When procuring fixed assets, it is frequently the case that multiple purchases will made over a period of time, and that only once all purchases have been completed and assembled will an asset actually be placed in service. The purchases that have not yet been placed in service are referred to as “Construction In Progress” or “Capital Work in Progress” (commonly referred to as CIP). There are several ways to handle CIP in Dynamics AX.
For longer-term and complex capital projects, the project management and accounting module allows us to create “Investment” type projects. All of the costs associated with the investment project can be controlled and tracked using project accounting functionality, and can be broken down into various categories. The accumulated value of the project is stored in Work in Progress accounts until we are ready to place the asset in service, at which time the costs are transferred over to a fixed asset in the fixed assets module.
For smaller projects that don’t warrant setting up and using all of the features of project accounting there is a simpler approach that is still very effective for tracking CIP. It involves setting up a “CIP” value model to be linked to each asset group in addition to setting up the standard value models that normally dictate the depreciation convention to use for each asset group. The CIP value model will be the default value model, and will be the one that is automatically updated to an “acquired” status upon performing invoicing in AP. When an asset is placed in service, a user closes out the CIP value model for the asset and performs an acquisition transaction for the standard value model.
- CIP will be a non-depreciating value model. It should be linked to a CIP account. For all other value models, that same CIP account should be the offset account that is credited when performing an acquisition transaction.
- Each time an AP invoice is processed for a given asset, the system records a fixed asset acquisition for the “CIP” value model associated with that asset (AX allows multiple acquisitions associated with the same asset). The system will debit the CIP account associated with the combination of the asset group and value model, with an offsetting credit to AP.
- We will now have an asset with a status of “acquired” for the value model “CIP”. For the standard value model, the status = not yet acquired. We will be able to see all invoice transactions linked to the CIP value model on the asset by looking at the Value Model, and clicking “Transactions”.
- When an asset is ready to be placed into service, a user changes the status of the CIP value model to “closed”, copies and pastes the “acquisition cost” from the CIP value model to the standard value model, and then books an “acquisition” transaction for the standard value model. This will produce a debit to the fixed asset account associated with the standard value model and a credit to the CIP account (the offset account assigned to the standard value model/asset group).
- To reconcile CIP accounts to a sub-ledger, the user runs the asset balance report, with Value Model = CIP and Status = Open. To reconcile fixed asset accounts, the user runs the asset balance report where Value Model = Standard and Status = Open.
This article was written by Matthew Boese, Partner at Tridea Partners, a Gold Certified Microsoft Dynamics Partner.
Learn how Microsoft Dynamics AX can help you increase the speed of doing business
What: Microsoft Dynamics AX Virtual Launch Event
When: Wednesday, March 9, 2016 from 8:00 am – 9:00 am PST
Speed is essential in today’s fast paced business environment. Enabling people to make smarter decisions quickly through actionable insights can lead to faster business transformation and help you unlock new opportunities.
“The ability for Microsoft (Dynamics AX) to support a hybrid cloud environment is essential to meeting the real needs of customers…Dynamics AX leapfrogs the industry” *
– Josh Greenbaum, Principal Analyst, Enterprise Applications Consulting
During this exciting event, we will show you the new Dynamics AX and hear from early adopter customers who will share how they are using the new Dynamics AX cloud service to speed up their business.
Are you ready to increase the speed of your business?
Tridea Partners, Microsoft Gold ERP provider of Dynamics AX, GP and CRM invites our clients, professional colleagues and friends to this special Microsoft Dynamics networking event.
We encourage those of you that aren’t current customers to attend and learn more about Tridea Partners and the Microsoft products in this friendly, open-forum. This is a great opportunity to meet and speak to other users as well as Tridea and Microsoft staff.
Join us for appetizers, drinks and access to the Frost Ice Bar!
TRIDEA PARTNERS would like to invite you to attend this informative webinar!
What if expense reports could write themselves?
Event Details: Wednesday, February 24, 2016 10:00 AM – 10:30 AM (PST) Presenters: Andy Collins – Tridea Partners & Russ Reininger – Concur
Are you using a spreadsheet for expense reporting? Are you still processing paper AP Invoices? If so, you know the pains of the manual process: taping receipts, incomplete information and line-by-line auditing.
Have you asked yourself if there’s a better way? Well, there is! That’s why we’ve partnered with Concur, to bring the best-in-class solutions to our customers. Join us for a brief online webinar to learn how best-in-class organizations are handling their Travel, Expense Reporting and AP invoice Process.
Join us for this exclusive webinar, Topics include:
- Integrated travel, expense and AP invoice platform for growth and scalability
- Eliminate paper and manual processes around travel, expense reporting, credit card reconciliation and AP invoices
- Achieve full cash flow management and real time visibility into operating costs
- Cost savings: make sure all your spend is 100% within your policy
- Integration with Microsoft Dynamics ERP
Register now >> We can’t wait to show you a better way!
PS: We can offer you an exclusive 10% discount on Concur’s solutions!
Integration between Microsoft Dynamics CRM and Microsoft Dynamics ERP products has arrived with the release of Connector for Microsoft Dynamics!
Integration between Microsoft Dynamics CRM and Microsoft Dynamics ERP products has arrived with the release of Connector for Microsoft Dynamics! Customers of all Dynamics ERPs now have access to the same simple, reliable and extendable integration with the CRM product that has shipped for GP, AX and NAV previously. Out-of-the-Box entity mappings provide immediate value by integrating the key data in both systems. That basic integration can be extended by adding new maps, or leveraging the SDK to create custom integrations. Connector is ready for use today!
Connector for Microsoft Dynamics provides:
- A robust Dynamics-specific integration that “just works”
- Easy installation and deployment
- Minimized architectural overhead
- Transparency when things may go wrong
Connector for Microsoft Dynamics supports new integrations with the following Microsoft Dynamics products:
- Microsoft Dynamics CRM 2011, 2013, 2015 & 2016 in all deployments
- Microsoft Dynamics GP 2013, 2013 R2, 2015& 2015 R2
- Microsoft Dynamics AX 2009, 2012, 2012 R2 & 2012 R3
- Microsoft Dynamics NAV 2013, 2013 R2, 2015 & 2016
- Microsoft Dynamics SL 2011 SP1
This article was written by Sandra Knight, Sales Consultant for Tridea Partners. Tridea is a leading Microsoft Dynamics provider