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How to Acquire & Depreciate Fixed Assets in Dynamics 365 Business Central

  • Writer: Mike Palmieri
    Mike Palmieri
  • Jul 15
  • 3 min read

Learn how to acquire & depreciate fixed assets in your Microsoft Dynamics 365 Business Central solution.

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Managing fixed assets in Microsoft Dynamics 365 Business Central ensures accurate tracking of asset values, compliance with accounting standards, and smooth financial reporting. In this step-by-step guide, you'll learn how to create, acquire, and depreciate fixed assets within Business Central.


Create a Fixed Asset


Start by navigating to Finance > Fixed Assets.


Business Central dashboard

This will take you to the Fixed Assets list. Click New to create a new fixed asset record.


Dynamics 365 interface showing a list of fixed assets like vehicles and equipment. A cursor hovers over the "New" button.

Fill in the required information such as:


  • No. – If auto-numbering is turned on, just tab out of the field and it will populate automatically.

  • Description – Enter a meaningful, descriptive name for the asset.

  • Fixed Asset Class Code – Choose a high-level classification like Machinery, Furniture, etc.

  • Fixed Asset Subclass Code – Select a subclass (e.g., Office Chairs, Wiring Equipment).


Dynamics 365 screen showing asset entry for "10 Chairs," with dropdown for FA Subclass Code options: Financial, Intangible, Tangible.

You may also wish to fill out other optional fields like:

  • FA Location Code – Useful for tracking where the asset physically resides.

  • Serial Number – Helpful for serialized items you want to track.


Note that the Class and subclass codes are editable lists that you maintain. Subclasses often assign a default FA Posting Group, which saves time and helps ensure consistency.

Business Central software showing a "Fixed Asset Card" for 10 chairs.

Configure Depreciation


Next, on the asset card, scroll to the Depreciation section and enter the Depreciation Method, Dates, and No. of Depreciation Years (for Straight line).

Dynamics 365 interface showing Fixed Asset Card. Includes depreciation details and settings options.

A quick note on depreciation methods: Straight line is most commonly used (and what we picked for this example). User-defined is a custom method. Manual is used if you do not want Business Central to automatically calculate depreciation. This is useful for assets like goodwill or other intangibles, which you might depreciate manually using journals at specific times, rather than monthly.

Dynamics 365 Business Central screen shows a Fixed Asset Card.

Optional: Customize the Depreciation Book View


Click Fixed Assets > Depreciation Books from the top menu.


Dynamics 365 Business Central interface showing Fixed Asset card.Tabs include Dimensions and Depreciation Books.

If using methods like Declining Balance, you may need to unhide columns (e.g., Declining-Balance %) through personalization.You can also change depreciation to be based on number of months instead of years by customizing the column layout.

Business Central screen showing a depreciation schedule with details like FA number, methods, and dates.


Acquire the Fixed Asset


You can acquire assets in two different ways, depending on how the cost is entered into your system.


Method 1: Acquire Using the "Acquire" Action


From the asset card, click Acquire.


Fixed Asset Card in Dynamics 365 Business Central.

This will take you through an acquisition process wizard.

Business Central interface for fixed asset acquisition. Pop-up guides user to post transaction.

In the pop-up, choose G/L Account for acquisition. Don’t use the other options in the dropdown unless you have a specific use case for them (like project-based acquisitions).


Use this method if:

  • You posted the vendor invoice to a prepaid or holding account.

  • You're taking on an existing asset already in your GL (e.g., at go-live).


If the asset already exists in your general ledger, your offset account should match the G/L account that the FA Posting Group posts to. This ensures it nets to zero and avoids duplicating the asset in your books.


Microsoft Dynamics 365 Business Central screen showing a fixed asset card. A pop-up for fixed asset acquisition with options and a highlighted "Next" button.

In the next step, fill in the Amount and Acquisition Date.

Fixed Asset Acquisition form on a Business Central interface.

Keep the toggle on if you want it to open the G/L journal automatically and click Finish.

Pop-up window in Business Central shows "Fixed Asset Acquisition" with instructions to finish posting.

Here you'll see a debit to the FA account and a credit to the same account.

Microsoft Dynamics 365 Business Central screen showing Fixed Asset G/L Journals with invoice details for chairs and land, amounts listed.

Click Post.


Dynamics 365 Business Central interface showing Fixed Asset G/L Journals with user clicking "Post."

Method 2: Acquire via Purchase Invoice


If you’re buying the asset directly from a vendor, use a standard purchase invoice.


Create a Purchase Invoice by navigating to Purchasing > Purchase Invoices.


Dynamics 365 Business Central interface displaying asset list under "Purchasing."

Click New.

Business Central interface showing purchase invoices. A cursor hovers over the "New" button, with a list of vendors below.

Fill in the required details here


  • Set Type to Fixed Asset.

  • In the No. field, select the asset you previously created.

  • Enter the Quantity (can be 1 or the actual count) and Cost (either unit or total cost)


Click Post to finalize.


Invoice screen in Dynamics 365 Business Central.

Go back to the Fixed Asset Card to verify that the acquisition amount has been updated.


Business Central interface displaying fixed asset details.


Calculate and Post Depreciation


To run depreciation for one or more assets, search for Calculate Depreciation using the search bar.

Business Central interface showing a search bar and highlighted "Calculate Depreciation".

Then fill in the required details such as Depreciation Book and Depreciation Date.


It's important to note that it is best to use the last day of the month for the Depreciation Date. Avoid using mid-month dates (like July 14th), unless partial depreciation is expected. Otherwise, your depreciation might be calculated incorrectly.


Click OK once all the fields are correctly filled in. Business Central will create a journal, but won’t post it automatically. The system creates a general journal that you must review and post manually. This ensures accounting oversight before changes hit the GL.

Business Central window titled "Calculate Depreciation" displays options for depreciation books and fixed asset filters.

Go to the journal it created, confirm the amounts and accounts. Click Post to finalize depreciation.

Dynamics 365 Business Central screen showing Fixed Asset G/L Journal.


Training Video: How to Acquire & Depreciate Fixed Assets in Dynamics 365 Business Central


Get in touch with the Kwixand Solutions team if you have any questions about fixed assets or any other Dynamics 365 Business Central related enquiry. For more training videos, check out our Youtube channel.






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