Just migrated to Business Central and the monthly depreciation doesn't match your schedule? In most cases BC isn't wrong. The accumulated depreciation migrated at cut-off was higher or lower than it should have been, and BC is correcting it over the asset's remaining life. Quick answer: BC's straight-line method doesn't simply carry on your fixed monthly amount. Each time depreciation runs, it takes the asset's current net book value and spreads it evenly over the time left until the Depreciation Ending Date . If the migrated asset was under-depreciated, BC charges more each month to catch up. If it was over-depreciated, BC charges less. How BC calculates it Depreciation = (Book Value − Salvage Value) × Depreciation Days ÷ Remaining Depreciation Days In plain words: what's left to depreciate, divided by the time left . This makes sure the asset is fully depreciated on its Depreciation Ending Date, even if the opening balance was off. Example ...
Answers to the Business Central questions I'm asked most — month-end, fixed assets, dimensions, and the ones that stop you posting. New here? Open Start Here in the menu above.