click Post to post the depreciation. 13. Click Yes to post the Journal. 14. Click OK.

2-8

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

Chapter 2: Fixed Asset Transactions G/L Journal for Automatic Depreciations The G/L Journal is automatically created from the batch job. The No. of Depreciation Days field is automatically updated after running the batch job. The balancing line in the G/L Journal is also created automatically when the Insert Bal. Account field on the Options FastTab for the Calculate Depreciation batch job is selected.

Document Number The following rules apply to the Document No. field on the Options FastTab in the Calculate Depreciation batch job: •

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

•

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

Specify the journal that the batch job will use in the FA Journal Setup page.

Number of Depreciation Days The standard for depreciations in Microsoft Dynamics NAV 2009 is 360 days for a year and 30 days for a month. The Depreciation Starting Date for each fixed asset is the last entry date (from the FA Posting Date field). If only acquisition cost and salvage value is posted for a fixed asset, the date from the Depreciation Starting Date field in the FA depreciation book is used to calculate depreciation. If the last entry is anything other than a depreciation entry, the FA Posting Date is included automatically in the calculation of number of depreciation days. This means that both the starting date and the ending date are included. EXAMPLE: The system calculates 01/01/09..01/10/09 as ten days if the entry posted on 01/01/09 is not a depreciation entry, but as nine days if the entry on 01/01/09 is a depreciation entry. Microsoft Dynamics NAV 2009 calculates depreciation up to and including the date in the FA Posting Date field on the Options FastTab in the Calculate Depreciation batch job.

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

2-9

Fixed Assets in Microsoft Dynamics® NAV 2009 Force Number of Days The system can calculate a full month's depreciation for an entry that is posted at the beginning of a month. In the Calculate Depreciation page, on the Option FastTab, enter for example, 30 days in the Force No. of Days field and select the Use Force No. of Days field in the Calculate Depreciation. If these fields are populated, the system always uses the number of days entered. The following table explains how the system calculates the number of depreciation days. In these examples, the last entry was a depreciation entry. Therefore, only the last date of the interval is included in the calculations: Date Interval

Number of Depreciation Days

01/31/10..02/28/10

30

03/31/10..04/30/10

30

12/31/09..12/31/10

360

02/27/10..03/01/10

4

02/08/10..03/01/10

1

03/30/10..04/01/10

1

03/31/10..04/01/10

1

03/30/10..03/31/10

0

03/30/10..03/31/11

360

When you select the straight-line depreciation method and enter the No. of Depreciation Years field in the FA Depreciation Book, the system calculates the number of days that are left based on the ending date. The depreciable basis is divided by the remaining number of days and then multiplied by the number of days in the depreciation period. This means that the final depreciation amount may have to be rounded off to the final numbers of days. Also, the system does not post depreciation amounts of zero. Therefore, nothing will occur if you run the Calculate Depreciation batch job multiple times. When you use the straight-line method and enter a number in the No. of Depreciation Years field, you can adjust the amount that is depreciated by changing the date in the Depreciation Ending Date field.

Canceling and Recalculating Depreciation A Calculate Depreciation batch job with an incorrect depreciation entry can be canceled by using the Cancel FA Ledger Entries batch job. Remember to post the correct amount of depreciation, by running the Calculate Depreciation batch job again.

2-10

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

Chapter 2: Fixed Asset Transactions The these steps to recalculate an incorrect depreciation calculated for FA000080. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then select Fixed Assets. 2. Select the Fixed Asset for FA000080. 3. Click Related Information, point to Fixed Assets and then click Ledger Entries. 4. Select the line with the incorrect depreciation entry. 5. Click Actions, point to Function and then select Cancel Entries, the Cancel FA Ledger Entries page appears. 6. Click OK and the batch job will create the lines to be posted in the FA G/L Journal. 7. If the only incorrect entry is the date, a new date for the entry can be selected in the Cancel FA Entries batch job. 8. Click OK, to transfer the postings to the G/L Journal.

FIGURE 2.3 CANCEL FA ENTRIES

Follow these steps to post the incorrect depreciation: 1. Close the FA Ledger Entries page. 2. In the Navigation Pane, click Fixed Assets, and then select FA G/L Journals. 3. Make sure that the field furthest to the right side, the FA Error Entry No. field is filled in automatically. 4. Click Insert FA Bal. Account. 5. Click Post. 6. Click Yes to post the journal lines. 7. Click OK to the journal is posted. 8. Close the FA G/L Journal. The lines are now posted as FA error ledger entries. Follow these steps to view the entries. 1. On the Navigation Pane click Fixed Assets, and then select Fixed Assets, browse to the card for FA000080.

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

2-11

Fixed Assets in Microsoft Dynamics® NAV 2009 2. Click Related Information, point to Fixed Asset and then select Error Ledger Entries. The FA Error Ledger Entries page that has the changes appears. 3. Close the FA Error Ledger Entries page. 4. Click Statistics to view the Fixed Asset Statistics page. Notice that the page now looks the same as it did before the Calculate Depreciation batch job. NOTE: When you use the cancellation method outlined previously, the system suggests all depreciation in the selected period for the cancellation. If any manual postings are made with these posting types in the selected period, the system also includes these entries in the cancellation suggestion.

Write-Down and Appreciation of Fixed Assets Write–Down of a Fixed Asset A write-down is a decrease in the value of a fixed asset. A decrease may be because of the asset becoming out-of-date or damaged. You can use write-down entries as a correction to decrease an asset's depreciable base when the depreciation of the asset was too low in the past. The asset's value is posted as a loss in the financial statement.

Integrate a Write–Down with a G/L Journal To post a write-down entry to a depreciation book for which write-down has G/L integration, you must use an FA G/L journal. Follow these steps to set up the general ledger to which you want to post: 1. On the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Posting Groups and then select FA Posting Groups. 2. Right the column header and then click the Choose Columns feature. 3. Add the Write-Down Account field and the Write-Down Expense Acc. field and then click OK.. 4. Select TELEPHONE and enter 1230 in the Write-Down Account field. 5. Enter 8640 in the Write-Down Expense Acc. field. 6. Click OK.

2-12

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

Chapter 2: Fixed Asset Transactions Demonstration – How to Post a Write-Down Follow these steps to post a write-down entry. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and select FA G/L Journals. 2. In the Fixed Asset G/L Journal page, enter the following information: Field

Value

Posting Date

01/31/10

Document Type

Blank

Account Type

Fixed Asset

Account No.

FA000090

FA Posting Type

Write-Down

Amount

-300

3. Click Insert FA Bal. Account. The system will create a second line with the balancing entry. 4. Click Post. 5. Click Yes to post the journal. 6. Click OK. The write-down can also be posted from the FA Journal if the entries do not have to be integrated with the general ledger.

Appreciation of Fixed Assets Appreciation is an increase in the value of a fixed asset (typically land and buildings). It can also be used for a fixed asset that increases in value because of increased demand for the item. You can use an appreciation entry as a correction to increase an asset's depreciable base when the depreciation of the asset was too high in the past. This value is posted as a gain in the financial statement.

Integrate an Appreciation with a FA G/L Journal Use a FA G/L journal to post an appreciation transaction to a depreciation book in which appreciation has a G/L integration. Follow these steps to integrate an appreciation with a FA G/L journal. 1. On the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Posting Groups and then select FA Posting Groups. 2. Right the column header and then click the Choose Columns feature.

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

2-13

Fixed Assets in Microsoft Dynamics® NAV 2009 3. Add the Appreciation Account field and the Appreciation Bal. Account field and then click OK.. 4. Select TELEPHONE, and enter 1220 in the Appreciation Account field and enter 8640 in the Appreciation Bal. Account field. 5. Click OK.

Demonstration – How to Post an Appreciation Follow these steps to post an appreciation entry. 1. On the Navigation Pane click Financial Management, click Fixed Assets, and select FA G/L Journals. 2. In the Fixed Asset G/L Journal page, enter the following information: Field

Value

Posting Date

01/31/10

Document Type

Blank

Account Type

Fixed Asset

Account No.

FA000090

FA Posting Type

Appreciation

Amount

150

3. Click Insert FA Bal. Account. The system will create a second line with the balancing entry. 4. Click Post. 5. Click Yes to post the journal. 6. Click OK. The Appreciation can also be posted from the FA Journal if the entries do not have to be integrated with the general ledger.

Fixed Asset Disposals Salvage Value Salvage value represents the residual value of a fixed asset when it can no longer be used. Post the salvage value of an asset from a purchase invoice or from the FA journal when you post the acquisition cost. To post salvage value from a purchase invoice, add the Salvage Value field to the purchase lines by using the Choose Column function. Enter the salvage value in the field as a positive or negative number and then post the invoice as usual.

2-14

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

Chapter 2: Fixed Asset Transactions NOTE: If the asset contains the salvage value, Depreciate lower than Zero means depreciate under the salvage value. The salvage value reduces the depreciation base and therefore reduces all depreciation amounts. The final rounding amount reduces only the last depreciation amount. In the following scenario, the salvage value has caused a reduction in the yearly depreciation of 200 each year. If no salvage value existed, the depreciation would be 1,200 per year, and not 1,000.

Scenario – How to use Salvage Value An asset has a book value of 800 and a salvage value of -800. This means that the asset is fully depreciated. Follow these steps to use salvage value. 1. In the FA depreciation book for the asset, in the Fixed Depr. Amount below Zero field, enter 1,000. 2. Run the Calculate Depreciation batch job for the asset. The system calculates the depreciation as 1,000. This makes the book value -200. If the Salvage Value is 0, the system calculates depreciation as 1,800. This results in a book value of -1,000. NOTE: A salvage value is not posted as an alternative to a Final Rounding Amount. The Final Rounding Amount is set up in the FA depreciation book and reduces the last depreciation amount. The system does not post the final rounding amount.

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

Disposal of Fixed Assets When you sell or otherwise dispose of a fixed asset, you must post the disposal value together with any related gain or loss. A disposal entry must be the last entry posted for an asset so that you can record related disposal costs for an asset. You must record related disposal costs in the FA G/L Journal before the actual disposal entry. You must also post all disposal entries through the FA G/L Journal, the FA Journal, or a sales invoice.

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

2-15

Fixed Assets in Microsoft Dynamics® NAV 2009 To set up the disposal method for each depreciation book, in the Disposal Calculation Method field. The system can handle disposals by using one of the follow methods: •

Net method, post to either a disposal loss or gain account. This is the most common method that is used.

•

Gross method, post to a book value gain or loss account and to a sales gain or loss account. When you enter the sales price in a journal, the system calculates the gain or loss on the disposal and calculates all other relevant entries. The gain or loss amount will be calculated automatically from the difference between the sales price and the book value.

Scenario – Disposal of Fixed Assets The following examples include both the Net method and the Gross method of disposal by using the following amounts: Field

Value

Acquisition Cost

100,000

Acc. Depreciation

70,000

Appreciation

40,000

Book Value

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

Sales Price

20,000

Loss

50,000 (Sales Price - Book Value)

When you post the disposal of the fixed asset by using a journal or sales invoice, the system calculates the gain or loss on disposal and creates the other entries. The following examples show which amounts are posted to the accounts when you post the disposal of a fixed asset. The result of both methods is the same in the financial statement.

Disposal of Fixed Assets – Example A Appreciation is included in the book value and is part of the calculation of gain or loss. This is specified in the FA Posting Type Setup page. Field

Net Method

G/L Account

Debit

Cash

20,000

Acq. Cost Acc. on Disposal Accum. Depr. Acc. on Disposal Appreciation Acc. on Disposal

2-16

Gross Method Credit

Debit

Credit

20,000 100,000

70,000

100,000 70,000

40,000

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

40,000

Chapter 2: Fixed Asset Transactions Field

Net Method

Losses Acc. on Disposal

50,000

Gross Method

Apprec. Bal. Acc. on Disp. Book Value Acc. on Disposal

70,000

Sales Acc. on Disposal

20,000

Disposal of Fixed Assets – Example B Appreciation is included in the book value, but not included in the gain or loss calculation. Field

Net Method

G/L Account

Debit

Cash

20,000

Acq. Cost Acc. on Disposal Accum. Depr. Acc. on Disposal

Credit

Debit

70,000

100,000 70,000

40,000

Losses Acc. on Disposal

10,000

Apprec. Bal. Acc. on Disp.

40,000

Credit

20,000 100,000

Appreciation Acc. on Disposal

Book Value Acc. on Disposal

Gross Method

40,000

70,000

Sales Acc. on Disposal

20,000

Posting the Disposal through the FA Journals Another way to post disposals is through the FA G/L Journal. Follow these steps to post disposals through the FA G/L Journal. 1. Enter the appropriate information in the line. 2. Enter the disposal amount as a credit or negative number. 3. Click Post. You can also post the FA disposal in combination with a VAT posting group. The system automatically creates the Sales VAT amount. If the system must post the sales VAT automatically, enter the gross amount in the Amount field. Follow these steps to view the results of the journal entry. 1. Open the ledger entries from the depreciation book of the asset. 2. Use the Navigate function to view the actual entries made in the general ledger. This shows the posted disposal entry.

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

2-17

Fixed Assets in Microsoft Dynamics® NAV 2009 If you record a disposal for an asset without integration to the general ledger, you must record it in an FA Journal. The same information that is in the FA G/L Journal is recorded automatically. When you trade in an asset, you must record both the sale of the old asset (the disposal) and the purchase of the new one (the acquisition). You cannot record this type of transaction as a single transaction. NOTE: Avoid use the Inactive field until two years after the last transaction on the asset. If an asset is sold in the current fiscal year and the asset is recorded as inactive. Then the asset will not appear in the Fixed Asset - Book Value 01 report for the current fiscal year.

Partial Disposal When you sell or otherwise dispose of a part of an asset, you must split the asset into two or more assets before you record the disposal transaction.

Disposal from a Sales Invoice or a Sales Order You can create a sales invoice by selecting the type of Fixed Asset on the line. This lets you invoice an asset to a customer. The disposal of the asset works in the same manner as a disposal through a FA G/L journal. The following steps explains how to create a sales invoice for the disposal of an asset. 1. On the Navigation Pane, click Departments, click Financial Management, click Receivables, and select Sales Invoices. 2. Click New to create a new sales invoice. 3. Press ENTER or TAB to find the next available invoice number. 4. In the Sell-to- Customer No. field enter 30000. 5. In the Posting Date and Document Date fields, enter 01/31/10. 6. In the Lines FastTab, select Fixed Asset in the Type field. 7. Click the drop-down list in the No. field, and select the asset FA000030 VW Transporter. 8. Enter the quantity in the Quantity field. Usually the quantity will be 1. No more than one asset per sales line can be sold. 9. Enter the net sales price in the Unit Price field of the sales line. 10. Right-click the column header and open the Choose Column function, add the Depr. until FA Posting Date field and then click OK, select the check-box. 11. Click Statistic view the sales statistics for this invoice. The system now has calculated the Sales VAT and automatically enters Disposal in the FA Posting Type field because only one FA Posting Type for assets in sales invoices exists. 12. Click Post, to post the invoice.

2-18

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

Chapter 2: Fixed Asset Transactions 13. Click Yes, an error message about the combination of the Project and Customer Group dimensions appears. 14. Select the line, click Related Information, point to Invoice and then select Dimensions and delete the VW Project dimension line. 15. Click Post to re-post the invoice.

Correction of Entries If an incorrect entry is posted, you can cancel it by marking the posted entry as an error ledger entry and then posting the correct entry. Because the system uses the FA Posting Date in many calculations, you must make sure that entries with incorrect FA Posting Dates are corrected.

Canceling Entries The following steps explains how to correct an entry. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then select Fixed Assets. Browse to asset number FA000060. 2. Select the line with the COMPANY depreciation book. 3. Click Depreciation Book and click Related Information, point to Depr. Book and then select Ledger Entries. The FA Ledger Entries page appear.

FIGURE 2.4 FA LEDGER ENTRIES

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

2-19

Fixed Assets in Microsoft Dynamics® NAV 2009 The page displays all the depreciation entries. In this example, the entry on December 31, 2009 should have been -50.00 instead of 47.00. 4. Select the Line, click Actions, point to Functions, and select Cancel Entries. 5. Click OK in the Cancel FA Entries page. 6. Click OK, to the system automatically have creates the necessary entries in a journal. 7. Close the FA Ledger Entries page. 8. Om the Navigation Pane, click Fixed Assets, and select FA G/L Journal. Notice that the system automatically enters the FA Error Entry No. field. 9. To complete the cancellation, click Insert FA Bal. Account No. make sure that G/L account 8820 is inserted. 10. Click Post to post the cancellation journal. 11. Click Yes to post the journal lines. 12. Click OK. After the entry is canceled, you must create the correct entry.

Canceling and Recalculating Depreciation You can cancel incorrect depreciation entries by using the Cancel FA Ledger Entries batch job. After you cancel the entries, select Calculate Depreciation to run the batch job again. When you cancel an FA entry, the original entry and the cancellation entry both are excluded from the depreciation calculation.

Correction of FA entries The cancellation batch job usually posts with the original FA Posting Date. This may result in posting to a closed fiscal year. If an FA entry occurred in a closed fiscal year, you must cancel it. If the posting period is restricted in the Allow FA Posting From and Allow FA Posting To fields in the FA Setup page, the system cannot post the cancellation. However, you can make a correction entry for an asset in the current fiscal year. You can cancel entries in previous fiscal years by selecting the entries to be canceled and running the Cancel FA Ledger Entries batch job as usual.

Documenting Fixed Asset Transactions All entries posted to depreciation books are automatically assigned consecutive entry numbers. In the FA registers, the entries are sorted in entry number order regardless of FA numbers or depreciation book numbers.

2-20

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

Chapter 2: Fixed Asset Transactions FA Registers A register is created automatically with each posting, either directly from a fixed asset journal or indirectly from purchase invoices or sales invoices. The individual registers are also numbered (one is the first number). Follow these steps to view a list of the existing register numbers: 1. Om the Navigation Pane, click the Departments button, click Financial Management, click Fixed Assets, and then select FA Register. 2. Set the filters for the relevant fixed Asset. 3. Click Print or Preview to see the register.

Tracing Transactions All posted entries are automatically assigned a Source Code so that transactions can be traced to their origin. You can also assign a Reason Code to the transactions.

Fixed Asset Reports When you prepare a balance sheet and income statement, you may have to print reports to analyze the depreciation, acquisition, disposal, and gain or loss values for the accounting period. You may also need reports about accumulated depreciation and book value at the end of the period. You may need a list of all the fixed assets for inventory, insurance, and other management purposes.

Fixed Asset List The Fixed Asset List includes information from the Fixed Asset Card and FA Depreciation Book.

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

2-21

Fixed Assets in Microsoft Dynamics® NAV 2009 Follow these steps to print a list of all fixed assets that includes assets without transaction data: 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then select Fixed Assets. 2. Click Fixed Asset List

FIGURE 2.5 FIXED ASSET LIST

3. On the Options FastTab, select which depreciation book to print from and indicate whether each fixed asset must be printed on a separate page. 4. On the Fixed Asset FastTab, set a filter to select the assets to include in the report. If the field is blank, all assets will be included.

Fixed Asset – Book Value To print a report about depreciation, acquisitions, and disposals for a selected period, and also the book value at the end of the period, two reports are available: •

Book Value 01

•

Book Value 02

The reports include similar information. However, the first report format displays one line for each asset and must be printed by using landscape orientation. The second report displays the information on several lines for each asset. To obtain information on write-downs, appreciation, custom1, and custom2 posting types included in the Book Value 02 report, select either the Acquisition Type or the Depreciation Type field in the FA Posting Type Setup page.

2-22

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

Chapter 2: Fixed Asset Transactions You can include reclassified entries in the Book Value 02 report. Follow these steps to print one of these reports: 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then select FA Book Value 01 or FA Book Value 02.

FIGURE 2.6 FIXED ASSET - BOOK VALUE 02

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

2-23

Fixed Assets in Microsoft Dynamics® NAV 2009 2. On the Options FastTab of the Book Value 02 report, select the Include Reclassification field to include reclassified entries on the report. 3. In the Budget Report field, select the option to calculate depreciation from the last FA Posting Date until the specified Ending Date. 4. On the Fixed Asset FastTab, set a filter to select the assets to include in the report. If the field is blank, the report will contain information on all active assets.

Fixed Asset – Analysis The Fixed Asset - Analysis report is a combined report that has the option to print most of the posting information related to fixed assets. Follow these steps to print Analysis reports. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then click Analysis

FIGURE 2.7 FIXED ASSET - ANALYSIS

2-24

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

Chapter 2: Fixed Asset Transactions 2. On the Options FastTab, enter information in the fields as follows: o Depreciation Book - Select the relevant depreciation book. o Starting Date - Enter the first day (FA Posting Date) to be included in the report. o Ending Date - Enter the last day (FA Posting Date) to be included in the report. o Date Field 1 and Date Field 2 - Click the drop-down list to view a list of the type of dates, and then select the type to be printed on the report and then click OK to copy it to the field. o Amount Field 1, Amount Field 2, and Amount Field 3 - View the columns in which the three types of amounts can be displayed. Click the drop-down list to see the FA Posting Types page, and then select the posting type to be included in the report. Click OK to copy it to the field. The available options are as follows: Before Starting Date - Only amounts before the starting date are included. Net Change - Amounts with an FA posting date between the dates specified in the Starting Date and Ending Date fields are included. Amounts on the starting date and on the ending date are also included in Net Change. o At Ending Date - Amounts posted on or before the date entered in the Ending Date field are included. Click the drop-down list to see the options, then select the option to be calculated in the group total. o Print per Fixed Asset - Select this field if the values must be printed for each fixed asset instead of a total line. o Only Sold Assets - Select this field to see sold assets only. o Budget Report - Select this field to calculate the depreciation until the ending date. 3. On the Fixed Asset FastTab, select the assets to include in the report. If the field is blank, the report will include all the fixed assets. 4. Click Print to print the report or click Preview to view it on screen. If G/L integration is activated for a depreciation book, this report will show amounts posted in general ledger coming from the FA application area. The report is based on the Posting Date in the FA ledger, whereas all other reports use the FA Posting Date. 1. Click Financial Management, select Fixed Assets, and the select Reports and Fixed Assets. 2. Select the G/L Analysis report and then click Print. 3. On the Fixed Asset FastTab you can select which assets to include in the report. If you leave the fields blank you will receive information on all assets (except inactive assets).

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

2-25

Fixed Assets in Microsoft Dynamics® NAV 2009 4. On the Options FastTab, fill in the fields according to the following guidelines: o Depreciation Book - Select the relevant depreciation book. o Starting Date - Enter the first day (Posting Date) you want included in the report. o Ending Date - Enter the last day (Posting Date) you want included in the report. o Date Field 1 and Date Field 2 - Click the drop-down list to see a list of the type of dates. Select the type that you want printed on the report and click OK to copy it to the field. o Amount Field 1, Amount Field 2 and Amount Field 3 - The report has three columns in which three types of amounts can be displayed. Click the drop-down list to see the FA Posting Types page. Select the posting type that you want included in the report and then click OK to copy it to the field. The available options are as follows: – i. Blank - Amounts posted to FA ledger, that corresponds to the posting type selected in Amount Field 1 field. If you select the Acquisition option, the report will include acquisition costs. – ii. Disposal - Amounts posted to disposal accounts. Only disposed assets will have values in this column. If you select the Acquisition option, the report will include acquisition costs. – iii. Bal. Disposal - Amounts posted to the balance disposal accounts. This option can only be used together with Writedown, Appreciation, Custom1, and Custom2 FA posting types. The balance disposal accounts are only used if the posting types are not included in the calculation of gain and loss and the disposal calculation method is Net. The Bal. Disposal accounts are not used if the disposal calculation method is Gross. o

o o

Group Totals - Click the drop-down list to see the options. Select the option for which you want a group total calculated and printed. Print per Fixed Asset - Select this field if you want values printed per fixed asset and a total line. Only Sold Assets - Select this field, if you want to see sold assets only.

5. Click Print to print the report or Preview to view it on screen.

2-26

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

Chapter 2: Fixed Asset Transactions FA Posting Group – Net Change Report The Net Change Report displays the net change posted in the fixed asset ledger entries for each FA posting group. If G/L integration is activated for a depreciation book, the amounts in the report are the same as the net change in the G/L accounts assigned to the FA Posting Groups. You can use the report when you reconcile the fixed asset ledger and general ledger. The report contains two sections. The first section shows the net change for each G/L account for each FA posting group. The second section shows the total change in each G/L account for all FA posting groups. You can use the FA Depreciation Book FastTab to set filters if the report should include only certain depreciation books, fixed assets, or FA Posting Groups. You can select the information to view on the report by using the Options FastTab. Follow these steps to create a Net Change report. 1. On the Navigation Pane, click Department, click Financial Management, click Fixed Assets and the click FA Posting Group Net Change.

FIGURE 2.8 FA POSTING GROUP - NET CHANGE

2. On the Options FastTab, enter information in the Starting Date and Ending Date fields for the report.

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

2-27

Fixed Assets in Microsoft Dynamics® NAV 2009 3. On the FA Depreciation Book FastTab, enter information in the fields as follows: o FA No. - Enter the numbers of the fixed assets to be included in the report. To view the existing numbers, click the drop-down list in the Filter field. o Depreciation Book Code - Click the drop-down list and select the code for the depreciation book to be included in the report. o FA Posting Group - Enter the codes for the FA Posting Groups to be included in the report. To view the existing codes, click the drop-down list in the Filter field.

Budgeting Fixed Asset Transactions To prepare the budgeted income statement, balance sheet, and cash flow, users need information about future investments, disposals, and depreciation of fixed assets. When you set up a budgeted asset, you can plan for the addition of assets. After an asset is bought, you must create the new asset and post it with the actual acquisition cost through the FA Journal or the FA G/L Journal. You can then compare the budgeted cost to the actual cost. A budgeted asset is not integrated to the general ledger. This information is available from the FA Projected Value report. You can indicate that the asset was created for budgeting by using the Fixed Asset Card, on the Posting FastTab, where you can enter information in the Budgeted Asset field.

FIGURE 2.9 FIXED ASSET CARD - POSTING FASTTAB

2-28

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

Chapter 2: Fixed Asset Transactions Budgeting Future Acquisition Costs To prepare a budget, the user must set up a fixed asset card for fixed assets that the company intends to buy in the future. Follow these steps to budget for future acquisition costs. 1. Open Financial Management, click Fixed Assets, and then select Fixed Assets. 2. Click New to create a new fixed asset, and then enter information in the relevant fields. 3. Select the Budgeted Asset field on the Posting FastTab to prevent posting to the general ledger. 4. On the lines, set up the FA depreciation books.

FIGURE 2.10 FIXED ASSET CARD

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

2-29

Fixed Assets in Microsoft Dynamics® NAV 2009 The budgeted acquisition cost now appears in the Fixed Asset Statistics page. You can open the Fixed Asset Statistics page from the FA depreciation book for the budgeted asset. 1. Close the Fixed Asset Statistics page, click Fixed Assets, and then select FA Journals to open the Fixed Asset Journal page. 2. Enter and post the budgeted acquisition cost as shown in the following example:

FIGURE 2.11 FIXED ASSET JOURNAL

The budgeted acquisition cost now appears in the Fixed Asset Statistics page. You can open the Fixed Asset Statistics page from the FA depreciation book for the budgeted asset.

Follow-Up on Budgeted Acquisition Costs When you buy a budgeted fixed asset, you must set up a new fixed asset card. Follow the Budgeting Future Acquisition Costs procedure, but when you post the actual acquisition cost (in either the FA G/L Journal or the FA Journal), enter the number of the budgeted asset in the Budgeted FA No. field. The system posts an acquisition cost with an opposite sign for the budgeted asset. This means the total acquisition cost on the budgeted asset is the difference between the budgeted and the actual acquisition cost.

Budgeting Future Disposal of Fixed Assets When a company plan to sell assets within the budget period, they can enter information about the sales price and sales date. 1. Om the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then click Fixed Assets. 2. Select fixed asset no. FA000090.

2-30

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

Chapter 2: Fixed Asset Transactions 3. Click Depreciation Books. 4. In the FA Depreciation Book page, right-click the column header and select Choose Column, add the Projected Disposal Date and Projected Proceeds on Disposal fields and click OK.. 5. Enter the information that is shown in the following illustration.

FIGURE 2.12 FA DEPRECIATION BOOKS

6. Click OK.

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

2-31

Fixed Assets in Microsoft Dynamics® NAV 2009 Budgeting Future Disposal Reports To view the projected disposal values and set the system calculate the gain or loss, run the Fixed Asset - Projected Value report. Follow these steps to run the Fixed Asset - Projected Value report. 1. Om the Navigation Pane, click Fixed Assets, select Reports, and then select FA Projected Value report. 2. Enter relevant information in the fields.

FIGURE 2.13 FIXED ASSET - PROJECTED VALUE

3. Click Print to print or Preview to see the report on screen before you print it.

2-32

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

Chapter 2: Fixed Asset Transactions Budgeted Depreciation Follow these steps to calculate future depreciation. 1. On the Navigation Pane, click Fixed Assets, and then select FA Projected Value. 2. To calculate depreciation for years 2010 to 2014, enter information in the fields as follows:

FIGURE 2.14 PROJECTED VALUE

3. Leave the No. field on the Fixed Asset FastTab blank to include all the fixed assets. 4. In the Budgeted Asset field, enter No to exclude budgeted assets or Yes to see budgeted assets only. 5. Click Print to print or Preview to view the report on screen before you print it. The following example displays the report.

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

2-33

Fixed Assets in Microsoft Dynamics® NAV 2009 Budgeted Depreciation Reports

FIGURE 2.15 FIXED ASSET - PROJECTED VALUE REPORT

The Budgeted Depreciation Report displays: •

Book value and accumulated depreciation at the beginning of the selected period

•

Changes during the period

•

Book value and accumulated depreciation at the end of the selected period

To see total values for all assets, clear the Print per Fixed Asset field on the Options FastTab of the report and rerun the report.

2-34

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

Chapter 2: Fixed Asset Transactions Copying Fixed Asset Transactions to the G/L Budget You can copy posted or projected fixed asset transactions to the G/L budget. Follow these steps to copy posted FA ledger entries that includes FA ledger entries posted to budgeted assets. 1. Om the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets and then select Depreciation Books. 2. Double-click on COMPANY to open the Depreciation Book Card. 3. Click Actions, point to Functions, and then select Copy FA entries to G/L Budget.

FIGURE 2.16 COPY FA ENTRIES TO G/L BUDGET

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

2-35

Fixed Assets in Microsoft Dynamics® NAV 2009 On the Options FastTab and enter or select the following options: •

Copy Depr. Book - Enter the depreciation book from which to copy entries.

•

Copy to G/L Budget Name - Enter the name of the budget to copy to.

•

Starting Date and Ending Date - Enter the starting and ending dates that all entries with an FA Posting Date on and between these dates will be copied to the budget.

•

Posting Description - Enter a description for the budget entries.

•

Insert Bal. Account - Select this field to copy the balancing entry to the G/L budget.

•

Copy - Select the type of entries to copy.

On the Fixed Asset FastTab to select the assets from which to copy the FA ledger entries. When you run the batch job, any entries that are posted for the selected assets are copied automatically to the G/L Budget. The date of the G/L Budget entries and the dimensions for the budget entry are the same as the FA posting date and the dimensions posted on the FA Ledger entry. You can copy projected fixed asset transactions to the G/L budget by selecting the budget to copy to in the Copy to G/L Budget Name field in the FA Projected Value Report. When you preview or print the report, both posted and projected transactions are copied to the selected G/L budget. Each budget entry will automatically be assigned a description of the fixed asset number and transaction type that was copied to the budget.

Cost-Accounting Depreciation Some companies conduct a part of their cost accounting from the Fixed Asset application area. The system handles the cost-accounting depreciation for the cost accounting.

Cost Accounting Depreciation Book Follow these steps to set up a depreciation book for cost-accounting called COST. 1. On the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets and then select Depreciation Books. 2. Click New. 3. In the Code field enter COST. 4. In the Description field enter Cost Accounting Depreciation Book.

2-36

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

Chapter 2: Fixed Asset Transactions 5. In the Disposal Calculation Method, click the drop/down list and select Gross. 6. Select the check-box for Allow Depr. below Zero and Allow Indexation. 7. Clear the check-box for Use FA Ledger Check and Use Same FA+G/L Posting Dates. 8. On the Integration FastTab, select the Depreciation field to make sure that only the depreciation will be integrated to the general ledger. The system posts depreciation by using a posting group for cost-accounting depreciation.

FIGURE 2.17 DEPRECIATION BOOK CARD - COST

9. Click OK.

Cost Accounting Posting Groups You must set up a COST posting group so that the system posts the costaccounting depreciation correctly to the general ledger. Before setting up the posting group, two income statement accounts must be set up, so that entries will not affect the gain or loss in the financial statement, even though they will be posted to the financial statement.

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

2-37

Fixed Assets in Microsoft Dynamics® NAV 2009 1. On the Navigation Pane, click Departments, click Financial Management, click General Ledger, and then select Chart of Accounts. 2. Click New. 3. In the No. field enter 8920. 4. In the Name field enter Cost Accounting Depreciation. 5. Click OK. 6. Click New. 7. In the No. field enter 8930. 8. In the Name field enter Cost Accounting. 9. Click OK. 10. Click Indent Chart of Accounts. 11. Click Yes. Follow these steps to set up FA Posting Group: 1. On the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Posting Groups and then select FA Posting Groups. 2. Enter the G/L accounts as shown here:

FIGURE 2.18 FA POSTING GROUPS

3. Click OK.

2-38

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

Chapter 2: Fixed Asset Transactions Cost Accounting on the Fixed Asset Card Set up a new line for each asset in the FA depreciation books for which the system will calculate cost-accounting depreciation.

FIGURE 2.19 FIXED ASSET CARD

Remember to select the new cost-accounting FA posting group so that it posts to the correct accounts. The following illustration shows an example of this type of asset. When you have set up all the FA depreciation books for the relevant assets, begin to create the acquisition costs for them all. If the depreciation books are identical to the acquisition costs of other FA deprecation books, use the Copy Depreciation Book batch job to copy the existing amounts from the standard depreciation book. In this example, copy the COMPANY depreciation book to the new depreciation book COST. Post the copied lines in the FA journal. The system is set up so that the acquisition costs of these assets are never posted to the general ledger. That is the reason why you must post FA journals. When you calculate the depreciation, the system will now use the acquisition cost as a baseline.

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

2-39

Fixed Assets in Microsoft Dynamics® NAV 2009 Cost Accounting Booked Value of Zero If the asset must be depreciated to the book value of Zero, set up the annual depreciation percentage or the annual depreciation value in the related fields in the FA depreciation book as if the asset had a booked value. When the book value is zero, select the Allow Depr. Below Zero check-box in the COST Depreciation Book Card for additional postings. When you start the Calculate Depreciation batch job for the COST depreciation book, notice that the created entries are in the FA G/L journal because depreciation postings were integrated to the general ledger automatically. The system needs a balancing account for this. On the Options FastTab, select the Insert Bal. Account to set the system to automatically insert the expense account from the FA posting group COST. Cost Accounting is not bound to any law. Therefore, you can change the depreciable base of assets that have a COST depreciation book. You can do this by using indexation.

Indexation When you receive a maintenance invoice, you can record it in one of the following ways: •

If you have activated G/L integration for the depreciation book to post to, use a purchase invoice or an FA G/L journal.

•

If you have not activated G/L integration for the depreciation book to post to, you can use only an FA journal.

Indexation Batch Job To use the indexation batch job, you must select all the Allow Indexation fields on the depreciation book. Use the Depreciation book COST. This book is prepared for indexation. You can use the indexation with the COST depreciation book but not the default depreciation book (in this case, the COMPANY book). This is because the COMPANY depreciation book is used for the balance sheet and the financial statement. You must not change the depreciation base of this COMPANY book by an indexation.

2-40

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

Chapter 2: Fixed Asset Transactions Index Fixed Assets Card Follow these steps to view the Index Fixed Assets card. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then select Index Fixed Assets.

FIGURE 2.20 INDEX FIXED ASSETS

2. On the Options FastTab, enter or select the following fields: o Depreciation Book - Select the appropriate depreciation book. o Index Figure - Calculate the index amounts entered in the journal. For example, to index by two percent, enter 102 in this field.

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

2-41

Fixed Assets in Microsoft Dynamics® NAV 2009 FA Posting Date - Enter this date so that it appears in the FA Posting Date field in the resulting journal lines. If the Use Same FA Posting Dates field for the depreciation book is selected, then this date must be the same as the posting date entered in the Posting Date field. o Posting Date - Enter this date so that it appears in the Posting Date field in the resulting FA G/L journal lines for assets that are integrated with the general ledger. o Document No. - Leave this field blank when you set up a numbering series for the fixed asset journal batch in the No. Series table. The fixed asset journal batch currently has no journal lines entered in it. The batch job automatically assigns the next available number in the series to the journal lines that are copied to the fixed asset journal batch. o Posting Description - Enter a posting description that will appear on the resulting journal lines. o Insert Bal. Account - Select this option if the batch job automatically should insert balancing account(s) in the resulting journal. The batch job uses the accounts defined in the FA Posting Group table. o Index - Select the fixed asset transaction types to be index for the fixed assets included in the batch job. 3. On the Fixed Asset FastTab, select the fixed assets to index. o

2-42

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

Chapter 2: Fixed Asset Transactions Demonstration – How to Index Follow these steps to index. 1. Open the Index Fixed Assets card, and leave the Fixed Asset FastTab empty. 2. Enter information in the Options FastTab as follows:

FIGURE 2.21 INDEX FIXED ASSETS

3. Click OK to create the indexation entries. The journal lines are now automatically created in the journal. 4. Check the created entries and post them to the ledgers. If the index figures are for simulation purposes only, you can create a special depreciation book in which to store them. These entries will not affect any of the other depreciation books. You can also index manually by entering a journal line.

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

2-43

Fixed Assets in Microsoft Dynamics® NAV 2009 Click the Index Entry field to mark the entries. This makes the index entries identifiable.

Reversing Indexation You can correct an indexing error by using the Cancel FA Ledger Entries batch job and then running the Index Fixed Assets batch job again.

Minor Assets Minor assets are assets that are fully depreciated in the same fiscal year as they are purchased. Whether an asset is classified as a minor asset depends on local legislation. The FA Depreciation Book for minor assets has two significant settings: •

The depreciation method is usually straight-line.

•

The depreciation starting date and the depreciating ending date are the same. The effect of this is that the system always calculates 100 percent depreciation, even when other acquisitions and depreciation have already been posted to this asset.

Setting Up a Minor Asset For this example create a fixed asset card called Minor Assets 2000 with the following information: Field

Value

Depreciation Book Code

COMPANY

FA Posting Group

MACHINERY

Depreciation Starting Date

01/01/09

Depreciation Ending Date

01/01/09

Typically, users would set up a separate G/L account and FA Posting Group for minor asset depreciation. However, for this example, you can use the existing machinery posting group. Using the FA G/L journal, add the following acquisition costs for the year. Notice that the balancing account number for each acquisition is G/L account 2910.

2-44

Date

Acquisition

01/07/09

600

01/09/09

800

01/12/09

500

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

Chapter 2: Fixed Asset Transactions After you post the journal , the Minor Assets 2000 Fixed Asset Card should be as follows:

FIGURE 2.22 FIXED ASSET CARD - MINOR ASSETS 2000

Most companies set up one minor asset fixed asset card each year because legislation for minor assets sometimes changes from one fiscal year to the next.

Calculate Depreciation on a Minor Asset Every time that you purchase an asset that is classified as a minor asset, post the acquisition cost and depreciation to the same minor asset card. The system will collect acquisition costs of all minor assets and then depreciate them by 100 percent when you calculate the next periodic depreciation. Follow these steps to calculate depreciation on a minor asset. 1. On the Navigation Pane, click Fixed Assets, click Fixed Assets and then select Minor Assets 2000. 2. Click Calculate Depreciation. 3. Enter information in the Options FastTab as follows: Field

Value

Depreciation Book

COMPANY

FA Posting Date

12/31/09

Posting Date

12/31/09

Description

Depreciation Minor Assets Year 2009

4. Click OK to run the batch job.

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

2-45

Fixed Assets in Microsoft Dynamics® NAV 2009 5. Close the Fixed Asset Card for Minor Assets. 6. On the Navigation Pane, click Fixed Assets, and then select FA G/L Journals to review the journal created by the batch job. If the system has not inserted a balancing account automatically, click Insert FA Bal. Account. 7. Click Post to post the journal. The Fixed Asset Card for the minor assets will now have a book value of 0. 8. Click the drop-down list in the Book Value field to display the journal entries.

Summary Microsoft Dynamics NAV 2009 Fixed Asset Transaction gives an basic overview of all the different transaction available for a company with fixed assets. Four types of journals are available for the several kind of transaction types with fixed assets: •

FA G/L Journal

•

FA Journal

•

FA Reclassification Journal

•

Insurance Journal

Fixed assets consist primarily of transactions types as depreciations, writedowns, appreciations, and disposals. All these transactions can be handled by Microsoft Dynamics NAV 2009, and Fixed Assets can be set up to calculate budgets, cost-accounting, and indexation for fixed assets. Purchase of minor assets can also be set up, calculated and depreciated in Fixed Assets in Microsoft Dynamics NAV 2009.

2-46

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

Chapter 2: Fixed Asset Transactions

Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.

2.

3.

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

2-47

Fixed Assets in Microsoft Dynamics® NAV 2009

2-48

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

Chapter 3: Fixec Asset Reclassifications

CHAPTER 3: FIXED ASSET RECLASSIFICATIONS Objectives The objectives are: •

Transfer, split, or combine an asset.

•

Set up a partial disposal of an asset.

•

Set up a combining assets.

Introduction Fixed Asset Reclassifications in Microsoft Dynamics NAV 2009® describe the basic information on the function in how to reclassify a fixed asset. Reclassifications for fixed asset is usually used for: •

Transferring an asset to another location.

•

Splitting an asset

•

Disposing of only a part of the asset.

•

Combining two assets.

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

3-1

Fixed Assets in Microsoft Dynamics® NAV 2009

Asset Transfers Assets transfers can be used to transfer, split, or combine assets. All posting from asset transfers occurs in the Reclassification Journal. Some companies frequently transfer assets from one location to another. For example, assume that, while an asset is being assembled, a worker put it in the warehouse. When it is finished, someone must move it to the another room in the administration. A company always needs have an exact overview over the location of all its assets, therefore must this process also be registered in Microsoft Dynamics NAV 2009.

Asset Transfer To transfer an asset from one location to another location in Microsoft Dynamics NAV 2009 follow these steps: 1. 2. 3. 4.

Set up a new fixed asset. Enter the new location in the FA Location Code field. Create a Depreciation Book for asset. Move 100 percent of the asset's acquisition cost and depreciation by opening the FA Reclass. Journals. 5. In the FA Reclass. Journal page specify: o o o o o o

o

3-2

FA Posting Date - The date of the reclassification. Document No. - The document number for the transaction. FA No. - The number of the asset transferring from. New FA No. - The number of the asset that you are transferring to. Description - A text description for the transaction. Reclassify Acq. Cost Amount and Reclassify Acq. Cost % The amount of the asset acquisition cost to be transferred. This can be entered as a percentage or an amount. Reclassify Acquisition Cost - The option to select whether to transfer the acquisition cost.

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

Chapter 3: Fixec Asset Reclassifications o o

Reclassify Depreciation - The option to select whether to transfer the depreciation. Insert Bal. Account - If balancing accounts are set up in the FA Posting group, select this option so that the system inserts the balancing accounts; otherwise leave it blank.

FIGURE 3.1 FA RECLASS. JOURNAL

6. Complete the journal lines and then click Reclassify. Microsoft Dynamics NAV 2009 automatically creates lines in the FA G/L Journal by using the specified template and batch. You can post these lines against one another. However, you do not have to insert the balance accounts. When you post this FA G/L Journal, both the fixed assets entries and the G/L entries move automatically from one asset account to another. You can enter these reclassifications by printing the Fixed Asset - Book Value 02 report, that gives you an overview of the total of all assets or each asset.

Splitting Fixed Assets Fixed assets are split in the Reclassification Journal similar to the way an asset is transferred. The only difference is that you transfer to multiple assets. This mean that you can use a Reclassification Journal to split one asset into two, and still keep part of it as the original asset. For example 25 percent is going to Fixed Asset no. FA000060, 45 percent is going to Fixed Asset no. FA000070, and Fixed Asset no.FA000050 keeps 30 percent.

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

3-3

Fixed Assets in Microsoft Dynamics® NAV 2009 If the precise percentage is unknown, then use a reclassification amount. This amount refers to the original acquisition amount. Before you transfer acquisition and depreciation to new assets, you must first set up the new asset.

Partial Disposal of an Asset A asset can partly be disposed similar to the way an asset is split. To partly dispose an asset follow these steps: 1. Set up the new asset for the partial disposal amount. 2. Post a reclassification of the part to sell. 3. Post the disposal to the new asset. Microsoft Dynamics NAV 2009 automatically calculates the gain or loss of the partial disposal accurately. NOTE: When you post the partial disposal sales goes to the original asset. The system will handle the asset as if it is completely sold. You cannot post additional entries to the asset after you post an entry with the FA posting type; Disposal. Usually, the reduced sales price for the partial disposal will also incur a loss. However, posting a partial disposal in this manner is incorrect.

Combining Assets An asset can be combined with another asset similar to the way an asset is split. The only difference is that combining assets typically transfer 100 percent of the amount of the asset to the new asset. The FA No. field contains the asset to be combined from and the New FA No. field is the asset it is being combined into.

Summary Microsoft Dynamics NAV 2009 Fixed Assets Reclassifications explains the process and the functionalities of reclassification of Fixed Assets when a company has to transfer, splitting, partial disposal, and combining fixed assets.

3-4

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

Chapter 3: Fixec Asset Reclassifications

Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.

2.

3.

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

3-5

Fixed Assets in Microsoft Dynamics® NAV 2009

3-6

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

Chapter 4: Fixed Assets Maintenance

CHAPTER 4: FIXED ASSETS MAINTENANCE Objectives The objectives are: •

Set up Maintenance Information.

•

Set up maintenance registration and costs.

•

Create the maintenance cost reports.

Introduction All companies have to keep track of the maintenance on the fixed assets. Microsoft Dynamics® NAV 2009 helps a company to always have updated information about the maintenance. Microsoft Dynamics NAV 2009 Fixed Assets Maintenance explains the set up of maintenance information on an fixed asset and describe the functionality and processes for registration of maintenance on fixed assets. In Microsoft Dynamics NAV 2009, it is also possible to keep statistics and print reports for the maintenance, Fixed Assets Maintenance perform this set up.

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

4-1

Fixed Assets in Microsoft Dynamics® NAV 2009

Setting up Maintenance Information Maintenance expenses are routine periodic costs charged to preserve the value of fixed assets. Unlike capital improvements, maintenance expenses do not increase the value of the assets.

Fixed Asset Card The Maintenance FastTab of the fixed asset card contains the following fields: •

Vendor No. - The number of the vendor that supplied the fixed asset.

•

Maintenance Vendor No. - The number of the vendor that usually performs the maintenance.

•

Under Maintenance - The indication of whether the fixed asset is under maintenance. You can use this information as a filter in reports.

•

Next Service Date - The date of the next scheduled service. This information can be used as a filter in reports.

•

Warranty Date - The date on which the warranty expires.

•

Insured - The system automatically enters information in this field, if you use insurance.

FIGURE 4.1 FIXED ASSET CARD

FA Posting Group All maintenance cost can be recorded to the fixed asset. In addition to entering information in the fields on the fixed asset card, you must enter an account number in the FA Posting Groups page to allow posting of the maintenance costs to the general ledger.

4-2

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

Chapter 4: Fixed Assets Maintenance Follow these steps to set up an FA Posting Group for the maintenance costs 1. On the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Postings Groups and then select FA Postings Groups. 2. Click the drop-down list in the Maintenance Expense Account field for the relevant posting groups, select the relevant G/L account.

FIGURE 4.2 FA POSTING GROUPS

Allocation Keys Allocation keys are used to maintain costs allocated to departments and projects. To set up an allocation key follow these steps: 1. In the FA Posting Groups page, click Related Information, point to Posting Gr., click Allocations, and then click Maintenance. 2. Fill in the fields according to these guidelines: o

Account No. - Enter the G/L account number.

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

4-3

Fixed Assets in Microsoft Dynamics® NAV 2009 o o

Account Name - Verify that the system has entered the correct name of the account. Allocation% - Enter the percentage to allocate to the specified department or project.

FIGURE 4.3 FA ALLOCATIONS

NOTE: You can allocate dimensions to those other than the default global dimensions by clicking Related Information, point to Line, and then select Dimensions, and then select the required dimension code and values in the FA Allocation Dimensions page.

Setting up Maintenance Codes When you post maintenance costs (from a general journal or a purchase invoice), enter a description of the kind of maintenance that is performed in the Maintenance Code field (for example, routine service, repair).

4-4

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

Chapter 4: Fixed Assets Maintenance To set up the codes, in the Navigation Pane, click Department, click, Administration, click Application Setup, click Financial Management, click Fixed Assets and then select Maintenance.

FIGURE 4.4 MAINTENANCE

Maintenance Registration and Costs Keeping Track of Service Visits Every time someone performs maintenance on a fixed asset, it can be recorded by using the Maintenance Registrations page. Follow these steps to track a service visit.: 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets and then select Fixed Assets.

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

4-5

Fixed Assets in Microsoft Dynamics® NAV 2009 2. Browse to the fixed asset for which the maintenance is registered. 3. Click Maintenance Registration.

FIGURE 4.5 MAINTENANCE REGISTRATION

4. Fill in the fields as follows: o Service Date - Enter the date when the fixed asset is being serviced. o Maintenance Vendor No. - Enter the number of the vendor who is performing the maintenance. o Comment - Enter a description of the maintenance being performed. o Service Agent Name - Enter the name of the person who is performing the service/repair. o Service Agent Phone No. - Enter the telephone number of the relevant service agent.

Following up on Service Visits To see which assets are scheduled for service visits, you can print the Maintenance -Next Service reports. The report can also be used to update the Next Service Date field on the fixed asset cards. To run the report follow these steps:

4-6

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

Chapter 4: Fixed Assets Maintenance On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then select Next Service Report

FIGURE 4.6 MAINTENANCE – NEXT SERVICE REPORT

On the Options FastTab, define the period by entering a Starting Date and Ending Date.

Recording Maintenance Costs Maintenance Costs can be recorded in one of the following ways: •

If G/L integration is activated for the depreciation book, use a purchase invoice or an FA G/L journal.

•

If G/L integration is not activated for the depreciation book, use only an FA journal.

Recording Maintenance Costs by Using an Invoice Follow these steps to record maintenance costs with an invoice. 1. On the Navigation Pane, click Departments, click Financial Management, click Payables, and then select Purchase Invoices.

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

4-7

Fixed Assets in Microsoft Dynamics® NAV 2009 2. Fill in an invoice with the information that is shown in the following picture.

FIGURE 4.7 PURCHASE INVOICE

NOTE: The FA Posting Type field is not included in the standard layout. However, you can insert it with the Choose Column function. The Maintenance Code field is also excluded from the standard layout. Therefore, you must insert it by using the form designer. The Maintenance Code field is empty in the example shown here. However, you usually would select a code for the maintenance cost. 3. Click Post to post the invoice.

Recording Maintenance Costs with the FA Journal When you post to a depreciation book in which a G/L integration is deactivated for maintenance costs, you must use a fixed asset journal. The way that you post maintenance costs in an FA G/L journal resembles the way that you post in an FA journal.

4-8

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

Chapter 4: Fixed Assets Maintenance Follow the steps in this example to balance an account in the FA G/L journal. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets and then select FA Journals. 2. In the Fixed Asset Journal page, enter: Field

Value

FA Posting Date

01/18/10

Document Type

Invoice

FA No.

FA000050

FA Posting Type

Maintenance

Amount

951.20

Maintenance Code

SERVICE

NOTE: The Maintenance Code field is not included in the standard layout. You must use the Choose Column function to insert it.

FIGURE 4.8 FIXED ASSET JOURNAL

3. Close the FA Journal. 4. On the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets and then select Depreciation Books. 5. Double-click the COMPANY Depreciation Book. 6. On the Integration FastTab, clear the Maintenance field. 7. Click OK. 8. Return to the Fixed Asset Journal page.

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

4-9

Fixed Assets in Microsoft Dynamics® NAV 2009 9. Click Post to post the journal. 10. Click Yes to post the journal line. 11. Click OK. After you post the journal, activate the G/L integration of maintenance in the COMPANY depreciation book again.

Maintenance Cost Reporting All the maintenance costs can be viewed in the Statistics of a fixed asset and in the Maintenance Ledger Entries.

Statistics Follow these steps to open the Fixed Asset Statistics page. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then select Fixed Assets. 2. Browse to relevant fixed asset and then click Statistics.

FIGURE 4.9 FIXED ASSET STATISTIC

3. Click the amount in Maintenance field and the Maintenance Ledger Entries page appears and displays the entries that make up the amount in the Fixed Asset Statistics page.

4-10

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

Chapter 4: Fixed Assets Maintenance Maintenance Ledger Entries Report The Maintenance Ledger entries can be printed by using standard reports. 1. On the Navigation Pane, click Departments, click Financial Management, and then select Maintenance Details.

FIGURE 4.10 MAINTENANCE - DETAILS

2. On the Options FastTab, select which depreciation book to print from and whether to see a new page for each asset. 3. On the Fixed Asset FastTab, set a filter to select the asset(s) to include in the report. 4. Click Print to print or Preview to see the report on the screen before printing it.

Maintenance – Analysis In the Maintenance Analysis report, you can select whether to see the costs on one, two, or three maintenance codes for a specified date or period. You can also select the total of all the selected assets or a total for each asset.

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

4-11

Fixed Assets in Microsoft Dynamics® NAV 2009 To run the Manteca Analyses report, follow the steps: 1. In the Navigation Pane, click Departments, click Financial Management, select Fixed Assets, and then click Maintenance Analysis.

FIGURE 4.11 MAINTENANCE - ANALYSIS

2. Click Print to print or Preview to see the report on the screen before printing it. NOTE: If you leave the Amount Field 1, Amount Field 2, or Amount Field 3fields blank, the report will include all maintenance costs regardless of their maintenance code.

4-12

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

Chapter 4: Fixed Assets Maintenance

Summary Fixed Assets Maintenance explain the processes of maintenance a fixed assets in Microsoft Dynamics NAV 2009 . Maintenance is set up on the Fixed Asset Card on the Maintenance FastTab and is also set up with a FA Posting Group. Maintenance can also be allocated to Departments or Projects by using the Allocation Keys. The Maintenance Registration will help the company keep track of all cost allocated to maintenance, but also helps keep track and follow up on service visits. The Statistics, ledger Entries Reports and Analyses helps the company have a detailed and the complete overview over all the maintenance for the companies fixed assets.

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

4-13

Fixed Assets in Microsoft Dynamics® NAV 2009

Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.

2.

3.

4-14

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

Chapter 5: Fixed Asset Insurance

CHAPTER 5: FIXED ASSET INSURANCE Objectives The objectives are: •

Set up insurance information.

•

Assign an asset to an insurance policy.

•

Monitoring Insurance Coverage

•

Update, correct, and delete Insurance Information.

•

Set up an Index Insurance.

Introduction Fixed Assets Insurance in Microsoft Dynamics® NAV 2009 describe the basis information on how to handle insurance on the fixed assets in a company. This course explains how to set up insurance information, assign assets to insurance policies, monitor the insurance coverage, update insurance information, and index FA insurance.

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

5-1

Fixed Assets in Microsoft Dynamics® NAV 2009

Setting up Insurance Information All general information for the insurance is set up on a Insurance Card. In Microsoft Dynamics NAV 2009 one insurance card is created for each insurance policy.

Fixed Asset Setup Page The general information for insurance for fixed assets is set up on the Fixed Assets Setup card. Follow these steps to set up the general information in the Fixed Asset Setup page. 1. On the Navigation page, click Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets and then select FA Setup.

FIGURE 5.1 FIXED ASSET SETUP

2. On the General FastTab, enter information in the insurance fields as follows: o Insurance Depr. Book - Click the drop-down list to see the list of depreciation books. You can post an acquisition entry with an insurance number or a disposal of an insured asset only if a book displays in this field. This restriction exists because the disposal of an asset automatically stops the insurance coverage. o Automatic Insurance Posting - Select if the acquisition costs must be posted as entries in the insurance coverage ledger. Otherwise, the system will add the entries in the insurance journal. 3. On the Numbering FastTab, click the drop-down list in the Insurance Nos. field to see the list of number series. 4. Select the relevant code for insurance numbers.

5-2

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

Chapter 5: Fixed Asset Insurance Insurance Types In Microsoft Dynamics NAV 2009 insurance policies can be grouped into insurance types, for example, insurance against theft, fire insurance, and so on. To set up the insurance types, follow these steps: On the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets and then slick Insurance Types.

FIGURE 5.2 INSURANCE TYPES

Set up the necessary codes and enter a description for each code. The insurance types are used on the insurance card.

Insurance Card The information about each insurance policy is recorded on the insurance card. Follow these steps to view all the insurance policies: On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets and the select Insurance.

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

5-3

Fixed Assets in Microsoft Dynamics® NAV 2009 Click New, to set up a new insurance policy.

FIGURE 5.3 INSURANCE CARD

The General FastTab has the following fields:

5-4

•

No. - The number or code for the insurance policy that the system uses.

•

Description - Description of the insurance policy.

•

Insurance Vendor No. - The number of the vendor from which the insurance policy was purchased.

•

Effective Date - The date from which the insurance policy is valid.

•

Expiration Date - The date to which the insurance policy is valid.

•

Insurance Type - The type of insurance (for example, theft or fire) covered by this insurance policy. Use this information to filter in pages and reports.

•

Policy No. - The policy number recorded on the insurance policy.

•

Annual Premium - The amount of the annual insurance premium. When you register this information for all the insurance policies, an overview of the insurance costs and other insurance information will be in the different insurance reports.

•

Policy Coverage - The amount of coverage this insurance policy provides. When registering this information for all the insurance policies, you can see whether the company is over or underinsured in the Insurance Statistics page.

•

Blocked - The option to block all postings to the insurance policy.

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

Chapter 5: Fixed Asset Insurance The Posting FastTab has the following fields: •

FA Class Code - A fixed asset class code to assign to the insurance policy.

•

FA Subclass Code - A fixed asset subclass code to assign to the insurance policy.

•

FA Location Code - A fixed asset location code to assign to the insurance policy.

Demonstration: Set up a Insurance Card Follow these steps to set up a card for a fire insurance policy in the demonstration company. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets and the select Insurance. 2. Click New, to set up a new insurance policy. 3. Enter this information: Field

Value

No.

INS000050

Description

Fire Insurance

Effective Date

01/01/10

Insurance Type

FIRE

Policy No.

157-254-5678

Annual Premium

15,000

Policy Coverage

2,500,000

4. Click OK.

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

5-5

Fixed Assets in Microsoft Dynamics® NAV 2009 Setting up Insurance Journal Templates The system automatically creates an FA journal template when you click the FA Journal on the main menu. Follow these steps to set up additional journal templates. 1. On the Navigation Pane, click Departments, click Administration. click Application Setup, click Financial Management, click Fixed Assets, and then click Insurance Journal Templates. 2. Click New, to set up a new Insurance Journal.

FIGURE 5.4 INSURANCE JOURNAL TEMPLATES

3. Enter information into the fields as follows: o Name - Enter the name of the template. o Description - Enter a description of the journal template. o No. Series - Click the drop-down list and select a number series from the list. o Posting No. Series - Click the drop-down list and select a number series from the list. o Source Code - Enter nothing. The system enters the source code automatically. o Reason Code - Click the drop-down list and select a reason code from the list.

5-6

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

Chapter 5: Fixed Asset Insurance Setting up Insurance Journal Batches Follow these steps to set up batches under an insurance journal template. 1. On the Insurance Journal Templates, click Related Information, point to Template, and then click Batches.

FIGURE 5.5 INSURANCE JOURNAL BATCHES

2. Click New, to create a new journal batch, or select one of the empty lines. 3. Enter information into the fields as follows: o Name - Enter a code that identifies the batch. o Description - Enter a description of the batch. o No. Series - Click the Drop-down list to a select number series other than the default number series that is entered automatically. Select one and then click OK to copy it to the field. o Posting No. Series - Click the Drop-down list to select a number series other than the default series that is entered automatically. Select one and then click OK to copy it to the field. o Reason Code - Click the Drop-down list to open the Reason Codes page and then select an appropriate reason code. The values in the journal batch are default values if you do not enter the fields on the journal lines.

Default Setup per User In Microsoft Dynamics NAV 2009 you can set up a default set of templates and batches for each depreciation book, and specify a default set for each user.

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

5-7

Fixed Assets in Microsoft Dynamics® NAV 2009 Use the default settings when you enter a number in the Insurance No. field on a journal line and by the Index Insurance batch job. 1. On the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets, and then select Depreciation Books. 2. Open the relevant Depreciation Book Card, click Related Information, point to Depr. Book and then select FA Journal Setup.

FIGURE 5.6 FA JOURNAL SETUP

3. In the Insurance Jnl. Template Name field, click the drop-down list to open the Insurance Jnl Template List page and select the relevant templates. 4. In the Insurance Jnl. Batch Name field, click the drop-down list to open the Insurance Journal Batch page and select the relevant batch.

Assigning Assets to Insurance Policies In Microsoft Dynamics NAV 2009 you can assign all the assets to an insurance policy, this gives the company an easy way to find the relevant insurance policy when the need it for a certain asset.

Linking Fixed Assets to Insurance Policies The fixed assets must be link to the insurance policy. After you complete the set up of the insurance information, the fixed assets can be linked to the insurance policies.

5-8

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

Chapter 5: Fixed Asset Insurance Both one or several fixed assets can be linked to a single insurance policy, and it is also possible to link one fixed asset to the same insurance policy with different amounts. The fixed asset can be assigned to the insurance policy in two ways: •

Post an acquisition cost with the Insurance No. field entered on the journal line.

•

Post an acquisition cost with the Insurance No. field empty on the journal line, and then use the insurance journal to post the acquisition cost to the insurance coverage ledger.

When the Insurance No. field have an entry, the Insured field on the Maintenance FastTab on the Fixed Asset Card will be selected automatically. Acquisition cost can be posted to the insurance coverage ledger from: •

A purchase invoice

•

FA G/L journal

•

FA journal

•

Insurance journal

When the fixed asset is sold, the Insured field on the Fixed Asset Card is automatically unselected.

Demonstration: Posting a Purchase Invoice Follow these steps to set up a new fixed asset. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, click Fixed Assets. 2. Click New. 3. In the No. field, enter FA1500. 4. In the Description field, enter Warehouse Lift. 5. Click Depreciation Book to set up the FA Depreciation Book for the FA1500. 6. In the Depreciation Book Code field, click the drop-down list and select COMPANY. 7. In the FA Posting Group field, click the drop-down list and MACHINERY. 8. In the Depreciation Starting Date set the date to 01/01/10 9. In the No. of Depreciation Years field, enter 10. 10. Click OK, to close the Depreciation Book for FA 1500. 11. Click OK, to close the Fixed Asset Card for FA 1500.

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

5-9

Fixed Assets in Microsoft Dynamics® NAV 2009 Make sure that G/L integration is activated for the acquisition cost in the COMPANY depreciation book, by clicking Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets, click Depreciation Books and then select the COMPANY depreciation Book Integration FastTab. Follow steps to post an acquisition cost to the fixed asset and link it to an insurance policy from a purchase invoice. 1. On the Navigation Pane, click Departments, click Financial Management, click Payables, and then select Purchase Invoices. 2. Click New. 3. Press enter to populate the next number for the Purchase Invoice 4. In the Buy-from Vendor No. field, enter 30000 5. In the Posting Date field enter 01/31/2010 6. In the Document Date field, enter 01/31/10 7. In the Vendor Invoice No. field, enter 4256. 8. In the Lines FastTab, in the Type field, click the drop-down list and select Fixed Assets 9. In the No. field click the drop-down list and select FA1500 10. In the FA Posting Type field make sure that Acquisition Cost is selected 11. In the Quantity field, enter 1. 12. In the Direct Unit Cost Excl. VAT field enter 17,350. 13. Right-click the header in the Lines FastTab and then click Choose Column, add the Insurance No. field and then click OK. 14. In the Insurance No. field, click the drop-down list and select INS000050. 15. Click Post. 16. Click Yes, to post the invoice. If the Automatic Insurance Posting field in the Fixed Asset Setup page is not selected automatically, the system will create a line in an insurance journal. To post the insurance coverage in the insurance journal, follow these steps> In the Navigation Pane, click Fixed Assets and then select Insurance Journals and then click Post. Verify that the fixed asset number FA1500 is insured, in the Navigation Pane, click Fixed Assets, and then click Fixed Assets. Browse to number FA1500, and then click the Maintenance FastTab. Verify that the Insured field states Yes. To see the insurance coverage ledger entries, on the Navigation Pane, click Fixed Assets, and then click Insurance. Browse to number INS000040. Click Related Information, point to Insurance, and then click Coverage Ledger Entries. The Ins. Coverage Ledger Entries page appears.

5-10

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

Chapter 5: Fixed Asset Insurance Posting a FA Journal or FA G/L Journal A Fixed Asset acquisition can be assigned to an insurance policy. You do this on the Journal Line by selecting the required policy in the Insurance No. field.

Posting an Insurance Journal If the acquisition cost of a fixed asset has not been posted with a link to the insurance either from the purchase invoice or from one of the FA journals, the fixed asset can be linked to an insurance policy by posting the acquisition cost from an insurance journal. For example, if the Insurance Number for INS000040 has not been entered in the Insurance No. field in the purchase invoice for FA1500, the insurance policy can still be attached to the asset's acquisition cost from an insurance journal. Follow these steps to post an insurance journal. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then select Insurance Journals. 2. Enter the acquisition cost of the asset in the Amount field in the journal line. For this example, use the previous example's information for FA1500. Enter FA1500 in the FA No. field, enter INS000040 in the Insurance No. Field, and enter the acquisition cost of 17,350 in the Amount field.

FIGURE 5.7 INSURANCE JOURNAL

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

5-11

Fixed Assets in Microsoft Dynamics® NAV 2009 3. Click Post to post the journal. 4. Click Yes, to post the journal lines. 5. Click OK.

Monitoring Insurance Coverage In Microsoft Dynamics NAV 2009 you can print or preview statistics over the fixed assets. The statistics provide an overview of all the insurances and what they cover. The statistic can also be used to analyze the insurance policies and over or under insurance coverage of the fixed assets.

Statistics The Total Value Insured per FA matrix lists all the fixed assets by each policy and the insured amount. Follow these steps to see the matrix: 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets and then select Insurance. 2. Click Total Value Insured per FA. 3. Set the relevant options on the FastTabs and then click Show Matrix.

FIGURE 5.8 TOTAL VALUE INSURED PER FA

Over-Insured and Under-Insured Fixed Assets On the Insurance Statistic page, you can determine whether assets are overinsured or under-insured.

5-12

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

Chapter 5: Fixed Asset Insurance Follow these steps to open the page that contains the statistics: 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then select Insurance. 2. Browse the relevant insurance and then click Statistics. 3. The Insurance Statistics page appears and in the Over/Under Insured field, the amount is shown.

FIGURE 5.9 INSURANCE STATISTIC

4. To see the values that make up the total value insured, click in the amount in the Total Value Insured field and the Ins. Coverage Ledger Entries page open.

List of All Insurance Policies To obtain an overview of all the insurance policies, print the Insurance - List report, that displays all the policies and the most important fields from the insurance cards. Follow these steps to print the report. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Asset, and then select the Insurance List report 2. Click Preview to view the report on screen or Print to print it.

Uninsured Fixed Assets To verify that all fixed assets are assigned to an insurance policy, print the Uninsured FAs report. This report displays the individual fixed assets for which amounts are not posted to an insurance policy.

Updating Insurance Information Insurances changes occasionally, the annual premium is adjusted, the coverage can change and some insurances can expire. Changes to the insurances must always be updated in Microsoft Dynamics NAV 2009.

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

5-13

Fixed Assets in Microsoft Dynamics® NAV 2009 Modifying and Deleting Insurance Cards Each year when you receive your annual renewal notice, the Annual Premium field on the Insurance Card must manually be updated the if the rates change. Also if the information about the coverage amount changes you must update the Policy Coverage field to make sure that you analyze the insurance policy coverage correctly.

Terminating Fixed Asset Coverage from an Insurance Policy A fixed asset's insurance coverage automatically terminates when you post a disposal entry to the depreciation book that is specified in the Insurance Depr. Book field in the Fixed Asset Setup page. For example, if the Insurance Depr. Book is COMPANY, a posting to the disposal in the TAX depreciation book does not affect the insurance coverage ledger. The termination occurs regardless of whether the Automatic Insurance Posting field in the Fixed Asset Setup page is active. In the following example, fixed asset number FA000020 is sold on 07/03/10 for the amount 40,000. Follow these steps to stop coverage from an insurance policy. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then click then FA G/L Journals or FA Journals , depending on when the G/L integration for disposal is activated in the COMPANY depreciation book. 2. Enter a disposal line with the following information:

FIGURE 5.10 FIXED ASSET G/L JOURNAL

5-14

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

Chapter 5: Fixed Asset Insurance 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Click Post. Click Yes, to post the journal lines. Click OK. Click OK, to close the Fixed Asset G/L Journal. Review the Fixed Assets Cars, by clicking Fixed Assets and browse to the fixed asset card for FA000020. Notice that the Insured field on the Maintenance FastTab says No. Click OK to close the page. On the Navigation Pane, click Fixed Assets, and then select Insurance. Click Total Value Insured per FA. appears. Click Show Matrix to view the Total Value Insured per FA page. Note that a value for the Toyota Supra no longer exists Close the T. Value Insured per FA Matrix page and the Total Value Insured per FA page. Browse to insurance number INS000020, click Related Information, point to Insurance, and then click Coverage Ledger Entries. Verify that the entry for fixed asset number FA000020 is marked as disposed.

Correcting Insurance Entries If an incorrect entry is posted to the insurance coverage ledger, you can correct it by creating a reclassifying entry in the insurance journal.

Indexing Insurances If the value of a fixed asset has decreases or risen, the coverage ledger can be changes by running the Index Insurance batch job. To run the Index Insurance batch job, follow these steps:

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

5-15

Fixed Assets in Microsoft Dynamics® NAV 2009 On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then select Index Insurance.

FIGURE 5.11 INDEX INSURANCE

Follow this demonstration to run the Index Insurance batch job for a car decreased with 5 percentage Open the Index Insurance batch job to update the value of the covered fixed assets: 1. On the Options FastTab, in the Index Figure field enter 95. 2. In the Posting Date field enter 01/31/2010. 3. Leave the Document No. field empty. Therefore, the indexation journal entries created by the batch job will use the No. Series for the Insurance Journal batch. 4. In the Posting Description field enter Car Value 2010

5-16

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

Chapter 5: Fixed Asset Insurance 5. On the Fixed Asset FastTab, set a filter to select the fixed assets to be indexed. In the FA Subclass Code enter CAR. All fixed assets with a FA Subclass code CAR on the fixed asset card will be selected automatically.

FIGURE 5.12 INDEX INSURANCE

6. Click OK. 7. The batch job calculates this amount as five percent of the total value insured from the Insurance Statistics page and creates a line in the insurance journal. 8. Click Insurance Journals. Verify the accuracy of the created entries and then click Post to post the insurance coverage ledger changes.

Summary Fixed Assets Insurance in Microsoft Dynamics NAV 2009 explains the required registration of the insurance information for a fixed asset. The insurance is set up on the Insurance Card and assigned to the relevant fixed asset. The insurance coverage can be monitored with statistics and analyses, and you must make sure that the company always keep all information on insurance updated either manually or by using indexation.

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

5-17

Fixed Assets in Microsoft Dynamics® NAV 2009

Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.

2.

3.

5-18

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