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Need help in understanding the reducing balance depreciation calculation for India and Dubai entity

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Posted on by SJ-16091251-0

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I need some help in understanding the reducing balance depreciation calculation.
I acquired an asset at 65000 INR using Purchase order. I put it into service on 2nd September 2025. The life of the asset is 36 months.
The rate of depreciation in the books is 63.16%. There is no scrap value that I have defined.

I want to calculate the depreciation from 2nd September 2025 to 31st Jan 2026. From my calculation, it comes to 17096.46, but when I ran a depreciation proposal, the value shows was 17,433.90 with the summary as below:

Am I missing out anything in the calculation?

For Dubai entity that we have, I got the calculation as below. The asset details remain the same as above:

I would really appreciate if someone can explain the calculation process for asset depreciation?

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Dynamics 365 Finance

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H.M.Burhan 390 Super User 2026 Season 1 on at

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Hi,

Please share a screenshot of FA books associated with the Fixed Asset and the Fixed Asset Profile as well.

Cheers,

Burhan

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SJ-16091251-0 315 on at

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Hi @H.M.Burhan, here are the additional details for your reference.
Books:

Asset profile:

Depreciation profile:

Please let me know if any additional details are needed.

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H.M.Burhan 390 Super User 2026 Season 1 on at

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Hi @SJ-16091251-0,

Thank you for providing the FA Books details. That was really helpful in understanding your issue better.

Could you please share the FA transactions and the profile?

You can extract the Fixed Asset profile from the following option under Books.

Cheers,

Burhan

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Syed Haris Shah 1,566 Super User 2026 Season 1 on at

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Hi @SJ-16091251-0,

It appears the Dubai company is calculating depreciation correctly on a prorated basis, based on the depreciation run date within the period.
However, in the INR company, the system appears to be calculating full fiscal-period depreciation for September 2025, even though the asset was placed in service on 02-Sep-2025. Your manual calculation is prorated, which explains the difference between your figure and the system-calculated depreciation.

The fiscal period setup for the INR company has not been shared. It is possible that the September 2025 fiscal period is configured from 02-Sep-2025 to 01-Oct-2025. If that is the case, since the asset was placed in service on the first day of the fiscal period, the system would correctly calculate a full period’s depreciation.

Could you please check the fiscal calendar in the INR company and confirm the start and end dates of the September 2025 period? If the period ends on 01-Oct-2025, then the system’s depreciation calculation is correct.

If you find this answer helpful, please consider verifying the answer. 👍

Regards,

Syed Haris Shah

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SJ-16091251-0 315 on at

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Hi @H.M.Burhan here are the details for you.

For INR company:

For Dubai company:

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SJ-16091251-0 315 on at

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Hi @Syed Haris Shah - Thanks for your suggestion. The fiscal calendar looks good. Please check below.

Kindly let me know if you need additional details.

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Syed Haris Shah 1,566 Super User 2026 Season 1 on at

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Hi @SJ-16091251-0,

Could you please share the acquisition transaction details for these assets?

Regards,

Syed Haris Shah

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