Managing fixed assets is a cornerstone of any good accounting software. Microsoft Dynamics 365 Business Central is no different. Here’s how to create and depreciate a new asset in a flash.
Create a New Fixed Asset
- Go to Finance>Fixed Assets>New. Then enter the basic information (the fields in boxes below are required).
Note: the subclass code is linked to the default fixed asset posting groups and will determine the accounts that will be posted to during entries.
After the basic information is entered, a blue ribbon will appear at the top with a link to acquire the asset.
- Click the link or go to Actions>Acquire
- Enter the Asset Cost and Acquisition Date
- Select whether to post to G/L account, vendor, or bank account
- If vendor is selected, a purchase invoice will automatically be posted to that vendor and will post to Accounts Payable
- If bank account is selected, a bank transaction will be posted and will remove the amount from cash/bank account
In this example, I will create a purchase invoice, so I entered the vendor and document number below:
If you select to “open the FA G/L journal” you will need to post it; otherwise it will post automatically.
To view the purchase invoice, go to Vendor Ledger Entries for Vendor 30000 to see the purchase invoice that was automatically posted for the new asset:
Depreciate a Fixed Asset
To depreciate the asset, use the global search for ‘calculate depreciation’ and choose the task.
Enter the date that you would like to post depreciation through and a description, click OK to run depreciation.
Answer ”Yes” if you would like to view the G/L journal that was created.
The journal will include the asset information, along with the number of days that were used in the depreciation.
To view the entries related to the new asset, open the asset and go to Navigate>History>Ledger Entries.
This shows the acquisition and the depreciation for February:
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