In Business Central, the fixed asset functionality helps you manage the specific accounting needs of long-term, tangible items like property, plants, and equipment.

To create a fixed asset in Business Central:

1. Open Fixed Assets.
2. Select New to create an asset card.
3. Enter a description for the asset.
4. Select the appropriate Subclass Code, which automatically populates the related Class Code.
5. Enter the depreciation start date and useful life.
6. Update dimensions if required for financial reporting.

Once the asset record is created, it is ready to be acquired through a purchase transaction.

Purchase multiple fixed assets

When purchasing multiple identical assets:

1. Create a single fixed asset record.
2. Create a new purchase invoice.
3. Select the vendor.
4. Remove any default purchase lines if necessary.
5. Add a line using the Fixed Asset type.
6. Select the asset number and enter the purchase amount.
7. Specify the number of assets being acquired.

When the invoice is posted, Business Central automatically creates the additional asset records and corresponding ledger entries. This allows organizations to acquire multiple assets from a single transaction while maintaining separate asset records for tracking and depreciation.

Review asset and ledger entries

After posting the purchase:

• Fixed asset ledger entries are created for each asset.
• General ledger entries are generated automatically.
• Asset acquisition values are posted to the appropriate fixed asset accounts.
• Individual assets are available for review and ongoing maintenance.

Additional information, such as locations and dimensions, can also be maintained on the asset records.

Manage construction-in-progress (CIP) assets

For assets that are still under construction or not yet ready for use:

1. Create a new fixed asset record.
2. Select the appropriate subclass code, such as leasehold improvements.
3. Set a future depreciation start date.
4. Continue posting costs to the asset as invoices are received.

Once the project is complete:

• Update the depreciation start date.
• Assign the appropriate depreciation book if needed.
• Begin depreciating the asset when it is placed into service.

This approach allows organizations to track project costs within fixed assets instead of holding them solely in general ledger accounts until completion.

Key takeaways

• Fixed assets must be created before they can be acquired through purchasing transactions.
• Subclass codes help automate asset setup by populating related classifications.
• A single asset record can be used to create multiple assets during the purchasing process.
• Posting a fixed asset purchase automatically generates both fixed asset and general ledger entries.
• CIP assets can be tracked within fixed assets while delaying depreciation until the asset is placed into service.
• Maintaining assets directly in Business Central improves visibility, tracking, and financial reporting accuracy.