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Calculating FA depreciation for 365 days - Issue

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Posted on by AsankaP 12

I have initially calculated depreciation for few years without considering 365 days per year.

Now I have changed it in the depreciation book card as considering 365 days per year.

pastedimage1643589860653v1.png

The problem that I have is, Once it's enabled, No of depreciation years will not be able to update and it's not showing to old assets.

pastedimage1643590025221v2.png

Only allowing to change depreciation ending date. I would like to know a reason for that and method to keep 'No of depreciation years' in FA card without a customization?

Thanks in advance.

Categories:
Financial Management
  • AsankaP Profile Picture
    AsankaP 12 on at
    RE: Calculating FA depreciation for 365 days - Issue

    Noted your point. Thank you very much!

  • AsankaP Profile Picture
    AsankaP 12 on at
    RE: Calculating FA depreciation for 365 days - Issue

    Noted your point. Thank you very much!

  • AsankaP Profile Picture
    AsankaP 12 on at
    RE: Calculating FA depreciation for 365 days - Issue

    Noted your point. Thank you very much!

  • Verified answer
    YUN ZHU Profile Picture
    YUN ZHU 69,639 Super User 2024 Season 2 on at
    RE: Calculating FA depreciation for 365 days - Issue

    Hi, The answers of the above two experts are very correct.

    Just add some info. If you enter a fixed yearly amount, the program uses this formula to calculate the depreciation amount:

    Depreciation Amount = (Fixed Depreciation Amount x Number of Depreciation Days) / 360

    https://docs.microsoft.com/en-us/dynamics-nav-app/fa-depreciation-methods#fixed-yearly-percentage

    Hope this will help.

    Thanks.

    ZHU

  • Verified answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Calculating FA depreciation for 365 days - Issue

    Asanka,

    Dirk is 100% correct. Trying to calculate 365 days worth of depreciation per year with Leap years in play, is very difficult and not logical. The Fiscal Year 365 Days flag tells NAV that when TRUE it will use 360 days per year and a set 30 days per month to record depreciation. This, for accounting, allows the depreciation value to be evenly calculated over the No. of Depreciation Months (Years).

    The error about the Fiscal Year 365 is because you have already started booking ledger entries on the active asset and it has calculated the 30 days periods to depreciate the asset thru 1/1/25. If you have the field, on the Depreciation Book Card, Allow Changes in Depr. Fields = TRUE, then you can change the Date and the Years will update and the new monthly value will be recalculated on the next Deprecation calc run.

    Thanks,

    Steve

  • Verified answer
    Dirk Profile Picture
    Dirk on at
    RE: Calculating FA depreciation for 365 days - Issue

    Hello;

    I think this is blocked because back then one found it too difficult to calculate the "Deprecation Ending Date", considerung the leap years.
    Instead the user can / has to add the "Deprecation Ending Date" manually.

    I asked for an explanation and will post it here, if and when I get it.
    That can take some days/weeks.

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