Parent and child fixed asset functionality

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Posted on by CU04020646-0

I want to create a main fixed asset i.e. Furniture and its component as Table and chair which might have different service life. How can I create a fixed asset and its component so that I can dispose and depreciate its component separately.

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Abhilash Warrier 3,640 Super User 2025 Season 2 on at

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Parent and child fixed asset functionality

Hi,

Conceptual Model
Since D365 F&O does not support a hard parent-child relationship between fixed assets out of the box, you must model each item—main asset and each component—as independent fixed asset master records. This gives you full control over:

Service life

Depreciation method

Disposal handling

Asset tracking and reporting

Step-by-Step Setup in D365 F&O
1. Create the Main Asset (e.g., Furniture)

Navigate to: Fixed assets > Fixed assets > Fixed assets

Click New

Fill in:

Asset group: e.g., FURN

Asset name: e.g., Office Furniture

Asset number: e.g., FURN-0001

Assign a book, depreciation profile, and service life

Save the asset

2. Create Component Assets (e.g., Table, Chair)
Repeat the above steps for each component:

Asset name: Table - Part of FURN-0001

Asset number: FURN-0001-TBL

Assign a different depreciation profile or service life if needed

These are independent assets, but you can logically group them using naming conventions or custom fields.

Logical Grouping Techniques
Since there’s no native parent-child link, use one or more of the following:
Naming Convention

Use a structured asset number like:

FURN-0001 (Main)

FURN-0001-TBL (Table)

FURN-0001-CHR (Chair)

Custom Fields

Add a custom field (e.g., Parent Asset ID) to the fixed asset form.

Populate it with the main asset number (FURN-0001) for all components.

Depreciation and Disposal
Each asset (main or component) can:

Have its own depreciation profile

Be depreciated independently

Be disposed of separately (e.g., if a chair is broken but the table remains)

Reporting and Tracking
You can build custom reports or use Management Reporter to:

Group assets by naming convention or custom field

Track depreciation and net book value per component

Monitor disposal history

Best Practices

Document your naming and grouping strategy clearly for finance and audit teams.

Use asset books consistently across related assets.

Consider using projects or capital projects if assets are acquired as part of a larger investment.

If this helped, please mark it as "Verified" for others facing the same issue.
Keep in mind that it is possible to mark more than one answer as verified.

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Yng Lih 540 on at

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Parent and child fixed asset functionality

Hi,

To achieve separate depreciation and disposal of a fixed asset and its components in Dynamics 365 Finance, you need to model each item (main asset and each component) as an individual fixed asset record. This setup allows every component to have its own service life, depreciation method, and lets you dispose of them independently. i.e. 2 fixed asset master records.

Since its 2 fixed asset master records, there is no Hard Parent/Child Link. Thus, you may use workarounds like Asset number conventions, descriptions, or custom fields for logical grouping.

If this information was helpful, kindly mark it as 'Verified'. Thank you. :)

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Abhilash Warrier 3,640 Super User 2025 Season 2 on at

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Parent and child fixed asset functionality

Hi,

We have the option to add the components or child assets for the Fixed Assets, but the depreciation cannot be calculated separately.

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Raj Borad 1,264 on at

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Parent and child fixed asset functionality

Hi,

I don't think about the Fixed Assets link with component assets.

You can create the Fixed asset group named "Furniture" (just like below image) and create remaining component fixed assets related to Furniture and link them with Group.

Thanks and Regards,

Raj D Borad

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