Fixed Assets in Microsoft Dynamics NAV 2016
We just purchased a coffee roaster and I need to actually get this roaster into our system as a fixed asset. So today I wanted to go through Fixed Assets and how those work with NAV.
It’s really good to have the Fixed Asset system inside the ERP because then you can utilize the purchasing and the sales functions that are natural to the ERP or Dynamics NAV, to get the fixed asset in and out. Obviously we depreciate and that hits GL automatically, so it makes perfect sense that it’s in there.
So what we are going to do is go into the Fixed Assets here; I have a couple of old cars here, or actually three of them. They are probably depreciated out and then I’ve got my grinder but I’m missing my roaster.
So I’m going to go ahead and create a new Fixed Asset. Hit Enter to get a new number, give a description ‘Coffee Roaster’, and I’m just going to skip these fields over here. The most important part is picking the depreciation book and I’ve set up already a company depreciation book which is connected to the GL.
Then I pick the posting group which is going to be ‘Machinery’ and the rest I just leave blank. I can have multiple books but only one book posts actually to the GL, the rest of the books could depreciate but that is only for information purposes like a tax book etc.
On the posting side I’m going to pick a class, put this tangible and that should do it. I’ll skip the maintenance part. Now notice I don’t put a book value for my roaster; this is because I am going to post that through a Purchase Order. So let me do that.
Now I go into the Purchase Orders and create a new Purchase Order. So just going to go here into Edit and New and it’s going to be from the Custom Metals - they are building it for us - and here in the Type I can select Fixed Asset as a thing that I buy.
I’m not buying items or I’m not straight into GL, just Fixed Asset. And then I can go and select a Fixed Asset - my coffee roaster - I’m getting one piece, it’s going to cost me $6000 and that’s it. Now I’m going to put in invoice from the vendor: BBETR1111, like that, and now I go ahead and post.
Actually, what I want to do is put this on 01/17, like that. This way I’m in the future and everything in the system happens in the future so it will come out right. I’m going to go ahead and post, receive an invoice, close out that, go back to my Fixed Assets with the coffee roaster and now you can see that the book value is $6000. If I go into my Ledger Entries for this asset I have an acquisition cost from the Purchase Order, really neat.
Now I want this to depreciate over three years so it’s going to start 01/01/17 and it’s going to end 12/31/19 - so that’s three years and it automatically picked up that that’s three years. Now this asset is ready to be depreciated and I’m going to show you how that gets done.
If I go out of here I can go up to this button over here called Calculate Depreciation, as well as I could look for it in the Search. And up comes this report that actually calculates things. And I wanted to hit February 1st, and I want to depreciate only for one month, and only that asset that I picked just for example purposes.
So I pick the depreciation book that affects, what the posting date should be, document number it’s going to come into my journal as, what the description is and here I put a filter on the asset that I want to depreciate.
Now I just hit OK and it goes through the process and now in my GL Journal I have depreciation lines for my grinder.
As you can see, it has divided out the acquisition cost by three years and puts in the amount here. And now all I have to do is post this to get my depreciation in.
Similarly, when you get rid of the asset you can sell it through a Sales Order or you can dispose of it through a journal. Either way. That was all for the Fixed Asset.