Budgeted Fixed Assets in Business Central (FA - Blog - 3)

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The "Budgeted Asset" field on the Fixed Asset card in Dynamics 365 Business Central isn't just a toggle or filter—it enables valuable budgeting functionality. Here's how it works and why it’s useful:

Key Points About "Budgeted Asset"

  1. Purpose: It allows you to record projected acquisition costs for Fixed Assets you plan to purchase.
  2. Restriction: You cannot mark a Fixed Asset as “Budgeted” if it’s already been acquired.
  3. Usage: Acquisition costs for budgeted assets are posted via the Fixed Asset Journal instead of the G/L Journal or Purchase Invoice.

Why Use It?

  • Helps include planned assets in capital expenditure analysis.
  • Allows for projecting depreciation and asset value for future periods.
  • Supports better planning and budgeting by distinguishing actual vs. planned acquisitions.

Example Scenario:

  1. You flag a truck as a "Budgeted Asset" and post a projected acquisition cost in the Fixed Asset Journal.
  2. This cost is included in reports like Projected Value to analyze total depreciation and values as of a specific date.
  3. Reports can be filtered to include or exclude "Budgeted Assets" based on your needs.

The "Budgeted Asset" field on the Fixed Asset card in Dynamics 365 Business Central often goes unnoticed or hidden using personalization. However, this field offers more functionality than it may seem.

When activated, it enables users to do more than just apply a filter. 


Note: You cannot mark an already acquired Fixed Asset as a “Budgeted Asset,” which hints at its specific use.

For example, if we look at a fleet of trucks, only one (FA000200) is marked as a “Budgeted Asset.” All other assets are set up in the Company Depreciation Book with G/L Integration for Acquisition Cost, Disposal, and Depreciation. Usually, acquisition costs must be posted using the Fixed Asset G/L Journal or a Purchase Invoice.


Posting Acquisitions

However, for "Budgeted Assets," you can post projected acquisition costs directly through the Fixed Asset Journal, making it a useful feature for planning.

  • FA No. - FA000200
  • FA Posting Type - Acquisition Cost
  • Amount - 10,000


When you post this:

As you Can see in the Book Value Field the Amount 10,000 comes here, means Acquired. Now, we can see this in the Form of the Report. In the Fixed Asset Book Value 01 Report you can see a Budgeted Asset Filter, and in this Example we are keeping it blank so you can see the Budgeted & Non-Budgeted Assets both. 


Simply Click on the Preview.

In the Report you can see 10,000 in the Acquisition Costs Column.


Posting Depreciation

After that we are going to post the Depreciation from the FA Journal. Simply Create an Entry and the Post the Entry.
  • FA No. - FA000200
  • FA Posting Type - Depreciation
  • Amount - 2250

After the Entry is being Posted in the System, then check the Book Value in Fixed Assets Card.

Amount - 7750 (10,000 - 2,250), also check the FA Sub-Ledger Entries that are passed in this System.

There is a Report that is very useful name as "Fixed Assets Projected Value". This is use to Calculate the Projected value of the Depreciation.

The Current Date in System is 01/11/25 (7750.00 Book Value on this Date)

The Ending Depreciation Date is -  31/12/26 (The date on which the Book Value will be 0)

Total Number of Days between these 2 days is 420 Days & we want to calculate what is the Depreciation Amount is Going to be on 15/11/25 (14 Days). Simply enter the Ending Date in the Filter:

Just do the Preview & Close Now:


When You Acquire a Budgeted Asset

When you Acquire the "Budgeted Asset" (FA000200), you must Remove the "Budgeted Asset" Flag from the Fixed Asset Card before posting its Actual Acquisition Cost. If not, you'll get an error.

You can see here the same 10,000 amount is added in the Purchase Invoice, Simply click on Post Now:

Then you can see the Error " Budgeted Asset must be equal to 'No'  in Fixed Asset: No.=FA000200. Current value is 'Yes'. "

So, How to Acquire the Budgeted Fixed Assets?

There are 2 Methods and we are going to discuss both and them and also which one is Recommended:

Option 1: Cancel the Initial Budgeted Acquisition

  • Cancel the Budgeted Acquisition Cost:
    • Open the Fixed Asset Journal.
    • Reverse the Initial Acquisition Entry for your Fixed Assets. (Here in this Example - FA000200)
    • Simply post it and it will be Reversed.

  • Uncheck the "Budgeted Asset" Flag:

    • Go to the Fixed Asset Card (Here in this Example - FA000200).
    • Uncheck the "Budgeted Asset" Field.

  • Post the Actual Acquisition:

    • Use the Purchase Invoice or Fixed Asset G/L Journal to record the true Acquisition Cost.

Option 2: Create a New Fixed Assets

  • Copy the Budgeted Asset:
    • Use the Copy Fixed Asset function to create a new Fixed Asset based on your Budgeted Fixed Assets for which you post the Entries.
But look Closely it is Copied but not Acquired

  • Adjust the New Asset:

    • Uncheck the "Budgeted Asset" Flag on the New Fixed Asset Card.
      • I have Changed the Description and Added "For Actual" After that.
      • And Disable the Budgeted Asset.

  • Post Acquisition for the New Asset:

    • In the Purchase Line or G/L Journal, select the New Fixed Asset No.
    • Enter Budgeted Fixed Asset Number (FA000200 in this Case) in the "Budgeted FA No." Field in the G/L Journal & Purchase Line.
Uploading: 51878 of 51878 bytes uploaded.

  • Post the Purchase Invoice or G/L Journal:

    • This automatically:
      • Posts the acquisition cost to the new Fixed Asset.
      • Cancels the acquisition cost of FA000200 (Budgeted Asset).


Why Option 1 is Better

  • No need to create a Duplicate Fixed Asset.
  • Avoids additional steps like using the "Budgeted FA No." field.
  • Ensures that the canceled amount matches the Original Acquisition Amount.
The First Option is more reliable because when you cancel the original Acquisition Cost directly in the Fixed Asset Journal, the reversal is guaranteed to match the exact amount of the original transaction.

If you rely on the Purchase Invoice or the Fixed Asset G/L Journal to create the cancellation, the system uses the amount entered on the line for the reversal. This introduces potential risks:

  • If the Amount is Less than the Original Transaction: A residual balance remains on the "Budgeted Asset."
  • If the Amount is Greater than the Original Transaction: Posting will fail, as it would result in a negative value for the "Budgeted Asset".
Using the first option ensures Accurate Reversal & Prevents Errors, simplifying the process. Finally if you use the first option, you will not have to personalize pages with the "Budgeted FA No." Field.


Planned Disposals: Accurate Asset Valuation

Projecting Asset Valuations for the next month or year isn't just about additions; it’s equally crucial to account for planned disposals. D365 BC enables you to seamlessly plan and manage disposals as part of your future asset valuation strategy.

To leverage this functionality, use the Personalize tool to add two hidden fields to the FA Depreciation Books Subform (Page 5666):

  1. Projected Disposal Date
  2. Projected Proceeds on Disposal

For this example, we’ll update the Company Depreciation Book only. However, if you’re managing multiple depreciation books with varying depreciation methods, you can add disposal dates and projected proceeds across all relevant books.

Once updated, the Projected Disposal Date and the Projected Proceeds on Disposal fields will reflect planned disposals, allowing precise forecasting of asset valuations.



Viewing Projected Disposals: Step-by-Step Guide

  1. Select the Depreciation Book
    Choose the depreciation book where you’ve updated the Disposal Dates & Projected Proceeds. 

  2. Set Accounting Period Options
    Leave the Number of Days and No. of Days in First Period fields blank. Instead, select the Use Accounting Period option to let the report calculate activity based on the accounting periods configured for the chosen date range.

  3. Report Customization Options
    The report can provide subtotals by:

    • FA Class | FA Subclass | FA Location | Main Asset | Global Dimension 1 & 2 | FA Posting Group

    For more granular details, enable the option to Print per Fixed Asset.

  4. Purpose of the Report
    While this Report serves Multiple Purposes, in this example, we are focusing on Projected Disposal.

  5. Output Results
    When viewing results for a single Fixed Asset, the report will display the Projected G/L based on the updated Projected Proceeds on Disposal field. This enables accurate assessment of financial impact for planned disposals.


Transferring Entries into G/L Budget

This is a Great Feature provided by Microsoft. Transferring the amount to G/L Budget and from the screenshots let me show you what I mean. But for that you need to specify one thing.

  1. Copy to G/L Budget Name: Specifies the name of the budget you want to copy Projected Values to.
  2. First Depreciation Date: Specifies the date to be used as the first date in the period for which you want to calculate projected depreciation.
    • In this Case - 01/11/2024
  3. Last Depreciation Date: Specifies the Fixed Asset posting date of the last posted depreciation.
    • In this Case - 31/12/2024

And in the G/L Budget: 


In the Value 612.00, when we see the entries behind that you can see (204.00)

While the report creates budgeted entries for depreciation expense, the report does not create budgeted entries for the gain or loss on projected disposals.


Hope so this Blog and the upcoming Blogs will going to be helpful.


Watch this Video to Understand the Budgeted Fixed Assets in More Detail



Best Regards

Ahmad Subhani

Business Central Functional Consultant

WhatsApp - +923357687164

Email - ahmadsubhani424@gmail.com





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