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Small and medium business | Business Central, N...
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Depreciation expense include Unit cost of item

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Hello Dynamics Community.

I just need some clarifications / opinions on this:

I have a customize stock ageing report which displays the Unit Cost and Depreciation Charged Value of items.

The rate of depreciation have been defined in the system according to the item category code and number of years the item has been used: for e.g: 

Item Category Code              Number of years                  Depreciation Rate

Accessory                                  2                                           25%

Accessory                                  4                                           50%

For example, I have an item - Bags (let say its item category code is Accessory) and it is depreciated over 2 yrs. So, in the report, the depreciation expense is 25% * Unit cost of the item

I have an item - Jewellery (Item Category code is Accessory) and it is depreciated over 4 yrs. So, in the report, the depreciation expense should be 50% * Unit cost of the item. 

But, it is not the case. The depreciation is higher than the Unit cost of the item because the depreciation charged value include the unit cost also. 

Like if the unit cost is 5500. The depreciation charged value should have been : 5500* 50% = 2750. But it is 8250 (5500 + 2750).

Can someone clarify me on that why the depreciation expense take into account the unit cost. What are the factors in general which can lead to this?

Thank you.

  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 77,981 Super User 2025 Season 1 on at
    RE: Depreciation expense include Unit cost of item

    Hi, since this is a custom report, I recommend you contact your development partner to discuss this further.

  • Suggested answer
    Marco Mels Profile Picture
    Marco Mels on at
    RE: Depreciation expense include Unit cost of item

    Hello,

    Maybe this helps somehow:

    learn.microsoft.com/.../design-details-cost-components

    Thank you.

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