Moving Items out of Inventory and into Fixed Assets

I love challenging customers (and partners) to use their Microsoft Dynamics GP system in very innovative ways. I like hearing things like ‘this cannot be done‘ or ‘there isn’t a way to do that‘. If there is a way, trust me, I will find it! One of these ways came in the form a simple question: how would you take an item that is already in inventory and move it to Fixed Assets?

Right off the start gate, I can think of 3 different ways to do this, but the solution I like the most because of its elegance and simplicity is as follows:

1. Setup an inventory site called FA and one called VIRTUAL or I/O (typically you will already have one of these setup if you have been using Inventory Control for a while).

2. Use the In-Transit Trasfer Transactions to transfer from your warehouse to the FA site using VIRTUAL as via site. Click on the Ship button to initate the ‘transfer’ to a Fixed Assets. In turn, this should create and in and out to your Inventory account — so far good!

3. Open the Receiving Transaction Entry window in GP and perform an In-transit Inventory receipt type.

4. Select the In-Transit Transfer number and select the item to be transferred to a Fixed Asset.

5. Open the Receiving Item Detail Entry window then mark the Capital Item option.

6. When you click the Capital Item checkbox, click on the expansion button (blue arrow) to open the FA PO Additional Information window to add the asset information.

7. Post the receipt.

Since the Purchase Order Processing module uses a Fixed Assets clearing account to capitalize an item, you should be fine (accounting wise) once the asset is created in FA and you run your FA GL posting routine. There you go! No need to create additional vendors or customers or perform extra gimmicks.

Until next post!

MG.-
Mariano Gomez, MVP
Maximum Global Business, LLC
http://www.maximumglobalbusiness.com/

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7 Responses to Moving Items out of Inventory and into Fixed Assets

  1. Anonymous says:

    Printing this off and will be using this method. Thanks for the abundantly useful post!

  2. Anonymous says:

    >Great advice! But I can't see the "Capital Item" button or expansion button in my Receivings Item Detail Entry Window. Am I missing some setup step?

  3. Anonymous101 says:

    How about if I have a large inventory item that I want to capitilise but I have smaller inventory items attached to the larger item. I want to capitilise all the of them together… For example I have a Post box that I want to capitilise laying in inventory, this post box has several small inventory items attched to it: nuts, bolts etc. I wish to attach the nuts and bolts etc. to the total cost of the post box to be capitilised. How would I do that? *lost

  4. Anonymous says:

    How about if I have a large inventory item that I want to capitilise but I have smaller inventory items attached to the larger item. I want to capitilise all the of them together… For example I have a Post box that I want to capitilise laying in inventory, this post box has several small inventory items attched to it: nuts, bolts etc. I wish to attach the nuts and bolts etc. to the total cost of the post box to be capitilised. How would I do that? *lost

  5. This method is not suitable for assembly or BOM type items. MG.-

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