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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Fixed Asset Depreciati...
Small and medium business | Business Central, N...
Answered

Fixed Asset Depreciation after Appreciation

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Posted on by Revan Jaunt 283
Hello Everyone, 
 
Good day.
 
I came across a scenario where I post a fixed asset acquisition on Jan 2025 and depreciation starting date is the also the same. 
 
The depreciation ending date would be 3 years after that date. 
 
Now the I have to post a appreciation for the above asset in the mid of May 2025. In that case, should I calculate and post depreciation first and then post appreciation? 
 
Because after I post appreciation the depreciation is calculating from the date I posted appreciation. Please recommend the right practice.
 
Thanks everyone.
 
 
Categories:
Dynamics 365 Business Central
Microsoft Dynamics NAV
  • Revan Jaunt Profile Picture
    Revan Jaunt 283 on at
    Fixed Asset Depreciation after Appreciation
    Hi Sohail & Mansi,
     
    Thank you for sharing your knowledge.
     
    Also, I noticed that for every month depreciation calculates for 30 days. However,  in case of Appreciation, it takes remaining days of the month. In my case, I posted Appreciation on 20th June.
     
    Now if try to run depreciation for June 30, the no. Of days column shows 11 days instead of 10 days. Is there any reason behind it?
     
    Thanks.
     
     
  • Verified answer
    Mansi Soni Profile Picture
    Mansi Soni 5,176 on at
    Fixed Asset Depreciation after Appreciation
    Hello,

    In your case, the best practice is to first calculate and post depreciation up to the date just before the appreciation is recorded. If you directly post the appreciation without doing so, Business Central recalculates depreciation from the appreciation date, potentially skipping earlier months. To ensure accurate and consistent depreciation, post depreciation from January to mid-May first, then record the appreciation. 

    Hope this answer will help you!

    Regards,
    Mansi Soni
  • Verified answer
    Sohail Ahmed Profile Picture
    Sohail Ahmed 4,747 on at
    Fixed Asset Depreciation after Appreciation

    the best practice for Fixed Asset depreciation after appreciation in Business Central is:

    1. Calculate and post depreciation up to the day before the Appreciation posting date.
    2. Post the Appreciation.
    3. Calculate and post depreciation from the Appreciation posting date onwards. Business Central will then correctly calculate future depreciation based on the new appreciated value and remaining useful life.

    The system is behaving as expected by calculating depreciation from the appreciation date, as the asset's value has changed. Ensure your depreciation book setup handles appreciation correctly, as this impacts the remaining depreciation.

     

     

    ✅ Mark this answer as verified if it helps you.

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