Convert Inventory Item to Fixed Asset

PPP
PPP Member Posts: 159
edited 2009-09-25 in NAV/Navision Classic Client
We use Electric Motors for the machineries in our Plant. We purchase these motors in bulk and store it. And install it as and when required.

My query here is .

While purchasing this. I dont want to consider this as a Fixed Asset. Intead I consider as a stores Item.

When I install it on the machine on later stage, I want to consider this as a Fixed Asset item and calculate the depreciation.

So first entry i make a normal Purchase entry and then when i use it i need to convert this is a FA item and it should appear in my FA register.

How do i do it in NAV 5.0. Also my doubt is can this be considered as a Main Item. if no then how can we handle this
Really appreciate if anybody can guide me on this.

Thanks in anticiaption

Prakash

Comments

  • kapil4dynamics
    kapil4dynamics Member Posts: 591
    The answer of ur ques by the time u said "doubt" was "By Default No"

    But after doubt i would suggest better you ask ur accountants as they must be knowing how they want to treat these entities. U can treat them as Asset as well Item. But by default NAV does not give you any option of moving ur inventory to FA.

    Because to have this properly it shud take out the item from inventory and create an Asset, transferring the correct G/L figures as well. NAV does not have this exact feature [Though Ax does. :)] but u can have some workarounds in NAV which your implementation partner would be in more good position to suggest you.
    Kapil Khanna
  • themave
    themave Member Posts: 1,058
    Not sure which country you are located in, but in the US, you should be classifing them as assets from the get go, you don't have to start depreciating them until you place them in service, but they are assets none the less.

    you could book the dollars in another balance sheet account, specifically to hold assets not in service. and when you place them in service make an entry to move the amounts from the holding account to the fixed asset account.
  • kriki
    kriki Member, Moderator Posts: 9,121
    [Topic moved from 'NAV 2009' forum to 'NAV/Navision' forum]
    Regards,Alain Krikilion
    No PM,please use the forum. || May the <SOLVED>-attribute be in your title!

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