Chapter 5: Fixed Asset Insurance

CHAPTER 5: FIXED ASSET INSURANCE Objectives The objectives are: •

Set up insurance information.

•

Assign an asset to an insurance policy.

•

Monitoring Insurance Coverage

•

Update, correct, and delete Insurance Information.

•

Set up an Index Insurance.

Introduction Fixed Assets Insurance in Microsoft Dynamics® NAV 2009 describe the basis information on how to handle insurance on the fixed assets in a company. This course explains how to set up insurance information, assign assets to insurance policies, monitor the insurance coverage, update insurance information, and index FA insurance.

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

5-1

Fixed Assets in Microsoft Dynamics® NAV 2009

Setting up Insurance Information All general information for the insurance is set up on a Insurance Card. In Microsoft Dynamics NAV 2009 one insurance card is created for each insurance policy.

Fixed Asset Setup Page The general information for insurance for fixed assets is set up on the Fixed Assets Setup card. Follow these steps to set up the general information in the Fixed Asset Setup page. 1. On the Navigation page, click Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets and then select FA Setup.

FIGURE 5.1 FIXED ASSET SETUP

2. On the General FastTab, enter information in the insurance fields as follows: o Insurance Depr. Book - Click the drop-down list to see the list of depreciation books. You can post an acquisition entry with an insurance number or a disposal of an insured asset only if a book displays in this field. This restriction exists because the disposal of an asset automatically stops the insurance coverage. o Automatic Insurance Posting - Select if the acquisition costs must be posted as entries in the insurance coverage ledger. Otherwise, the system will add the entries in the insurance journal. 3. On the Numbering FastTab, click the drop-down list in the Insurance Nos. field to see the list of number series. 4. Select the relevant code for insurance numbers.

5-2

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

Chapter 5: Fixed Asset Insurance Insurance Types In Microsoft Dynamics NAV 2009 insurance policies can be grouped into insurance types, for example, insurance against theft, fire insurance, and so on. To set up the insurance types, follow these steps: On the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets and then slick Insurance Types.

FIGURE 5.2 INSURANCE TYPES

Set up the necessary codes and enter a description for each code. The insurance types are used on the insurance card.

Insurance Card The information about each insurance policy is recorded on the insurance card. Follow these steps to view all the insurance policies: On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets and the select Insurance.

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

5-3

Fixed Assets in Microsoft Dynamics® NAV 2009 Click New, to set up a new insurance policy.

FIGURE 5.3 INSURANCE CARD

The General FastTab has the following fields:

5-4

•

No. - The number or code for the insurance policy that the system uses.

•

Description - Description of the insurance policy.

•

Insurance Vendor No. - The number of the vendor from which the insurance policy was purchased.

•

Effective Date - The date from which the insurance policy is valid.

•

Expiration Date - The date to which the insurance policy is valid.

•

Insurance Type - The type of insurance (for example, theft or fire) covered by this insurance policy. Use this information to filter in pages and reports.

•

Policy No. - The policy number recorded on the insurance policy.

•

Annual Premium - The amount of the annual insurance premium. When you register this information for all the insurance policies, an overview of the insurance costs and other insurance information will be in the different insurance reports.

•

Policy Coverage - The amount of coverage this insurance policy provides. When registering this information for all the insurance policies, you can see whether the company is over or underinsured in the Insurance Statistics page.

•

Blocked - The option to block all postings to the insurance policy.

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

Chapter 5: Fixed Asset Insurance The Posting FastTab has the following fields: •

FA Class Code - A fixed asset class code to assign to the insurance policy.

•

FA Subclass Code - A fixed asset subclass code to assign to the insurance policy.

•

FA Location Code - A fixed asset location code to assign to the insurance policy.

Demonstration: Set up a Insurance Card Follow these steps to set up a card for a fire insurance policy in the demonstration company. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets and the select Insurance. 2. Click New, to set up a new insurance policy. 3. Enter this information: Field

Value

No.

INS000050

Description

Fire Insurance

Effective Date

01/01/10

Insurance Type

FIRE

Policy No.

157-254-5678

Annual Premium

15,000

Policy Coverage

2,500,000

4. Click OK.

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

5-5

Fixed Assets in Microsoft Dynamics® NAV 2009 Setting up Insurance Journal Templates The system automatically creates an FA journal template when you click the FA Journal on the main menu. Follow these steps to set up additional journal templates. 1. On the Navigation Pane, click Departments, click Administration. click Application Setup, click Financial Management, click Fixed Assets, and then click Insurance Journal Templates. 2. Click New, to set up a new Insurance Journal.

FIGURE 5.4 INSURANCE JOURNAL TEMPLATES

3. Enter information into the fields as follows: o Name - Enter the name of the template. o Description - Enter a description of the journal template. o No. Series - Click the drop-down list and select a number series from the list. o Posting No. Series - Click the drop-down list and select a number series from the list. o Source Code - Enter nothing. The system enters the source code automatically. o Reason Code - Click the drop-down list and select a reason code from the list.

5-6

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

Chapter 5: Fixed Asset Insurance Setting up Insurance Journal Batches Follow these steps to set up batches under an insurance journal template. 1. On the Insurance Journal Templates, click Related Information, point to Template, and then click Batches.

FIGURE 5.5 INSURANCE JOURNAL BATCHES

2. Click New, to create a new journal batch, or select one of the empty lines. 3. Enter information into the fields as follows: o Name - Enter a code that identifies the batch. o Description - Enter a description of the batch. o No. Series - Click the Drop-down list to a select number series other than the default number series that is entered automatically. Select one and then click OK to copy it to the field. o Posting No. Series - Click the Drop-down list to select a number series other than the default series that is entered automatically. Select one and then click OK to copy it to the field. o Reason Code - Click the Drop-down list to open the Reason Codes page and then select an appropriate reason code. The values in the journal batch are default values if you do not enter the fields on the journal lines.

Default Setup per User In Microsoft Dynamics NAV 2009 you can set up a default set of templates and batches for each depreciation book, and specify a default set for each user.

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

5-7

Fixed Assets in Microsoft Dynamics® NAV 2009 Use the default settings when you enter a number in the Insurance No. field on a journal line and by the Index Insurance batch job. 1. On the Navigation Pane, click Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets, and then select Depreciation Books. 2. Open the relevant Depreciation Book Card, click Related Information, point to Depr. Book and then select FA Journal Setup.

FIGURE 5.6 FA JOURNAL SETUP

3. In the Insurance Jnl. Template Name field, click the drop-down list to open the Insurance Jnl Template List page and select the relevant templates. 4. In the Insurance Jnl. Batch Name field, click the drop-down list to open the Insurance Journal Batch page and select the relevant batch.

Assigning Assets to Insurance Policies In Microsoft Dynamics NAV 2009 you can assign all the assets to an insurance policy, this gives the company an easy way to find the relevant insurance policy when the need it for a certain asset.

Linking Fixed Assets to Insurance Policies The fixed assets must be link to the insurance policy. After you complete the set up of the insurance information, the fixed assets can be linked to the insurance policies.

5-8

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

Chapter 5: Fixed Asset Insurance Both one or several fixed assets can be linked to a single insurance policy, and it is also possible to link one fixed asset to the same insurance policy with different amounts. The fixed asset can be assigned to the insurance policy in two ways: •

Post an acquisition cost with the Insurance No. field entered on the journal line.

•

Post an acquisition cost with the Insurance No. field empty on the journal line, and then use the insurance journal to post the acquisition cost to the insurance coverage ledger.

When the Insurance No. field have an entry, the Insured field on the Maintenance FastTab on the Fixed Asset Card will be selected automatically. Acquisition cost can be posted to the insurance coverage ledger from: •

A purchase invoice

•

FA G/L journal

•

FA journal

•

Insurance journal

When the fixed asset is sold, the Insured field on the Fixed Asset Card is automatically unselected.

Demonstration: Posting a Purchase Invoice Follow these steps to set up a new fixed asset. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, click Fixed Assets. 2. Click New. 3. In the No. field, enter FA1500. 4. In the Description field, enter Warehouse Lift. 5. Click Depreciation Book to set up the FA Depreciation Book for the FA1500. 6. In the Depreciation Book Code field, click the drop-down list and select COMPANY. 7. In the FA Posting Group field, click the drop-down list and MACHINERY. 8. In the Depreciation Starting Date set the date to 01/01/10 9. In the No. of Depreciation Years field, enter 10. 10. Click OK, to close the Depreciation Book for FA 1500. 11. Click OK, to close the Fixed Asset Card for FA 1500.

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

5-9

Fixed Assets in Microsoft Dynamics® NAV 2009 Make sure that G/L integration is activated for the acquisition cost in the COMPANY depreciation book, by clicking Departments, click Administration, click Application Setup, click Financial Management, click Fixed Assets, click Depreciation Books and then select the COMPANY depreciation Book Integration FastTab. Follow steps to post an acquisition cost to the fixed asset and link it to an insurance policy from a purchase invoice. 1. On the Navigation Pane, click Departments, click Financial Management, click Payables, and then select Purchase Invoices. 2. Click New. 3. Press enter to populate the next number for the Purchase Invoice 4. In the Buy-from Vendor No. field, enter 30000 5. In the Posting Date field enter 01/31/2010 6. In the Document Date field, enter 01/31/10 7. In the Vendor Invoice No. field, enter 4256. 8. In the Lines FastTab, in the Type field, click the drop-down list and select Fixed Assets 9. In the No. field click the drop-down list and select FA1500 10. In the FA Posting Type field make sure that Acquisition Cost is selected 11. In the Quantity field, enter 1. 12. In the Direct Unit Cost Excl. VAT field enter 17,350. 13. Right-click the header in the Lines FastTab and then click Choose Column, add the Insurance No. field and then click OK. 14. In the Insurance No. field, click the drop-down list and select INS000050. 15. Click Post. 16. Click Yes, to post the invoice. If the Automatic Insurance Posting field in the Fixed Asset Setup page is not selected automatically, the system will create a line in an insurance journal. To post the insurance coverage in the insurance journal, follow these steps> In the Navigation Pane, click Fixed Assets and then select Insurance Journals and then click Post. Verify that the fixed asset number FA1500 is insured, in the Navigation Pane, click Fixed Assets, and then click Fixed Assets. Browse to number FA1500, and then click the Maintenance FastTab. Verify that the Insured field states Yes. To see the insurance coverage ledger entries, on the Navigation Pane, click Fixed Assets, and then click Insurance. Browse to number INS000040. Click Related Information, point to Insurance, and then click Coverage Ledger Entries. The Ins. Coverage Ledger Entries page appears.

5-10

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

Chapter 5: Fixed Asset Insurance Posting a FA Journal or FA G/L Journal A Fixed Asset acquisition can be assigned to an insurance policy. You do this on the Journal Line by selecting the required policy in the Insurance No. field.

Posting an Insurance Journal If the acquisition cost of a fixed asset has not been posted with a link to the insurance either from the purchase invoice or from one of the FA journals, the fixed asset can be linked to an insurance policy by posting the acquisition cost from an insurance journal. For example, if the Insurance Number for INS000040 has not been entered in the Insurance No. field in the purchase invoice for FA1500, the insurance policy can still be attached to the asset's acquisition cost from an insurance journal. Follow these steps to post an insurance journal. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then select Insurance Journals. 2. Enter the acquisition cost of the asset in the Amount field in the journal line. For this example, use the previous example's information for FA1500. Enter FA1500 in the FA No. field, enter INS000040 in the Insurance No. Field, and enter the acquisition cost of 17,350 in the Amount field.

FIGURE 5.7 INSURANCE JOURNAL

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

5-11

Fixed Assets in Microsoft Dynamics® NAV 2009 3. Click Post to post the journal. 4. Click Yes, to post the journal lines. 5. Click OK.

Monitoring Insurance Coverage In Microsoft Dynamics NAV 2009 you can print or preview statistics over the fixed assets. The statistics provide an overview of all the insurances and what they cover. The statistic can also be used to analyze the insurance policies and over or under insurance coverage of the fixed assets.

Statistics The Total Value Insured per FA matrix lists all the fixed assets by each policy and the insured amount. Follow these steps to see the matrix: 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets and then select Insurance. 2. Click Total Value Insured per FA. 3. Set the relevant options on the FastTabs and then click Show Matrix.

FIGURE 5.8 TOTAL VALUE INSURED PER FA

Over-Insured and Under-Insured Fixed Assets On the Insurance Statistic page, you can determine whether assets are overinsured or under-insured.

5-12

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

Chapter 5: Fixed Asset Insurance Follow these steps to open the page that contains the statistics: 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then select Insurance. 2. Browse the relevant insurance and then click Statistics. 3. The Insurance Statistics page appears and in the Over/Under Insured field, the amount is shown.

FIGURE 5.9 INSURANCE STATISTIC

4. To see the values that make up the total value insured, click in the amount in the Total Value Insured field and the Ins. Coverage Ledger Entries page open.

List of All Insurance Policies To obtain an overview of all the insurance policies, print the Insurance - List report, that displays all the policies and the most important fields from the insurance cards. Follow these steps to print the report. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Asset, and then select the Insurance List report 2. Click Preview to view the report on screen or Print to print it.

Uninsured Fixed Assets To verify that all fixed assets are assigned to an insurance policy, print the Uninsured FAs report. This report displays the individual fixed assets for which amounts are not posted to an insurance policy.

Updating Insurance Information Insurances changes occasionally, the annual premium is adjusted, the coverage can change and some insurances can expire. Changes to the insurances must always be updated in Microsoft Dynamics NAV 2009.

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

5-13

Fixed Assets in Microsoft Dynamics® NAV 2009 Modifying and Deleting Insurance Cards Each year when you receive your annual renewal notice, the Annual Premium field on the Insurance Card must manually be updated the if the rates change. Also if the information about the coverage amount changes you must update the Policy Coverage field to make sure that you analyze the insurance policy coverage correctly.

Terminating Fixed Asset Coverage from an Insurance Policy A fixed asset's insurance coverage automatically terminates when you post a disposal entry to the depreciation book that is specified in the Insurance Depr. Book field in the Fixed Asset Setup page. For example, if the Insurance Depr. Book is COMPANY, a posting to the disposal in the TAX depreciation book does not affect the insurance coverage ledger. The termination occurs regardless of whether the Automatic Insurance Posting field in the Fixed Asset Setup page is active. In the following example, fixed asset number FA000020 is sold on 07/03/10 for the amount 40,000. Follow these steps to stop coverage from an insurance policy. 1. On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then click then FA G/L Journals or FA Journals , depending on when the G/L integration for disposal is activated in the COMPANY depreciation book. 2. Enter a disposal line with the following information:

FIGURE 5.10 FIXED ASSET G/L JOURNAL

5-14

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

Chapter 5: Fixed Asset Insurance 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Click Post. Click Yes, to post the journal lines. Click OK. Click OK, to close the Fixed Asset G/L Journal. Review the Fixed Assets Cars, by clicking Fixed Assets and browse to the fixed asset card for FA000020. Notice that the Insured field on the Maintenance FastTab says No. Click OK to close the page. On the Navigation Pane, click Fixed Assets, and then select Insurance. Click Total Value Insured per FA. appears. Click Show Matrix to view the Total Value Insured per FA page. Note that a value for the Toyota Supra no longer exists Close the T. Value Insured per FA Matrix page and the Total Value Insured per FA page. Browse to insurance number INS000020, click Related Information, point to Insurance, and then click Coverage Ledger Entries. Verify that the entry for fixed asset number FA000020 is marked as disposed.

Correcting Insurance Entries If an incorrect entry is posted to the insurance coverage ledger, you can correct it by creating a reclassifying entry in the insurance journal.

Indexing Insurances If the value of a fixed asset has decreases or risen, the coverage ledger can be changes by running the Index Insurance batch job. To run the Index Insurance batch job, follow these steps:

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

5-15

Fixed Assets in Microsoft Dynamics® NAV 2009 On the Navigation Pane, click Departments, click Financial Management, click Fixed Assets, and then select Index Insurance.

FIGURE 5.11 INDEX INSURANCE

Follow this demonstration to run the Index Insurance batch job for a car decreased with 5 percentage Open the Index Insurance batch job to update the value of the covered fixed assets: 1. On the Options FastTab, in the Index Figure field enter 95. 2. In the Posting Date field enter 01/31/2010. 3. Leave the Document No. field empty. Therefore, the indexation journal entries created by the batch job will use the No. Series for the Insurance Journal batch. 4. In the Posting Description field enter Car Value 2010

5-16

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

Chapter 5: Fixed Asset Insurance 5. On the Fixed Asset FastTab, set a filter to select the fixed assets to be indexed. In the FA Subclass Code enter CAR. All fixed assets with a FA Subclass code CAR on the fixed asset card will be selected automatically.

FIGURE 5.12 INDEX INSURANCE

6. Click OK. 7. The batch job calculates this amount as five percent of the total value insured from the Insurance Statistics page and creates a line in the insurance journal. 8. Click Insurance Journals. Verify the accuracy of the created entries and then click Post to post the insurance coverage ledger changes.

Summary Fixed Assets Insurance in Microsoft Dynamics NAV 2009 explains the required registration of the insurance information for a fixed asset. The insurance is set up on the Insurance Card and assigned to the relevant fixed asset. The insurance coverage can be monitored with statistics and analyses, and you must make sure that the company always keep all information on insurance updated either manually or by using indexation.

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

5-17

Fixed Assets in Microsoft Dynamics® NAV 2009

Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.

2.

3.

5-18

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement