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I can't understand how D365 is calculating depreciation.
The depreciation profile is LINEAR. Method is "Straight line service life". Depreciation year is "Calendar" and Period frequency is "Monthly".
For example, if we have 48 periods the depreciation should be Acquisition price 190 /48 = 3,96 however the D365’s proposal sets a different amount during the first year (2019).
Can anyone explain me why in 2019 is a different amount and how it's calculated?
Thanks and regards,
Hello Clemens, In order to assess what D365FO calculates here, we need more information about the book and the setup that have been made there. Can you share some screenprints from the fixed asset book that show the acquisition price, the acquisition date, the depreciation start date, etc.? Many thanks, Ludwig
In addition, did you post some corrections on acquisition value or depreciation values for this asset?
thank you for your fast reply!
Enclosed the additional information:
do you see all your required information in asset transactions above, or do you need anything else?
The "Depreciation periods remaing" looks suspicious (44,98):
The remaining periods is indeed a bit strange. Do you know how all journals were created? Manually or using other tools like data import or the Excel add-in? Are you able to reproduce this issue in multiple environments?
Was the start date of depreciation changed after the first proposal or was it already set to the first of March?
I am wondering whether this is caused by the acquisition posting that waas made on 27 February.
Can you try creating an identical fixed asset in a demo test system where the acquisition is posted on 27 February and another one where you post it on 01 March?
Do you see the same result for the fixed asset with the acquisition date 27 February in your demo/test system?
I created a new fixed asset in test environment:
When I dind't change acqusition date books -profile showed expected (right) results:
After changing acquisition date to 27th of February the profile changed to the suspicious amounts:
These values do not change anymore even I set the acqusition date back to today (or 1st od March or any time in the future).
The 2 days in February clearly seem to be responsible for this.
What depreciation amount do you see in the last year?
I would expect 187.42. Is that right?
I do agree with Ludwig here. If you don't change the start date of depreciation to e.g. March 1, it will try to calculate a small depreciation amount for February like visible on your screenshot.
you are right. In total the depreciation is the aquisition amount of 4.800 EUR . In the last year (2023 Jan+Feb) the depr. is 187,42 EUR.
But is that right? For my understanding if I calculate depr. on a monthly base (for 48 month) I should see from acquisition month on a depr. of 100 EUR for 48 month?
It depends on the setup. There are companies who will do the depreciation as of the real date, but also there is an option to calculate per full month. The start date of the depreciation on the value model is determining if you have the full month or not.
If you set the depreciation start date and acquisition date to 01 March then you should see the identical depreciation amount each month.
However, if those dates are set to a date in the middle or end of the month then D365FO might calculate those prorata amounts and record an balancing adjustment at the end of the assets lifetime.
In my opinion this is correct as you have the option to influence the calculation through the settings in the fixed asset books.
sorry for my late reply, I was on holiday / training the last 3 weeks.
Ok - I understand if the aquisition date is during the month that for this period D365 calculates the depreciation on a daily basis.
But why are all periods in that year affected (in my example 2019 see screenshots above)?
How do I have to do the setup that I have only one amount in each month (e.g. 100 EUR -> price 4800 and 48 month).
Many thanks and regards,
To be able to answer your follow up question, you need to provide the details how we can reproduce this. What dates did you use for acquisition, start depreciation?
Do you have an environment with the demo company USMF? You can try it in this company. What exact country is the primary country of your legal entity?
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