(JPN) Set up reduction entry for fixed assets

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

When you acquire a fixed asset using a government subsidy, the subsidy is treated as taxable revenue and can be registered in Microsoft Dynamics AX by using a reduction entry. You can use the following reduction entry methods to register the government subsidy for a fixed asset acquisition.

• Direct-off method – The government subsidy amount is deducted directly from the acquisition cost of the fixed asset.

• Reserve method – The government subsidy amount is maintained as a separate value on the equity side of the balance sheet. The government subsidy amount does not affect the net book value of the fixed asset.

Uwaga

This topic has been updated for functionality that is included in Microsoft Dynamics AX 2012 R3 Cumulative Update 8.

Follow the steps in this topic to set up a reduction entry document, and then assign the reduction entry document to a fixed asset or to multiple fixed assets. You can set up a fixed asset posting profile for reduction entry. You can also set up accounts for the transactions of type disposal. The transaction amounts are retrieved from these accounts when you post a fixed asset with reduction entry using the direct–off method.

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 Konfigurowanie parametrów środków trwałych. Define a fixed asset group in the Fixed asset groups form. For more information, see Grupy środków trwałych (formularz). Set up currencies and rounding rules to post depreciation amounts. For more information, see Walutach (formularz). Set up fixed asset locations in the Fixed assets locations form. For more information, see Lokalizacje środków trwałych (formularz). Set up a fiscal calendar for depreciation and assign the calendar to a ledger. For more information, see Najważniejsze zadania: kalendarze obrachunkowe, lata obrachunkowe i okresy and Wybierz kalendarz obrachunkowy dla księgi. Ensure that you have created a fixed asset record. For more information, see Tworzenie środka trwałego. Ensure that you have set up a value model for the fixed asset in the Value models form. For more information, see Konfigurowanie modeli ewidencji.

1. Set up a reduction entry document

Use the Reduction entry document form to set up a reduction entry document that is used to identify the fixed assets that are eligible for subsidy.

To set up a reduction entry document, follow these steps:

1. Click Fixed assets > Setup > Reduction entry documents.

2. Click New to create a document, and then specify the details about the document.

   Field	Description
   Reduction entry document	Enter the name of the reduction entry document.
   Reduction entry type	Select the reduction entry type for the document. You can select Direct-off or Reserve.
   Depreciation convention	Select the depreciation convention to use for the reduction entry. Select from the following options: None – The reduction entry is allocated in the same month as the month during which the government grant is claimed. Full month – The reduction entry is allocated in the next month after the month during which the government grant is claimed. Uwaga This field is available only if you select Reserve in the Reduction entry type field.
   Subsidies reason	Enter the reason that the subsidies are claimed.
   Valid from	Enter the starting date of the period during which the document is effective and can be used for a fixed asset.
   Valid to	Enter the ending date of the period during which the document is effective and can be used for a fixed asset.
   Max. amount	Enter a threshold amount for the subsidy.
   Max. percentage rate	Enter the maximum percentage of the fixed asset’s acquisition cost that is allowed as a subsidy amount.
   Retention period	Specify the duration and the unit of time to use to calculate the minimum duration for which the asset must be used.
   Repayment starts from	Select the starting date of the repayment period for the asset. You can select Acquisition date, Reduction entry claim date, or Ordinary depreciation start date.
   Repayment type	Select the method to use to repay the subsidy. You can select Completely, Proportional, or Not required.

Optional: Assign a reduction entry document to a fixed asset

Use the Fixed assets form to assign a reduction entry document to a fixed asset. AX 2012 R2 uses the details of the reduction entry document that you assign to a fixed asset to calculate and post reduction entry amounts for the fixed asset.

To perform this task, follow these steps:

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

2. Double-click the fixed asset that you have received the subsidy for, and then click Edit.

3. On the General FastTab, in the Reduction entry document field, select the reduction entry document for the fixed asset.

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

When you update the reduction entry details for a fixed asset, the reduction entry details are updated for the value models and depreciation books that are associated with the fixed asset. You can modify the reduction entry details for a value model that is associated with a fixed asset in the Reduction entry document and Document date fields on the General tab in the Value models form. You can modify the reduction entry details for a depreciation book that is associated with a fixed asset in the Reduction entry document and Document date fields on the General tab in the Depreciation books form.

Optional: Assign a reduction entry document to multiple fixed assets

Use the Mass update for reduction entry document form to assign a reduction entry document to multiple fixed assets. AX 2012 R2 uses the details of the reduction entry document that you assign to the fixed assets to calculate and post reduction entry amounts for the fixed assets.

1. Click Fixed assets > Periodic > Reduction entry document mass update.

2. Click New to create a line.

3. In the Fixed asset number field, manually select the fixed assets to assign the reduction entry document to. Alternatively, you can click Select fixed assets to open the Select criteria to pick up the candidates fixed asset into pools form, where you can create an inquiry to filter the fixed assets to assign the reduction entry document to.

4. Click Assign reduction entry document.

5. In the Document ID field, select the reduction entry document to assign to the fixed assets.

6. In the Assign to lines field, specify what fixed assets to assign the reduction entry document type to. Use the following table to decide what fixed assets to assign the selected document to.

   Option	Consideration
   All lines	Select this option to assign the reduction entry document to all of the fixed assets in the Mass update for reduction entry document form.
   Lines without a reduction entry document	Select this option to assign the reduction entry document to all of the fixed assets in the Mass update for reduction entry document form that do not have a reduction entry certificate assigned.
   Selected lines	Select this option to assign the reduction entry document only to the fixed assets that you selected in the Mass update for reduction entry document form.

7. Click Assign.

2. Set up a fixed asset posting profile for reduction entry

Use the Fixed asset posting profiles form to set up a posting profile for reduction entry. You can also set up a posting profile to depreciate the asset that is applied with a reduction entry.

To set up the fixed asset posting profile for reduction entry, follow these steps:

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

2. Click New to create a fixed asset posting profile.

3. In the Posting profile and Description fields, enter a name and a description for the posting profile.

4. On the Ledger accounts FastTab, specify the details of the posting profile to use for the fixed asset. For more information, see Konfigurowanie profili księgowania środków trwałych.

5. On the Reduction entry FastTab, select the Direct-off check box to specify the grouping level, main account, and offset account to post reduction entry transactions that use the direct-off method.

6. Click Add, and then in the Groupings field, select the grouping level to set up a main account to post reduction entry transactions to. Use the following table to decide what grouping level to use.

   Option	Consideration
   Table	Select this option to select a main account for each fixed asset.
   Group	Select this option to select a main account for each fixed asset group.
   All	Select this option to select a main account for all of the fixed assets.

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

   Uwaga

   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 reduction entry transactions are posted to.

9. Select the Reserve check box, and then repeat steps 6 through 8 to specify the grouping level, main account, and offset account to post reduction entry transactions that use the reserve method.

10. Select the Allocation check box, and then repeat steps 6 through 8 to specify the grouping level, main account, and offset account to post reduction entry allocation transactions.

3. Set up disposal parameters for fixed assets with a transaction type of reduction entry using direct off method

To set up the disposal parameters for fixed assets with a transaction type of reduction entry using the direct-off method, 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 reduction entry transaction type.

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

   • Reduction entry - direct-off (prior years) – To retrieve the amount that was posted for reduction entry during prior years.

   • Reduction entry - direct-off (this year) – To retrieve the amount that was posted for reduction entry during the present year.

5. In the Main account and Offset account fields, select the main account and the offset account from which Microsoft Dynamics AX retrieves the transaction amount. For more information, see Likwidacja środka trwałego — informacje and Parametry likwidacji (formularz).

Next step

You have finished setting up a reduction entry for fixed assets. You can now apply the reduction entry and depreciate the fixed assets. For more information, see (JPN) Apply reduction entry and depreciate fixed assets.

Related tasks

Typy transakcji środków trwałych

Podstawowa konfiguracja środków trwałych

Informacje dotyczące środków trwałych

Księgowanie środków trwałych i arkuszy

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.