Fixed Asset Depreciation Periods Are Not Calculating Correctly

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Posted on by BarryR

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Hello All -

I've created a new fixed asset to a group with a depreciation profile of Straight line life remaining and a service life of 5 years. However after creating the asset and navigating to the corporate book I notice that the depreciation periods are calculating to 24 months rather than what should be 60 months.

Has anyone else experienced this scenario? All of my setups look correct.

Notice below on the COMP-HDWR group/book setup screen shot that depreciation periods are calculated correctly at 60 months based on a service life of 5 years.

Once the asset is created the depreciation periods are calculated at 24 months.

Oddly enough, if I change the service life to 7 years on the assets book the depreciation periods will calculate to 30 months.

The client just recently upgrade to D365 version 10.0.46.

Thanks in advance for any advice you can offer.

Regards,

Barry

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Dynamics 365 Finance

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Syed Haris Shah 1,633 Super User 2026 Season 1 on at

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Hi @BarryR,

This seems a bit unusual. I would recommend trying to refresh the Service Life and Period fields in the Asset Group Book form. To do this, remove the values from both fields and save the form, then re-enter the values for Service Life and Period and save again. After this, try creating a test asset to see if the depreciation periods calculate correctly.

Could you also please show how your fiscal periods are set up?

I am using Product Version 10.0.47 I don't see this problem.

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

Regards,

Syed Haris Shah

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salman ahmad 272 on at

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Hello Dear can you please show the Fiscal period setup for you ?

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Paolo Cecchelli 670 on at

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Hi Barry, as told by salman, the fiscal period setup and also the depreciation profile full setup (since on the book you only see what is setup there) will be helpful in understanding.

Best regards

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BarryR 330 on at

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Thanks all for your responses.

Syed - I tried your suggestion to refresh the Service Life and Period fields in the Asset Group Book form. I then created a new asset and unfortunately the depreciation periods are still not calculating correctly. I reset the Service life and Depreciation periods to blank, saved and then entered 5 for a service life. However the periods calculated again to 24.

Salman and Paolo - here are the fiscal periods and the depreciation profile full setup:

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Giorgio Bonacorsi 2,603 on at

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Hello,

The configuration is inherited by the fixed asset from its fixed asset group via the group-book relationship. Check this setup:
Path: Fixed assets > Setup > Book (select your book and press fixed asset group)

Verify the books linked to the group and their parameters.

If the group-book setup looks correct, do this quick test:

Create a new fixed asset (no acquisition/posting needed—just save it).

Open its Books

Check the Depreciation

The periods are suppose to match match the group defaults. If it is, someone manually overrode them on your original asset or create when the configuration was wrong

Let me know what you see!

Giorgio

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BarryR 330 on at

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Giorgio - I create a new asset group (**Test**) and linked it to the Corporate book. After entering a value of 5 in the Service Life field D365 calculates the Depreciation periods to be 24 rather than 60. Even if I manually change the periods to 60 and then create a new asset, the depreciation periods on that asset's book still calculate as 24 .

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Syed Haris Shah 1,633 Super User 2026 Season 1 on at

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Hi @BarryR,

If your fiscal calendar has 12 periods per year, then this should not cause any issue with the depreciation calculation.

Another thing you can try is to check with another user. Ask them to set the service life and see whether the depreciation periods are calculated correctly on their side.

If it works correctly for that user, then the issue might be related to your user usage data. In that case, you can try resetting your user usage data from User options, and then test the setup again.

If the above suggestions do not resolve the issue, it would be advisable to involve the technical team so they can further analyze the system. Since the issue may have started after the version upgrade, they can investigate whether any functionality or configuration was impacted during the upgrade.

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

Regards,

Syed Haris Shah

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BarryR 330 on at

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Syed - I asked another user to create a new asset group and they are getting the same weird calculations as me. I reset my usage data and that did not help either. What's even more maddening is that the calculations are working as expected in other environments (Dev and Gold). This is only happening in the UAT sandbox. I confirmed that the fixed asset configurations are exactly the same in UAT as the other environments.

All of the clients environments on on version 46.

I'll ask my technical team to take a look, I give up.

Thanks everyone for your responses.

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Syed Haris Shah 1,633 Super User 2026 Season 1 on at

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Hi @BarryR,

I understand this behavior seems quite unusual. I agree the approach you are taking to involve the technical team to investigate and analyze this abnormal behavior. Also, I appreciate if you can share the finding here.

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

Regards,

Syed Haris Shah

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BarryR 330 on at

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Well I finally figured out the issue. The client had added a new fiscal year to their UAT calendar for 2027 but had only added periods

1, 2 and 3. I was only focused on testing fixed asset transactions for year 2025, which has a completed fiscal year setup. The screen shots I previously provided as support to this forum question referenced 2025 as well.

So I certainly learned a lesson here, for fiscal calendars such as 5-4-4 you must have each year on your calendar fully built out whether you're testing in that year or not. Otherwise the asset periods will not calculate correctly. I'm sure that if I had provided a screen shot of the year 2027 set up my peers that responded to my original question would have spotted the issue immediately.

I appreciate all who responded though. Hopefully my lesson learned here may help a new functional consultant in the future if they find this post.

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