The Microsoft Dynamics 365 asset management is one of the powerful features of this ERP and CRM suite effectively utilized by companies operating in different industries. However, to use the full potential of its functionalities, organizations should carefully manage the asset setup process. To find more details and suggestions for the asset management configuration in Microsoft Dynamics 365, read this article.
Configuring your assets
To start managing your assets with Microsoft Dynamics 365 effectively, you should begin with a detailed configuration process that will help you set up an effective representation of your assets on the ERP and CRM platforms. This process involves the following steps:
1. Asset category and status definition
Asset categories are the foundation of your asset configuration as they help you differentiate your assets from each other based on their type such as machinery, vehicles, or buildings, location, acquisition cost, and any other relevant criteria.
The Microsoft Dynamics 365 asset management functionality also incorporates asset states. You can define the states for your assets based on the stage of their lifecycle, from their acquisition to retirement.
Furthermore, you can leverage different categories for the current asset status such as active, decommissioned, or in repair.
2. Depreciation method configuration
Depreciation methods are used by the system to determine the mechanism behind the decrease in the asset value over time. Among the deprecation methods available to organizations are:
- The straight-line method is known for distributing depreciation evenly over the useful life of an asset;
- The consumption method is based on asset usage;
- The reducing balance method or declining balance method assigns more depreciation to the early years of the asset usage and less when it ages;
- The straight-line life remaining method considers the remaining useful life of assets and adjusts depreciation accordingly;
- The factor method that allows organizations to use a specific formula to calculate depreciation;
- The manual method makes it possible to define depreciation manually for particular periods.
Criteria and methods, which will be further used by your system for calculating depreciation, are configured through depreciation books. Depreciation should then be integrated with the general ledger.
3. Insurance set up
Microsoft Dynamics 365 allows companies to enable insurance for their fixed assets, which includes general insurance information and insurance cards. Organizations can also use dedicated journals for posting costs of insurance.
4. Maintenance configuration
Incorporating information on the maintenance work performed on fixed assets is also possible. This configuration can further generate maintenance schedules, track service history, and analyze maintenance costs to optimize asset reliability and minimize downtime.
It is highly recommended to set up service levels that will allow you to prioritize maintenance activities more efficiently, considering the criticality of each asset.
5. Condition assessment implementation
Effective asset management and maintenance require regular assessment. During the asset setup, companies can implement effective templates that will help them optimize the asset condition assessment process.
6. Asset counter implementation
The Microsoft Dynamics 365 asset management tools include asset counters that can be configured for tracking diverse numeric features related to the company’s assets. For example, you can use asset counters to track the operating hours of an asset.
Registering assets
Once you have completed the configuration process for a specific asset type, you can proceed with its registration. This involves selecting one of the asset types you defined earlier and providing key information about the asset, including:
- Name
- Serial number
- Purchase date
- Description
- Warranty details
Additionally, you may consider assigning unique identifiers to the organization’s assets to facilitate tracking and identification. Asset tracking can be enabled through such mechanisms as radio-frequency identification (RFID) tags, GPS technology, and barcodes. These tools allow companies to monitor asset location and movement, helping to prevent loss or theft and supporting quality assurance procedures.
Microsoft Dynamics 365 asset management also includes features for assigning assets to specific geographical sites, buildings, and rooms.
Integrating assets with other modules
Integrating Microsoft Dynamics 365 asset management features with other ERP modules in the suite streamlines business processes related to assets. Consider enabling data exchange between finance, inventory, and procurement tools within your system to ensure seamless coordination and maximize operational efficiency.
Leveraging IoT integration
Take advantage of the IoT features provided by Microsoft Dynamics 365 to simplify and optimize asset management by collecting real-time data. To utilize this functionality, install IoT sensors and cameras on the assets you wish to track.
With Internet-connected devices, the Microsoft Dynamics 365 field service functionality allows you to collect real-time data and monitor and control your equipment remotely. Leveraging this information, your company can significantly optimize asset maintenance. Additionally, IoT integration serves as a powerful foundation for workplace safety due to the alerting systems you can deploy.
Conclusion
Setting up assets in Dynamics 365 Asset Management is a critical process that requires careful planning and configuration to fully leverage the platform’s capabilities. While Microsoft Dynamics 365 offers extensive functionality for asset management, effective configuration requires effort and understanding. For assistance with asset management setup and other Microsoft Dynamics 365 configurations, consider partnering with an experienced implementation service provider such as XPLUS.