Microsoft Dynamics 365 Finance & Operations (D365 F&O) offers robust flexibility in how fixed assets are acquired, ensuring that each asset is accurately recorded and depreciation-ready from day one. Whether you’re capitalizing a project, purchasing equipment, or bringing in legacy assets, choosing the right acquisition method upfront enables better control, traceability, and audit readiness.
Why Leadership Should Care
Each acquisition route influences:
- Financial reporting integrity
- Operational workflow complexity
- Regulatory and audit compliance
- Seamless integration with procurement, inventory, and projects
By aligning the acquisition method with the nature of the asset and your internal processes, finance leaders ensure both accuracy and scalability.
Acquisition Methods at a Glance
1. Vendor Invoice Acquisition
Best For: Straightforward asset purchases like a forklift or office equipment. This method automates asset creation from the invoice, ensures timely depreciation setup, and reduces manual touchpoints.
2. Purchase Order-Based Acquisition
Best For: Bulk or department-specific purchases, such as capitalizing 100 laptops. It's flexible for staged deliveries and aligns asset creation with receipt and invoice, enhancing procurement-to-capitalization visibility.
3. Manual Entry
Best For: Legacy, migrated, or non-standard assets like a donated vehicle. It offers control and customization for exceptional or one-off entries and enables historical data entry during transitions.
4. Project-Linked Acquisition
Best For: Construction, R&D, or IT infrastructure projects. Ideal for capitalizing a new warehouse at completion, it allows real-time cost tracking, transparent linkage between project spend and asset creation, and strong alignment with capex planning.
5. Inventory-Based Acquisition
Best For: In-house builds and production outputs, such as assembling a custom machine from internal inventory. This method converts production output into assets, captures true cost from internal valuation, and enables manufacturing-led asset creation.
Quick Reference Comparison Table
| Method | Source | Automation | Best For |
|---|---|---|---|
| Vendor Invoice | Procurement | High | Simple purchases |
| Purchase Order | Procurement | Med–High | Multi-asset acquisitions |
| Manual Entry | Manual | Low | Ad hoc or legacy entries |
| Project-Linked | Projects Module | Medium | Capital projects |
| Inventory-Based | Inventory Module | Medium | Internal builds |
Executive Insight: Choose Based on Strategy, Not Just Convenience
Your acquisition method should support your business model, reporting structure, and control environment. With D365 F&O, finance and operations leaders gain a framework that’s both structured and adaptable—where every method feeds directly into the fixed asset register and general ledger, ensuring consistency and compliance.
Need a Deeper Dive?
Explore our eLearning module:
“Acquiring Assets in D365 F&O: From Setup to Strategic Advantage”