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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 344

Dear Experts,

We have around 500 Fixed Assets in D365 Business Central. The system is currently calculating depreciation using the default method, but we need the depreciation to be allocated Dimension-wise based on assigned percentages.

For example, for asset FA-0001, depreciation should be allocated as follows:

  • Dimension 1 – 25%

  • Dimension 2 – 40%

  • Dimension 3 – 35%

Each Fixed Asset has different allocation percentages for each Dimension.

Please confirm whether this type of percentage-based depreciation allocation is possible through the Calculate FA Depreciation process in D365 BC. If yes, kindly guide us on the required setup or steps.

Categories:
Dynamics 365 Business Central
I have the same question (0)
  • Suggested answer
    Yi Yong Profile Picture
    Yi Yong 2,647 Super User 2026 Season 1 on at
    Hello,
     
    It is not possible to do it with a single Fixed Asset card.
    You might want to consider creating a Fixed Asset for each dimension and acquired them separately based on the %.
    And then link to a Main Asset via Component.
     
  • Suggested answer
    Jainam M. Kothari Profile Picture
    Jainam M. Kothari 15,732 Super User 2026 Season 1 on at
    Hello,
     
    Business Central does not natively support splitting fixed asset depreciation across multiple dimensions by percentage during the Calculate Depreciation process; it only posts depreciation with the dimensions assigned to the asset.
     
    To achieve percentage-based allocation, you can either use Allocation Keys after posting depreciation to redistribute amounts across dimensions or develop a custom AL extension that modifies the depreciation posting logic to create multiple lines based on predefined percentages for each dimension.
     
     
  • Suggested answer
    TarikJerkovich Profile Picture
    TarikJerkovich 293 on at
    Hello,
     
    in standard Business Central you cannot make “Calculate FA Depreciation” split one FA’s depreciation across multiple values of the same dimension by percentages. Depreciation posts with one value per dimension (from Default Dimensions on FA/FA Class/Subclass) to the G/L.
    You have three practical solutions:

    1) Split into FA Components (cleanest in G/L)
    Break the asset into components using your allocation percentages and assign each component its own dimension value.
    How
    1. Open the FA → Actions → Functions → Transfer to Component (via FA Reclassification Journal).
    2. Move acquisition cost (and proportional accumulated dep.) into components using your ratios (e.g., 25%/40%/35%).
    3. On each component, set Default Dimensions (e.g., Dept=A, Dept=B, Dept=C).
    4. Run Calculate & Post FA Depreciation as usual.
    Pros: Automatic, correct G/L by dimension; no additional journals.
    Cons: More FA cards/components to maintain.

    2) Re-allocate after posting via Recurring General Journal (dimension reclass)
    Keep a single FA, post depreciation once, then reclassify the expense by percentages with allocations.
    How
    1. Make FA depreciation post to a neutral dimension value (e.g., Dept=UNCUT).
    2. Create a Recurring General Journal line with Allocations:
      • Account: Depreciation expense account (same as original).
      • Bal. Account: Same expense account to net to zero (or use a clearing account).
      • Source (Credit): Dept=UNCUT for the full monthly depreciation amount.
      • Allocation lines (Debits): same expense account with Dept=A 25%, Dept=B 40%, Dept=C 35%.
    3. Set Recurring Method (e.g., Variable) and schedule via Job Queue to run monthly.
    Pros: One FA; flexible percentages; no change to FA structure.
    Cons: Ongoing maintenance—many lines if 500 FAs have different ratios.

    3) Use Cost Accounting (reporting-only allocation)
    Leave the G/L as posted; perform allocations in Cost Accounting for analysis.
    How
    1. Set up Cost Accounting (Cost Types linked to G/L, Cost Centers/Objects mapped to your dimension values).
    2. Transfer entries from G/L to Cost Accounting (include depreciation accounts).
    3. Define Cost Allocation rules (e.g., for FA-0001: 25/40/35).
    4. Run Transfer & Allocate and use Cost Accounting reports for analysis.
    Pros: Very flexible; no re-posting in G/L.
    Cons: Allocation visible in Cost Accounting only, not in G/L balances.

    Recommendation
    • If the split is stable per asset → Components (Option 1).
    • If splits change or you want minimal FA changes → Recurring Journal re-allocation (Option 2).
    • If you only need analytical reporting → Cost Accounting (Option 3).


     
  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 32,157 Super User 2026 Season 1 on at
    This is not possible using standard functionality, the best solution as mentioned would be to create component assets for each dimension that needs to be depreciated and then link them all together into a main asset. Alternatively, you can customize the depreciation function to do the split for you automatically. 
     
  • Suggested answer
    RockwithNav Profile Picture
    RockwithNav 8,941 Super User 2026 Season 1 on at
    Standard way splitting Dimension wise is not available so far. See if any tweaking works or else you need to jump on doing some customization's.
  • Suggested answer
    OussamaSabbouh Profile Picture
    OussamaSabbouh 12,808 Super User 2026 Season 1 on at
    Hello,
     
    Standard Business Central cannot split depreciation by dimension percentages.
    The Calculate FA Depreciation batch job posts one set of dimensions per FA, not multiple lines with % splits.
     
    To achieve 25% / 40% / 35% dimension allocation, you need a customization (very common) that generates multiple depreciation lines with different dimensions.
     
    Regards,
    Oussama Sabbouh
  • Suggested answer
    Sumit Singh Profile Picture
    Sumit Singh 11,757 Super User 2026 Season 1 on at
    Hi, 
     
    This is not possible out-of-the-box because BC does not allow percentage-based dimension splits during depreciation calculation. As per my knowledge, you need either customization or an ISV solution to achieve percentage-based dimension allocation for depreciation.
  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 99,055 Super User 2026 Season 1 on at
    This can only be customized; I've developed similar features for clients before.
     
    Thanks
    ZHU

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