Depreciate or Amortize FA

Depreciation is used to allocate the cost of fixed assets, such as machinery and equipment, over their depreciable life. For each fixed asset, you must define how it will be depreciated.

There are two ways to post depreciation:

Automatically, by running the Calculate Depreciation batch job.
Manually, by using the fixed asset G/L journal.

Dynamics NAV can calculate daily depreciation, which allows you to calculate depreciation for any period. You can therefore analyze current operating results on, for example, a monthly, quarterly, or annual basis. The calculation uses a standard year of 360 days and a standard month of 30 days. For more information, see Depreciation Methods.

If several departments use a fixed asset, periodic depreciation can be automatically allocated to these departments according to a user-defined allocation table.

You can cancel incorrect depreciation entries by using the Cancel FA Ledger Entries batch job. Afterward, you can post the correct amount by running the Calculate Depreciation batch job again. The errors you correct are posted as fixed asset error ledger entries.

Indexation is used to adjust values for general price-level changes. You can use the Index Fixed Assets batch job to recalculate the depreciation amounts.

To calculate depreciation automatically

Once a month, or whenever you choose, you can run the Calculate Depreciation batch job. The batch job ignores fixed assets that have been sold, are blocked or inactive, or use the manual depreciation method.

Choose the icon, enter Calculate Depreciation, and then choose the related link.
Fill in the fields as necessary. Choose a field to read a short description of the field or link to more information.
Choose the OK button.

The batch job calculates the depreciation and creates lines in the fixed asset G/L journal.
Choose the icon, enter FA G/L Journals, and then choose the related link.

In the Fixed Asset G/L Journal window, in the No. of Depreciation Days field you can see how many days of depreciation have been calculated.
Choose the Post action.

To post depreciation manually from the fixed asset G/L journal

Choose the icon, enter Fixed Asset G/L Journal, and then choose the related link.
Create an initial journal line and fill in the fields as necessary.
In the FA Posting Type field, select Depreciation.
Choose the Insert FA Bal. Account action. A second journal line is created for the balancing account that is set up for depreciation posting. For more information, see the "To set up fixed asset posting groups" section in How to: Set Up General Fixed Asset Information.
On the Home tab, choose Post to post the journal.

If you have set up fixed asset allocation keys to allocate amounts to different departments or projects, the amounts are allocated during posting. For more information, see How to: Set Up General Fixed Assets Information.

To calculate allocations in the fixed asset G/L journal

If a fixed asset is used by several departments, periodic depreciation can be automatically allocated to these departments according to a user-defined allocation table.

Choose the icon, enter Fixed Asset G/L Journal, and then choose the related link.
Create an initial line and fill in the fields as necessary.
In the FA Posting Type field, select Allocation.
Choose the Insert FA Bal. Account action. A second journal line is created for the balancing account that is set up for allocation posting.
On the Home tab, choose Post to post the journal.

Use duplication lists to prepare to post to multiple depreciation books

When you fill in journal lines to post to a depreciation book, you can duplicate the lines in a separate journal so you can post to a different depreciation book. For more information, see the "To post entries to different depreciation books" section.

Choose the icon, enter Depreciation Books, and then choose the related link.
Open the depreciation book, and then select the Part of Duplication List check box.

IMPORTANT

If you have selected the Use Duplication List field, do not use number series on the journal. The reason is that the number series for the fixed asset G/L journal does not the number series for the fixed asset journal.

To post entries to different depreciation books

Choose the icon, enter Fixed Asset G/L Journal, and then choose the related link.
In the journal that you want to post depreciation with, select the Use Duplication List check box.
Fill in the remaining fields as necessary.
Choose the Post action.
Choose the icon, enter FA Journals, and then choose the related link.

NOTE
The Fixed Asset Journal window contains new lines for different depreciation books according to the duplication list.
Review or edit the lines, and then choose the Post action.

NOTE
Another way to duplicate an entry in a separate book is to enter a depreciation book code in the Duplicate in Depreciation Book field when you fill in a journal line.

You can copy entries from one depreciation book to another by using the Copy Depreciation Book batch job. The batch job creates journal lines in the journal batch that you have specified in the FA Journal Setup window for the depreciation book that you want to copy to. For more information, see the following procedure.

To copy fixed asset ledger entries between depreciation books

Choose the icon, enter Depreciation Books, and then choose the related link.
Open the relevant depreciation book card, and then choose the Copy Depreciation Book action.
In the Copy Depreciation Book window, fill in the fields as necessary.
Choose the OK button.

The copied lines are created in either the fixed asset G/L journal or the fixed asset journal, depending on whether the depreciation book that you are copying has integration to the general ledger.