We have a building that was constructed and placed into used last Feb 2020 with a useful life of 20 years (240 months). The capitalized cost was CU 24,000,000 and no residual value was set. The monthly depreciation is CU 100,000
On April 30 2025, the carrying amount of the building is CU 17,700,000 (CU 24M less accumulated depreciation of CU 6.3M). The new appraised value on May 01, 2025 is CU 19,000,000 resulting to a CU 1,300,000 revaluation surplus.
No change in the remaining useful life of the building as of April 30, 2025 (240 months less 63 months = 177 months)
The new depreciation should be CU 107,344.63 (CU 19M/remaining useful life of 177 months) but D365 FO is weirdly and wrongly calculating it as follows:
(Original Cost + Revaluation Surplus) /TOTAL useful life= (CU 24M+ CU1.30M)/240 months= 105,416.67
As I understand, the new depreciation amount should equal to the new value distributed to the remaining useful life.
Are we doing anything wrong in the revaluation of the asset that causes the wrong depreciation expense calculation?
Best regards,
Eugene
