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Finance | Project Operations, Human Resources, ...
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Change in Depreciation Method from Reducing Balance Method to Straight-line in Dynamics 365

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Posted on by 10

Dear Experts,

I have two Scenarios:

1- I would like to change the depreciation rate like from 10% to 15% to depreciate an asset in the books of account being consider that asset is now outdated technology so it should be depreciated from incremental value.

2- Is there any way to change the depreciation method from Reducing Balance method to Straight-Line Balance Method??

Best Regards,

Sajid

I have the same question (0)
  • Shaun Hawkshaw Profile Picture
    977 on at
  • Suggested answer
    Ludwig Reinhard Profile Picture
    Microsoft Employee on at

    Hello Sajid,

    If the asset is outdated, isn't it a common business practice in your country to post either an extraordinary depreciation or to scrap it from a financial perspective?

    I have not seen people changing the depreciation method simply for outdated technology as you would have to justify this against auditors.

    A more common approach is recording a one time extraordinary depreciation and then continue with the 10% depreciation rate.

    Best regards,

    Ludwig

  • sajidiqbal_D365 Profile Picture
    10 on at

    Thanks Dr. Ludwig for the reply

    Actually this is the client requirement if he want to change the depreciation method based on management policy from 10% to 15% or from reducing balance to straight line balance method.  He should have the functionality or any work around in the system.  

    Thanks in advance

  • Ludwig Reinhard Profile Picture
    Microsoft Employee on at

    Hi sajidiqbal D365,

    Can you specify the 'trigger' for that change?

    I mean is it a normal process to change the depreciation % from 10 to 15 or is the trigger for this change a one time event, such as a technical alternation/change?

    Best regards,

    Ludwig

  • sajidiqbal_D365 Profile Picture
    10 on at

    Hi Ludwig

    It is a normal process at client side.

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