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Financial Management#

The following features expand standard Microsoft Dynamics 365 Business Central1 functionality to provide additional options to those working in your organization’s financial department.

Reminders: accounts receivable#

This section describes extensions to standard reminder functions.

Consider payments received#

When running the Suggest Reminder Lines function, you can set a filter on the Incl. Payments Until field on the Reminder FastTab to specify up to which date the system should consider payments that have been received and posted (as per a bank statement).

Besides the reminder term and level placeholders, that were already available, you can use variable %13 to display on printouts the date entered for the filter.

Line-level reminders#

Setup#

To be able to work with this feature, you need to add report 5048915 – Sales Reminder to the Report Selections Reminder/Finance Charge page.

Following setup, the system will print on reminders that include more than one level the highest on the header, whereas the level specified on each line will be shown next to the relevant document entry.

Inventory and asset transactions#

Transaction codes#

These codes are used to describe various types of item ownership and specify both the posting process used and the type of valuation needed for your inventories (as shown in the Valuation Type field on a posted item ledger entry). The following ownership structures can be specified:

  • Fixed assets that are managed in inventory.
  • Leased property that a customer rents to others.
  • Third-party property that is shipped, stored, or serviced.
  • Current assets that you manage.
  • Current assets that will become rental items or represent used equipment.

In medtec365, a transaction code is required for every movement of an item.

Note

The use of costing method Average in connection with valuation type Not Valued in the item master is not supported in medtec365.

Posting groups: purchases#

If you want posting groups retrieved from base data to be changed by default when you set up a certain type of purchase order:

  1. Open the Search icon, enter Purchase Order Types, and then choose the related link.
  2. Select a type and then choose Related > Purchase Order Type > Posting Groups.
  3. Fill in the fields as necessary.

Posting groups: sales#

Although possible for purchase orders, you cannot tell the system to change posting groups for certain kinds of sales orders automatically. However, you can still change a group yourself on an order line.

Posting groups: service#

When you enter spare parts for service items, you might need posting groups that differ from those stored as base data.

For this purpose, you can set up alternative combinations on the Service Order Types page and have them copied to the service lines they’re required on.

Posting groups: item journals#

You can use item journals to post inventory adjustments that are the result of, for example, scrapping products or removing them for personal use. You can then specify posting parameters when you create the journal batch: a reason code for use in analyses and a general product posting group to set up an inventory adjustment account, such as ‘Scrap’ (provided the corresponding group combination is entered in setup).

Capitalize assets#

Note

You need a separate license before you can use this feature.

Transaction codes#

The following transaction code settings might influence the capitalization of assets in the system:

Field Description
FA Posting Type When set to Capitalization, current assets can only be capitalized if this code is entered during a transaction.

The same option is also used for data transfers, which means it is set for codes CA-CAP and DT-FA by default.
Default Pos. Adjmt. Code The default code will be CA (current assets) if no other code is entered.
Positive Adjmt. on Capitalization Only Only selected for codes that are linked to fixed assets via capitalization, FA being an example.

This field can help you reconcile fixed asset transactions with the general ledger and items in inventory and complete subsequent transactions, such as disposal and scrapping.

Current-to-fixed asset reclassification#

Receiving equipment#

When equipment is bought, you typically cannot say for certain where it will end up (for example, in sales or as a rental). Therefore, the item is typically purchased by using a code that covers valued transactions (such as CA=current assets).

For more information, see Transaction Codes.

Field Value
Transaction Code CA
Description Current Assets
Valuation Type Valued

Reason for capitalization#

Fixed assets that need to be reclassified are mainly intended for long-term rental.

The reclassification process involves using a delivery hierarchy on a sales order to change the transaction code assigned to the asset from CA to CA-CAP. For more information, see Transaction Codes.

Field Value
Transaction Code CA
Description Current Assets
FA Posting Type Capitalization

Note

Only equipment that a purchase invoice has been posted for should be capitalized. You can ensure this by filtering the relevant item journal to exclude lines with blank Purch. Invoice No. fields.

Fixed asset item journal#

Before you can capitalize an item with a serial number, you need to set up a serial number information card for it and specify an equipment class on the related item card (on the Misc. FastTab).

To capitalize equipment, that is, reclassify items from current to fixed assets, you use the suggestions that are provided by fixed asset item journals. If you want to create more than one journal, you must filter, for example, the journal to a specific transaction code when creating a name.

The Show FA Items to Capitalize function that you can run from the ribbon of the page only considers item ledger entries where the asset posting type was set to Capitalization in transaction code setup.

The results of the report are filtered to transaction code CA-CAP. There might be other codes to consider, such as Buyback, however.

The starting date specified for depreciation is always the first of the month in which the equipment should be capitalized, although the date can be changed manually, if needed.

Details about the notes shown in the Warning field on a line can be found in the FactBox on the right-hand side of the page, though you can capitalize an item despite the warning. However, if the field contains errors, capitalization will not be possible.

To ensure that error messages are displayed correctly, codeunit 71076692 KVSMTCFAItemJnlCheckLine must be added to the App Log Batch Types page for code POST-ITEMFA.

After the lines have been checked, they need to be posted. Posting them will create the fixed asset master and FA depreciation book and post the cost of acquiring the items. You can open the serial number information list from the asset master via a FactBox hyperlink.

When equipment is capitalized, the item ledger entries assigned to it will be moved as well. Afterward, each item will be derecognized as a current asset and recorded as a fixed asset.

Following reclassification, the transaction codes will also change, from CA-CAP to FA (fixed assets).

Field Value
Transaction Code FA
Description Fixed Assets
Valuation Type Not Valued
Positive Adjmt. on Capitalization Only Yes

Note

For a user to be able to capitalize an item that a receipt has been posted for, you need to turn on the Pos. Adjmt. - All Transact. Codes toggle on the relevant card in User Setup.

Fixed asset card#

If the base item number or serial number on an asset card is edited manually, a note appears regarding capitalization.

Equipment classes#

These classes list the requirements for capitalizing items with serial numbers, as described in the following table. You must assign a class to each item that you want to capitalize.

Field Description
Target Transact. Code (Capitalization) FA
Depreciation Book Code Example: HGB, Tax, or IFRS
FA Posting Group (Needed to determine the correct accounts.)
Depreciation Method Example: Linear
No. of Depreciation Years (Retrieved from the FA subclass.)
Use Depr. Book on Copy Action Only relevant if two depreciation books are used.
Auto Post 2nd Depr. Book on Disposal Only relevant if two depreciation books are used.
2nd FA Posting Group Only relevant if two depreciation books are used.
2nd Depreciation Method Only relevant if two depreciation books are used.
No. of Years (2nd Depr. Book) Only relevant if two depreciation books are used.
2nd Depreciation Book Only relevant if two depreciation books are used.

Assign a class#

As not every piece of equipment within a class might have the same value but that value will be crucial to determining how to capitalize a low-value item, you can set up a hierarchy on the Equipment Class Mapping page, which can be found by using the general search function.

The page can also be used to adjust the capitalization threshold for these items.

If the fields on the page are already filled in, at least partially, those entries are taken into account and, if needed, the class is changed by the system to make sure the serial number item is capitalized with the correct settings in place.

Both the equipment class and the next class on the list are then shown on the page for a last check prior to starting the capitalization process, as seen in the following table.

Field Description
Equipment Class Shows the class that this piece of equipment belongs to.

The value in this field is retrieved from the item master.
Starting Date Shows from when the class will be assigned to the equipment.
Ending Date Shows until when the class will be assigned to the equipment.
Operator – From Amount >=
From Amount Indicates starting at which amount the class should be used (Example: 800.01).
Operator – To Amount <=
To Amount Indicates up to which amount the class should be used (Example: 99999).
Next Equipmt. Class Code F>800
Note Example: 4Y depreciation

Cancel asset capitalization#

In medtec365, you can also reverse the capitalization of a fixed asset.

  1. Open a fixed asset card.
  2. Go to the FactBox on the right-hand side, and then choose FA Item Tracking > Cancel Line on the ribbon.

If you turn on the Delete Fixed Asset toggle when running the action, the fixed asset card and the (item, value, and G/L) entries related to it will be deleted. If the toggle is left turned off, the card will be kept whereas the (item, value, and G/L) entries related to the asset will be canceled.

Note

If you decide to capitalize the fixed asset again later, its card will be linked by using the serial number that was previously assigned to the asset.

Post capital assets via sales orders#

Sometimes, you might want to sell a capitalized item with a serial number to a customer.

The equipment must then be removed from inventory while the asset that was set up for it must be derecognized by creating and invoicing a sales order.

If the Automatic Cost Posting toggle is turned on in Inventory Setup, disposal of the asset is done by the system. If the toggle is turned off, you need to run the following batch jobs:

Afterward, the sale will be listed in the FA Item Tracking FactBox.

Post capital assets via item journals#

Equipment that transaction code FA is assigned to can also be disposed of by posting a negative adjustment in an item journal.

This adjustment might be needed, for example, following physical inventory or when items are scrapped or deemed unrecoverable in the middle of a year.

The asset that is set up for the equipment is then derecognized automatically provided the Automatic Cost Posting toggle is turned on in Inventory Setup. If the toggle is turned off, you need to run the following batch jobs:

Afterward, the removal will be listed in the FA Item Tracking FactBox.

Derecognize for scrapping#

Items that should be scrapped can be stored at a separate location and then removed from the balance sheet by using the Derecognize FA Scrap feature.

To set up the feature:

  1. Choose the Search icon, enter Inventory Setup, and then choose the related link.
  2. On the KUMAVISION medtec365 FastTab, fill in the fields described in the following table.
Field Description
Scrap Location Filter Specify the location that will be used to derecognize fixed assets for scrapping.
Remove via Item Jnl. Templ. Specify the journal template that you want to use for the feature.
Remove via Item Jnl. Batch Specify the name of the journal with which you want to run the batch job.

You can then use the general search function to open the request page for the batch job and filter the Transaction Code field to code FA (see the Item Ledger Entry FastTab).

Afterward, you can fill in the other fields as needed and run the batch job. This copies all capitalized items with a serial number from the scrap location to the item journal that you’ve specified on the page, unless the Post toggle is turned off. In this case, the equipment you want scrapped is copied to the journal that you’ve specified in Inventory Setup.

We recommend that you don’t turn on the toggle immediately so that you can check the entries for errors before posting them.

When an item that is assigned to a fixed asset is taken from a scrap location, the related asset is also derecognized provided the Automatic Cost Posting toggle is turned on in Inventory Setup. If the toggle is turned off, you need to run the following batch jobs:

Afterward, the item transaction will be listed in the FA Item Tracking FactBox.

Note

If you don’t turn on the Post toggle on the Post Inventory Cost to FA request page, the associated transaction will be printed but not posted.

As part of the process, you need to ensure that all assets are derecognized in the correct periods. For this purpose, you must run the Post Inventory Cost to FA batch job at regular intervals—that is, at the close of each month, at least—to update item ledger entries of type Negative Adjmt.

Post Inventory Cost to FA#

This feature is needed to derecognize an inventory item as a fixed asset if the Automatic Cost Posting toggle is turned off in Inventory Setup.

For more information, see Post Capital Assets via Sales Orders or Post Capital Assets via Item Journals.

Capitalize during data transfer#

When transferring data for capitalized equipment, we recommend that you:

  • Copy items per serial number by using transaction code DT-FA (not valued) during physical inventory.
Field Value
Transaction Code DT-FA
Description Data transfer for capitalization
Valuation Type Not Valued
FA Posting Type Capitalization
  • Set up assets with references to base item and serial numbers.
  • Capitalize assets with code DT-FA after setting them up, which includes specifying their acquisition costs and depreciation.

Return capital assets to inventory#

You cannot use the Get Posted Document Lines to Reverse function when previously capitalized equipment is returned to your company after having been sold to a customer. Additionally, you cannot re-assign the item to the fixed asset that you had set up for it prior to the sale.

Note

Care must be taken when turning on the Pos. Adjmt. - All Transact. Codes toggle on a user setup card. No fixed asset is created based on this setting, and the specified equipment can no longer be sold, which means that the only way to dispose of it is by posting a negative adjustment in an item journal

Analyze items in transit#

The Items in Transit analysis shows you all shipped but unbilled items—information that might be particularly helpful at the close of a month or year. In-transit analyses are mainly based on the value entries assigned to a certain item, enriched with data from multiple fields found on the item card and on item and general ledger entries.

To run the analysis:

  1. Choose the Search icon, enter Items in Transit, and then choose the related link.
  2. On the Options FastTab, set filters as needed.

To update the analysis, run the Fill Value Entries action. The entry data is then copied to Excel, where you can use one or more filters to customize each workbook (that is, the appearance of the pivot tables it contains).

General ledger#

In Use: chart of accounts#

By setting a filter on the In Use field on a chart of accounts, you can quickly determine if certain accounts are used elsewhere in the system, such as on posting setup pages.

Note

You need to unhide the field on the page.


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