Fixed Asset Posting Profile Setup in Microsoft Dynamics AX

Fixed asset posting profile is one of the most difficult subledger setups in Microsoft Dynamics AX. Setting up a subledger posting profile depends on the financial processes in a company.  In this article I will explain posting profile setup with simple examples, with the assumption that you already have basic knowledge of accounting.

Below is the ideal Fixed Asset lifecycle. The setup of the fixed asset posting profile in Dynamics AX should follow these stages, as we will see below.

Fixed Asset Capitalization

Fixed Asset Acquisition:

A fixed asset can capitalize from one of the following processes in Dynamics AX:

1. Purchase Order
2. Vender Text Invoice
3. Internal Project (Capital in Process)
4. Convert Inventory into Fixed Asset
5. Fixed Asset Acquisition Journal

However, I am covering the fixed asset purchasing scenario in this article.

The account creation process in the chart of accounts (COA) for Fixed Asset acquisition depends on the complexity of the Fixed Asset register and financial reporting requirements. I personally prefer to create multiple Fixed Asset cost accounts in the balance sheet based on available Fixed Asset Groups like land, equipment, buildings, etc. However, only one account can accomplish Fixed Asset Acquisition's sub-ledger setup requirements. 

Furthermore, there is no need to define an offset account because at the time of fixed asset purchasing, the system populates the offset account with payables. I am using only one Fixed Asset Acquisition account in the example below to make it simple.