Microsoft Dynamics NAV is a flexible and integrated enterprise resource planning (ERP) solution that makes it easier for small- to medium-sized businesses to link accounting and inventory management, sales, and purchasing. Microsoft Dynamics NAV boasts a variety of useful features, including the Fixed Assets functionality.
Fixed Asset Setup
Before you start working with fixed assets in Microsoft Dynamics NAV, you need to define how you will maintain, insure, and depreciate said assets. You also need to determine how you will record values like costs in the general ledger.
Microsoft Dynamics NAV offers a number of depreciation methods for the preparation of income tax returns and financial statements for each available fixed asset. The eight methods of depreciation are as follows: Straight-Line, Declining-Balance 1, Declining-Balance 2, DB1/SL, DB2/SL, User-defined, and Manual. Each fixed asset needs to have at least one depreciation book assigned.
Fixed Asset Journals
It is necessary to define a default setup of batches and templates for each depreciation book. You can duplicate lines from one Fixed Asset journal to another by using these defaults. It is also possible to use the Index Fixed Assets or Calculate Depreciation batch jobs to create journal lines.
Fixed Asset Posting Groups
In Microsoft Dynamics NAV, you can define groups of fixed assets with posting groups. The entries for posting groups are classified by transaction type and posted to the same general ledger accounts.
Classes and Subclasses
You can then categorize and group assets using Fixed Asset classes and subclasses. Users can also set up subclasses to default certain settings on the fixed asset to make data entry more efficient.
Create Fixed Asset Record
You can create Fixed Asset records to store useful information like location, serial number, responsible party, maintenance, and insurance. Use the Fixed Asset Acquisition Wizard to make it easier to set up and enter the cost of the asset.
Fixed Asset Entries
- Fixed Asset Wizard – The Fixed Asset Wizard is straight-forward and will allow you to make setting postings and selections intuitively. When you press “Next,” you will be asked to enter the acquisition date and the acquisition cost. As you progress through the wizard, you will have the option of choosing the balancing part of the transaction, entering the vendor who sold you the asset, and entering the External document number. You can also post your transactions to the general ledger.
- Purchase invoice – A purchase invoice is another way you can post a fixed asset. If you’ve set up the Fixed Asset, you can enter Fixed Asset in the Type field and the corresponding Fixed Asset in the No. Field. If you haven’t set up the Fixed Asset, you can set up a holding account.
- Fixed Asset Journal – If assets are initially posted to a holding account, the user may set up a fixed asset and go into a fixed asset G/L journal and enter the same transaction data that the fixed asset was entered to correspond to the AP invoice where it was booked in the general ledger.
Depreciation is used to account for the cost of fixed assets over their depreciable life. The Calculation Depreciation process involves posting all entries to a journal for posting and review.
When a fixed asset is disposed or sold, the disposal value needs to be posted to calculate and record the loss or gain. The disposal entry must be the last posted entry for a fixed asset.
The Fixed Asset value port will provide you with just about all the information auditors would like to see for each asset group. You can use the value report to connect the subsidiary ledger to the general ledger.