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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Fixed Asset Depreciation
Small and medium business | Business Central, N...
Suggested Answer

Fixed Asset Depreciation

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Posted on by Dharmesh 375

Dear Experts,

I posted the opening entries for Fixed Asset Acquisition Cost and Accumulated Depreciation as of 31 March 2026. After that, I ran the depreciation calculation and posted depreciation for April 2026 (30 days), which was calculated correctly and the book value was also updated properly.

However, when I calculate depreciation for May 2026 (31 days) and June (30 Days), the system is not calculating the correct amount. The depreciation amount is slightly higher than expected. For example, if the depreciation should be approximately Rs. 5,000, the system is calculating Rs. 5,500 or Rs. 5,800.

Could anyone please advise what could be causing this issue and what settings or transactions I should check to identify the root cause?

Thank you in advance for your guidance.

 

Categories:
Dynamics 365 Business Central
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  • Suggested answer
    OussamaSabbouh Profile Picture
    OussamaSabbouh 18,059 Super User 2026 Season 1 on at
    Hello,
    Most likely this is not a posting issue, but a depreciation basis / remaining days issue. In Business Central, Straight-Line depreciation can calculate based on book value, salvage value, number of depreciation days, and remaining depreciation days, so if the opening acquisition cost, opening accumulated depreciation, Depreciation Starting Date, Depreciation Ending Date / No. of Depreciation Years, or Last Depreciation Date is not aligned, BC may “catch up” depreciation and calculate slightly higher amounts in later months. Also check the No. of Depreciation Days created in the FA G/L Journal for May and June, and verify whether the Depreciation Book uses the normal 360-day year / 30-day months or the Fiscal Year 365 Days option, because this can affect monthly amounts. I would compare one affected asset’s FA Ledger Entries, FA Depreciation Book setup, depreciation method, salvage value, accumulated depreciation opening entry date, and posted April depreciation date; usually the difference is found there.
    Regards,
    Oussama Sabbouh
  • Dharmesh Profile Picture
    Dharmesh 375 on at
    Dear @OussamaSabbouh
     
    Depreciation Method is Declining Balance-1

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