(JPN) Apply reduction entry and depreciate fixed assets [AX 2012]

Updated: March 7, 2014

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2

After you set up a reduction entry for fixed assets, you can apply reduction entry to a fixed asset that is eligible for government subsidy. You can use the direct-off method to set up Microsoft Dynamics AX 2012 R2 to deduct the government subsidy amount directly from the acquisition cost of the fixed asset. Alternatively, you can use the reserve method to maintain the government subsidy as a separate value on the equity side of the balance sheet. The government subsidy amount does not affect the net book value of the fixed asset. For more information, see (JPN) Reduction entry for fixed assets.

When you run a depreciation proposal, AX 2012 R2 automatically calculates and posts the allocation of the reduction entry along with the depreciation process.

Follow the steps in this topic to apply the reduction entry to a fixed asset, and then calculate depreciation for the fixed asset.

NoteNote

This topic does not apply to versions of Microsoft Dynamics AX 2012 prior to cumulative update 7 for AX 2012 R2.

The following table shows the prerequisites that must be in place before you start.

Category

Prerequisite

Version

Microsoft Dynamics AX 2012 R2 with cumulative update 7 or later

Country/region

The primary address for the legal entity must be in the following countries/regions: Japan

Reduction entry setup task

Set up a reduction entry document, and then assign the reduction entry document to a fixed asset or to multiple fixed assets. Additionally, set up a fixed asset posting profile for a reduction entry.

Use the Fixed assets and Journal voucher forms to create and post a fixed asset acquisition journal by specifying the reduction entry document type and the identification code of the reduction entry document. Alternatively, you can generate the reduction entry transaction for the fixed asset based on the reduction entry details that you specified for the fixed asset.

To perform this task, follow these steps:

  1. Click Fixed assets > Journals > Fixed assets.

  2. Select or create a fixed asset acquisition journal. For more information, see Journal header (form).

  3. Click Lines, and then select or create a fixed asset acquisition journal line. For more information, see Journal voucher - Fixed assets (form).

  4. On the Overview tab, in the Account and Value model fields, select a fixed asset and value model to apply the reduction entry to.

  5. In the Document type field, select Reduction entry - direct-off or Reduction entry - reserve as the reduction entry method. In the Document ID field, select the identification code of the reduction entry document.

    Alternatively, click Functions > Generate transactions for reduction entry document to create additional reduction entry lines for the fixed asset based on the reduction entry details that you specified for the fixed asset or value model. For more information, see “Optional: Assign a reduction entry certificate to a fixed asset” and “Optional: Assign reduction entry certificates to multiple fixed assets” in (JPN) Set up reduction entry for fixed assets.

  6. In the Debit field, enter the subsidy amount.

  7. Click Validate > Validate to validate the journal.

  8. Click Post > Post to post the fixed asset acquisition by claiming the subsidy.

If claiming a government grant after acquiring fixed assets is required, you can use the Reduction entry - proposal form to generate a reduction entry proposal for fixed assets to which the reduction entry documents are assigned.

To perform this task, follow these steps:

  1. Click Fixed assets > Journals > Fixed assets.

  2. In the Fixed assets form, create an acquisition journal for the reduction entry, and then click Lines.

  3. In the Journal voucher form, click Proposals > Reduction entry proposal.

  4. In the Reduction entry - proposal form, click Select to open an inquiry, where you can specify the criteria, such as fixed asset number, fixed asset group, and value models for the assets to include in the proposal.

  5. Click OK to close the inquiry.

  6. In the Reduction entry - proposal form, click OK to generate transaction lines for the fixed assets that are eligible for the subsidy in the Journal voucher form.

  7. In the Debit field, enter the subsidy amount.

  8. Specify additional information for the reduction entry transaction, if required.

  9. Click Validate > Validate to validate the journal.

  10. Click Post > Post to post the reduction entry amounts for fixed assets.

Use the Purchase order and Vendor invoice forms to create and post a purchase order to acquire additional fixed assets by using a subsidy.

To perform this task, follow these steps:

  1. Click Accounts payable > Common > Purchase orders > All purchase orders.

    –or–

    Click Procurement and sourcing > Common > Purchase orders > All purchase orders.

  2. On the Action Pane, click Purchase order, enter the required information to create a purchase order, and then click OK. For more information, see Create a purchase order.

  3. In the Purchase order form, on the Line details FastTab, on the Fixed assets tab, in the Fixed asset number field, select the fixed asset for which you have assigned the reduction entry details. For more information, see “Optional: Assign a reduction entry certificate to a fixed asset” and “Optional: Assign reduction entry certificates to multiple fixed assets” in (JPN) Set up reduction entry for fixed assets.

    The identification of the reduction entry document and the subsidy amount for the fixed asset are updated in the Reduction entry document and Reduction entry amount fields.

  4. In the Transaction type field, select Acquisition or Acquisition adjustment as the type of fixed asset transaction.

  5. On the Action Pane, on the Invoice tab, click Invoice to open the Vendor invoice form.

  6. Verify the reduction entry details in the Reduction entry document and Reduction entry amount fields on the Fixed assets tab on the Line details FastTab.

  7. Post the purchase order for the fixed asset acquisition. The subsidy amount is posted automatically.

Use the Depreciation proposal form to generate a depreciation proposal for fixed assets by allocating the reserve for a reduction entry. When you generate a depreciation proposal, AX 2012 R2 automatically calculates and posts the allocation of the reduction entry along with the depreciation process.

To perform this task, follow these steps:

  1. Click Fixed assets > Journals > Depreciation book journal.

    –or–

    Click Fixed assets > Journals > Fixed assets.

  2. Select or create a depreciation journal, and then click Lines. For more information, see Journal header (form) and Depreciation book journal (form).

  3. In the Journal voucher form or the Journal line form, enter the required details for the voucher. For more information, see Journal voucher - Fixed assets (form) and Journal line (form).

  4. Click Proposals > Depreciation proposal.

  5. In the Depreciation proposal form, in the To date field, enter the ending date of the period to create the depreciation profile for.

    NoteNote

    If required, you can select the Summarize depreciation check box to summarize the details of monthly depreciation amounts in one journal line.

  6. Select the Reduction entry allocation check box to automatically calculate the allocation of the reduction entry along with the depreciation process.

  7. Click Select to specify additional criteria, such as fixed asset number and fixed asset group to generate the depreciation proposal. Click OK.

  8. In the Depreciation proposal form, click OK to generate the depreciation and reduction entry allocation lines in the Journal voucher form or the Journal line form.

  9. Validate and post the journal.

After you generate and post the depreciation for a fixed asset by allocating the reserve for a reduction entry, you can verify the information in the following fields on the Reserve for reduction entry tab in the Profile form:

  • Pre-adjustment reduction entry amount – The unadjusted reduction entry amount if the acquisition of the asset and the subsidy claim occur in the same fiscal year.

  • Post-adjustment reduction entry amount – The adjusted reduction entry amount if the subsidy is claimed in the fiscal year that occurs after the year of acquisition.

  • Beginning balance of accumulated allocation of reserve for reduction entry – The beginning balance of the accumulated allocation of reserve for the reduction entry.

  • YTD allocation of reserve for reduction entry – The total allocation of reserve for the reduction entry that is incurred from the beginning of the fiscal year of the selected date.

  • Beginning balance of reduction entry – The beginning balance of the reduction entry from the beginning of the year until the selected date.

  • Allocation of reserve for reduction entry – The allocation of the reserve for the reduction entry for the fiscal period for the selected date.

  • YTD reduction entry balance – The remaining value of the reduction entry.

You can also verify the revenue amount for the reserve method and the net balance after deducting the reserve subsidy from the acquisition cost in the Reduction entry amount and Net balance fields in the Fixed asset balances form.

Use the Reduction entry transaction summary form to generate the Reduction entry transaction summary report, which contains details about the reduction entry transactions based on the criteria that you specify, such as fiscal year, reduction entry method, and book type.

  1. Click Fixed assets > Reports > Transactions > Reduction entry transaction summary.

  2. In the Fiscal year field, select the fiscal year to generate the report for.

  3. In the Reduction entry type field, select Direct-off or Reserve as the reduction entry type to generate the report for.

  4. In the Book type field, select Value model or Depreciation book as the book type to generate the report for.

  5. In the View by field, select Reduction entry document view or Fixed asset group view as the report view.

  6. Click Select to specify additional criteria, such as fixed asset number, fixed asset group, and book to generate the report. Click OK.

  7. In the Reduction entry transaction summary form, click OK to generate the report.

If you don't have access to the pages that are used to complete this task, contact your system administrator and provide the information that is shown in the following table.

Category

Prerequisite

Configuration keys

Ensure that the Asset configuration key is available under the Data Dictionary > Configuration Keys node in the Application Object Tree.

Security roles and duties

To perform this task, you must be a member of a security role that includes the following duties.

  • Inquire into fixed assets (AssetFixedAssetsInquire)

  • Maintain fixed asset transactions (AssetFixedAssetTransactionsMaintain)

  • Maintain fixed assets (AssetFixedAssetsMaintain)

Security roles and privileges

To perform this task, you must be a member of a security role that includes the following privileges.

  • Reduction entry summary report (AssetReductionEntrySummaryReport_JP)

  • View reduction entry profile (AssetViewReductionEntryProfile_JP)

  • Create depreciation book reduction entry proposal (AssetCreateDepBookREProposal_JP)

  • Create fixed asset reduction entry proposal (AssetCreateFixedAssetREProposal_JP)

  • Maintain reduction entry profile (AssetMaintainReductionEntryProfile)


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