A company implements Microsoft Dynamics 365 Finance to manage fixed assets. The company adds a laptop as a fixed asset. You run a depreciation proposal. You observe that laptops are not eligible for…

The correct answer is C. Capitalization threshold. The Capitalization threshold field determines the assets that are depreciated. If a purchase line is selected as a fixed asset, but it doesn't meet the specified capitalization threshold, a fixed asset is still created or updated, but the Calculate depreciation option is set to…

Manage fixed assets

Question

A company implements Microsoft Dynamics 365 Finance to manage fixed assets. The company adds a laptop as a fixed asset. You run a depreciation proposal. You observe that laptops are not eligible for depreciation. You need to determine why you cannot depreciate the laptops. Which feature should you review?

Options

ADepreciation convention
BNet book value
CCapitalization threshold
DNumber sequence
EPosting layer

How the community answered

(30 responses)

A
7% (2)
B
3% (1)
C
80% (24)
D
10% (3)

Explanation

The Capitalization threshold field determines the assets that are depreciated. If a purchase line is selected as a fixed asset, but it doesn't meet the specified capitalization threshold, a fixed asset is still created or updated, but the Calculate depreciation option is set to No. Therefore, the asset won't be automatically depreciated as part of the depreciation proposals. https://learn.microsoft.com/en-us/dynamics365/finance/fixed-assets/set-up-fixed-assets

Topics

#depreciation proposal#capitalization threshold#fixed asset eligibility

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