Fixed Asset Depreciation

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Posted on by MZ-03070147-0

Hello Community,

I am configuring a Fixed Asset with both STD and IFRS Books. As per the scenario in the table above:

Parameter	STD Book	IFRS Book	Notes
Service life	5 years	3 years
Acquisition	60,000	60,000	STD posted / Acquisition cost in IFRS is set to not post.
Depreciation per year	12,000	20,000	Calculation only
Depreciation posted	12,000	8,000(adj.)	STD posted / IFRS: Difference posted IFRS adjustment (20,000 – 12,000 = 8,000)
Adjustment (IFRS)	–	8,000	IFRS difference should automatically posts in Custom 1 layer

Is it possible to configure D365 in FnO, so that the difference between IFRS and STD depreciation is automatically posted as an IFRS adjustment (Custom posting Layer)?

Thank you.

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Dynamics 365 Finance

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Verified answer

André Arnaud de Cal... 303,716 Super User 2026 Season 1 on at

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Hi,

This feature is not supported. The asset books are calculating and posting depreciations independently from each other. You can consider calculating the adjustment amounts and post it manually or consider a customization.

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Verified answer

Abhilash Warrier

7,274 Super User 2026 Season 1 on at

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Hi,

Each asset book calculates and posts depreciation independently, and there's no built-in mechanism to automatically calculate and post the adjustment (e.g., the 8,000 difference) into a custom layer like "Custom 1".

Scenario Recap

Parameter	STD Book	IFRS Book	Notes
Service life	5 years	3 years
Acquisition	60,000	60,000	STD posted; IFRS not posted
Depreciation per year	12,000	20,000
Depreciation posted	12,000	8,000	IFRS adjustment = 8,000
Adjustment (IFRS)	–	8,000	Should post to Custom 1 layer

1. Manual Adjustment Posting
Accounting Impact:

STD Book (Current Layer):
- Dr. Depreciation Expense: ₹12,000
- Cr. Accumulated Depreciation: ₹12,000
IFRS Book (Custom 1 Layer):
- Dr. Depreciation Expense: ₹8,000
- Cr. Accumulated Depreciation: ₹8,000
  (This is the adjustment only, not the full ₹20,000)

How:

You manually calculate the difference (₹8,000) and post it using a general journal with the Custom 1 posting layer.

2. Customization
Accounting Impact:
Same as above, but automated.

STD Book (Current Layer):
- Dr. Depreciation Expense: ₹12,000
- Cr. Accumulated Depreciation: ₹12,000
IFRS Book (Custom 1 Layer):
- Dr. Depreciation Expense: ₹8,000
- Cr. Accumulated Depreciation: ₹8,000

How:

Develop a batch job or extension that:
- Compares depreciation posted in STD and IFRS books.
- Calculates the difference.
- Posts the difference automatically to the Custom 1 layer.

This ensures compliance and reduces manual effort, especially useful for large asset volumes.

3. Derived Books (Limited Help)
Accounting Impact:

Derived books replicate postings from the primary book to another layer (e.g., Custom 1), but they replicate the same amount, not the difference.

So, if you post ₹12,000 in STD:

STD Book (Current Layer):
- Dr. Depreciation Expense: ₹12,000
- Cr. Accumulated Depreciation: ₹12,000
Derived Book (Custom 1 Layer):
- Dr. Depreciation Expense: ₹12,000
- Cr. Accumulated Depreciation: ₹12,000
  (Not the required ₹8,000 adjustment)

Limitation:

You cannot configure derived books to post only the difference (₹8,000). They mirror the original transaction.

Summary Table

Option	Automation	Accuracy	Accounting Layer	Best For
Manual Adjustment	Manual	High	Custom 1	Small asset base
Customization	Yes	High	Custom 1	Large asset base, automation
Derived Books	Partial	Incorrect for this use case	Custom 1

If this helped, please mark it as "Verified" for others facing the same issue.
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