Business Central Fixed Assets
What are fixed assets?
Fixed assets is an important accounting entry and an overall designation for those assets of the company that have a life expectancy of more than one year from acquisition. Thus, an acquired asset is only a fixed asset when the life expectancy exceeds one year.
Management and administration of fixed assets in Business Central
Business Central provides fixed asset functionality that gives you an overview of your fixed assets and ensures that the periodic depreciation is performed correctly. The solution also allows you to manage maintenance costs, manage insurance policies and develop reports and statistics.
In other words, Business Central gives you full control over the life cycle of your fixed assets - from acquiring them to getting rid of them again. With the flexible ERP solution, you can accurately, and with a minimum of effort for your employees, record, monitor, dispose and get rid of the company's fixed assets. Business Central is not only a tool for administration and management of your assets, but helps to increase the value of your valuable investments.
Setting up a fixed asset
For each asset, you set up a card in Business Central that contains information about each asset. For example, you can set up production equipment or office supplies as a main asset with a component list and you can group your fixed assets in different ways, be it by class, department or location. Once this is done, managing your fixed assets is easy, whether you need to acquire new fixed assets, maintain existing ones or sell them. Business Central also allows you to create budgeted fixed assets so that it is possible to include expected acquisitions and sales in your reports.
Depreciation of fixed assets
In order to maintain complete control over both the depreciation of your fixed assets and other financial transactions related to the fixed assets, you can set up one or more depreciation books for each of the company's fixed assets in Business Central. The depreciation is then done by running a report that calculates the periodic depreciation and filling in a journal with the resulting items that are ready to be posted. However, Business Central supports multiple depreciation methods and you can set up multiple depreciation books per fixed assets for various purposes. This can be a tax write-off book for tax reporting and another for internal reporting.
For each of your fixed assets, Business Central allows you to record the ongoing maintenance costs as well as the next date of service. Management and full control of the maintenance costs associated with a fixed asset can be extremely important in budgeting and when deciding whether to replace one of the acquired fixed assets with a new one.
Business Central allows each asset to be linked to one or more insurance policies. This makes it easy and clear to confirm that the cost of the individual insurance policy is consistent with the value of the asset linked to the policy. Business Central thus makes it easy to monitor and manage the annual insurance premiums associated with fixed assets.