Life cycle of a fixed asset
Consider the following scenarios to help you understand the life cycle of a fixed asset.
The accountant at Adventure Works Cycles is responsible for managing the company's fixed assets. On a monthly basis, the accountant reviews the purchase orders and invoices for new assets that were purchased in the prior month. Because the items haven't been recorded as assets during the purchasing process, the accountant enters a new asset record for each identified asset.
When the accountant enters the new asset, the first field that they enter is the Fixed asset group, which they select from a dropdown menu of predefined groups. Several asset group attributes appear by default on the asset. The accountant enters the data for the remaining attributes, which are fields that provide a more detailed level of asset tracking while minimizing data entry.
The Accounting department maintains close control of the company's fixed assets. Regardless of whether a fixed asset is acquired by purchase or assembled, or if a fixed asset is disposed of by sale or scrap, the accountant can track and record all these transactions in Microsoft Dynamics 365 Finance.
The accountant can register acquisitions and disposals and record value adjustments and depreciations.