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Chapter 5: Fixed Asset Insurance
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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.
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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.
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Chapter 5: Fixed Asset Insurance
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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.
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Click New, to set up a new insurance policy.
FIGURE 5.3 INSURANCE CARD
The General FastTab has the following fields:
• 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.
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Chapter 5: Fixed Asset Insurance
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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.
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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.
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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.
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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.
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Chapter 5: Fixed Asset Insurance
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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.
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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.
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Chapter 5: Fixed Asset Insurance
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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
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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 over-insured or under-insured.
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Chapter 5: Fixed Asset Insurance
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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.
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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
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Chapter 5: Fixed Asset Insurance
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3. Click Post. 4. Click Yes, to post the journal lines. 5. Click
OK. 6. Click OK, to close the Fixed Asset G/L Journal. 7. Review
the Fixed Assets Cars, by clicking Fixed Assets and browse
to the fixed asset card for FA000020. 8. Notice that the Insured
field on the Maintenance FastTab says No. 9. Click OK to close the
page. 10. On the Navigation Pane, click Fixed Assets, and then
select
Insurance. 11. Click Total Value Insured per FA. appears. 12.
Click Show Matrix to view the Total Value Insured per FA page. 13.
Note that a value for the Toyota Supra no longer exists 14. Close
the T. Value Insured per FA Matrix page and the Total
Value Insured per FA page. 15. Browse to insurance number
INS000020, click Related Information,
point to Insurance, and then click Coverage Ledger Entries. 16.
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:
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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
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Chapter 5: Fixed Asset Insurance
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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.
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Quick Interaction: Lessons Learned Take a moment and write down
three key points you have learned from this chapter
1.
2.
3.
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Chapter 5: FIXED ASSET INSURANCEObjectivesIntroductionSetting up
Insurance InformationFixed Asset Setup PageInsurance TypesInsurance
CardDemonstration: Set up a Insurance CardSetting up Insurance
Journal TemplatesSetting up Insurance Journal BatchesDefault Setup
per User
Assigning Assets to Insurance PoliciesLinking Fixed Assets to
Insurance PoliciesDemonstration: Posting a Purchase InvoicePosting
a FA Journal or FA G/L JournalPosting an Insurance Journal
Monitoring Insurance CoverageStatisticsOver-Insured and
Under-Insured Fixed AssetsList of All Insurance PoliciesUninsured
Fixed Assets
Updating Insurance InformationModifying and Deleting Insurance
CardsTerminating Fixed Asset Coverage from an Insurance
PolicyCorrecting Insurance Entries
Indexing InsurancesSummaryQuick Interaction: Lessons Learned
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