Fixed Assets Classification
Polish regulations require the grouping of fixed assets according to their current statutory classification. The official fixed asset classification includes 3 grouping levels: group (e.g. means of transport), subgroup (e.g. motor vehicles) and type (e.g. passenger vehicles).
For balancing and taxation purposes, a new Classification of Fixed Assets came into force on 1st January 2018 (KŚT 2016). The regulation obliges business entities to use the 2016 fixed asset classification for balance sheet related purposes in order to classify fixed assets based on a proper group, subgroup and type. They are also required to use new annual depreciation rates, defined in annex no. 1 to the Income Tax Act, and adjusted to the Fixed Asset Classification 2016.
Fixed Assets Classification 2016 introduces changes in the numbering and names of groups, subgroups and types of fixed assets. When these changes affect fixed assets listed in the accounting records before 2018 (their classification or name has been changed), it is necessary to adjust the analytical records for the account 01 (“Fixed Assets”) to the new Fixed Assets Classification 2016 starting from 1 January 2018. If the entity fails to do this, discrepancies may occur: the same assets may be subject to the other classification, depending on the time of their registration and regulations that were valid on that day.
The standard functionality of Business Central has been enhanced with the possibility of assigning a fixed asset kind based on fixed assets classification to each fixed asset according to Fixed Asset Classification 2016. The reports of the fixed assets module, have been extended with the option of grouping data by KŚT numbers assigned to fixed assets files. In the [!INCLUDE Business_Central_md ] system, tools for generating tables with the Classification of Fixed Assets 2016 have been prepared. Fixed assets reports can be generated for both classifications. The Regulation of the Council of Ministers of 3 October 2016 on the fixed assets classification (KŚT) (Journal of Laws 2016 item 1864).
Creation of Dictionaries for Classification of Fixed Assets
To classify fixed assets according to FA Classification, it is necessary to enter dictionaries for each classification. To enter fixed asset classification dictionaries:
- Choose the icon, enter My Settings, and then select a related link.
- In the Role field, select Finance.
- Choose the icon, enter Fixed Assets Setup, and then select a related link.
- On the Fixed Asset Setup page that opens, select the Navigate, Generate, Generate FA Class. actions.
- Confirm the message that appears. As a result, the FA classification dictionary is filled with group, subgroup and kind details compliant with the Fixed Assets Classification. If a glossary of this type already exists, its content is deleted and re-entered.
- Once the FA classification dictionary is created, a relevant message will be displayed.
- To view the Fixed Assets Classification dictionary you have created, select the FA Classification button on the FA Settings page.
Assigning a Kind to a Selected Fixed Asset
A kind is assigned to the selected fixed asset on its card. To assign a kind to a selected fixed asset:
- Choose the icon, enter Fixed Assets, and then select a related link.
- Open a fixed asset card for editing.
- In the Fixed Asset Card page on the Posting FastTab, fill in the FA Classification No. field.
FA classification numbers entered on the Fixed Asset Card page are also shown in the fixed asset list.
In basic reports for fixed assets, a new grouping capability based on FA classification number has been added. In the initial windows of the reports listed below, the Group Totals field on the Options FastTab, has been extended with the FA Classification No. option.
This option is available in the following reports:
- Annual Depreciation Plan
- Fixed Asset – Analysis
- Fixed Asset – G/L Analysis
- Fixed Asset - Projected Value
- Fixed Asset - Book Value 01
- Fixed Asset – Projected Value 02