With Navision Financials Fixed Assets a company can track information for an asset in a number of ways, including: the assets number, description and serial number. In addition a fixed asset can also be specified as a budgeted asset. In this case, you can include the fixed asset in the budgeting process as a projected fixed asset purchase that is then used for budgeting purposes alone. The user can also record information that is used for tracking the maintenance status of fixed assets.

Navision Financials also offers a number of different posting options, such as asset classes, subclasses and location codes. Integration with the General Ledger is defined in the Fixed Asset posting groups where you have a range of options for setting up a number of different accounts including, acquisition cost, depreciation, maintenance and disposal.

Single or Composite Assets

A fixed asset can be set up as a single entity or as a set of components that make up a composite fixed asset. This lets the user control the level of detail you need in your fixed assets reporting. It also allows the user to record master file information applying to the entire component list in a single location.

The user can choose to treat the main asset and its components as accounting items, in other words, as entities to which postings can be made. Alternatively, you can limit accounting entries to the components only.

An Unlimited Number of Depreciation Methods with Multiple Depreciation Books

For each fixed asset, the company can define an unlimited number of depreciation books. These describe all the required depreciation conditions for a fixed asset.

The flexibility of depreciation books is valuable in many situations, for example, it can help a company to meet the demands of local accounting and tax conditions - whatever the location. The user can also define a depreciation book for internal depreciation calculations. And if the company is a part of a multinational company, you can set up a depreciation book to fulfill the currency demands of the parent company.

In each depreciation book, the user can decide whether or not the book should be integrated with the General Ledger. The user can also specify how the fixed asset is to be depreciated, as well as the desired frequency of depreciation calculations. This frequency is completely user-definable.

For each depreciation book, there is a depreciation entry ledger with all relevant information including book value, depreciation basis, accumulated depreciation, disposal, gain/loss, user ID and source code.

Choice of Standard or Custom Depreciation Methods

Navision Financials Fixed Assets provides several standard depreciation methods. These include, straight-line and declining balance, as well as various accelerated methods and unlimited customized methods.

Straight-line is probably the most commonly used method of depreciation. With it, users can define the number of years over which the assets is to be depreciated along with a fixed annual percentage or a fixed annual amount to be depreciated.

Using the declining-balance method, users can define a fixed annual percentage. You can also use one of the accelerated methods, such as a combination of Declining Balance and Straight Line (DB/SL). In this case you define a declining balance percent and the number of depreciation years. The depreciation method then automatically changes from declining-balance to straight-line when the straight-line amount becomes greater than the declining-balance amount.

Customized depreciation methods can be employed by defining a depreciation percent for each period (month, quarter, year, or any user-defined period). For example, where you have machinery with a welt-known lifetime capacity, depreciation according to a number of units can be used to depreciate production. This is done using a separate depreciation table in which the number of units produced in each period (month, quarter, year or any user-defined period) is recorded.

Real Time Statistics Give Complete Picture of Fixed Assets

Each depreciation book for a fixed asset offers a statistics window, which will quickly give a real time overview of the fixed asset. All information defined for a fixed asset can be simultaneously viewed on screen. Each main asset has its own statistics window that gives you a complete picture of what is happening with a fixed asset. For example, statistics can include the book value, the depreciation basis, accumulated depreciation, gain/loss and disposal.


Keeping Track of Fixed Assets

Companies can record a wealth of additional information for an asset, such as maintenance, service and expense information. Users can also include photographs of assets. All this helps the user to keep track of each asset and gives them the information needed for analysis and decision making related to the renewal of fixed assets. Maintenance expenses recorded in the Fixed Assets application area are integrated with the General Ledger.

Comprehensive Insurance Facilities Numerous insurance facilities are available with Navision Financials Fixed Assets, including the ability to monitor the insurance coverage and annual insurance premiums of the company's fixed assets. This facility makes it is easy for company's to see whether their assets are under insured or over insured.

Furthermore, users can allocate each asset to one or more insurance policy and insurance amounts can be indexed.

Allocation of Periodic Depreciation

Users can allocate depreciation of fixed assets to combinations of departments or projects. This facility is normally used when several departments in a company share a fixed asset.

An allocation key (defining all relevant information for the allocation) lets users decide where and when the cost is allocated. The frequency of the allocation can be controlled by choosing a recurring frequency. The allocation is made in the recurring general journal according to the frequency defined in the allocation key. The allocation key is divided on a percentage basis.

Reclassification

A fixed asset, or a portion of a fixed asset, can be reclassified. This is done by moving the asset, or part, from one classification to another, for example, from one department to another. A reclassification journal togs changes to provide an effective audit trait.

Separation and Partial Disposal

Navision Financials Fixed Assets allows users to separate an asset into several fixed assets, or to join several fixed assets into one. This facility allows you to partially dispose of a fixed asset, for example, by separating an asset into two fixed assets and then disposing of one of them. The separation is done as a reclassification and, once again, a reclassification journal logs changes to provide an effective audit trait.

Reporting and Report Simulation

Fixed Assets includes a number of standard reports that document all recorded information about the fixed asset. in addition a variety of simulation reports are also offered. These show how the book value and depreciation will develop in time. They are particularly useful for budgeting purposes.