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Small and medium business | Business Central, N...
Suggested Answer

Half year convention not calculating properly in Dynamics 365 Business Centra

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We recently moved over to Dynamics 365 Business Central and are having a problem with depreciation not calculating correctly.
 
Depreciation Start Date - 09/30/2002
Depreciation End date - 12/31/2052
No of Years - 20.25277778
Depreciation Method-Straight-Line with use Half-year convention checked
 
When added:
Acquisition Cost - 10,084860.06 - 10/31/2024
YTD Depreciation - 4,543,125.82 - 10/31/2024
 
We would expect this to be 16,577.85 for November (30 days) however BC is showing 16,395.66
I am using calculate depreciation when running depreciation.
 
Any ideas?
 
I have the same question (0)
  • Suggested answer
    Sohail Ahmed Profile Picture
    11,150 Super User 2025 Season 2 on at

    Hope this might be helpful:

    The depreciation discrepancy with Half-Year Convention in Business Central is likely due to:

    1. BC's use of actual days in a period vs. your 30-day assumption.
    2. Half-Year Convention's impact on the effective annual depreciation and total useful life calculation.
    3. Internal high-precision rounding in BC.
     
     

    To diagnose: Verify the Annual Depreciation Amount on the FA Depreciation Book card, check No. of Days in Year in your Depreciation Book setup, and use the FA Ledger Entries to trace BC's exact figures.

    ✅ Mark this answer as verified if it helps you.

  • Gerardo Rentería García Profile Picture
    25,388 Most Valuable Professional on at

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

    https://learn.microsoft.com/en-us/dynamics365/business-central/fa-depreciation-methods?wt.mc_id=MVP_354389

    Best Regards
    Gerardo

  • Suggested answer
    YUN ZHU Profile Picture
    95,754 Super User 2025 Season 2 on at
    Is the Residual Amount set? Hope the following can give you some hints.
     
     
    Thanks
    ZHU

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