Double Declining Depreciation not using NBV

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Posted on by CU03031324-0

I am trying to post depreciation using double declining balance method as of 2/28/26. When I create depreciation proposal, it is calculating based on the acquisition price, instead of the NBV. This is resulting in depreciation being overstated. All assets were migrated on 3/1/25, tagged as 'migrated asset, yes'. Acquisition date is 3/1/25 when migration file was posted, however in service dates are accurate. On 3/1/25, depreciation was also posted to record accumulated depreciation on all assets. Our fiscal year is 3/1-2/28. Below is an example of one asset.

Depreciation proposal is 3,496.44 = acq 12237.6 * ddb rate .286. Depreciation should be 3,190.52 = NBV 11,166.81 * ddb rate .286. I read one comment that clearing out remaining periods would fix this, however when I try in test this just results in the full NBV of the asset being depreciated. Any ideas??

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Dynamics 365 Finance

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Paolo Cecchelli 360 on at

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Hi,

Unfortunately I am not very familiar with Double-Declining depreciation but I have always seen it in conjuction with an alternative Depreciatio profile of the Straigh Line life remaining type (as this guide also explains https://www.linkedin.com/pulse/setting-up-macrs-depreciation-dynamics-365-finance-operations-joshi-ovjyf/ and MS learn tells: https://learn.microsoft.com/en-us/dynamics365/finance/fixed-assets/200-percent-reducing-balance-depreciation) but you surely will know better.

Another thing that I would do (but maybe you did not do it for a purpose) that I have seen from your screenshot is to change the Acquisition date, setting it to the real acquisition date (if I understand 3/1/2025 is the date of the migration but not of the actual Acquisition of the asset). When I do migration I always set both the placed in service and the Acquisition date to the real ones. But this should not affect the calculation I suspect.

If this does not solve your issue, to help the community investigate further can you please share:

1) The screenshot of the migration transactions you posted for the asset;

2) The screenshot of the Balances of the Fixed Asset;
3) the screenshot of the depreciation Profile resulting for the single asset;

4) the screenshot of the depreciation profile settings.

Best regards

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