Convert Item to Fixed Asset

dynamics_prasanth

Hi Experts,
In one scenario, all goods (including FAs) are purchased and kept in Warehouse as reserve stock. An Item is treated as FA, only when it is Issued. So my requirement is to convert an Item to a Capital Good(Fixed Asset). Is this possible in NAV 5.0?

Lots of Thanks

vijayanderson

Hi,

There two ways
a) After Issuing the item , check Mark Capital Account field (Boolean) in Item Master in Tax information tab.. but you cannot convert it to Fixed Asset.

b) Manually Posting the negative entry and recreating the Fixed Asset through Journal with Acquistion cost.

But if you are buying the Asset as inventory and later on converting in to Fixed Account , in that case how will you take credit of the excise, Incase of Excise credit only 50% will be taken in current year and remaining in next year.

Can you say why you do like that.

Cheers
Vijay

dynamics_prasanth

Hi Vijay,
Thanks for replying. I am not sure whether I was right. But I checked the Capital Item option before Purchase and also the "with Cenvat" Option in Tax Information>Excise option on the Item Card and the Cenvat Credit functionality was working perfectly. Now my problem is, how to calculate the depreciation against this item. I think I have no other option other than creating a new FA.

The FA Item is first purchased and stored in Warehouse as reserve. So it will be added up to the warehouse stock. The item is later on issued from warehouse and send to the location(FA Location) where it will be installed.

vijayanderson

You cannot calculate depreciation for the items in item master even if its Capital goods, Depreciation cannot be calculated for the items other than Fixed Assets.