Change Fixed Asset Group and Transfer Historical Transactions
Question
You are the controller for an organization.
The company purchased six service trucks.
You observe that your accountant set up Fixed assets '" vehicles in the wrong fixed asset group.
You need to achieve the following: -> Change the fixed asset group so that the existing fixed asset transactions for the original fixed asset are canceled and regenerated for the new fixed asset.
-> Ensure that all books for the existing fixed asset are created for the new fixed asset.
Any information that was set up for the original fixed asset is copied to the new fixed asset.
-> Close the old fixed asset number in the old fixed assets group and create a new fixed asset number in the new fixed assets group.
-> Ensure that the historical transactions are transferred to the new fixed asset.
-> Ensure Historical Depreciation expense entries do not change.
What should you do?
Answers
Explanations
Click on the arrows to vote for the correct answer
A. B. C. D.A.
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/fixed-assets/tasks/reclassify-fixed-assetsThe correct answer is A. Reclassify the fixed asset.
Reclassifying a fixed asset allows you to change the fixed asset group without affecting the existing transactions for the original fixed asset. This is done by creating a new fixed asset record in the new group and linking it to the original fixed asset record.
To achieve the objectives mentioned in the question, the following steps should be taken:
Navigate to Fixed Assets > Fixed Assets List, and find the fixed asset that needs to be reclassified.
Select the fixed asset and click on the "Reclassify" button on the toolbar.
In the Reclassification form, select the new fixed asset group, and enter any additional information that is required for the new group.
Check the "Cancel existing transactions" checkbox to cancel the transactions for the original fixed asset and regenerate them for the new fixed asset.
Check the "Copy setup from original asset" checkbox to copy any information that was set up for the original fixed asset to the new fixed asset.
Enter a new fixed asset number for the new fixed asset.
Click on the "Reclassify" button to complete the process.
By following these steps, the historical transactions for the original fixed asset will be transferred to the new fixed asset, and the historical depreciation expense entries will not change. The old fixed asset number in the old fixed asset group will be closed, and a new fixed asset number will be created in the new fixed asset group.
Option B, changing the fixed asset group and keeping the same fixed asset number, is not recommended as it will affect the existing transactions for the original fixed asset. Option C, copying the fixed asset, will create a new fixed asset record but will not link it to the original fixed asset record. Option D, transferring the fixed assets, is not applicable in this scenario as the company is not transferring the ownership of the fixed assets to another entity.
