Three Possible Ways to Register and Record a Building as an Asset in Dynamics 365 Finance
Question
An organization acquires a building.
You need to register and record the building as an asset building in Dynamics 365 Finance.
What are three possible ways to achieve the goal? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.
Answers
Explanations
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A. B. C. D. E.ABD.
Sure, I'd be happy to provide a detailed explanation of the three possible ways to register and record a building as an asset building in Dynamics 365 Finance.
A) Select an account type of Fixed Asset and a transaction type of Acquisition with a General Journal: In Dynamics 365 Finance, you can create a new fixed asset record by selecting the account type of Fixed Asset and a transaction type of Acquisition within a General Journal. This process involves creating a new journal entry and selecting the appropriate account type, transaction type, and other relevant details such as the date of acquisition, the purchase amount, and the depreciation method. By using a General Journal, you have more control over the information that is recorded and can customize the entry to your specific needs.
B) Eliminate the project to a fixed asset: If you have already created a project for the acquisition of the building, you can eliminate it to a fixed asset by creating a fixed asset record and assigning the project costs to it. This can be achieved by selecting the "Eliminate" button in the project form and following the on-screen prompts to create the fixed asset record. By eliminating the project to a fixed asset, you can track the costs associated with the building in one place and monitor its value and depreciation over time.
D) Select an acquisition transaction type within a fixed asset journal: Alternatively, you can create a new fixed asset record by selecting an acquisition transaction type within a fixed asset journal. This method involves selecting the appropriate transaction type, such as "Acquisition," and providing the relevant details such as the purchase amount and date of acquisition. By using a fixed asset journal, you can streamline the process of creating fixed asset records and reduce errors by ensuring that all necessary information is included.
C, E) Create a sales invoice to record and register the fixed asset / Use the sales order process to acquire the asset: Creating a sales invoice or using the sales order process to acquire the asset are not recommended ways to register and record a building as an asset building in Dynamics 365 Finance. These methods are typically used for recording sales or purchases of inventory items or services, rather than fixed assets. Therefore, they are not relevant to the acquisition of a building, which is considered a fixed asset.
In conclusion, the three possible ways to register and record a building as an asset building in Dynamics 365 Finance are selecting an account type of Fixed Asset and a transaction type of Acquisition with a General Journal, eliminating the project to a fixed asset, and selecting an acquisition transaction type within a fixed asset journal.
