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Half year convention not calculating properly in Dynamics 365 Business Centra

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Posted on by KP-20062212-0

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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?

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Dynamics 365 Business Central

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YUN ZHU 85,670 Super User 2025 Season 1 on at

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Half year convention not calculating properly in Dynamics 365 Business Centra

Is the Residual Amount set? Hope the following can give you some hints.

https://community.dynamics.com/blogs/post/?postid=85221b92-153e-4f0c-8fe9-209984e97c4f

Thanks

ZHU
Gerardo Rentería Ga... 20,775 Most Valuable Professional on at

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Half year convention not calculating properly in Dynamics 365 Business Centra

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
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Sohail Ahmed 4,747 on at

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Half year convention not calculating properly in Dynamics 365 Business Centra

Hope this might be helpful:

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

BC's use of actual days in a period vs. your 30-day assumption.

Half-Year Convention's impact on the effective annual depreciation and total useful life calculation.

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.

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