Calculating FA depreciation for 365 days - Issue

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Posted on by AsankaP

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.

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.

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.

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Answers (3)

AsankaP 12 on at

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RE: Calculating FA depreciation for 365 days - Issue

Noted your point. Thank you very much!
AsankaP 12 on at

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RE: Calculating FA depreciation for 365 days - Issue

Noted your point. Thank you very much!
AsankaP 12 on at

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RE: Calculating FA depreciation for 365 days - Issue

Noted your point. Thank you very much!
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YUN ZHU 74,036 Super User 2024 Season 2 on at

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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
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Community Member Microsoft Employee on at

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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
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Dirk on at

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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.