Overview
At least one depreciation book is needed to create for fixed asset depreciation.
In business central, you can create multiple depreciation books according to your business needs. Example as below:
One depreciation book - You can only depreciate fixed assets in one way, for example, based on local legal requirements.
Multiple depreciation books - You want to depreciate fixed assets in more than one way, for example, based on local legal requirements but also based on tax requirements.
Steps for setup a depreciation book;
Enter depreciation books in search and then select the related link.
Select New.
Enter a code and a description.
- Configuration in General Tab
| Field | Description |
|---|---|
| Default Final Rounding Amount | If the remaining book value after the last calculated depreciation is less than the amount in this field, the remaining value is added to the last depreciation. |
| Default Ending Book Value | Specifies the ending book value if the assets will not fully depreciated. |
| Disposal Calculation Method |
|
| Allow Correction of Disposal | Turn on this toggle for allow correct or cancel the fixed asset ledger entries for disposal |
| Allow Changes in Depr. Fields | the depreciation fields on the FA Depreciation Books page can be changed after you have posted entries. |
| Allow Indexation | Turn on this toggle if you want to allow indexation of FA ledger entries and maintenance ledger entries that are posted to the depreciation book. |
| Allow more than 360/365 Days | Trun on - fiscal year can have more than 360 depreciation days. Turn off - the program displays an error message if the fiscal year has more than 360 days |
| Use FA Ledger Check | Turn on for allow the program performs the following checks before posting a journal line:
If turn off - only the 1st two points for acquisition cost to be check before posting. |
| Use Rounding in Periodic Depr. | If turn on, the program rounds depreciations to whole numbers. |
| Use Same FA+G/L Posting Dates | The posting date and FA posting must be the same on a journal line before posting. If you do not turn on this toggle, you must enter both dates separately. |
| Fiscal Year 365 Days | The Calculate Depreciation batch job uses the calendar year of 365 days instead of the standardized year of 360 days. |
5. Configuration in Integration Tab
The Integration FastTab specifies entries to integrate with the general ledger.
How to setup a depreciation book for use of Sum of Digit method
Depreciation Table Card is needs to setup for the Sum of Digit Method,
Enter depreciation table in search and then select the related link.
Select New.
Enter a code and description.
- Enter the lines for period and period depreciation %
5. Assign the depreciation book and depreciation table into the fixed assets
- Depreciation Book Code = select the depreciation book it use the Sum of Digit method
- Depreciation Method = select User-Defined
- Depreciation Table Code = select the depreciation table
PLEASE NOTE: when you select the depreciation book code, system may prompted error for the depreciation book is not exist. This is due to the default depreciation book is not the selected book
To resolve this problem, click the link "Add more Depreciation books" than the page for depreciation book to be change to a table. You can delete the default depreciation book then add line for the decided depreciation.
Refresh the page for showing the form view to enter other information in this tab.
Example of a depreciation book for manage the FA it has ending book value.
Enter the Ending Book Value into the field of Default Ending Book Value in General Tab. Other configurations are same as standard depreciation book.
