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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Fixed Asset Depreciati...
Finance | Project Operations, Human Resources, ...
Answered

Fixed Asset Depreciation - First Depreciation after Acquisition = Full Value of Asset

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Posted on by BarryR 268
Hello All - 
 
After acquiring an asset with a posted date of 2/5/2023 and then generating my first depreciation proposal with a date of 2/28/2023 the journal has created a credit for the full value of the asset ($2,000,000). I would have expected the first depreciation to calculate at $23,810.
 
What would cause this? Where could I have gone wrong in my setups?
 
 
 
 
 
 
 
 
Configurations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
I have the same question (0)
  • Suggested answer
    André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 303,247 Super User 2026 Season 1 on at
    Hi Barry,
     
    What amount do you have on the Fixed asset parameters in the field Capitalization threshold? If this is having a value of 2 million or higher, this would be the culprit. The Capitalization threshold field is used to fully depreciate an asset if the acquisition value is below this amount.
  • Verified answer
    BarryR Profile Picture
    BarryR 268 on at
    Andre - 
     
    Capitalization threshold is set to $1,000 on fixed asset parameters. However, the depreciation convention was set to None. Rookie mistake on my part. This post can be closed.
     
    Thanks for your reply though.
     
    Best,
    Barry
  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 303,247 Super User 2026 Season 1 on at
    Thanks for providing your update. I have marked your reply to set this question to the status answered.

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