Depreciable Basis calculation in Fixed Assets in Business Central

 In Microsoft Dynamics 365 Business Central, the "Depreciable Basis" field calculation might not automatically include write-downs because it is typically set to calculate based on the original cost of the asset minus the salvage value. This approach means that the depreciable basis is initially calculated as:

$\text{Depreciable Basis}=\text{Purchase Price}-\text{Salvage Value}$

example:
$\text{Depreciable Basis}=\$30\text{ million}-\$10\text{ million}=\$20\text{ million}$

However, when a write-down occurs, although it reduces the book value of the asset, it might not directly adjust the "Depreciable Basis" field unless specifically configured to do so. The system appears to still correctly calculate depreciation charges on the new adjusted book value (after accounting for write-downs), which is:

$\text{New Book Value}=\text{Purchase Price}-\text{Write-down}-\text{Salvage Value}$
$\text{New Book Value}=\$30\text{ million}-\$5\text{ million}-\$10\text{ million}=\$15\text{ million}$

This might be a design choice within the software to maintain the original calculation basis transparent, or it could be related to how the software handles these accounting entries. If the discrepancy between the depreciable basis and the new book value is causing confusion or seems incorrect based on accounting standards applicable to your situation, it may be worth reviewing the system configuration related to fixed asset setup and write-downs or consulting with a Business Central expert to see if adjustments or customizations are needed.