Clarification Required on Fixed Asset Depreciation in Business Central

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Posted on by Revan Jaunt

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Hi Team, can we record fixed asset depreciation based on different tax rules in Business Central?

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Zain Mehmood 4,187 Most Valuable Professional on at

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Hi Revan,

Yes, in Business Central you can record fixed asset depreciation according to different tax rules. The system allows you to set up multiple depreciation books for each fixed asset. This means you can have one book for your company’s main accounting, and others for local tax, fiscal, or reporting requirements, each with its own depreciation method, periods, and rules.

Depreciation for each book is calculated separately, and you can post entries to the general ledger or keep them as off-ledger records (for tax-only purposes).

So, if you need to comply with different tax regulations or reporting standards, just set up the relevant depreciation books and assign them to your assets.

Hope this helps!

Regards,

Zain

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Valentin Castravet 31,551 Super User 2025 Season 2 on at

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Yes, you can set up multiple depreciation books, each with its own tax rules. This allows you to apply different depreciation methods or treatments to the same fixed asset. You can post depreciation to the fixed asset subledger using each depreciation book, which helps you track accumulated depreciation and book value separately for each one.

However, in the G/L, you can only post from one depreciation book, so only one tax rule will apply there.

You can find more information here: Set Up FA Depreciation - Business Central | Microsoft Learn

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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Revan Jaunt 375 on at

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Hi Zain and Valentin,

Thank you both for your prompt responses and for sharing your insights. I’ll review this in Business Central and get back to you shortly.

Thanks again.

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Jainam M. Kothari 15,639 Super User 2025 Season 2 on at

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Hello,

Yes, you can record fixed asset depreciation based on different tax rules in Business Central. You can set up multiple depreciation books to accommodate various methods of depreciation for different purposes, such as financial reporting and tax reporting

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YUN ZHU 95,763 Super User 2025 Season 2 on at

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Hi, hope the following helps as well.

https://learn.microsoft.com/en-us/training/modules/configure-depreciation-books/?wt.mc_id=DX-MVP-5004336

https://www.youtube.com/watch?v=qEBWLK15aQ4

Thanks.

ZHU

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Revan Jaunt 375 on at

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Hi Zain and Valentin,

Thanks for your help.

The solution really helped me.

Best regards,

Revanth J

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Valentin Castravet 31,551 Super User 2025 Season 2 on at

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Great!

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Revan Jaunt 375 on at

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Hi Team,

Good day.

I was abled to add multiple depreciation book for a fixed asset. However, I was able to add acquisition cost for company depreciation book. I need to know how to add book value for the same asset under tax depreciation book. Please assist.

Thanks & regards.

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Valentin Castravet 31,551 Super User 2025 Season 2 on at

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In fixed asset journals there's a depreciation book field, so you would just need to change the depreciation book in that field to select which depreciation book to use for the transaction you're entering.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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Gerardo Rentería Ga... 25,390 Most Valuable Professional on at

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

BUSINESS CENTRAL LESSON 39 DEPRECIATION BOOKS (Business Central Training)

Fixed Assets Depreciation Books - Microsoft Dynamics 365 Business Central - YouTube

Best Regards
Gerardo

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