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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Depreciation Calculation
Finance | Project Operations, Human Resources, ...
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Depreciation Calculation

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Posted on by D365problems 105

Hello All, 

I've searched to see if anyone else had this issue but I was not able to locate a similar issue.  

Recently I began looking into fixed asset items that arose from when AX was implemented.  It's a implementation problem that needs reclass.  

However, one issue I noticed is that on new assets, depreciation is supposed to be straight line.  But with each month, it is subtracting depreciation from the prior month and then calculating depreciation straight line again.  

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pastedimage1592585761340v2.png

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I'm not sure if the set up is incorrect in the depreciation book or the depreciation profile or the asset itself.  

Any ideas would be helpful. 

Thank you 

Christine 

I have the same question (0)
  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 300,911 Super User 2025 Season 2 on at

    Hi Christine,

    The setup looks good for what you have shared. However, the first screenshot shows a column with '@ISN1028'. This is not a standard column. Can you verify if there are customizations causing this? I'm also aware that some countries have a slightly different way for deprecation. What is the country for this legal entity?

  • D365problems Profile Picture
    D365problems 105 on at

    Hi Andre,

    Thank you for replying.  

    Part of the problem is there are not supposed to be customizations.  It was supposed to be set up with straightline depreciation.  However, when the consultants set up the depreciation, they set up a "tax" book at double declining depreciation.  

    We do all reporting in US dollar.  

    I'm putting this question in the forum because at the time of implementing AX, anyone that was involved at the time is no longer with the company.  I'm trying to get some answers.  Looking around...

    Thank you

    Christine

  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 300,911 Super User 2025 Season 2 on at

    Hi Christine,

    The field with the label '@ISN' indicates it is not a standard environment. This could be either a customization, partner solution or ISV solution. Can you check this internally or with your partner?

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Christine,

    As Andre mentioned, please check with your system admins whether some modifications have been made for calculating and posting depreciation.

    Is this the only fixed asset that has this problem or is this something that you see for each and every fixed asset in your system?

    Best regards,

    Ludwig

  • D365problems Profile Picture
    D365problems 105 on at

    Thank you Ludwig and Andre,

    I tracked down the column '@ISN1028' is supposed to be the project number.  I would think that would not have a effect on the depreciation calculation.  

    Regarding the depreciation calculation, it is happening to all assets in the system.  

    Thank you

    Christine

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Christine,

    Is it possible that an adjustment was made that links your fixed asset depreciation to a project?

    Some people like having their depreciation amounts posted on projects in the project management and accounting module and I wonder whether something alike has been created in your environment.

    It might explain the strange amounts and behavior that you see.

    Do you have somebody from dev to look deeper into this?

    Best regards,

    Ludwig

  • D365problems Profile Picture
    D365problems 105 on at

    Hi Ludwig,

    Thank you

    I will speak with someone who was here at the time of implementation.  

    It seems a logical problem.  Because most of the assets are from projects.  

    Christine

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Christine,

    Makes sense to me.  

    Would be great if you could keep us updated about your findings.

    Many thanks and best regards,

    Ludwig

  • D365problems Profile Picture
    D365problems 105 on at

    Hi Ludwig,

    As it turns out, it's the setup.  Depreciation Profile is Straight Line service life.  AX automatically, takes the depreciation on the remaining value of the asset rather than the original value of the asset.  

    If I change the Depreciation Profile to Straight Line life remaining, it will be the correct depreciation calculation.  I am going to go into the test environment to see what correcting the profile will do.  

    Wish me luck!

    Thanks for all your help!!!

    Christine

  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 300,911 Super User 2025 Season 2 on at

    Hi Christine,

    I have seen some other challenges with Straight line which would work more smooth with Straight line life remaining. The base of the calculation is different.

    Straight line takes the original number of periods and acquisition amount where the life remaining is taking the current remaining number of periods and the current book value.

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