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How to Configure Fixed Asset Books and Groups in D365 Finance and Operations.

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Fixed Asset configuration in Dynamics 365 Finance & Operations (D365 FO) relies heavily on two core components: Fixed Asset Books and Fixed Asset Groups . Together, they determine how assets are numbered, depreciated, and reported in the general ledger. This article explains what Fixed Asset Books and Groups are , why they matter , and how they work together in a typical D365 FO implementation.   What Are Fixed Asset Books? A Fixed Asset Book defines the accounting and depreciation rules applied to a fixed asset. Books allow organizations to track the same asset under multiple accounting standards such as IFRS, local GAAP, or tax reporting. Each book controls: Whether depreciation is calculated Which depreciation profile is used The fiscal calendar for depreciation How asset values are calculated and reported An asset can be linked to multiple books , with each book maintaining its own depreciation and net book value.   Why Fixed Asset Bo...
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Associating Fixed Assets with Leases in Dynamics 365 Finance and Operations

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Effective lease management is critical for organizations navigating the complexities of IFRS 16 and ASC 842 compliance. In Dynamics 365 Finance and Operations (D365 FO), associating a fixed asset with a lease integrates the right-of-use (ROU) asset as a fixed asset acquisition, mapping its value to the acquisition cost for accurate accounting and streamlined reporting. This guide provides finance and IT professionals with a comprehensive roadmap to implement this integration, covering its importance, applicable scenarios, configuration steps, and what happens across both Asset Leasing and Fixed Assets modules after the association.   Importance of Associating Fixed Assets with Leases Linking a lease to a fixed asset in D365 FO offers critical business and compliance benefits: Regulatory Compliance: IFRS 16 and ASC 842 require recognition of ROU assets and lease liabilities for most le...
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