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Fixed-Asset Posting Profiles in Dynamics 365 Finance: Setup, Accounting Flow & Best Practices (2025 Edition)

Alex at FitGap

— 2 min read
Version tested: 10.0.43 (July 2025)
Navigation path: Fixed assets ▸ Setup ▸ Posting profiles (menu names may vary slightly by build)

Posting profiles are the bridge between the Fixed-asset sub-ledger and the general ledger. They tell Dynamics 365 Finance which main and offset accounts to hit when lifecycle events—acquisition, depreciation, disposal—occur.

This guide walks through a baseline configuration for one asset group—FF ▪ Furniture & Fixtures—and shows the journals the system generates. Use it as a foundation; layer on revaluations, write-downs, and sales disposals as required by your accounting standards.

1 Why use Fixed-asset groups?

Grouping assets with similar characteristics (service life, capitalization threshold, depreciation method) lets you:

  • assign number sequences per group
  • set a default useful life
  • configure posting profiles once and inherit to every asset in the group

For this walkthrough we assume the group FF already exists.

2 Lifecycle events & high-level journals

Event Typical journal*
Acquisition / Purchase Dr Fixed assets – Furniture & Fixtures | Cr Accounts payable
Periodic depreciation Dr Depreciation expense | Cr Accumulated depreciation – FF
Scrap / Write-off (no proceeds) 1. Reverse accumulated depreciation | 2. Reverse cost | 3. Difference → Gain/Loss on disposal

* Revaluations and impairments are omitted here for brevity.

3 Acquisition posting profile

Most companies capitalise new assets via the procurement flow. When the vendor invoice is posted, Dynamics can automatically create the asset and its acquisition journal provided the AP parameter “Create fixed asset on product receipt” is enabled.

Setting Value
Grouping Group
Account relation FF
Main account Fixed assets – Furniture & Fixtures (balance-sheet asset)
Offset account (leave blank → credit comes from the vendor posting profile)

If your organisation doesn’t capitalise via procurement, enter the credit account directly in Offset account.

4 Depreciation posting profile

Setting Value
Grouping Group
Account relation FF
Main account Accumulated depreciation – FF (contra-asset)
Offset account Depreciation expense (P&L)
Alternative: Some entities credit the cost account instead of a contra-asset. If that is your policy, enter Fixed assets – Furniture & Fixtures as Main account.
Dr Depreciation expense               xxx
  Cr Accumulated depreciation – FF    xxx

5 Disposal – Scrap (no proceeds)

First, ensure Fixed assets ▸ Setup ▸ Fixed-asset parameters ▸ Depreciation tab ▸ “Create depreciation adjustment with disposal” is set to Yes. This auto-posts current-year depreciation up to the scrap date.

Posting-profile rows

Grouping Account relation Post value Main account Offset account
Group FF Depreciation (prior years) All Accumulated depreciation – FF Gain/Loss on disposal
Group FF Depreciation (this year) All Accumulated depreciation – FF Gain/Loss on disposal
Group FF Acquisition value All Fixed assets – Furniture & Fixtures Gain/Loss on disposal
Group FF (Optional) Net book value All Gain/Loss on disposal Gain/Loss on disposal

Journals produced

  1. Reverse accumulated depreciation (prior years)
    Dr Accumulated depreciation – FF
    Cr Gain/Loss on disposal
  2. Reverse accumulated depreciation (current year)
    Dr Accumulated depreciation – FF
    Cr Gain/Loss on disposal
  3. Reverse cost
    Dr Gain/Loss on disposal
    Cr Fixed assets – FF
  4. Net book value balancing (if NBV row used) – no net P&L effect.Dr Accumulated depreciation – FF total AD
    Dr Gain/Loss on disposal cost – AD
    Cr Fixed assets – FF cost

6 What’s next?

  • Configure Disposal – Sale, Write-down, and Depreciation adjustments for a full IFRS/GAAP lifecycle.
  • Download our Fixed-Asset Posting-Profile Checklist (Excel) to sanity-check your own setup.

© 2025 FitGap Finance Research Team — reproduction without permission is prohibited.

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