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Applies to Product - Dynamics 365 Business Central


What’s happening?
Experiencing issues with the calculation of depreciation for fixed assets in Dynamics 365 Business Central. Specifically, depreciation is not being calculated unless an end date is provided, and incorrect depreciation amounts are being calculated based on acquisition costs instead of depreciable basis.
 

Reason:

  1. For fixed assets, it is mandatory to specify either the ending date of the depreciation or the number of days for which the depreciation should be calculated. If this information is not provided, depreciation will not be calculated.
  2. The depreciation calculation may incorrectly use the acquisition cost instead of the depreciable basis, leading to discrepancies in the calculated amounts.

 

Resolution:

  1. When creating a fixed asset, ensure that either the ending date of the depreciation or the number of days for which the depreciation is to be calculated is specified. This is a mandatory field.
  2. If the depreciation calculation is incorrect, verify that the "Depr. Until FA Posting Date" checkbox is selected on the invoice, fixed asset G/L journal, or fixed asset journal lines. This ensures that depreciation is calculated from the last fixed asset posting date to the posting date of any additional acquisition costs.
  3. For cases where the depreciation is calculated incorrectly, check the settings and ensure that the depreciation method is configured to use the depreciable basis rather than the acquisition cost. If necessary, provide screenshots of the related settings and steps taken to replicate the issue for further investigation.