(JPN) Set up asset retirement obligation for fixed assets

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

Asset retirement obligation (ARO) is used to estimate the costs that are related to the future disposal of an asset. ARO is initially recognized as a liability when you acquire or construct a fixed asset. This liability is equal to the present value of the estimated retirement cost for the asset at the beginning of its service life. The estimated retirement cost can change over the course of the asset’s service life based on market discount rates. To accommodate these changes in the liability, you can post retirement costs for the asset as installments at regular intervals of its service life instead of posting the initially recognized liability when you retire the asset.

Nota

This topic has been updated for functionality added for Microsoft Dynamics AX 2012 R3 Cumulative Update 8.

You can perform the following tasks to use ARO:

• Set up a discount rate schedule that uses current market discount rates to calculate ARO amounts.

• Specify the ARO type to use for an asset, and the frequency at which the changes to the ARO amounts are posted.

• Set up an estimated retirement cost plan for the ARO and simulate ARO amounts for each fiscal period of the asset’s service life.

• Set up a posting profile for the document types Capitalized asset retirement obligation and for Asset retirement obligation - accretion expense.

• Set up accounts from which the transaction amounts are retrieved when you post a fixed asset with that has a transaction type of ARO for disposal.

Prerequisites

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
Related setup tasks	Ensure that you have set up basic fixed asset parameters, such as a default value model, reason codes, and number sequences in the Fixed assets parameters form. For more information, see Configuración de parámetros de activos fijos. Define a fixed asset group in the Fixed asset groups form. For more information, see Grupos de activos fijos (formulario). Set up a fiscal calendar for depreciation. For more information, see Tareas clave: calendarios fiscales, ejercicios y períodos. Ensure that you have created a fixed asset record. For more information, see Crear un activo fijo.

1. Set up a discount rate schedule for ARO

Use the Discount rates for fixed assets form to set up a discount rate schedule for the fixed asset that the ARO is applied to. This discount rate schedule is used to maintain the discount rates for the fiscal periods of the fixed asset’s service life.

To set up a discount rate schedule, follow these steps:

1. Click Fixed assets > Setup > Discount rates.

2. In the Start date field, enter the date from which the discount rate schedule is effective.

3. In the Market discount rate percentage field, enter the current market discount rate percentage for the fixed asset.

You must specify a separate discount rate percentage for each fiscal period of the asset’s service life. To do this, click New, and then enter the starting date of the fiscal period in the Start date field.

2. Set up an ARO document

Use the Asset retirement obligation documents form to set up an ARO document that is attached to the fixed asset. This document contains information about the purpose of the ARO and the posting frequency of the ARO amounts.

To set up an ARO document, follow these steps:

1. Click Fixed assets > Setup > Asset retirement obligation > Asset retirement obligation documents.

2. Click New or press CTRL+N to create a record.

3. In the Document ID field, enter a name for the ARO document.

4. In the Document date field, enter the date from which the ARO document is effective.

5. In the Posting frequency field, select the frequency with which the changes that are made to the ARO amounts are posted.

3. Set up ARO for a fixed asset

Use the Asset retirement obligation form to set up ARO for a fixed asset. You can also set up an estimated retirement cost plan for the ARO. You can then view the details about the planned amounts and the posted amounts for the retirement cost plan in the Asset retirement obligation details form.

To set up ARO for a fixed asset, follow these steps:

1. Click Fixed assets > Common > Fixed assets > Fixed assets.

2. Select a fixed asset to set up ARO for, and then on the Action Pane, click Asset retirement obligation.

3. In the Asset retirement obligation form, click New.

4. In the Value model field, select the value model of the fixed asset.

5. In the Document ID field, select the name of the asset retirement document to attach to the fixed asset.

6. On the Estimated retirement cost plan FastTab, click Create.

7. In the Transaction date field, enter the effective transaction date for the retirement cost plan.

8. In the Estimated retirement cost adjustment field, enter the estimated retirement cost adjustment amount that is required for the ARO.

9. Click OK to create the estimated retirement cost plan.

10. Click Explore to open the Asset retirement obligation details form, where you can view the planned amounts and the posted amounts for the retirement cost plan.

4. Set up a fixed asset posting profile for ARO

Use the Fixed asset posting profiles form to set up the fixed asset posting profile for ARO using the following steps:

1. Click Fixed assets > Setup > Fixed asset posting profiles.

2. Click New, and then enter a name and description for the posting profile.

3. On the Ledger accounts FastTab, specify the details of the posting profile to use for the fixed asset. For more information, see Configuración de perfiles de registro de activos fijos.

4. On the Asset retirement obligation FastTab, select the Capitalized asset retirement obligation as a document type.

5. Click Add, and then in the Value model field, select a value model to apply to ARO transactions.

6. In the Groupings field, select the grouping level to set up a main account and an offset account to post ARO transactions to. Use the following table to decide what grouping level to use.

   Option	Consideration
   Table	Select this option to set accounts for each fixed asset.
   Group	Select this option to set accounts for each fixed asset group.
   All	Select this option to set accounts for all of the fixed assets.

7. In the Fixed asset number field, select a fixed asset or a fixed asset group for the ARO transactions. The values in this field are determined by the selection in the Groupings field.

   Nota

   This field is available only if you select Table or Group in the Groupings field.

8. In the Main account and Offset account fields, select the default main account and the default offset account that the ARO transactions are posted to.

9. Select Asset retirement obligation - accretion expense as the document type, and then repeat steps 5 through 8 to specify the value model, grouping level, main account, and offset account to post ARO transactions for the accretion expense.

5. Set up disposal parameters for fixed assets with a transaction type of ARO

To set up the disposal parameters for fixed assets with a transaction type of ARO, follow these steps:

1. Click Fixed assets > Setup > Fixed asset posting profiles. Click Disposal > Sale or Scrap.

2. On the Disposal parameters by document type FastTab, click New.

3. In the Value model field, select a value model to apply to the ARO transaction.

4. In the Post value field, select one of the following options:

   • Asset retirement obligation (prior years) – To retrieve the amount that was posted for ARO during prior years.

   • Asset retirement obligation (this year) – To retrieve the amount that was posted for ARO during the present year.

5. In the Main account and Offset account fields, select the default main account and the default offset account from which Microsoft Dynamics AX retrieves the transaction amount. For more information, see Acerca de las cancelaciones de activos fijos and Parámetros de cancelación (Formulario).

Next step

You have finished setting up ARO for the fixed asset. You can now depreciate and amortize the fixed asset and settle the ARO. For more information, see (JPN) Depreciate and retire a fixed asset with asset retirement obligation.

Related tasks

Configurar secuencias numéricas para activos fijos

Configurar perfiles de depreciación

Configuración de los modelos de valor

Configuración de grupos de activos fijos

Configuración de perfiles de registro de activos fijos

Technical information for system administrators

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 (AOT).
Security roles and duties	To perform this task, you must be a member of the -SYSADMIN- security role.