Skip to main content

Why business central fixed asset depreciation amount is different from my calculation

 Upon data migration to Business Central, customers often wonder why the monthly depreciation amount is different from their calculations. The only explanation we've identified so far is that the data provided for the migration inadvertently caused either over- or under-depreciation of depreciation amounts.

The following example illustrates how BC's depreciation amount will differ from your calculated amount.

        1.       The following asset was migrated to BC with the cut-off date till 31st August 2022.







        2.       You can print the Projected Value report to check on the future depreciation and book value of the asset.

Page: Projected Value






        3.       According to your book, the trend of monthly depreciation from now until December 31, 2022 is $1,000, but BC is recording $1,500 rather than your calculated amount. You can check the comparison below between BC and your migrated data to see how BC came up with the amount.

Noticed that the migrated asset is under-depreciated by $2,000 as of August 31, 2022, compared to the actual calculation. 





        4.       To make sure the asset will be fully depreciated as per Depreciation Ending Date, BC will use the Net Book Value at the point of the time divide the remaining period to Depreciation Ending Date.

The table compares the actual depreciation with the recalculated depreciation for migration 








Is there anything BC-related that I can help you with? Or even simply want to say Hi! Feel free to email me at "Hello365businesscentral" at Gmail; I will do my best to assist you.


















Labels:
Location: Kuala Lumpur, Federal Territory of Kuala Lumpur, Malaysia

Comments

Post a Comment

Popular posts from this blog

How to Correct Dimensions in Business Central

  It is quite common that users might find out that some entries might mistakenly charge to wrong dimension, which will cause inaccurate financial reporting and analysis. The classic method of rectifying this type of error is to create a manual general journal entry to reverse it. One of the popular features which available in Business Central is “ Correction Dimension ” where it allows you to correct the dimension values in General Ledger Entries age in a simple way.     Important Note 1 : Dimension Correction apply only G/L entries. They do not change the dimensions that assigned in other ledgers for the same transaction. There will be mismatch between the dimensions assigned in the general ledger and the sub-ledgers. Important Note 2 : If you need to do Dimension Correction in a large scale, say more than 100 transactions, it is advised to schedule or perform during the non-peak hours as it may cause Table Locking during posting of other transactions by other users.   Page
Post a Comment
Read more

How to Reverse Posted Documents in Business Central

  If you need to amend or change a posted documents in Business Central, there are few ways to do it instead of having you to manually create a reversal journal or Credit Memo to rectify a Posted Document. Before you proceed to Correct or Cancel any document that posted in Business Central, you need to identify the origin of the posted document, as the method of cancellation depends on the document type.   There are 2 types of documents that posted in Business Central. i.                      Journals – E.g., General Journals, Purchase Journals, Payment Journals, Sales Journals, Receipt Journals etc. ii.                    Documents – E.g., Purchase Invoice, Purchase Credit Memo, Sales Invoice, Sales Credit Memo etc.   A.       A.     C orrecting or Cancelling Journals 1.       You can “Reverse” the posted journals in General Ledger Entries page. Page: Search > General Ledger Entries   2.   Select the entry that needs to be cancelled or corrected, then select R
Post a Comment
Read more