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

Foreign Currency Revaluation in Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central (BC) allow users to account for foreign currency transactions. BC also able to translate the registered foreign currency amount into functional currency that setup in the entity using the conversion rates which setup in Exchange Table.   Due to the exchange rates fluctuate constantly, as a dollar worth in foreign currency today might not equivalent to the same foreign currency worth the next day. Hence, users are required to adjust the open documents that transact in foreign currency which include open invoices, credit memos, and advance payments. Once the open documents transacted in foreign currency is revalued, the gain and loss which calculate after comparing the closing rates at the period end will be posted to profit and loss as unrealised gain and loss, ensuring that the subledgers and general ledger can be reconciled.   This process can be done using Adjust Exchange Rate in BC, a batch job to adjust the exchange rates fo...
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 ...
Post a Comment
Read more

How to Change Item's Based Unit of Measure in Business Central

 It is quite frequent that user need to change the existing based unit of measure of an item to another scale in order to fit the operation requirement. But do take note that once there is remaining quantity in the item, an error message will pop up to prevent user from changing the unit of measure in Item Cards. Refer to the following scenario where the user need to change one of the item, from "Box" to "Pcs"  with quantity still sitting in it. User will need to setup a UOM conversion where 1 "Box" of Apple is equivalent to 50 "Pcs" of Apple. 1.     You will need to perform an negative adjustment on the item quantity. Generate the Inventory Valuation Report to c onfirm the total quantity that need to adjust out. This is to make sure that the adjustment will not impact the item valuation after the quantity adjustment, as it should remain the same value before and after the adjustment. Report Path: Search > Items > More Options > Report ...
Post a Comment
Read more