Depreciations in Fixed Asset in Microsoft Dynamics 365 Finance and Operations one version D365FO

Depreciations in Fixed Asset in Microsoft Dynamics 365 Finance and Operations one version D365FO

Depreciations are used for fixed asset type tangile.

Various methods of depreciation are available out of box

 Straight line service life:  the depreciable value of the asset is reduced by the same amount for each period.

• Straight line service life (same % across periods)
• Straight line life remaining
• Reducing balance
• Manual (different % for different periods and criteria as suggested by auditor or accounting rule for the industry and type of asset)
• Factor
• Consumption
• Straight line life remaining
• 200% reducing balance
• 175% reducing balance
• 150% reducing balance
• 125% reducing balance

Depreciations are calculated using depreciating profile specified on books.

There are two additional depreciating profile which can be used

Alternative depreciation profile:

When using depreciation method that is based on a percentage, can use the alternative depreciation profile to automatically switch to the alternative depreciation method from the original depreciation method when the amount for the straight line method would be higher than for the original method.

To do this, you must set up a second depreciation profile on BOOK

The calculations according to the depreciation profile and alternative depreciation profile are compared, and the highest depreciation in the depreciation proposal is suggested for posting.

Extraordinary depreciation profile:

Extraordinary depreciation is calculated independently from the primary and alternative depreciation for an asset. The guidelines for depreciating an asset using the extraordinary depreciation method might require flexible percentages and user-defined dates to base the depreciation on.

 Therefore, you must set up a Manual depreciation method for extraordinary depreciation.