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[Bug][CalculateAcqCostDepr]: Depr. Acquisition Cost not calculated correctly

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The issue

The issue is related to depreciation of fixed assests.

If additional acquisition costs incur for a fixed asset from a closed fiscal year, depreciation is calculated from the original acquisition date of the asset when the “Depr. Acq. Cost” field is used.

Expected behavior

If additional acquisition costs for a fixed asset from a closed fiscal year are depreciated, the new acquisition costs can only be depreciated retroactively starting from the beginning of the current fiscal year.

Steps to reproduce

Create a fixed asset for a closed fiscal year
Post acquisition costs for the asset in the closed fiscal year
Post additional acquisition costs in the next open fiscal year and tick the boxes for “Depr. Acquisition Cost” and “Depr. until FA Posting Date”
Check the depreciation in the posting preview

Additional context

Microsoft Dynamics Business Central v. 27.5.46862.50101

Example for expected behavior (from Learn.Microsoft)

"In 2015, your organization acquired a fixed asset for 60,000. Your organization uses the straight-line life remaining depreciation method over five years. In 2015, when you process the depreciation proposal each month, you calculate 1,000 as the monthly depreciation amount (60,000 ÷ [5 × 12]). In March 2016, you post an additional acquisition for the fixed asset. The amount of the additional acquisition is 12,000. You must treat the additional acquisition as if you posted it on January 1, 2016. Therefore, here's how you calculate the monthly depreciation of 12,000 for the remaining four years: 12,000 ÷ (4 × 12) = 250. The actual depreciation of the additional acquisition can start only in the month when the additional acquisition occurred (March). Therefore, add the depreciation amounts for January and February to the depreciation amount for March."

From <https://learn.microsoft.com/en-us/dynamics365/finance/localizations/germany/emea-deu-additional-acq…>

Actual behavior for the example shown

The monthly depreciation for the additional acquisition of 12,000 is calculated over the entire five-year period: 12,000 ÷ (5 × 12) = 200. When depreciation starts in March, depreciation amounts for 14 months (Januar 2015 - Februar 2016) are added to the depreciation amount for March.

Additional acquisition depreciation - Finance | Dynamics 365 | Microsoft Learn

Learn how depreciation is calculated for additional acquisitions in Germany, with an example of an organization acquiring a fixed asset.

Can anyone confirm this Bug?

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Dynamics 365 Business Central

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YUN ZHU 101,995 Super User 2026 Season 1 on at

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The link you provided is not for Business Central, it's for FO.

Therefore, what you are testing should be the standard behavior.

More details: Depreciation methods for fixed assets

https://learn.microsoft.com/en-us/dynamics365/business-central/fa-depreciation-methods?wt.mc_id=DX-MVP-5004336

Thanks.

ZHU

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OussamaSabbouh 17,676 Super User 2026 Season 1 on at

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Hello,

I wouldn’t confirm this as a Business Central bug based on that Learn example, because the page you quoted is for Dynamics 365 Finance Germany localization, not Business Central; in BC, Microsoft documents Depr. Acquisition Cost differently: it depreciates the extra acquisition cost in proportion to the depreciation already posted on the asset, and Depr. until FA Posting Date calculates depreciation up to the posting date, so the behavior you see can be consistent with BC’s current logic even if it does not match the Finance Germany example. If the legal/business requirement is “only depreciate the additional acquisition from the start of the current fiscal year”, I’d raise this with Microsoft support as a localization/requirement gap for BC v27.5 rather than compare it directly to the Dynamics 365 Finance article.

Regards,
Oussama Sabbouh

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Saif Ali Sabri 2,687 Moderator on at

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Hello,
I can reproduce and confirm the behavior in Business Central v27.5, but I would classify it more as a product/design limitation (or localization gap) rather than a clear calculation bug.
Mr. Oussama Sabbouh is correct that the Microsoft Learn article referenced is for Dynamics 365 Finance Germany localization, not for Business Central. The depreciation logic in BC for:

Depr. Acquisition Cost

Depr. until FA Posting Date

works differently from the Finance example.
What Business Central currently does
When you post an additional acquisition with:

Depr. Acquisition Cost = TRUE

Depr. until FA Posting Date = TRUE

BC recalculates depreciation as if the acquisition cost had existed since the original depreciation starting date of the asset.
Therefore, the system spreads the additional acquisition over the original depreciation basis/lifetime and then catches up all missed depreciation up to the posting date.
So in your example:

Original FA acquired in 2015

Additional acquisition posted in March 2016

Remaining life should ideally be 4 years

BC instead behaves closer to:
12,000 / (5 × 12) = 200
and then posts accumulated catch-up depreciation from the original start date.
Why this differs from the Learn article
The Learn article describes a German localization rule in Dynamics 365 Finance, where:

retroactive depreciation is limited to the beginning of the current fiscal year

depreciation is recalculated based on remaining lifetime only

Business Central does not appear to implement that same logic natively.
My opinion
Functionally, your expectation is reasonable and aligns with accounting practice in several jurisdictions, especially where closed fiscal years must not be recalculated indirectly through depreciation catch-up logic.
However, technically, BC is currently behaving according to its own depreciation engine design.
So I would summarize it as:

✅ Reproducible behavior

✅ Potential compliance/localization gap

❌ Not necessarily a core calculation bug in standard BC logic

Recommendation
I would recommend:

Opening a support ticket with Microsoft

Referencing:

BC version: 27.5.46862.50101

Fixed Asset depreciation logic

Closed fiscal year scenario

Difference between BC and Finance Germany localization behavior

Asking whether:

this is expected behavior,

a localization feature is missing,

or whether a hotfix/design change is planned.

It may ultimately require:

a localization enhancement,

a customization in Codeunit 5601/FA depreciation logic,

or a partner extension if local accounting standards require the “current fiscal year only” retroactive depreciation approach.

Regards from PAKISTAN

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Gerardo Rentería Ga... 27,280 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

Acquire Fixed Assets
Depreciation methods for fixed assets - Business Central | Microsoft Learn

Cálculo de la depreciación en Business Central

Best Regards
Gerardo

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arne-o 4 on at

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Hello,
I can confirm that, until v. 27 of Business Central, depreciation for additional acquisitions was calculated as shown in the Microsoft Finance example. I assume it was simply chosen as reference, since there is no calculation example for this scenario in Business Central on Microsoft Learn.

Could the incorrect calculation be related to the introduction of the “Use Accounting Period (10500, Boolean)” field in “Depreciation Book (5611)”?

Regards,
Arne

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