Acquire a fixed asset with asset retirement obligations

This article explains how to acquire a fixed asset with an asset retirement obligation (ARO) in Japan in Microsoft Dynamics 365 Finance.

For Japan, the asset retirement obligation (ARO) is discounted to present value, and added to the acquisition cost of the fixed asset.

The following procedure walks you through how to acquire a fixed asset with an asset retirement obligation (ARO). The procedure uses the JPMF demo company data.

Before you can complete the following procedure, you must first select the Fixed Assets configuration key.

To acquire a fixed asset with an ARO, follow these steps.

1. In Dynamics 365 Finance, go to Fixed assets > Asset retirement obligations > Fixed assets journal.

2. Select New.

3. In the Name field, enter a name.

4. Select Save.

5. Select Lines.

6. In the Date field, enter a date.

7. In the Account field, specify the desired values.

8. In the Book field, enter a value.

9. In the Debit field, enter a number.

10. Select Functions.

11. Select Generate asset retirement obligation transactions. Confirm that a new record with a document type of Asset retirement obligation is created.

    Note

    The menu at Functions > Generate asset retirement obligation transactions is used when the fixed asset is in the same journal. You can also use the menu at Proposals > Capitalized asset retirement obligation for fixed assets that are already acquired.

12. In the list, mark the selected row. The proposed amount is discounted to present value.

13. Select Post.