Manage Fixed Assets

A fixed asset accountant needs to record the acquisition of a new server that was purchased on credit. Which journal type should be used in Dynamics 365 Finance to record the acquisition and ensure the correct ledger accounts are updated?

A fixed asset has been fully depreciated but is still in use. The company decides to sell the asset for $5,000. The asset's value model has a net book value of $0. Which transaction type should be used to record the sale and remove the asset from the fixed asset subledger?

A company decides to upgrade an existing production machine, which increases the asset's useful life by three years. How should this be handled in Dynamics 365 Finance to maintain accurate financial records?

An accountant at a manufacturing company creates a new fixed asset for a specialized milling machine. The asset is acquired through a vendor invoice, but the accountant forgets to assign a depreciation book before posting the acquisition. What must the accountant do to resolve this issue and enable depreciation processing?

Your organization requires that a fixed asset be depreciated over a specific number of years, but the depreciation amount must be higher in the earlier years of the asset's life. Which depreciation profile should you configure?

A company realizes that several office chairs were incorrectly assigned to the 'Vehicles' fixed asset group. They need to move these assets to the 'Office Furniture' group while ensuring that all historical transactions remain linked to the assets. Which function should be used?

A company is setting up a new fixed asset and wants to record the acquisition cost, but the asset will not be placed in service until a later date. The accountant needs to record the acquisition now and begin depreciating when the asset is placed in service. Which field on the fixed asset value model should be configured to control when depreciation starts?

A company is setting up fixed assets in Dynamics 365 Finance. They need to create a new asset that will be depreciated using the reducing balance method. Which two configurations are required to enable this? (Choose two.)

A company uses Dynamics 365 Finance and wants to ensure that when a fixed asset is sold, the gain or loss is automatically posted to the correct general ledger accounts. The consultant must configure the accounts that will be used for the disposal transaction. Where should the consultant define the ledger accounts for the disposal sale?

A company is setting up a fixed asset that was acquired in a foreign currency. The company's accounting currency is USD, and the asset was purchased for 10,000 EUR. The exchange rate at acquisition was 1.2 USD/EUR. The company wants to ensure that the asset's historical cost in USD is correctly recorded and that any subsequent exchange rate fluctuations do not affect the asset's depreciation. Which setup should be used?

A company performs a major engine overhaul on a delivery truck that extends the truck's useful life by two years. The cost of the overhaul is $5,000. How should this transaction be recorded in the Fixed assets module?

A company is setting up a new fixed asset value model for office furniture. The company wants to use the straight-line depreciation method over a useful life of 10 years. The asset will be acquired on January 1 for USD 12,000. The company uses a calendar year fiscal period. What will be the annual depreciation expense for this asset?

What is the primary function of a 'Depreciation Book' in Dynamics 365 Finance compared to a 'Value Model'?

A consultant is setting up fixed assets in Dynamics 365 Finance for a new legal entity. The company wants to use the fixed asset module to track assets for both financial reporting and tax reporting, with different depreciation methods for each. Which two configurations are required to support this requirement? (Choose two.)

A US-based legal entity in Dynamics 365 Finance uses the calendar year as its fiscal year, and its fixed asset books are configured to automatically create depreciation adjustments when the fiscal calendar changes. In March, the company's leadership approves a change to the corporate fiscal calendar: the fiscal year will now begin on July 1 instead of January 1, effective immediately for the current year. The fixed asset manager must update the fiscal calendar in Dynamics 365 Finance so that depreciation projections and journal entries align with the new fiscal year. What is the FIRST action the manager should take?

Which TWO of the following are valid methods to acquire a fixed asset in Dynamics 365 Finance?

A company is reviewing its fixed asset depreciation setup in Dynamics 365 Finance before year-end close. The controller asks the functional consultant to identify which TWO statements accurately describe how depreciation conventions interact with depreciation methods and how they affect the first and last periods of an asset's life. (Choose two.)

A company in Dynamics 365 Finance wants to track the depreciation of its fixed assets for both book and tax purposes. The controller asks the functional consultant to explain how the system supports this dual reporting requirement without duplicating asset records. Which statement best describes the recommended approach?

What is the consequence of selecting the 'Depreciation adjustment' transaction type in a fixed asset journal?

A company is acquiring a fleet of vehicles and needs to track them as fixed assets. Which TWO setups must be completed in Dynamics 365 Finance to ensure these assets are fully operational and depreciable?

A company has a fixed asset with a value model that uses the 'Reducing balance' depreciation method with a factor of 200 and a useful life of 5 years. After the first year, the net book value is 60,000. The accountant notices that the depreciation for the second year is calculated differently than expected and asks the consultant to explain how the reducing balance method computes depreciation in Dynamics 365 Finance. What should the consultant explain?

A multinational company in Dynamics 365 Finance has a fixed asset book configured with a reducing balance depreciation method and a Half year (start of year) convention. An accountant notices that for an asset placed in service on October 15, the first depreciation journal posted a full half-year of depreciation in the current fiscal year, and the remaining half will be applied in the final year of the asset's life. The controller wants to understand why this happened and whether it is correct. What should the functional consultant explain?

Refer to the exhibit. Why is the system preventing further depreciation for asset A001?

Refer to the exhibit. Why is the system displaying a warning for this fixed asset journal?

A company has a fixed asset that was acquired with a cost of 50,000 and has accumulated depreciation of 30,000. The company decides to sell the asset for 25,000. The Fixed asset posting profile for disposal-sale is configured with a main account for gain/loss. What is the correct accounting entry for this disposal in Dynamics 365 Finance?

A company has a fixed asset that was acquired in a previous year and has been fully depreciated. The asset is still in use but has no book value. The company wants to continue using the asset but does not want to incur additional depreciation. What should they do?

A company acquires a new piece of machinery and wants to include the freight and installation costs in the asset's acquisition cost. The invoice for the machinery has been posted, and the freight and installation costs are on a separate vendor invoice. Which transaction type should be used to add these additional costs to the fixed asset?

A fixed asset accountant needs to transfer a fully depreciated asset from the Production department to the Marketing department, but the asset will remain in service and continue to be tracked. The transfer should not affect the asset's financial value. Which action should the accountant perform in Dynamics 365 Finance?

A company is implementing Dynamics 365 Finance and needs to configure depreciation for a new asset. The asset will use a straight-line depreciation method with a 5-year service life. Which two settings must be configured on the value model to achieve this? (Choose two.)

A consulting firm in Dynamics 365 Finance wants to record the cost of reconfiguring a leased office space as a fixed asset. The improvements are expected to benefit the company for the remaining five years of the lease term, and the company wants depreciation to align with the lease term rather than the asset's physical life. The lease does not transfer ownership. Which approach should the functional consultant recommend?

A fixed asset in Dynamics 365 Finance has a net book value of $10,000. The company decides to sell the asset for $12,000. Which transaction type should be used to record the sale?

Refer to the exhibit. An accountant attempts to modify the acquisition price on a fixed asset record after posting a monthly depreciation run, resulting in the displayed error message. How should you resolve this issue?

What is the purpose of the 'Fixed Asset Posting Profile' in Dynamics 365 Finance?

When migrating fixed assets into Dynamics 365 Finance, which method ensures that the net book value is correctly stated without triggering an incorrect depreciation calculation for prior periods?

Your company uses 'Bonus depreciation' for tax purposes. Which setup allows for an additional depreciation amount in the first year of an asset's life?

A consulting firm has a fixed asset value model for a high-end server with an acquisition cost of USD 20,000 and a salvage value of USD 2,000. The firm uses the reducing balance depreciation method with a factor of 20%, and the asset was placed in service on January 1. The firm wants to know the depreciation amount for the first year. What will the system calculate as the depreciation expense for the first year?

A controller wants to ensure that whenever an acquisition is posted for a 'Tax' book, an identical acquisition is automatically posted for the 'Corporate' book. Which feature should be used to achieve this automation?

A legal entity in Dynamics 365 Finance uses a fiscal calendar with 12 monthly periods. A new fixed asset is placed in service on March 18. The asset's value model is configured with a depreciation convention of 'Half year' and a depreciation profile using the Straight line service life method. The asset's service life is 5 years. How will depreciation be calculated for the first fiscal year?

A legal entity in Dynamics 365 Finance needs to reclassify a fixed asset from the Furniture group to the Office Equipment group because the asset was misclassified at acquisition. The asset has never been depreciated. Which transaction type should the functional consultant use to move the asset to the correct fixed asset group without changing its net book value?