I think I would need to treat the asset like a donated item. Debit the Fixed Asset & Credit a Revenue account (i.e. bond revenue) for the total value of the asset. We don’t have the expenses recorded because we did not spend or receive the actual funds.

It’s an odd situation.

The funds were spent on our behalf on 1 of our projects.

That is the traditional way of how we would record the asset; however, this is a different situation. We would never receive the funding. It has already been expended.

Is it possible to record a fixed asset value in Dynamics BC for items not recorded on the books? For example: Funding for project was awarded, but cash was not received.