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

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 Books Are Important

Fixed Asset Books enable:

• Parallel depreciation for different reporting requirements
• Compliance with statutory and tax regulations
• Accurate asset valuation without duplicate asset records
• Clear audit trails for financial reporting

Without properly configured books, depreciation calculations and financial postings can become inconsistent.

 

Fixed Asset Book Configuration Overview

To configure a Fixed Asset Book in D365 FO:

1.                      Go to Fixed Assets > Setup > Books.

2.                      Click New.

         

3.                      In the Book field, type a value.

4.                      In the Description field, type a value.

5.                      Select Yes in the Calculate depreciation field.

6.                      In the Depreciation profile field, enter or select a value.

7.                      In the list, click the link in the selected row.

8.                      In the Calendar field, enter or select a value.

9.                      In the list, click the link in the selected row.

10.                 Click Save.

 

 

What Are Fixed Asset Groups?

A Fixed Asset Group is used to categorize assets that share similar characteristics, such as service life and depreciation rules. Asset groups act as a template, ensuring consistency across assets.

Fixed Asset Groups control:

• Asset numbering through number sequences
• Which Fixed Asset Books apply to assets
• Service life and depreciation period
• Default posting behavior

Every fixed asset must belong to a Fixed Asset Group.

 

Why Fixed Asset Groups Matter

Using Fixed Asset Groups helps organizations:

• Standardized asset classification
• Automatically apply correct books and depreciation rules
• Reduce manual errors during asset creation
• Simplify asset reporting and reconciliation

Groups ensure that assets of the same type are treated consistently.

 

Assigning Fixed Asset Books to Asset Groups

Fixed Asset Books are not assigned directly to assets; they are assigned through Fixed Asset Groups.

During group setup:

• A number sequence is configured for asset IDs
• One or more Fixed Asset Books are assigned
• A service life is defined for depreciation

When a fixed asset is created, it automatically inherits all books linked to its asset group.

 

Fixed Asset Group Configuration Overview

1.                      Go to Fixed assets > Setup > Fixed asset groups.

2.                      Click New.

3.                      In the Fixed asset group field, type a value.

4.                      In the Name field, type a value.

5.                      Select Yes in the AutoNumber fixed assets field.

6.                      On the voucher series field right-click and click on view details, to open the Number sequence page.

7.                      Click New.

8.                      In the Number sequence code field, type a value.

9.                      In the Name field, type a value.

10.                 In the Scope field, select an option.

11.                 In the Company field, enter or select a value.

12.                 In the list, select the company name.

 

13.                 In the Segment Table, select the value column.

 

14.                 In the Value field, type a value.

15.                 In the Segment Table, select the alphanumeric value.

16.                 In the Value field, type a value.

17.                 Open the general tab and select Yes in the Continuous field.

18.                 Click Save.

19.                 Copy the number sequence code and navigate back to the fixed asset group.

20.                 Paste the number sequence code you copied into the number sequence code field of the fixed asset group.

 

 

 

21.                 Click Books.

22.                 In the Book field, enter or select a value.

 

23.                 In the Service life field, enter the service year. The Depreciation period is automatically populated.

24.                 Click Save.

25.                 Repeat this process for all the fixed asset groups. Note to replicate exactly what is in the pre-production.

26.                 Close the page.

       

 

 

 

 

How Books and Groups Work Together

The relationship between books and groups is central to fixed asset processing:

• Books define how depreciation is calculated
• Groups define which books apply to an asset
• Assets inherit both depreciation logic and numbering from the group
• Multiple books can coexist for a single asset without duplication

This design supports flexible reporting while maintaining control.

Best Practices for Books and Groups

• Create Fixed Asset Books before configuring asset groups
• Use clear, standardised naming (e.g., IFRS, LOCAL, TAX)
• Keep service life consistent within asset groups
• Test depreciation calculations before go-live
• Align configurations across environments (DEV, UAT, PROD)

Conclusion

Fixed Asset Books and Fixed Asset Groups form the foundation of asset accounting in D365 Finance & Operations. Books define how assets are depreciated and reported, while groups ensure consistent application across assets. When designed correctly, they provide accuracy, compliance, and scalability for fixed asset management.