Depreciation not calculating other than end of month

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Hi, please advise which configuration step might be missing that is causing depreciation not to be calculated on days other than the end of the month? Currently, the system deletes any depreciation journal created on other days and only retains the one generated at month-end.

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Dynamics 365 Finance

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Giorgio Bonacorsi 2,232 on at

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Hello,

Can you share the configuration of the book link to your fixed asset? Usually this is the configue:

Thank you,

Giorgio

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CU04091153-0 277 on at

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Hi Giorgio, I can confirm the depreciation profile for my current book is configured as per your snip -

Method - Straight line service life

Depreciation year - Calendar

Period frequency - Monthly

Further please note, the depreciation convention is None under the Asset group books.

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Giorgio Bonacorsi 2,232 on at

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OK, please try eliminating all open fixed asset journal entries, then re-run the procedure.
Can you also check the last depreciation date ? I should be before your new depreciation.

Thank you,

Giorgio

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CU04091153-0 277 on at

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Hi Giorgio

The last depreciation run date for the test asset is 31/01/2026 and I am processing depreciation as at 15/02/2026. The system tends to create either a blank journal or does not creates the journal. Please note, this is occurring for all the assets.

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Syed Haris Shah 1,613 Super User 2026 Season 1 on at

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Hi @CU04091153-0,

In D365 F&SCM, depreciation is typically posted per accounting period (commonly monthly or yearly) based on the depreciation profile configuration. However, when an asset is acquired during a period, the system prorates depreciation based on the number of days the asset is in service within that period.
For example, if an asset is acquired on March 15, the system calculates depreciation for March only for the days from March 15 to March 31, and then calculates the full monthly depreciation from April onward.

It is important to note that the system does not calculate daily depreciation within a Monthly Period. If you run a depreciation proposal on April 2, the system will check which period is ended at that date calculate depreciation for the full period end, not proposed for the first two days of April because the period is not ended. Depreciation in D365 is aligned with the fiscal period, not individual days, and the system only adjusts for partial periods when an asset is acquired or disposed of.

In my experience, I have not seen depreciation calculated on a daily basis in D365 F&SCM unless the fiscal periods are actually set up with a period unit of days. Typically, depreciation is calculated and posted per accounting period (monthly, quarterly, or yearly), with the system prorating amounts only when an asset is acquired or disposed of mid-period.

Could you please clarify the business requirement?

If you find this answer helpful, please consider verifying the answer. 👍

Regards,

Syed Haris Shah

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CU04091153-0 277 on at

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Hi Syed Haris Shah,

Thank you for the detailed response to my raised query. The business process is to run depreciation at each end of month due to which the depreciation profile for straight line has been setup with a monthly frequency, However, the client would also like to be able to create a depreciation proposal journal if need be for any other day of the month. As per your explanation, I think it will not be possible and they would most likely would have to process a manual depreciation journal to achieve this. What do you advise?

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Syed Haris Shah 1,613 Super User 2026 Season 1 on at

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Hi @CU04091153-0,

That is correct. The system does not allow proposing depreciation for random days within a month. If they want to review future depreciation, they can use the Fixed Asset Profile, which shows planned depreciation. Depreciation should be planned at month-end.

I would not recommend calculating manual depreciation for partial periods (e.g., a few days) because if they post manual depreciation for part of the month and then generate the month-end proposal, the system will calculate the full month again, which can lead to duplicate depreciation.

It is best to define a SOP where depreciation is only calculated and posted at month-end.

If you find this answer helpful, please consider verifying the answer. 👍

Regards,

Syed Haris Shah

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