Lab - Work with fixed assets

  • 20 minutes

Read this first - before you start the lab!

Important

For this lab, you CAN'T sign in with your own credentials. Use the following steps to sign in to your lab environment with the correct credentials.

  1. Ensure that you're signed in to Microsoft Learn.
  2. Select Launch VM mode or Sign in to launch VM mode in this unit.
  3. In the Resources tab on the lab side bar, select the T icon next to Password in the Finance and Operations box, to have the administrator password for the Virtual Machine (VM) entered for you.
  4. Select Enter. If you see a Your connection isn't private message, select Advanced, and then select Continue to usnconeboxax1aos.cloud.onebox.dynamics.com (unsafe).
  5. Microsoft Edge opens. Wait for it to navigate to the Sign in page for finance and operations. If you experience an issue with the Sign in page loading, try to restart the browser in the VM.
  6. On the Microsoft Sign in page in finance and operations, place your mouse cursor into the Username field.
  7. On the Resources tab of the lab side bar, below the Azure portal heading, select the T icon next to Username, then press Enter.
  8. Your mouse cursor is now in the Password page.
  9. On the Resources tab of the lab side bar, below the Azure portal heading, select the T icon next to select Password, then press Enter.
  10. In the Save password window, select Never.
  11. Select Accept in the Permissions requested page.
  12. To see the lab instructions, select the Instructions tab on the lab side bar.

You can now begin your work on this lab.

Scenario - Configure fixed assets components

Using the Accountant role, you will set up fixed asset posting profiles and multiple transaction types. Examples given in the lab are for a basic posting profile, though posting profiles must be created for your specific chart of accounts and financial reporting requirements.

Set up fixed asset posting profiles

  1. In the USMF company, go to Fixed assets > Setup > Fixed asset posting profiles.

  2. Select New.

  3. In the Posting profile field, type FAPP.

  4. In the Description field, type Fixed asset posting profile.

    You will need to create a posting profile for each fixed asset transaction type that you will be using when working with fixed assets. Start with the Acquisition transaction type.

  5. Select Add under Ledger accounts.

  6. In the Book field, enter SLLR.

    The Groupings field allows you to define the posting profile down to the Table (one account set up for each fixed asset) or Group (one account set up for each fixed asset group). For this lab, the value is set to All to apply to all fixed assets with the specified book.

  7. In the Main account field, specify 180100.

  8. In the Offset account field, specify 300160.

  9. In the drop-down Transaction type field under Ledger accounts, select Acquisition adjustment.

  10. Select Add again under Ledger accounts.

  11. In the Book field, enter SLLR.

  12. In the Main account field, specify 180100.

  13. In the Offset account field, specify 300160.

  14. In the Transaction type field, select Depreciation.

  15. Select Add.

  16. In the Book field, enter SLLR.

  17. In the Main account field, specify 180200.

  18. In the Offset account field, specify 607200.

  19. In the Transaction type dropdown menu, select Depreciation adjustment.

  20. Select Add.

  21. In the Book field, enter SLLR.

  22. In the Main account field, specify 180200.

  23. In the Offset account field, specify 607200.

  24. In the Transaction type field, select Disposal - sale.

  25. Select Add.

  26. In the Book field, enter or select SLLR.

  27. In the Main account field, specify 801100.

  28. In the Offset account field, specify 801100.

  29. In the Transaction type field, select Disposal - scrap.

  30. Select Add.

  31. In the Book field, enter or select SLLR.

  32. In the Main account field, specify 801100.

  33. In the Offset account field, specify 801100.

  34. Expand the Disposal FastTab. Set up disposal posting profiles for both sale and scrap.

  35. Start with disposal sale transactions. Select Add.

  36. In the Book field, enter or select SLLR.

  37. In the Post value field, select Acquisition value.

    Acquisition value will address Acquisition and Acquisition adjustment values for all years. You can also define accounts for these transaction types separately.

    You can set the disposal process to use different accounts, depending upon whether the disposal results in a gain or loss. The Sales value Type is set to All to use the same accounts for all types of disposals.

  38. In the Main account field, specify 180100.

  39. In the Offset account field, specify 180200.

  40. Select Add.

  41. In the Book field, enter or select SLLR.

  42. In the Post value field, select Depreciation (prior years).

  43. In the Main account field, specify 180100.

  44. In the Offset account field, specify 180200.

  45. Select Add.

  46. In the Book field, enter or select SLLR.

  47. In the Post value field, select Depreciation (this year).

  48. In the Main account field, specify 180100.

  49. In the Offset account field, specify 180200.

  50. Select Add.

  51. In the Book field, enter or select SLLR.

  52. In the Post value field, select Depreciation adjustments (prior years).

  53. In the Main account field, specify 180100.

  54. In the Offset account field, specify 180200.

  55. Select Add.

  56. In the Book field, enter or select SLLR.

  57. In the Post value field, select Depreciation adjustments (this year).

  58. In the Main account field, specify 180100.

  59. In the Offset account field, specify 180200.

  60. Select Add.

  61. In the Book field, enter or select SLLR.

  62. In the Post value field, select Net book value.

  63. In the Main account field, specify 180100.

  64. In the Offset account field, specify 180200.

  65. In the Sale or scrap field, select Scrap.

  66. Select Add.

  67. In the Book field, enter or select SLLR.

  68. In the Post value field, select Acquisition value.

  69. In the Main account field, specify 180100.

  70. In the Offset account field, specify 180200.

  71. Select Add.

  72. In the Book field, enter or select SLLR.

  73. In the Post value field, select Depreciation (prior years).

  74. In the Main account field, specify 180100.

  75. In the Offset account field, specify 180200.

  76. Select Add.

  77. In the Book field, enter or select SLLR.

  78. In the Post value field, select Depreciation (this year).

  79. In the Main account field, specify 180100.

  80. In the Offset account field, specify 180200.

  81. Select Add.

  82. In the Book field, enter or select SLLR.

  83. In the Post value field, select Depreciation adjustments (prior years).

  84. In the Main account field, specify 180100.

  85. In the Offset account field, specify 180200.

  86. Select Add.

  87. In the Book field, enter or select SLLR.

  88. In the Post value field, select Depreciation adjustments (this year).

  89. In the Main account field, specify 180100.

  90. In the Offset account field, specify 180200.

  91. Select Add.

  92. In the Book field, enter or select SLLR.

  93. In the Post value field, select Net book value.

  94. In the Main account field, specify 180100.

  95. In the Offset account field, specify 180200.

  96. Click Save when all the updates are complete.

Scenario - Create and acquire assets from Accounts payable

You will set up fixed assets parameters and then create a new vendor invoice.

Set up fixed assets parameters

  1. In USMF, go to Fixed assets > Setup > Fixed assets parameters.
  2. Expand the Purchase orders section.
  3. Ensure the Allow asset acquisition from Purchasing option is enabled.
  4. Ensure the Create asset during product receipt or invoice posting option is enabled.
  5. Click Save.

Create a new vendor invoice

  1. Go to Accounts payable > Workspaces > Vendor invoice entry.

  2. Select New vendor invoice.

  3. In the Invoice account field, select the drop-down button to open the lookup.

  4. In the list, select an account such as 1001.

  5. In the Number field, type a value, such as 1000.00.

  6. In the Posting date field, the date defaults to current date.

  7. Select Add line.

  8. In the Item number field, select the drop-down button to open the lookup.

    Either non-stocked items or procurement categories can be used for fixed asset acquisition.

  9. In the list, select an item, such as C0003.

  10. In the Quantity field, enter a number.

    One invoice line will only create one fixed asset, regardless of quantity. The invoice quantity field value will be transferred to the fixed asset quantity.

  11. In the Unit price field, enter a number.

  12. Expand the Line details section.

  13. Select the Fixed assets tab.

  14. Enable the Create a new fixed asset option.

  15. In the Fixed asset group field, select the drop-down button to open the lookup.

  16. In the list, select the fixed asset group to be used when you are creating the new fixed asset.

  17. In the list, click the link in the selected row.

  18. Click Post. The fixed asset will be created and acquired when the invoice is posted.

Screenshot of the vendor invoice that has been created.

Scenario - Set up and create a depreciation profile

Depreciation profiles determine the type and the frequency of depreciation for an asset.

Create a depreciation profile

  1. Go to Fixed assets > Setup > Depreciation profiles.

  2. Select New.

  3. In the Depreciation profile field, type a value such as 175%.

  4. In the Name field, type the name such as 175% Reducing balance.

  5. In the Method field, select an option, such as 175% Reducing balance.

  6. In the Depreciation year field, select Calendar.

  7. In the Period frequency field, select Yearly.

  8. Leave the Full depreciation toggle to No.

  9. Select Save.

  10. Close the page.

    Screenshot of the Depreciation profiles page.

Create a book

  1. Go to Fixed assets > Setup > Books.
  2. Select New.
  3. In the Book field, type a value such as 175 RB.
  4. In the Description field, type a value, such as 175% Reducing Balance.
  5. Select Yes in the Calculate depreciation toggle bar. When the Calculate depreciation is selected, the associated asset book will be included in depreciation proposals. If it is not selected, the asset book will not be automatically depreciated.
  6. In the Depreciation profile field, enter or select 175% Reducing balance.
  7. Select Yes in the Create depreciation adjustments with basis adjustments field.
  8. By default, fixed asset book transactions will post to the general ledger. You can disable posting to the general ledger for the book by setting the Post to general ledger field to No. Books that do not post to the general ledger are typically used for tax reporting purposes. This gives you additional flexibility to delete historical transactions for the asset book because they have not been committed to the general ledger.
  9. The Posting layer defaults to Current if the book posts to the general ledger, and None if it does not post to the general ledger. Update the Posting layer if you need transactions for this book to be posted to a different layer.
  10. In the Calendar drop-down menu, select Cal for Calendar.
  11. Derived books will post transactions to different books at the same time. You can create the transactions with the primary book and, during posting, an exact copy of the transaction is posted to the derived book. No recalculation occurs with derived book transactions, so it should not be used for depreciation transactions.
  12. Select Save.

Associate the book with a fixed asset group

  1. Go to Fixed Assets > Setup > Fixed asset groups.
  2. Select New.
  3. In the Fixed asset group field, type a value, such as INTANGIBLE.
  4. In the Name field, type a value, such as Intangible.
  5. In the Type drop-down menu, select Intangible.
  6. In the Major Type drop-down menu, select the correlating major type, if any. For this exercise, select COMP.
  7. Select Yes in the Autonumber fixed assets toggle bar. When the Autonumber fixed assets is set to Yes, the system will automatically assign fixed asset numbers. If the Autonumber fixed assets is set to No, then you will need to enter a number manually.
  8. In the Number sequence code drop-down menu, select <Tes_111
  9. Select Books from Action Pane.
  10. In the Book drop-down menu, select as 175 RB.
  11. In the Service life field, enter 3. Depreciation periods are calculated after you have set the Service life.
  12. Select Save.
  13. Close the pages.

Close the lab environment

  1. Select Done in the Instructions pane in the lab side bar.
  2. In the Lab is complete window, select Continue, and then select Leave to return to the next unit in the module.